THE SEVENTH GENERATION DILEMMA
Patrick Elie & Emmanuel Raufflet
HEC Montreal
Case Objectives and Use
After using this case, students will be able to understand how visionary leadership, values, and
internal processes operate in an entrepreneurial firm committed to sustainable development;
understand better how corporate values and culture influence how a strategic decision is made;
and grasp the dilemma between a fast growth opportunity and consistency with the company’s
core values. This case is intended for graduate, MBA and postgraduate courses which discuss
management issues in relation with corporate social responsibility (CSR) and the environment.
Case Synopsis
Seventh Generation is the nation's leading brand of non-toxic and environmentally safe
household products. This case is based on a true dilemma Seventh Generation went through in
2003 when Wal-Mart Canada contacted them for the distribution of their products. While WalMart’s offer represented a growth opportunity for Seventh Generation, it also generated intense
internal discussions amongst management and employees. Corporate Social Responsibility
(CSR) is a core value for Seventh Generation while several members of Seventh Generation
questioned Wal-Mart’s corporate practices and employee treatment. The case illustrates the
internal discussions that occurred inside Seventh Generation, especially concerning the potential
risks associated with becoming a Wal-Mart supplier.
The case examines more specifically the Seventh Generation dilemma from the stand points of
Jeffrey Hollender, General Manager, and of Gregor Barnum, Director of Corporate
Consciousness both at Seventh Generation. Although Hollender and Barnum agree on the final
decision not to go through with the partnership with Wal-Mart, they see opportunities and threats
in different instances. Managers explain the many reasons why they consider this partnership as
a growth opportunity for new markets, but also as a threat to the core values of Seventh
Generation.
The case is based on the Seventh Generation’s history timeline and on the events and discussions
that preceded the final decision on the partnership offer from Wal-Mart. Appendices offers
detailed information on Seventh Generation, on Wal-Mart and on the household products
consequences on the environment.
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The authors developed the case for class discussion rather than to illustrate either effective or ineffective handling of
the situation. The case, instructor’s manual, and synopsis were anonymously peer reviewed and accepted by the
North American Case Research Association (NACRA) for its annual meeting, October 27-29, 2005, North
Falmouth, MA. All rights are reserved to the authors and NACRA. © 2005 by Patrick Elie and Emmanuel Raufflet.
Contact person: Emmanuel Raufflet, Department of Management, HEC Montreal, 3000 Chemin de la Côte Ste
Catherine, Montréal, Quebec, Canada, H3T 2Ay, (514) 340-6196, emmanuel.raufflet@hec.ca