Strategic management case study on creating a learning (2)
Strategic Management Case Study on Creating a Learning Organization and an Ethical Organization By: Agacita | Amoin | Bano | Misa | Monroid | Tabar
CASE STUDY New Belgium Brewing: Ethical and Environmental Responsibility
HBelgium is known Bicycling trip Jeff Lebesch, an for its ales through Belgium electrical engineer I S If he could Began produce high – Acquired special experimenting in T strain of yeast quality beers Colorado ODecided to market Opened for Technological R business in 1991 – them tiny basement innovations Y Paradigm of Ad campaign “Follow your folly - environmental targets men ages Ours is Beer efficiencies 25 - 44
Corporate social responsibility Gains momentum beyond the courtroom to the far more powerful marketplace current and future manager of business must realize that business ethics not so much about the installation of compliance codes and standards Necessity for Ethical, values-driven company
Mission statement C B • To operate a profitable brewery which makes our love and talent manifest O ECore values and beliefs • Producing world-class beers R L • Promoting beer culture and the responsible enjoyment of beer E I • Continuous, innovative quality and efficiency improvements • Transcending customers’ expectations E • Environmental stewardship: minimizing resource consumption, maximizing energy efficiency, and recycling F • Kindling social, environmental, and cultural change as a business role model S • Cultivating potential: through learning, participative • management, and the pursuit of opportunities • Balancing the myriad needs of the company, • staff, and their families • Committing ourselves to authentic relationships, • communications, and promises • Having Fun.
Recognizing employees’ role in the company’s successpaid health, dental insurance and retirement plansemployees get a free lunch every other weekFree massage once a yearCan bring their children or dogs to workEmployees who stays for five years can earn a paid trip toBelgium to study beer cultureemployees can earn stock in the privately held corporationNew Belgium’s employees now own one-third of thegrowing breweryOpen book management lets employees see the financialcosts and performance
first fully wind-powered brewery in the United Statesemploying a steam condenser that captures and reuses the hot water that boilsthe barley and hops in the production process to start the next brewusing “sun tubes,” which provide natural daytime lighting throughout thebrew house all year longreducing waste through recycling and creative reuse strategiesgives its employees “cruiser bikes”agreed to participate in the United States Green Building CouncilsLeadership in Energy and Environment Design for Existing Buildings(LEED-EB) pilot program.
donated more than 1.6 million dollars to organizations inthe communities in which they do business.For every barrel of beer sold the prior year, NB donates$1 to philanthropic causes within their distribution territory“human-powered” sports that cause minimaldamage to the natural environmentevent sponsorships, such as the Tour de Fat, NBBsupports various environmental, social, and cyclingnonprofit organizationsbenefit more than five thousandlocal people with multiple sclerosisimproving parks and bike trails
Business Ethics magazine’s Business Ethics Awards O S dedication to environmental excellence in every part of its innovative brewing process R U G C A C Better Business Bureau’s 2002 Torch Award N EOutstanding Marketplace Ethics competition Honorable mention I S Z S A Rocky Mountain Region Entrepreneur of the Year Award T I O Great American Beer Festival Nbest mid-sized brewing company of the year best mid-sized brew master A L Medals for different brewsAbbey Belgian Style Ale Blue Paddle Pilsner LaFolie specialty aleEnvironmental Protection Agencys regional Environmental Achievement Award.
• What environmental issues does the New Belgium Brewing Company work to address? Q • How has NBB taken a strategic approach to addressing these issues? U1 • Why do you think the company has chosen to focus on environmental E issues? S T • Are New Belgium’s social initiatives indicative of I strategic philanthropy? O2 • Why or why not? N S • Some segments of society vigorously contend that companies that sell alcoholic beverages and tobacco products cannot be socially responsible organizations because of the nature of their primary products. • Do you believe that New Belgium Brewing Company’s actions and initiatives are indicative of an ethical and socially responsible3 corporation? Why or why not? • What else could New Belgium do to foster ethical and responsible conduct?
1. What environmental issuesdoes the New Belgium BrewingCompany work to address?How has NBB taken a strategicapproach to addressing theseissues? Why do you think thecompany has chosen to focuson environmental issues?
New Belgium Brewing strives to reduce its impact on theenvironment. NBB invested in a wind turbine, making itthe first fully wind powered brewery in the United States.NBB has also incorporated a steam condenser thatcaptures and reuses hot water used for boiling barleyand hops to start the next brew. The steam is alsoredirected to heat the floor tiles and de-ice the loadingdocks during winter. NBB has also incorporated suntubes that help to light the brew house with naturaldaylight, along with many other energy savingprocesses. We believe that the company haschosen to focus on the environment becauseof the owner’s love of the out-doors.
In addition to their environmental responsibility, New Belgium Brewing treatsits employees and the surrounding community in an ethical manner. Theyoperate on an open book basis and sponsor community events. In its missionstatement, the New Belgium Brewing Company mentions the important of“kindling social, environmental and cultural change as a business role model.”The measures that New Belgium Brewing has taken to be environmentallyand socially responsible conclude that this company is a role model forothers, and it has been recognized as such. “It’s a great honor to berecognized as a company where people love what they do and truly enjoycoming to work. One of New Belgium’s core values is having fun, and that’s avery important and fulfilling piece of our culture. At New Belgium, we willalways look to the far horizon for ways of improving our systems, minimizingour impact and helping other business follow their own pathtoward more sustainable practices.” The path towardssustainability will always be a learning process. New Belgium iscommitted to examining each choice; we face to find the way thatbest honors both our human stakeholders and the Earth.
New Belgium focuses heavily on the use ofenvironmentally friendly technologies. It’s costly toimplement, but they benefit not only theenvironment, but New Belgium saves money in thelong run. They are totally dependent on wind millpower, which save an enormous amount of moneyon electricity. They have begun recycling their ownwaste and using the ethanol extracted to generatepower. Their practices for cooling andnatural lighting make them an example forall large power users to emulate, all the whilesaving them money.
2. Are NewBelgium’s socialinitiativesindicative ofstrategicphilanthropy?Why or why not?
We believe that this is a case of strategic philanthropy. Theowner of organization introduces that type of business whichis harmful for environment. Then he takes some steps toreduce this impact in environment. It is not a philanthropicwork for society. It is a one of a kind of advertising. Becauseof they take this all action from making profit from NBB’s. So1st they making profit from an unethical business then theyuse their profit in some activities which will reduce theirnegative impact from environment. Like selling tobacco this isharmful for public health, it pollutes ourair, crop, cultivation, water and so on. Then alcohol is anotherdangeroustoxin what can take a man in door of dead easily.From use of alcohol people affected by
Many business owners and managers see corporate socialresponsibility (CSR) as something that’s nice to do but notreally connected to growing the business and profits.Corporate social responsibility (CSR) is a form of corporateself – regulation integrated into a business model. CSRpolicy would function as a built – in, self – regulatingmechanism whereby business would monitor and ensure itssupport to law, ethical standards and international norms.Social responsibility is an ethical or ideological theory thatbusiness should not function amorally but insteadshould contribute to the welfare of their communitiesand an entity whether it is government,corporation, organization or individual has abig responsibility to society at large.
The need to be socially responsible is because torecognize the healthy and vibrant communities, whoare key to our ability to attract, retain and developtalented employees, and to operate a successfuland growing enterprise. The quality of thecommunity’s educational system is key to the skillsof our employee force and the vibrancy of thecommunity as a good place to live is key to ourbeing able to attract and keep the bestemployees. Most importantly, we are sociallyresponsible because it is clearly theright thing to do.
Although most of the companies frequently cited as examplesof ethical and socially responsible firms are largecorporations, it is the social responsibility initiatives of smallbusiness that often have the greatest impact on localcommunities and neighborhoods. These business create jobsand provide goods and services for customers in smallermarkets that larger corporations often are not interested inserving. Moreover, they also contribute money, resources andvolunteer time to local causes. Their owners often serve ascommunity and neighborhood leaders, and many chooseto apply their skills and some of the fruits of their successto tackling local problems and issues that benefiteveryone in the community. Managers and employeesbecome role models for ethical and socially responsibleactions.
The company has chosen to include drug andalcohol awareness programs in their mix ofcharitable causes. These two points areconvincing in a way that they are aware of thistrend and are working to control potentialproblems as well as perceptions of the public.They recycle and reuse solid, through processplant wastewater and give away theirbarley and hops grain to farmers whoneed only to pick it up themselves touse for feed.
3. Some segments of society vigorouslycontend that companies that sellalcoholic beverages and tobaccoproducts cannot be socially responsibleorganizations because of the nature oftheir primary products. Do you believethat New Belgium Brewing Company’sactions and initiatives are indicativeof an ethical and socially responsiblecorporation? Why or why not? Whatelse could New Belgium do to fosterethical and responsible conduct?
People will purchase alcohol and tobacco products regardlessof who is manufacturing it. Just because a companymanufactures alcohol, which is legal, does not make themirresponsible. The consumers are the ones that ultimately actirresponsibly. If they are promoting responsible drinking anddiscouraging the sale of alcohol to minors, then I believe thatthey are being ethically and socially responsible. If they cango into business, being environmentally friendly in theirmanufacturing and be socially responsible and keep anothercompany from succeeding, then it will be better all around.Whether it is NBB or some else just looking to make aprofit at any cost, someone will be there tomanufacture alcohol and tobacco. We should applaudthe companies that make genuine efforts to do the right thingsethically, environmentally and socially.
Tobacco and brew products are harmful for society and environment.Alcohols have a dangerous effect for human body. Bloodcancer, liver cancer and many other deadly diseases are attackbecause of using alcohol. Disadvantages of alcohol are: source ofenergy in the diet but with no other nutrients. In high concentrationsor with repeated use can be toxic and cause liver damage. It cancause poor judgment, concentration, balance and coordination.Driving with significant blood alcohol can lead to accidents, arrestand imprisonment. So, their business is unethical from our view pointand not of law. In ethics, we learn “Ethics and Law are not the same.”But the company is appreciable for taking some steps to saveenvironment where other companies are silent. New Belgium’ssocial responsibility has built its brand. Beer drinkers base theirchoice on taste. But there’s also plenty of evidence that they want tosupport a company that’s doing good things. For New Belgium thatsense of purpose includes a commitment to sustainability.