Who – the protagonist
Peter, Sustainable Procurement Manager for electric commercial vehicles at SuperCar.
What?
SuperCar is a German automotive company for mid-range vehicles.
The company was working on the production of ElectricPioneer - their first affordable mass-market electric car.
In Peter’s role, he was responsible for the sourcing of the car’s batteries and strengthening SuperCar’s agenda for transitioning to sustainable production.
Why?
Peter had to choose between two batteries and present his recommendation to his boss.
The cheaper option was FastPace, with each unit costing €6,000.
But FastPace was a new player on the market, and Peter’s colleague explained to him that the cobalt used for these batteries came from mines in the south of the Democratic Republic of Congo. Some 200,000 artisanal miners in the country, who dig their own mines in search of cobalt, aren’t monitored by official organisations. Subsequently, children as young as seven are mining. Peter was alarmed as FastPace hadn’t been transparent about its supply chain.
The other option was FullEnergy, who charged €11,000 per unit. FullEnergy was a long-established firm with a trustworthy reputation, however, high battery prices would be passed onto the customer - hardly encouraging the adoption of electric vehicles by the masses.
When?
It was in 2020 when Peter was deliberating his decision.
At that time e-mobility had still not reached the masses, with electric vehicles (including hybrids) only comprising 3.6% of all registered vehicles in Germany.
The German government’s goal was to register between seven and ten million electric vehicles in the country by 2030.
Where?
Peter knew that to transition to exclusively electric vehicles for road transport would constitute a major advance towards greater environmental sustainability.
For example, if all vehicles in the US were powered by electricity, CO2 emissions would drop by 8.4%. In the UK, it would be 12%.
Key quote
“We can only make e-mobility more affordable and increase our impact on environmentally sustainable transport if we accept the grave risk of human rights violations in our supply chain and the reputational risks that may evolve for the company, whereas the more expensive battery will have much less environmental impact because fewer people will choose electric cars.”
Peter, Sustainable Procurement Manager
What next?
Peter was torn and found himself at an ethical career crossroads.
Peter didn’t want to disappoint his boss or cause any conflict; yet both batteries had distinct advantages and disadvantages in respect to both social and environmental sustainability.
Could he solve the dilemma? What recommendation should he give his boss?
Sustainability interest
Julia said: “We all had a broad interest in sustainability, and found the conflict that can arise when social and environmental sustainability measures clash particularly interesting.
“Speaking about the case example of a German car manufacturer, which tried to both be responsible towards the environment and workers, we realised that managers in business practice often face real-life paradoxes.
“We thought it would be valuable putting this together as a case, so students gain an early understanding of a both/and mindset, instead of an either/or one.”
Keeping things simple
Julia continued: “When writing the case, we went back into the field and also conducted desk research. We found it challenging to portray a highly complex case in a simple way, as electric cars are such a difficult and technical phenomenon. We wanted to provide depth and detail, but at the same time allow for a compelling and easy-to-read story.”
Classroom experience
She explained: “We’ve taught the case in different settings and formats - online, hybrid and in-person, and in front of undergraduate and postgraduate students.
“We were surprised that even students who are part of a sustainability programme were leaning towards an either/or, good/bad logic.
“However, we were happy to see that our students developed an understanding of what complex sustainability paradoxes are and how they can be handled.”
Taking students by surprise
Julia added: “Overall, most students thought the goal of the case was to pick a side or make a yes/no judgement. Most students were surprised when learning that a both/and solution is most valuable in complex situations.”
Case writing tips
Julia concluded: “We had a really good experience producing the case as a bigger team. While each team member had a clear task throughout the process, it was valuable to meet regularly to discuss findings and preliminary conclusions.”
The case
Who – the protagonist
Peter, Sustainable Procurement Manager for electric commercial vehicles at SuperCar.
What?
SuperCar is a German automotive company for mid-range vehicles.
The company was working on the production of ElectricPioneer - their first affordable mass-market electric car.
In Peter’s role, he was responsible for the sourcing of the car’s batteries and strengthening SuperCar’s agenda for transitioning to sustainable production.
Why?
Peter had to choose between two batteries and present his recommendation to his boss.
The cheaper option was FastPace, with each unit costing €6,000.
But FastPace was a new player on the market, and Peter’s colleague explained to him that the cobalt used for these batteries came from mines in the south of the Democratic Republic of Congo. Some 200,000 artisanal miners in the country, who dig their own mines in search of cobalt, aren’t monitored by official organisations. Subsequently, children as young as seven are mining. Peter was alarmed as FastPace hadn’t been transparent about its supply chain.
The other option was FullEnergy, who charged €11,000 per unit. FullEnergy was a long-established firm with a trustworthy reputation, however, high battery prices would be passed onto the customer - hardly encouraging the adoption of electric vehicles by the masses.
When?
It was in 2020 when Peter was deliberating his decision.
At that time e-mobility had still not reached the masses, with electric vehicles (including hybrids) only comprising 3.6% of all registered vehicles in Germany.
The German government’s goal was to register between seven and ten million electric vehicles in the country by 2030.
Where?
Peter knew that to transition to exclusively electric vehicles for road transport would constitute a major advance towards greater environmental sustainability.
For example, if all vehicles in the US were powered by electricity, CO2 emissions would drop by 8.4%. In the UK, it would be 12%.
Key quote
“We can only make e-mobility more affordable and increase our impact on environmentally sustainable transport if we accept the grave risk of human rights violations in our supply chain and the reputational risks that may evolve for the company, whereas the more expensive battery will have much less environmental impact because fewer people will choose electric cars.”
Peter, Sustainable Procurement Manager
What next?
Peter was torn and found himself at an ethical career crossroads.
Peter didn’t want to disappoint his boss or cause any conflict; yet both batteries had distinct advantages and disadvantages in respect to both social and environmental sustainability.
Could he solve the dilemma? What recommendation should he give his boss?
Author perspective
Sustainability interest
Julia said: “We all had a broad interest in sustainability, and found the conflict that can arise when social and environmental sustainability measures clash particularly interesting.
“Speaking about the case example of a German car manufacturer, which tried to both be responsible towards the environment and workers, we realised that managers in business practice often face real-life paradoxes.
“We thought it would be valuable putting this together as a case, so students gain an early understanding of a both/and mindset, instead of an either/or one.”
Keeping things simple
Julia continued: “When writing the case, we went back into the field and also conducted desk research. We found it challenging to portray a highly complex case in a simple way, as electric cars are such a difficult and technical phenomenon. We wanted to provide depth and detail, but at the same time allow for a compelling and easy-to-read story.”
Classroom experience
She explained: “We’ve taught the case in different settings and formats - online, hybrid and in-person, and in front of undergraduate and postgraduate students.
“We were surprised that even students who are part of a sustainability programme were leaning towards an either/or, good/bad logic.
“However, we were happy to see that our students developed an understanding of what complex sustainability paradoxes are and how they can be handled.”
Taking students by surprise
Julia added: “Overall, most students thought the goal of the case was to pick a side or make a yes/no judgement. Most students were surprised when learning that a both/and solution is most valuable in complex situations.”
Case writing tips
Julia concluded: “We had a really good experience producing the case as a bigger team. While each team member had a clear task throughout the process, it was valuable to meet regularly to discuss findings and preliminary conclusions.”
