Ben And Jerry's: The Social Implications Of Business

In the article, “The Social Responsibility of Business Is to Increase Profits,” Friedman states that “businessmen believe that they are defending free enterprise when they proclaim that business is not concerned merely with profit but also with promoting desirable social ends.” This social responsibility is defined as Corporate Social Responsibility (CSR), which is the belief that “corporations owe a greater duty to their communities and stakeholders” by having a “social conscience.” This, among other things, includes being environmentally responsible, contributing to non-profit organizations, and eliminating discrimination.

The success of a company will depend on the principles of moral and ethical behaviors in society. Social media platforms such as Facebook, Twitter, and Reddit are making it more difficult for companies to get away with unethical behavior. In the future companies that will remain profitable have to look at putting profit on equal levels with people and social responsibility. Benefit Corporation (B Corporation) is a corporate form designed specifically for that kind of entities. It encourages innovative ways to bring humanity back into business and redefine what it means to be successful (Lam,

Ben and Jerrys is a successful ice cream company with many strengths and weaknesses. The company faces serious competition, financial struggles, economic and social influences, all of which are covered in my paper. I also discussed some recommendations I have for the companies success.

A corporation has its king and its barons, its courtiers and ambassadors, its loyalists and its dissident elements, its allies and its enemies. What is important to our application of his principles of statecraft to the business world is not the superficial differences but the underlying unity. Modern corporations that are successful and well-managed do not necessarily operate in harmony with the personal morality of their employees and for the general good of their communities. Similarly, firms which pollute the environment or ask their employees to lie are not always forced into bankruptcy.

Ben Cohen and Jerry Greenfield, the creators of Ben and Jerry's, gave the firm a specific soul. While the overwhelming piece of corporate managers were under consistent weight to meet their financial specialists' solicitations, Ben and Jerry were an exceptional opposite, objecting to regular business inclinations in light of without a moment's hesitation premiums and broad advantages. At to start with, their smart business improvement frightened them, as they both considered isolating ties with the rapidly creating association. In any case, what ought to be a hazard to their objectives wound up being a way to deal with brace their fight for social change. It was through their social objectives that they displayed "disapproving of free undertaking", a thinking which spread all through an expansive gathering of educational, characteristic and parties. The creators did not put emphasis on cash, apparatus, and inventories; the "significant assets" of the firm. Or maybe, their accentuation was on "subtle assets, for instance, reputation, individual fulfillment, bliss, social concerns; all of which they thought to be as critical as material assets. In this manner, Ben and Jerry's made the "Declaration of Mission", which was a pinnacle of three unmistakable parts: Product Mission - in perspective of significant worth, headway and the "made in Vermont" stamp ; Social Mission – (the most imperative mission) in perspective of individual fulfillment; and an Economic Mission - in light of advancement, financial specialist regard and care of laborers.

The hazy boundary between society and corporation will always be a source of tension. Those organizations leave social problems and cause huge environmental destruction. From outsourcing layoffs in the U.S., bankrupted suppliers, environmental destruction, to impoverished workers who are left without anything having to be on welfare in order to maintain the life of their families. On a better note, numerous organizations either concerned for the planet, giving recognition of what is better for its employees, are giving a better way of doing things in a corporation. Knowing about the history of these companies, they are working to build a better sense of ethics. Demonstrating that socially, bringing policies into affect can also bring profit as well.

Ben Cohan and Jerry Greenfield built a business with the belief that it could be both profitable and socially responsible and they succeeded beyond their wildest dreams. “With $12,000 Ben and Jerry opened their first ice-cream parlor in Burlington, Vermont in 1978” (Folino). This location will the beginning of an ice-cream empire and both Ben and Jerry’s values and leadership will create a business that will become not only a charitable organization but one of the most popular and enjoyed ice-cream establishments in the world.

Corporate Social Responsibility (C.S.R.) is a theory practiced in the business sphere since fifty years. It refers to the duty of business organizations to adopt certain activities that will benefit the society in some way. Charity, health-awareness campaigns are few examples that a business undertakes to fulfil its objectives of C.S.R. According to this ideal, it is important for various corporations today to undertake such social activities, apart from merely focusing on their objective of profit maximization. But, is it an obligation that is most important than other objectives of business? This thought further leads us to another significant question – In contemporary settings, should corporations be guided by the concept of C.S.R.?

With the goal of “not just to be the best in the world, but to be the best for the world,” Benefit Corporations or B Corporations, want to be the change in the world by using business to combat social and environmental problems (B Lab, 2014. “Why B Corps Matter.”) . Designed for profit companies that want to consider their impact on society in addition to making a profit, B Corporations aim to “redefine success in business” (B Lab, 2014. “Why B Corps Matter.”). Whereas a traditional corporation has a goal to generate as much revenue and profit as possible, Benefit Corporations also work to create general public benefit and thus make it their responsibility to satisfy all stakeholders, not just shareholders. Because of their desire to benefit all their stakeholders, B Corporations work to create higher quality jobs and improve life in communities by becoming an agent for of change in passing legislation and investing capital to make a difference in the world. Besides being accountable to all stakeholders, B Corporations are more transparent than that of traditional corporations as they are required to annually issue a report to the public, assessing their overall financial and environmental performance against a quoted threshold known as the B Impact Assessment. In acting socially responsible as a mission rather than an option for businesses, Benefit Corporations are working to transform revolutionize the way business is conducted.

Many who admire Ben & Jerry’s iconic status as a socially responsible company began to worry about the organizations standards once it was sold in 2000 to Unilever. From its beginning Ben & Jerry’s brand just like its mission stood for both the pursuit of values and making an excellent product. Most people knew one thing about Ben & Jerry’s brand it’s that the mission and the company were not only about crazily named ice cream, but the brand also stood for taking action to improve the lives of people.

However, Ben and Jerry’s also operates on values concerning its business. Thus Ben and Jerry’s have many values; they minimize their impact on earth, care for others (employees, consumers and communities), the company tries to develop economic opportunities to minimize the gap between the poor and the rich, and they refuse to use toxics on food (“Our Values”). Also, this company supports environmental/ political and social issues that they care about like Fairtrade, equality in marriage, climate justice and trying to create peace ("Issues We Care About").

Ben Cohen,one of the builders of Ben & Jerry’s , proposes that it is unsubstantial for Ben & Jerry’s to merely do a business just like other companies, and it should make philanthropic contribution to society as well. This mind comes to be practical and when it comes to Corporate Social Responsibility (CSR), Ben & Jerry’s become prominent example (Dennis et al, 1998).

The Japanese market represents an avenue of growth for Ben & Jerry’s that it has not pursued yet. We outline the advantages and disadvantages of entering into the market and show Ben & Jerry’s best interest is to expand.

Ben and Jerry’s, founded in 1978, is a market leading distributor of super-premium ice creams, frozen yogurts, and sorbets, and has built a reputation on being a socially minded company. They were pioneers in the policy of “caring capitalism” and place heavy importance on the concept of social responsibility, a practice which many companies have since adopted. They have enjoyed long-term success as a result of their progressive methods of doing business and novel ideology regarding how a company should be ran. However, due to increased competitive pressure and declining financial performance, they have now been confronted by the threat of a takeover. Recently four

Some business leaders are taking good moral decisions and the reason behind that idea is that the core part of their business strategy is to create mutual benefit for both wider society and business as well. The growing desire of top management is to find out ways to create mutual benefit for both the organizations and the stake holders but the public still believes that companies are greedy entities which make decisions only in their self-interest, even at the cost of greater public welfare. It is the utmost obligation of the companies to discern the social issues while making the decisions (Yashiro, Yoshida and Suzuki, no date; Godwin, 2006; Schwab, 1996; Godwin, 2008; Werhane, 1998; Werhane, 2002; Heath, 2008; Mehalik and Gorman, 2006).