begin the case review discussion of these issues, Hoch led his students through an exercise designed to discuss the risks that Tiffany faced in pursuing one of two scenarios: Doing Nothing versus Doing Something. Doing Nothing,Gucci Necklaces, various class members concluded, offered a range of consequences and risks:

· Potentially damages brand equity, leaving Tiffany open to attack by an NGO or another organization and making the company vulnerable to criticism. As the case study noted, “Targeting brands was like discovering gunpowder for environmentalists.”
· Creates the potential for a crisis of consumer confidence, which translates into a risk for sales.

· Brings into question Tiffany’s commitment to being an ecology-minded company, creating a negative “halo” for the company. The silent, subtle approach might actually compromise Tiffany’s existing environmental strategies and its ability to attract socially responsible investors.

· Forces the company to operate from a stance of damage control, responding to agendas framed by others; forces company into a position of responding only “after the fact” at a time when rumor mills threaten to diminish any company response.

· Creates a negative perception of the company for its own employees and lowers employee morale.

But Doing Something, the students noted, brings risks,
· Increases costs incurred by ensuring that metals are procured from valid sources and pronounced “clean.” Increases costs incurred by advertising to show that you are taking a stand for responsible mining and environmental protection.