Scotts Miracle-Gro: Mandatory Employee Wellness Programs

Abstract

Executives at Scotts Miracle-Gro, a Massachusetts lawn and garden products manufacturer, had a passion for employee wellness, and all employees, from the CEO to front-line workers were required to participate. In September of 2006, one month ahead of a transition to a smoke-free environment in all Scotts’ facilities, employee Scott Rodrigues was fired. His offense? Smoking on his own time, at home. Even though the company violated no labor laws, the move jeopardized both employee morale and the company’s hard-earned reputation as a great place to work. Communication officials must determine how to deal with the resulting damage.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

You are not authorized to view Teaching Notes. Please contact your librarian for instructor access or sign in to your existing instructor profile.

Resources

Figure 1

Figure

The Scotts Miracle-Gro Company Consolidated Statements of Operations for the fiscal years ended September 30, 2005, 2004 and 2003 (in millions, except per share data)

2005

2004

2003

Net sales

$2,369.30

$2,106.50

1,941.6

1,230.8

Cost of sales

1,509.20

1,313.50

0

Restructuring and other charges

(0.3)

0.6

9.1

Gross profit

860.4

792.4

701.7

Operating expenses:

    Selling, general and administrative

633.8

540.7

472.9

    Impairment, restructuring and other charges

33.2

9.1

8.0

    Other income, net

(7.5)

(10.2)

(10.8)

Income from operations

200.9

252.8

231.6

Costs related to refinancing

1.3

45.5

Interest expense

41.5

48.8

69.2

Income before income taxes

158.1

158.5

162.4

Income taxes

57.7

58.0

59.2

    Income from continuing operations

100.4

100.5

103.2

    Income from discontinued operations

0.2

0.4

0.6

Net income

100.60

100.90

103.80

Source : Scotts Miracle-Gro 2005 Annual Report

Additional References

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles