Case Name :      Goldlake / Eurocantera Honduras

Authors :           Sinan Erzurumlu, Marty Anderson, Assheton L. Stewart Carte

Source:              Babson College

Case ID:             BAB205

Discipline :        Operations Management

Case Length :    11 pages

Solution sample availability : YES

Plagiarism : NO (100% Original work)

The GOLD Group, an international for-profit Italian holding company, has long fostered an entrepreneurial tradition of entering into new markets with innovative business models. GOLD launched Goldlake, a mining industry investment company, through its subsidiary Eurocantera in Honduras. Goldlake considered its organizational goals to be commercial viability and the environmental and social impacts of its business decisions on reputational and financial value. This case focuses on how Goldlake developed values based on principles of human and environmental sensitivity, and how it turned the social innovation of community inclusiveness into a competitive advantage. The case demonstrates how social responsibility applies to organizational practices by placing environment and people at the center of a business model and how sustained competitive advantage depends on stakeholder involvement in the supply chain. The case reveals the organizational complexity and rewards of social innovations and suggests a strategic perspective for social and commercial value generation.