Question
Summary: As the founder of a new ethical bank focused on environmental sustainability, Jay McGuane realizes that he has to come up with clear rules
Summary: "As the founder of a new "ethical" bank focused on environmental sustainability, Jay McGuane realizes that he has to come up with clear rules about how the board should make decisions on "values" grounds--and quickly. Already, the bank is facing loan approvals involving two hot-button issues. Without clear guidelines, the bank's directors may fall into bitter squabbling, which could lead to resignations, negative media attention, and a flight of investors. Expert commentary comes from Ken LaRoe, chairman and CEO of First Green Bank, and John Replogle, president and CEO of Seventh Generation."
https://hbr.org/2014/04/can-an-ethical-bank-support-guns-and-fracking
- What is the situation and what do you actually know about it from reading the case?
- What issues are at stake?
- What questions do you have and what information do you still need? Where and how could you find it?
- What problems need to be solved?
- What are all the possible options? What are the pros and cons of each option?
- What are the underlying assumptions for the parties in the case and where do you see them?
- What criteria should you use when choosing an option? What does that mean about your assumptions?
- What kind of financial analysis would best help you make decisions about the business options in this case?
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