Case 1 Marquis and Almandoz Can an ethical bank support guns and fracking copy 2
EXPERIENCE
HBR.ORG
Case Study
The Experts
Christopher Marquis is an associate professor at
Harvard Business School. Juan Almandoz is an assistant professor at lESE Business School, in Barcelona.
Can an
'Ethical" Bank
Support Guns and Frac king? by Christopher Marquis and Juan Almandoz
Ken LaRoe, chairman and
CEO, First Green Bank
A
John Replogle, president and CEO, Seventh Generation
| B | HBR's fictionalized case studies present
B l dilemmas faced by leaders in real companies and offer solutions from experts. This one is based on the HBS Case Study "First Green
Bank: Bringing Bloom to Desert Landscapes"
(case no. 9-413-073), by Christopher Marquis and
Juan Almandoz. It is available at HBR.org.
s the founder and president of a new ethical bank focused on environmental sustainability. Jay
McGuane realized that he and his board needed to set guidelines about which loans to approve and which to reject on "values" grounds—and fast. In his eagerness to get the business started, he'd put the issue off. But now the bank was facing two problematic requests: one from a company involved in fracking, the other from a gun maker.
Without clear ethics rules. Jay worried that his already divided directors would fall into bitter squabbling, leading to resignations, negative media attention, and a flight of investors.
Ethical banking had seemed so benign when Jay had decided to enter the industry. Now it seemed like a hornet's nest.
A Green Vision
Jay didn't need this job. At age 50, he had years of entrepreneurship behind him. He
had founded a bank in Maryland, expanded it to six branches and $400 million in assets, and sold it for a substantial profit.
While looking for his next project, he happened to see the movie An Inconvenient
Truth and decided, during the sleepless night afterward, to build something meaningful out of his concern for the environment, his love of his native Colorado, and his knowledge of banking. The result was
Rocky Mountain Green Bank, a company
HBR.ORG
Case Study
The Experts
Christopher Marquis is an associate professor at
Harvard Business School. Juan Almandoz is an assistant professor at lESE Business School, in Barcelona.
Can an
'Ethical" Bank
Support Guns and Frac king? by Christopher Marquis and Juan Almandoz
Ken LaRoe, chairman and
CEO, First Green Bank
A
John Replogle, president and CEO, Seventh Generation
| B | HBR's fictionalized case studies present
B l dilemmas faced by leaders in real companies and offer solutions from experts. This one is based on the HBS Case Study "First Green
Bank: Bringing Bloom to Desert Landscapes"
(case no. 9-413-073), by Christopher Marquis and
Juan Almandoz. It is available at HBR.org.
s the founder and president of a new ethical bank focused on environmental sustainability. Jay
McGuane realized that he and his board needed to set guidelines about which loans to approve and which to reject on "values" grounds—and fast. In his eagerness to get the business started, he'd put the issue off. But now the bank was facing two problematic requests: one from a company involved in fracking, the other from a gun maker.
Without clear ethics rules. Jay worried that his already divided directors would fall into bitter squabbling, leading to resignations, negative media attention, and a flight of investors.
Ethical banking had seemed so benign when Jay had decided to enter the industry. Now it seemed like a hornet's nest.
A Green Vision
Jay didn't need this job. At age 50, he had years of entrepreneurship behind him. He
had founded a bank in Maryland, expanded it to six branches and $400 million in assets, and sold it for a substantial profit.
While looking for his next project, he happened to see the movie An Inconvenient
Truth and decided, during the sleepless night afterward, to build something meaningful out of his concern for the environment, his love of his native Colorado, and his knowledge of banking. The result was
Rocky Mountain Green Bank, a company