Instructor Resource
Rowe, Cases in Leadership 5e
SAGE Publications, Inc., 2019
Case Notes
Case 8.1: Veja: Sneakers with a Conscience
Kim Poldner wrote this teaching note under the supervision of Professor Oana Branzei as an aid
to instructors in the classroom use of the case Veja: Sneakers with a Conscience, No.
9B10M089. This teaching note should not be used in any way that would prejudice the future use
of the case.
Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or
transmission without its written permission. Reproduction of this material is not covered under
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Teaching Note
Case Overview
This case portrays the founding and growth of Veja, the world’s first eco-sneaker company, in
the broader context of the evolution of the fashion industry and the emergence of the eco-fashion
movement. By September 2010, the five-year-old venture had become a reference in ethical
fashion and an inspiration for other eco-fashion start-ups. Its path, its successes and its
aspirations made it a perfect acquisition target; like-minded large companies had already
approached the two founders, but they were not yet ready to sell.
Decision
The decision facing Kopp and Morillion is whether to stay the course and grow Veja as a stand-
alone brand or to seek a like-minded partner that would preserve the brand and the sustainable
practices the founders had been developing since the company’s inception. As students grapple
with this decision, they need to weigh the interests of the business against the broader interests of
the eco-fashion movement. Is the movement better served by flagship ventures such as Veja,
which may inspire new entrants to pursue their visions of sustainable production and
consumption? Or is it better served by large companies who can “mainstream” emerging brands
Teaching Purposes
1. To discuss the intersection of markets and social movements, focusing on how
individual business may shape and benefit from these social movements. What Veja
chooses to do may well influence others’ decisions, such as whether to enter, to
“grow it alone” or to sell to big firms. The main issue in the case is multi-layered
2. To understand the venturing process from a sustainability perspective, unpacking
each process, each supply chain link and each relationship to understand how the
sustainability mindset distinguishes the Veja sneakers—every step of the way.
3. To probe the synergies and trade-offs between economic and social value creation to
reach an understanding of the multi-layered embeddedness of sustainability-oriented
ventures within different consumers groups and stakeholder groups.
Teaching Format
The case can be taught using three alternative formats:
1. An 80-minute class (see Exhibit TN-1) focuses on the decision and takes students
beyond the apparent win–win tone of the case to explore the deeper issues associated
2. A double class (see Exhibit TN-2) provides the opportunity for a two-stage, in-class
role play. The first stage provides a recommendation, accompanied by a detailed
action plan. The second stage introduces a similar venture, Oliberté (see Exhibit TN-
3. This case can be used in a case competition or with an executive audience, by
creating a sense of urgency on the key decision (hold or fold). This format culminates
Teaching Overview
The case is ideally suited for core and elective courses on social entrepreneurship or on strategy
and sustainability. Students are challenged to combine their knowledge of competitive strategy
with the constraints and challenges of building a social enterprise. The case can explore three
main themes: (1) triple-bottom-line organizing (specifically the complexities of building a
Instructor Resource
Rowe, Cases in Leadership 5e
SAGE Publications, Inc., 2019
Teaching Format
The case requires that students have a grasp of the fundamental principles of strategy and
sustainability. It is designed for introductory HBA, MBA or executive MBA classes dealing with
social value creation or social entrepreneurship, or both. More advanced students with a stronger
background in sustainability issues (i.e. those in specialized masters’ programs or those taking
second-year MBA electives) can also benefit by exploring in greater depth the dynamics between
individual ventures and social movements.
Case Preparation Questions
1. Is Veja more or less successful than other brands in the ethical fashion movement?
Explain your criteria.
2. In which key ways does Veja’s business model differ from that of conventional
fashion industry firms? What role do those differences play in terms of partnership
and acquisition?
3. How did the founders build the brand? Did they use any magic ingredients, or was it
business as usual?
Overview of Case Analysis
The teaching plan in Exhibit TN-1 guides the discussion through this sequence of questions.
1. Is Veja more or less successful than other brands in the ethical fashion movement?
Explain your criteria.
Veja was a fairytale story: the company paid off its loan in its first year (after launching its first
Instructor Resource
Rowe, Cases in Leadership 5e
SAGE Publications, Inc., 2019
2. In which key ways does Veja’s business model differ from that of conventional fashion
industry firms? What roles do those differences play in terms of partnership and
acquisition?
Veja paid two to seven times more for inputs (in part because it used unusual inputs and
production methods and priced inputs from the suppliers’ point of view to ensure quality of life,
not from a cost-minimizing point of view but to optimize efficiency). However, its net margins
3. How did the founders build the brand? Did they use any magic ingredients, or was it
business as usual?
The founders did what they loved; they did it the way they felt was right, and they treated
everyone fairly. Although Kopp and Morillion had many opportunities to cut corners, they did
4. How did Veja’s founders choose brand, product and process extensions?
Since its very beginning, Veja used art as a method to reach its audience. One of its very first
public presentations involved a Favela Chic art performance.
5. Provide your best estimate of Veja’s worth? What considerations have you included in
your valuation?
Because the case provides few numbers, the valuations will necessarily be subjective, but telling
nonetheless. Valuations can range from $20 million—in which case, entrepreneurs itching to
6. If Veja were to sell to Timberland, what would be the consequences on the ethical
fashion industry and the conventional fashion industry?
The jury is still out on the three prior decisions summarized in the case. The decision to sell will
have both positive consequences, such as encouraging new entrants and urging struggling
Readings
T. Brown and J. Wyatt, “Design Thinking for Social Innovation,” Stanford Social Innovation
Review, winter 2010, pages 31–35.
This short article makes a compelling case for the importance of (re)kindling design
thinking when addressing complex social and environmental problems. It indirectly makes a case
for design-oriented ventures such as Veja.
Resources
For instructors wishing an in-depth look at several background documents on the ethical fashion
movement, we recommend the following publicly accessible documents and documentaries (see
also Exhibit TN-4):
Instructor Resource
Rowe, Cases in Leadership 5e
SAGE Publications, Inc., 2019
Video
We strongly recommend the instructor show the class any combination of five short, upbeat
videos available free of charge on the Veja website (and embedded in various eco-fashion
newsletters). These short clips take students to the thick of the action and evoke a vivid sense of
what Veja is all about:
Instructor Resource
Rowe, Cases in Leadership 5e
SAGE Publications, Inc., 2019
Introduction
Veja founder François Morillion talks about the original idea behind the company and how he
and his business partner Sébastien Kopp started Veja. He explains why they decided to
manufacture their sneakers in Brazil and why Brazil was the ideal country to found Veja.
Sub-segments
• The original idea
• Why Brazil?
Business Model
Veja founder François Morillion explains the value chain, from buying raw materials directly
Sub-segment
• How we work
Market
Veja founder François Morillion talks about the positioning of their products and how they went
about creating a market for eco-fashionable sneakers. He explains why Veja produces on demand
Sub-segment
• Fight Nike?
Instructor Resource
Rowe, Cases in Leadership 5e
SAGE Publications, Inc., 2019
Art
Veja founder François Morillion tells the story of how the company initiated an exhibition with
graffiti artists from São Paulo. Veja has always involved socially conscious artists in their
Sub-segment
• Aesthetics
Additional visuals about Veja’s Collections (photos and short video-clips featuring Veja
products in different collections) are available to the public can be accessed free of charge at the
following links:
Other Video Resources