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Finance
1. CASE : BEN & JERRY ICE-CREAM
Ben & Jerry’s Ice Cream began as a small business and has grown into an international
corporation. Its mission statement includes provisions about (1) producing a good product for its
customers, (2) providing an economic reward (profits) to its shareholders, and (3) fulfilling its
social responsibility. These three goals have no particular order.
Ben & Jerry’s believes that it should not focus on any one goal but should achieve all three
goals. Ben & Jerry’s directs 7.5 percent of its pretax profits to a foundation, which donates
money to specific charitable organizations. In another effort to fulfill its social responsibility,
Ben & Jerry’s works with small businesses, as its owners remember that it was once a small
business. It relies on small businesses for some of the materials used in its production process.
Ben & Jerry’s has proved that it can achieve its economic mission while fulfilling its social
mission. Its social commitment has enhanced Ben & Jerry’s reputation, increased its name
recognition, and stimulated demand for its ice cream. Thus, the company’s social mission has
enhanced its profits and therefore is aligned with its economic mission.
Questions
1. Why do you think Ben & Jerry’s has a social mission?
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2. Does the firm’s social mission conflict with its economic mission?
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3. Do you think the shareholders disapprove of Ben & Jerry’s social mission?
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CASE 2
2. Read the information below and then complete the tasks that follow.
Yanso Electronics released a new television model four years ago. The model has
established the company as one of the world’s leading electronic goods
manufacturers. A number of concerns have since been expressed by consumers
over the heat generated by the television causing its plastic casing to become very
hot and potentially result in a fire. Yanso executives have estimated the cost of
repairing the fault to be more than $3 million. Based on advice by its legal
department, it would cost less if the business were sued in the event that an injury
occurred.
1. List the stakeholders of this business.
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2. Identify the issue that is causing conflict among these stakeholders.
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3. Explain how this issue can cause conflict between two of the stakeholders.
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