Positive Deviance on the Ethical Continuum: Green Mountain Coffee as a Case Study in Conscientious Capitalism

Increasingly, stories are emerging about businesses that engage in ethical behaviors above and beyond mere compliance with regulations. These positive deviations along the ethical continuum provide an opportunity to explore how some companies’ business philosophy leads them to pursue an array of outcomes beyond the bottom line. This paper presents a case study of Green Mountain Coffee Roasters, the leading ethical company in the United States as rated by Forbes magazine, exploring the company culture and operating philosophy from a perspective of conscientious capitalism. The three underlying assumptions of conscientious capitalism are: (1) interconnectedness between individuals, businesses, and global society; (2) wealth as a holistically understood state rather than solely a financial status; and (3) relevant time spanning multiple generations. Implications are offered for commerce, business practitioners, and educators.     

COLLUSION AND OVERLENDING

This study provides a theoretical background for collusion-induced overlending being the main cause of the 1997 Korean financial crisis. Our model consists of a lending institution, a borrowing chaebol of an unknown type, and an informed politician who can influence lending decision. We show that collusion can be formed between a low-type chaebol and the politician, and it may not be the lending institution's best interest to deter such collusion. This equilibrium, however, is possible only when the economic environment is favorable. When the economy deteriorates, the expectations of the fall of the collusion equilibrium can trigger financial crisis. (JEL G30, D82, O16)