Ben & Jerry's

Definition

Ben & Jerry's is a renowned American ice cream company known for its commitment to social responsibility, environmental sustainability, and producing high-quality, innovative ice cream flavors. The company was founded in 1978 by Ben Cohen and Jerry Greenfield, who sought to create a business that would positively impact their local community and the world at large.

5 Must Know Facts For Your Next Test

1. Ben & Jerry's was founded with a mission to use their business as a force for good, and they have maintained this commitment throughout their history.
2. The company donates 7.5% of its pre-tax profits to charitable causes, with a focus on issues like climate change, human rights, and economic justice.
3. Ben & Jerry's is known for its innovative and socially conscious product development, such as creating flavors that raise awareness for social and environmental issues.
4. The company has been a vocal advocate for progressive causes, including supporting the Black Lives Matter movement and opposing the use of genetically modified organisms (GMOs) in their products.
5. Ben & Jerry's has a strong focus on sustainable business practices, including the use of renewable energy, sustainable packaging, and fair trade ingredients.

Review Questions

• Explain how Ben & Jerry's approach to business aligns with the concept of a socially responsible business.
  • Ben & Jerry's has built its business model around the principles of social responsibility and environmental sustainability. The company donates a significant portion of its profits to charitable causes, develops innovative products that raise awareness for important issues, and advocates for progressive causes that align with its values. This holistic approach to business, which considers the needs of all stakeholders rather than just shareholders, is a key characteristic of a socially responsible business.
• Describe how the stakeholder theory is reflected in Ben & Jerry's operations and decision-making.
  • The stakeholder theory, which posits that a business should consider the interests of all stakeholders, is clearly evident in Ben & Jerry's approach. The company prioritizes the needs of its employees, customers, suppliers, and the broader community, not just its shareholders. This is demonstrated through its commitment to fair labor practices, sustainable sourcing, and support for social and environmental causes. By balancing the interests of these diverse stakeholders, Ben & Jerry's has been able to build a successful and socially conscious business.
• Analyze how Ben & Jerry's implementation of the triple bottom line approach has contributed to its success and positive impact.
  • The triple bottom line framework, which evaluates a company's success based on its financial, social, and environmental performance, is central to Ben & Jerry's business model. The company has consistently demonstrated its ability to achieve strong financial results while also making significant contributions to social and environmental causes. This holistic approach has allowed Ben & Jerry's to build a loyal customer base, attract and retain top talent, and establish itself as a leader in the socially responsible business movement. By prioritizing people, planet, and profit, Ben & Jerry's has been able to create value for all of its stakeholders and serve as a model for other companies seeking to balance these competing demands.

Related terms

Socially Responsible Business: A business model that prioritizes social and environmental impact alongside financial performance, often through initiatives like charitable giving, sustainability efforts, and support for local communities.

Stakeholder Theory: The idea that a business should consider the needs and interests of all stakeholders, including employees, customers, suppliers, and the broader community, rather than solely focusing on shareholder value.

Triple Bottom Line: A framework for measuring a company's success that considers not only financial performance but also its social and environmental impact, with the goal of balancing these three elements.