Instructor Resource
Rowe, Cases in Leadership 5e
SAGE Publications, Inc., 2019
Case Notes
Case 13.1: Calvert Investments: Environment, Social, and Governance
Sustainability
Chantal van Esch, Benjamin Cooper, and Jingya Zou wrote this teaching note under the
supervision of Professors Chris Laszlo and Katherine Gullett as an aid to instructors in the
classroom use of the case Calvert Investments: Environment, Social, And Governance
Sustainability, No. 9B17M017. This teaching note should not be used in any way that would
prejudice the future use of the case.
Teaching Note
Synopsis
This case discusses Calvert Investments (Calvert) and the evolving market for socially
responsible investing (SRI). The case focuses on the changing demographics of investors and
financial advisors—specifically, an increase in the number of women and millennials—and its
effect on investment management companies.
Learning Objectives
This case was designed to help students understand that multiple factors go into a business’s
plans for the future. In general, the case focuses on the implications of changing demographics
and sustainable decision-making, and therefore is ideal for an introductory management or
Relevant Readings
The following websites provide supplementary details that students may find helpful as
background information for this case:
• Calvert’s website contains general information about responsible investing and specific
information about the company: “Overview,” Calvert Investments, accessed September 1,
2016, www.calvert.com/approach/overview.
• The U.S. Census Bureau contains substantial demographic data: “Home Page,” United
States Census Bureau, accessed September 1, 2016, www.census.gov.
Instructor Resource
Rowe, Cases in Leadership 5e
SAGE Publications, Inc., 2019
• The Forum for Sustainable and Responsible Investment is a non-profit association with
many articles discussing sustainable, responsible, and impact investing: “Home Page,”
US SIF, accessed September 1, 2016, www.ussif.org.
Assignment Questions
1. What is Krumsiek’s role as CEO of an investment company? What should she do
about the changing marketplace? If hired as a consultant, what advice would you offer
Krumsiek?
Instructor Resource
Rowe, Cases in Leadership 5e
SAGE Publications, Inc., 2019
2. Describe Calvert’s strengths. How will these strengths help Calvert adjust to the
shifting demographics of its customer base?
3. Should Calvert change its strategy in response to shifting demographics? If yes, how?
Suggested Activity
Once students have had an opportunity to discuss the case as a group and as a class, students can
be asked to write a memo from Krumsiek to Calvert. This memo should demonstrate the
Teaching Plan
This case can be presented in a regular 90-minute class, which will allow ample time for
discussion and deliberation among students. The additional Suggested Activity assignment can
be done either in class (for longer classes) or as a take home assignment. The case can stand
alone without any additional readings, but the instructor may want to assign supplementary
readings on leadership, diversity, or values and strategy, unless these topics have already been
covered by the class. Krumsiek’s TEDxTalk video (see “Relevant Readings”) can be used to
introduce the protagonist before or after discussing the case.
10 minutes
Welcome and introduction: The instructor introduces the case study to the
class.
15 minutes
Case reading: Students read the case study individually and form their own
thoughts and opinions about the situation.
10 minutes
Introduction of the dilemma: How should Krumsiek deal with the changing
demographics while maintaining Calvert’s unique position?
Instructor Resource
Rowe, Cases in Leadership 5e
SAGE Publications, Inc., 2019
Analysis
1. What is Krumsiek’s role as CEO of an investment company? What should she do about
the changing marketplace? If hired as a consultant, what advice would you offer
Krumsiek?
The main dilemma of the case is “How should Krumsiek deal with the changing demographics
while maintaining Calvert’s unique position?” The class discussion can focus on a number of
different areas, based on what the students determine as being most important. The most likely
student responses may focus on the female demographic, the millennial demographic, the
financial advisors, or some combination of these topics. Some students may raise more creative
solutions or different concerns.
Instructor Resource
Rowe, Cases in Leadership 5e
SAGE Publications, Inc., 2019
• Metrics: Some students may raise the issue that metrics have not been developed to
determine track records of ESG sustainable investments. They may suggest that the
• Bottom line: Some other students may encourage Krumsiek to focus on the bottom line
• Employees: Another discussion point could be the possibility of focusing on employees
instead of customers. Although Calvert would strongly support this option, students
2. Describe Calvert’s strengths. How will these strengths help Calvert adjust to the shifting
demographics of its customer base?
The most apparent of Calvert’s strengths lies in Calvert’s leadership in ESG sustainable
investing since apartheid. Calvert was one of the first companies to offer this type of investment,
and therefore is a well-known leader in the field. Thus, Calvert also has built strong
relationships, as exhibited by its work with the United Nations and other key players in the
3. Should Calvert change its strategy in response to shifting demographics? If yes, how? If
no, why not?
Students may answer this question with either a positive or negative response. The chosen stance
will depend largely on the students’ own personal experiences, learning, openness to change and
risk, and definition of change and strategy. Regardless of what students choose, they should be
able to explain why a company with Calvert’s values would or would not change, and how that
decision will affect the future of the company.
4. Should Calvert collaborate with others (investors, advisors, companies, non-
governmental organizations)? If yes, in what way and toward what purpose?
Clearly, Calvert does not operate in a vacuum. A company that chooses not to collaborate will
soon find itself useless and irrelevant. However, with whom should Calvert choose to work with?
In what capacity should Calvert collaborate? These are very interesting questions for students to
address.
What Happened
Since the case was written, Calvert has maintained its standing as a leader in ESG sustainable
investing. John Streur assumed full responsibilities as CEO in 2015 and is now facing new