ABSTRACT
A company with which the authors are familiar (GCI, a fictitious name) is in the business of distributing organic and natural products. It has had strong growth of both sales and earnings over the last 10 years, and one of its biggest strengths is the long-standing and trusting relationships it has built with its customers. GCI is known for treating employees well, and the employees are proud of GCI’s commitment to sustainability and social responsibility. Recently, GCI was approached by a “big box” retailer, potentially representing over $300m annual business. If the deal were made, GCI would become the largest supplier of organic produce and other natural foods in its stores, with great growth projections. At the “eleventh hour” in negotiations, the big box retailer asked GCI to add several non-sustainable and non-natural products into its scope of supply, including motor oil and anti-freeze. This is the last step before signing the contract. What should GCI do? Which stakeholders matter most? What about its commitment to sustainability? What wise decision can be reached?
