Ben & Jerry's

Definition

Ben & Jerry's is a popular American ice cream company known for its commitment to social responsibility and environmental sustainability. As a pioneering force in the corporate social responsibility (CSR) movement, Ben & Jerry's has integrated ethical practices and progressive values into its business model.

5 Must Know Facts For Your Next Test

1. Ben & Jerry's was founded in 1978 by Ben Cohen and Jerry Greenfield with a mission to create a socially conscious and environmentally responsible business.
2. The company donates a portion of its profits to charitable causes and supports various social and environmental initiatives, such as sustainable agriculture, fair trade, and climate change mitigation.
3. Ben & Jerry's has a strong commitment to using high-quality, ethically sourced ingredients, including fair trade-certified cocoa, sugar, and coffee, as well as non-GMO and organic ingredients.
4. The company has a history of advocating for progressive causes, such as marriage equality, criminal justice reform, and campaign finance reform, and has been recognized for its activism and advocacy efforts.
5. Ben & Jerry's was acquired by Unilever in 2000, but the company has maintained its commitment to social responsibility and continues to operate as a distinct brand with its own values and decision-making processes.

Review Questions

• Explain how Ben & Jerry's approach to corporate social responsibility (CSR) is reflected in its business practices and decision-making.
  • Ben & Jerry's has integrated CSR principles into the core of its business model. The company donates a portion of its profits to charitable causes, uses high-quality, ethically sourced ingredients, and supports various social and environmental initiatives. Additionally, Ben & Jerry's has a history of advocating for progressive causes, demonstrating its commitment to using its platform to drive positive change. This holistic approach to CSR is a defining characteristic of the Ben & Jerry's brand and is reflected in the company's decision-making processes and operational practices.
• Analyze how Ben & Jerry's adherence to the triple bottom line (financial, social, and environmental) has influenced its success and reputation as a socially responsible business.
  • By embracing the triple bottom line, Ben & Jerry's has differentiated itself in the highly competitive ice cream market. The company's focus on creating value not just financially, but also in terms of its social and environmental impact, has resonated with consumers who increasingly demand more from businesses than just profitability. This commitment to the triple bottom line has earned Ben & Jerry's a reputation as a leader in corporate social responsibility, which has contributed to the company's success and helped it build a loyal customer base that values its ethical practices and progressive values.
• Evaluate the potential challenges and trade-offs Ben & Jerry's may face in balancing its commitment to social responsibility with the need to maintain profitability and growth as a subsidiary of a larger corporation (Unilever).
  • As a subsidiary of Unilever, a global consumer goods conglomerate, Ben & Jerry's may face challenges in maintaining its strong commitment to social responsibility and progressive values. There may be potential conflicts or trade-offs between the company's ethical practices and the parent company's focus on profitability and shareholder returns. Ben & Jerry's will need to navigate this delicate balance, ensuring that it can continue to uphold its social and environmental principles while also meeting the financial expectations of its parent company. This will require strong leadership, effective stakeholder management, and a clear articulation of the company's unique value proposition as a socially conscious brand within a larger corporate structure.

Related terms

Social Enterprise: A business that aims to have a positive social impact while also generating profit, often by addressing social or environmental issues through its products, services, or operations.

Triple Bottom Line:

An accounting framework that considers a company's performance not just financially, but also in terms of its social and environmental impact, with the goal of creating value in all three areas.

Stakeholder Theory:

A business management theory that suggests an organization should consider the needs and interests of all its stakeholders, including employees, customers, suppliers, and the local community, rather than just its shareholders.