This case is based on primary data collected via interviews with the CEO of the company. The authors obtained the case release form to publish this case.
Various stakeholders, regulators, environmental activists and public awareness have increased companies’ pressure to contribute to environmental issues. However, the pressure seems to be more on large-scale companies to make progress and have an elaborate vision and goals related to environmental issues than small and medium enterprises (SMEs).
This case deals with the sustainability focus of the CEO of Ruscombe Artisan Food & Drink Ltd. (Made for Drink), an SME in the UK with a voluntary environmental impact investment proposal under consideration while having losses since 2017.
The case integrates the financial aspects and environmental considerations into this strategic investment evaluation process for making a capital investment decision. The case provides the actual financials of the company, including the income statement, balance sheet and cash flow statement of the company since its inception in 2017.
The case information enables students to comprehend and evaluate the consequences of doing a voluntary environmental capital investment project. The students will have the opportunity to apply simple capital investment methods and consider the external and less tangible environmental benefits in their final decision-making.
The case is suitable for undergraduate accounting or management modules, mainly introductory modules such as Managing Financial Resources, International Accounting, Finance, Introductory Corporate Finance, Basic Financial Literacy and Entrepreneurship.
