A Social Cooperative Needs Saving: When Sales are Based on Values Sharing (a)

Abstract

In March 2014, Marco and Nicola were anxious. They were preparing for a meeting that would be vital to the future of Paolo Babini, a social cooperative that they led, that served the people of Forli, Italy. Due to a 30% cut in Paolo Babini's funding, Marco and Nicola were going to pitch a new project to the cooperative's supervisory board that would help the organization become more financially self-sufficient.This case is part of the Giving Voice to Values (GVV) curriculum. To see other material in the GVV curriculum, please visit http://store.darden.virginia.edu/giving-voice-to-values. Excerpt UVA-OB-1205 Rev. Oct. 26, 2017 A Social Cooperative Needs Saving: When Sales are Based on Values Sharing (A) It was a cloudy day in March 2014 in Forli, Italy. Marco and Nicola were anxious. They were preparing for a meeting that would be vital to the future of Paolo Babini, a social cooperative that they led that served the people of Forli. Due to a 30% cut in Paolo Babini's funding, Marco and Nicola were going to pitch a new project to the cooperative's supervisory board that would help the organization become more financially self-sufficient. Without a new source of revenue, the organization would shrink substantially, meaning that fewer of the people who needed Paolo Babini's services would be able to receive them. Marco and Nicola knew, on the one hand, this could be the last chance to gain economic security for their organization but, on the other hand, that opening a restaurant could be perceived as a profound change in Paolo Babini's operating model and image. And this change could compromise the stakeholders' perception of the value of the organization, and Paolo Babini could lose their support. Although Marco and Nicola had determined that pursuing the new project was the right course of action, they knew that convincing key stakeholders would be challenging. Paolo Babini . . .