Ben & Jerry's incorporates social audits in its corporate reporting, emphasizing both social and financial performance to promote transparency and accountability. The core challenge is balancing this transparency with maintaining a positive reputation, especially when audits reveal potential issues. Proposed solutions include implementing feedback systems, setting measurable improvement targets, and refining charitable campaigns to enhance stakeholder engagement and accountability.

1. MANAGEMENT PROCESS
ASSIGNMENT – 2
GROUP 5
Aansh Chauhan – DM2024002
Aishwarya Nandrekar – DM2024008
Aniket Lohar – DM2024014
Manish Patil – DM2024020
Bhavna Harjani – DM2024026
Akshat Jain – DM2024032
CASE 5 – “Ben and Jerry”

2. EXECUTIVE SUMMARY
“Ben and Jerry’s Super Audit Crunch”
Summary of key points in the case:
Ben & Jerry’s Homemade, Inc., a Vermont-based ice cream maker, has taken a unique approach to
corporate reporting by incorporating social audits alongside traditional financial metrics in their annual
reports. Unlike typical corporate annual reports, which primarily emphasize financials and often sugar-
coat or omit failures, Ben & Jerry’s uses a dual bottom-line approach that equally prioritizes social and
financial performance. The social audits, conducted by independent experts, assess the company’s
performance on employee benefits, plant safety, community involvement, and environmental impact.
These findings, even if critical, are published unedited, ensuring transparency. For instance, in the 1992
social audit, concerns about plant safety, increased injury rates, and the limitations posed by a strict
executive pay cap were highlighted. While this practice can expose corporate weaknesses, it also fosters
credibility and accountability, which has set Ben & Jerry’s apart from other organizations in the eyes of its
stakeholders.
Identification of key issue for analysis and decision making:
The main challenge for decision-making here is how Ben & Jerry’s can balance its transparency with
maintaining a strong reputation. The company’s honest approach to disclosing social performance risks
potential negative perceptions from investors and the public, especially when audits reveal serious
issues. Therefore, the core issue is to determine how the company can remain accountable to its social
mission while protecting its image and credibility.
Analysis using frameworks/ concepts/ models:
In analysing Henri Fayol's 14 Principles of Management are relevant to the Ben & Jerry's case study,
demonstrating how the company balances transparency with social responsibility. The principle of
Division of Work is reflected in their targeted social audits of employee benefits and environmental
efforts. Authority is shown through Jerry Greenfield's emphasis on transparency, while Discipline is
highlighted by their commitment to publishing unedited social audit findings. Unity of Command ensures
clear communication, and Unity of Direction integrates financial and social performance in annual
reports. Ben & Jerry's prioritizes social responsibility with fair remuneration policies, exemplifying
Subordination of Individual Interests. The decision-making process balances inputs from headquarters
and external experts, reflecting Centralization. Their clear reporting lines for audits align with Scalar
Chain, and the organized approach to social responsibility ensures Equity among stakeholders. The
company’s long-term commitment illustrates Stability, while proactive initiatives for improvement show a
willingness to enhance social impact. Finally, they foster Esprit de Corps by promoting a culture of
transparency and accountability.
Ben & Jerry’s demonstrates Corporate Social Responsibility (CSR) by integrating social impact into its
business practices. The company includes a social audit in its annual report, assessing areas such as
employee benefits, community involvement, and environmental practices. This audit is published openly,
showcasing both successes and challenges, reflecting CSR’s focus on transparency and accountability. The
company’s mission prioritizes social responsibility alongside profit, and its two-part bottom line measures

3. success through both financial and social performance. By prioritizing ethical practices and addressing
areas for improvement, Ben & Jerry’s embodies how CSR can drive positive societal change while
maintaining business success.
Possible Solutions:
To enhance stakeholder engagement and accountability at Ben & Jerry's, several solutions can be
considered. 1) implementing a strong feedback system would allow stakeholders to share their opinions
and concerns regarding the company's social performance. This could include surveys, focus groups, or
community forums to collect valuable insights that could shape future audits and initiatives. 2) Ben &
Jerry's could establish clear and measurable goals for improving social performance based on audit
findings. For example, setting a target to reduce workplace injuries by a specific percentage within a
certain timeframe would show their dedication to accountability and improvement. 3) refining charitable
campaigns with clear goals and metrics would enable the company to demonstrate the impact of its
social initiatives. 4) conducting regular risk assessments would help identify potential issues before they
escalate, ensuring that the company remains proactive in addressing stakeholder concerns.
Solution Selected:
The optimal solution is to introduce clear improvement targets within the social audits. By setting
measurable benchmarks for each area of social performance, Ben & Jerry's can maintain its commitment
to transparency while actively addressing any issues highlighted in the audits. This approach aligns with
the "controlling" function by enabling Ben & Jerry's to track progress and make necessary adjustments to
identify the gap between the actual and planned social tasks, showing stakeholders that the company is
not only aware of its weaknesses but is taking concrete steps to improve. This targeted, measurable
approach will help the company balance honesty with reputation and reinforce its credibility among
stakeholders, ensuring it "walks the talk" in a controlled, consistent manner. This solution fosters
accountability and transparency, enabling Ben & Jerry's to effectively monitor progress and communicate
improvements to stakeholders, thereby enhancing trust and reputation.
Solutions to Case Study Questions:
1. Ben & Jerry’s has a clear and open process to monitor its actions, including independent social
audits. These audits look at areas like employee treatment, environmental care, and community
contributions, adding a layer of accountability beyond regular financial checks to ensure the
company is socially responsible.
2. This approach builds trust and loyalty with stakeholders by being transparent and upholding
ethical values. It helps the company improve by pointing out areas to grow, boosts employee
morale by focusing on fair treatment, and emphasizes its identity as a socially responsible brand
with a double focus on profit and social impact.
3. However, this approach can make it harder for the company to attract high-paid executives due to
limits on top salaries. It also highlights potential weaknesses, which may concern investors and
customers, and requires a lot of time and money to carry out both financial and social audits.
4. Ben & Jerry’s system works well in industries where social and environmental values are
important, like consumer-focused, eco-friendly brands, nonprofits, or companies that care about
social responsibility. It’s especially effective in fields where customers and stakeholders expect
ethical and transparent practices.

4. 5. In This system might not suit highly competitive, profit-focused sectors like tech startups, fast
paced manufacturing, or investment banking. In these industries, the focus is usually on profits
and efficiency, making the extensive social audit process less practical