Case Problem 2-A JUST, Inc. Wants to Revolutionize the Egg Industry Joshua Tetrick, the founder and CEO of JUST, Inc. launched his company in 2011 when it was named Hampton Creek. The purpose of the San Francisco based company was to create healthier, affordable food, with less of a negative impact on the environment than foods such as natural eggs, chicken, and beef. Early products included plant-based Just Mayo and Just Cookie Dough, with ingredients such as Canadian yellow pen and sorghum which were designed to be sustainable, less expensive alternatives to eggs. Just Mayo is an egg-free mayonnaise substitute. JUST. Inc. has varied its product mix several times, and today concentrates on spreads, dressings, cookie dough, and its key product Just Egg (described below), Billionaire investors jumped in on this trendy food idea shortly after Hampton Creek was founded. During its early years. Hampton Creek was mired in scandal and legal battles. The company was accused of having employees purchase Just Mayo from retail stores in order to inflate sales. Employees were in- structed to pose as doubtful or noncommittal con- sumers, and to buy large quantities of their own mayonnaise. At the same time. Hampton Creek con- tractors were instructed to telephone store managers and inquire about Just Mayo while pretending to be interested customers. Tetrick told news reporters that the purchases were simply an unorthodox method of testing the quality of the product. The CEO later informed employees about a subsequent investigation by the Justice Department and the Securities and Exchange Commission. The U. S. Food and Drug Administration Issued an official warning in 2015 demanding that Hampton Creek modify its label over inaccurate health and nutrition claims. Many anonymous Hampton Creek employees accused the company of overlooking the science related to its products, and misrepresenting, the research it cited. The FDA complaint was resolved) later in 2015 when the company agreed to change its labeling while keeping the "Just Mayo" branding intact. In June 2017 the company faced another challenge. Actor Jaden Smith, the son of actor and former rapper Will Smith, filed suit against Just and Joshua Tetrick. Jaden Smith is the co-founder of the sustainable water bottle company, Just Water. Smith's lawsuit alleged that Tetrick copied his company name and violated a 2014 trademark agreement between his company and the mayonnaise brand that specified the conditions under which the word "Just' could be used. In 2019, JUST, Inc. was seeking more than $200 million in new funding, while simultaneously trying to downplay any past mistakes, notably not exercising careful quality control over ingredients or giving the impression of inflating sales figures at the retail level. While the company was seeking new funding, demand was strong for the key product. Just Egg. The product is an egg substitute, or vegan egg, that contains the same amount of protein as a chicken egg, with zero cholesterol. JUST Egg is claimed to look, cook, and taste just like scrambled eggs. Although JUST Egg performs best as an egg substitute, it can also be used for French toast, fried rice, quiches, and omelets. The egg substitute is a successful product, for sale in over 5,000 stores in the United States. The grocery chain Kroger sells JUST Egg in the egg department, rather than being shelved in the alternative protein section. In 2019. Tetrick said. "Right now the company is JUST Egg and JUST Egg is the company" About 77 percent of the consumers who buy JUST Egg are not vegans or vegetarians. About 35 percent of people who purchase JUST Egg are purchasing it instead of plant-based proteins such as veggie burgers, or beef, chicken, and pork. Tetrick pointed that that many college educated women like JUST Egg, saying that they are trying to eat good, clean protein products that are free of antibiotics, and sustainable. Case Questions 1 What, if any, ethical violations do you think JUST, Inc. committed? social responsibility? In 2017, Target removed the brand from its shelves, pointing to food safety concerns about the Just prod 2 In what ways is JUST, Inc. showing good corporate acts. One of the allegations was that Hampton Creek products were being mislabeled as non-genetically modified organisms (GMO). 3 In what ways is JUST, Inc. showing poor corporate social responsibility? 4 What would you recommend to JUST, Inc. management so that the company stays out of future legal trouble and embarrassments? Source: Original case based on information in the following sources: lan Agar, "Just Inc. Raising $200M Amid Controversial Past," Pitch Book (www.pitch.com), February 20, 2019, pp. 1-3; Elaine Watson, "Just, Inc. CE Company. F Monica Watro News (www.f Startup Scan and Katie Ben Inquiry," www Case Problem 2-B Urban Financial Feels the Squeeze Troy is the CEO of Urban Financial, a payday lender with 25 locations. The core business at Urban is to lend consumers advances of between $100 and $500 to stay in to set up welcomed