Abstract

The case study describes the social impact model put in place by Cotopaxi. The company considered sustainability at every stage of the product’s life cycle and supply chain to become the first B Corp certified company in the US. The case also touches upon how the company caught the attention of millennials through various promotional activities. The case first touches upon the inspiration that led to the founder’s incorporation of the company and how they caught the attention of millennials through various promotional activities. It then describes the social impact model of Cotopaxi that had a social-focused mission. Every piece of outdoor gear and apparel sold was tied to a humanitarian cause in the world’s poorest countries, especially healthcare, education, and livelihood. The company also launched the Cotopaxi Foundation to partner with various non-profits to distribute 1% of revenues in the form of multi-year grants. It was the first B Corp certified company in the US. Cotopaxi decided to consider sustainability at every stage of a product’s life cycle. In 2022, Cotopaxi planned to expand its use of repurposed and recycled materials and offer customers options to increase the lifespan of its products to prevent them from throwing the products away. The question is, can Smith balance his vision of social impact with the demands for scaling up the business and provide returns to Bain Capital Double Impact. Will he need to tweak his social impact business model in order to grow rapidly?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Describe the concept of circular economy
• Become aware of digital native brands
• Examine the revenue model of a Social Enterprise
• Differentiate between socially responsible and non-profit businesses
• Recognize how to build a brand with purpose in the mainstream business

Keywords

Sustainable Supply chain; UNSDG; Social impact business model; Digitally native brand; Sustainable Products; Product Design; Responsible Business ; Circularity; Sustainability