Comparative Business Ethics Social Responsibility for Small Companie

Question: Describe about the Comparative Business Ethics of Social Responsibility for Small Companies. Answer: Introduction Given case study aims to present analysis on strong contributions made by small companies in social responsibility and community development. It shows that due to intense integrated relation with local market, small companies work in cohesion towards corporate stewardship and address various environmental concerns. This case study is on New Belgium Brewing company (NBB), was started in the year 1991 in Fort Collins by Jeff Lebesch and his wife Kim Jordan. It has 685 employees with total revenue of $225 million (Dahl, 2016); it is the largest specialist brewery in America. It offers wide range of product lines such as Fat Tire Amber Ale, Sunshine Wheat, Blue Paddle Pilsner, and Abbey Ale. It also sale two type of seasonal beers such a onetime only brew; Frambozen and Abbey Grand Cru. With time, this brand undergone tremendous growth and development, presently there are two brew house, four quality lab, canning and bottling line, innovation and development (Ferrell Ferrell, 2015). Central idea of this paper is to evaluate corporate social responsibility actions taken by the brand, evaluate its impact on the market. This paper will include analysis on various environmental protection actions taken by NBB; the way brand worked towards growth of its employee, society and environment. It also include analysis on impact of such actions on company brand image, does it help in gaining competitive advantage. Final analysis evaluates whether a company dealing in alcohol can be regarded as socially responsible or not. Environmental issues on which NBB worked Firs question in the case study aims to evaluate various strategic approaches undertaken by the company to protect and serve environment and ensure minimum damage. The company addresses various environmental issues which are discussed below. Company purpose is to operate a profitable company which makes our love and talent manifest; it aims to produce quality product, with proper consideration and management towards societal and environmental concern, promote responsible drinking as well as employee growth and development. There are three main environmental issues on which company worked, it include water, waste and emission. Water management As water is the primary ingredient in beer, management aims to ensure development of healthy and reliable watershed. Company also supported political actions and environmental regulations, by implementing strategies that helped in waste water management and reuse strategies. Company ensures recycling of maximum of its supplies such as cardboard boxes, keg caps, office materials, and amber glass. It also promotes local farmers to pick up the grains from brewery without any charge to feed them to their pigs. Company is investing with other research partners to find ways to recycle waste water to make it harvestable or high protein fish food. There is also implementation of waste water management systems that helps in extracting methane from waste water and fulfills 15 percent of power needs to the brewery. Management tried to ensure proper energy management wherever possible to reduce burden on municipality and optimum utilization of resources as well as waste products. It also aim to reduce use of water during production process by using only 3.5 gallon of water for one gallon of beer, less than 20 percent standard requirement in the industry (www.newbelgium.com, 2015). Company achieved this goal in the year 2014 by delivering 3.96 gallon of beer from one gallon of water. Primary concern in this area is the rising demand for bottles than kegs, there is reduction in water efficiency of the firm, it has installed 20 water sub meters in the facilities to improve water conservation further. Emission Climate change and greenhouse gas emission is another major environmental concern for the company. There are three different category of emissions that company needs to deal with, it include direct emission which include emission from factors that can be controlled by the company, such as on campus, combustion of fossil fuels, mobile combustion etc. Second is indirect emission that was generated from electricity consumption within organization. Third is also indirect emission from all other activities within the working area. Company follows WRIs GHG Protocol and BIERs Beverage Sector Guidance for emission calculation (www.newbelgium.com, 2015). It invested in wind-turbine and became the first fully wind powered brewery in USA. Company objective was to reduce emission of co2 by 25 percent by the year 2015 (www.newbelgium.com, 2015). Waste management NBB is a member of business for innovation, climate and energy policy and signed its declaration to show its participation and commitment towards climate change. Apart from this, company also invested in various other environmental development technologies, it includes installation of a smart grid that helped in communicating with company electricity provider to conserve energy and reduce wastage. It installed a brew kettle that helps in heating wort sheets instead of whole kettle at once and save electricity (www.newbelgium.com, 2015). Use of sun tubes facilitated in providing day light in the brewery helped in reducing energy consumptions throughout. Company also aims to reduce any form of pollution, it also encourage use of alternative transportation to reduce air pollution. Company reached its goal in the year 2013 by diverting 99.8 percent of its waste to recycling activities. It also achieved its set goal of 54 grams of waste per hectoliter packaged sent to landfill. There is u se of recycling containers by the company to collect super sacks, plastic bags and paper bags. Strategic approach taken by NBB To ensure development of an environmental friendly product; it aimed at promoting eco-friendly business processes. Goal was to create learning and developing community. To do so, a monthly meet is being organized by the brand in which managers from all departments participate to share and develop ideas on resource management. It also put effort on launching various cost effective energy saving techniques that also helped in ensuring minimum emission of harmful elements in the environment. To achieve its sustainability Targets Company opted for a triple line bottom approach, it aimed at measuring business success not only on financial parameters and balance sheets; rather it incorporated its success measurement by evaluating economic, social and environmental factors (Carroll, 1991). Triple bottom line model include economic scenario that involves financial position, its impact etc. second element is the environmental factor, which include evaluation of organizational performance in impacting environment. Third is social reporting that require information regarding organizational interaction with different societies(Lantos, 2001). The management tries to evaluate organizational success by gauging its performance in making others life pleasant, it analyses organizational contribution and impact on people, profit and planet (Maon, Kotler, Vanhamme, 2012). Company aim to develop high involvement corporate culture, it makes environmental sustainability as everyones job and not mere managerial concern; managers and employees from all departments were free to contribute ideas and suggestions for environmental growth in the company, shared values and open book policy were primary strategic approach that helped NBB to achieve such market success. Reasons for taken such strong stance toward sustainability Earlier companies were only liable towards their shareholders but in todays modern business environment business is working for society, there is a social relation and society is a major stakeholder in the business. Company core belief is to be become a force to implement good in the society. Organizations are environmental responsible, therefore it needs to evaluate its performance in terms of local community and country development (Yoshikawa Rasheed, 2009). Social responsibility management would help organization in enhancing financial security, minimizing environmental impacting and to operate in the society with its conformity (Zakhem, Palmer, Stoll, 2008). Primary focus of this question was on environmental concern of the company; major findings to this question include wide range of environmental strategies implemented by the company such as sun tubes, wind energy, waste management, water management, reduction of harmful gases during production. Founders of the company opted for a long term societal development vision that leads to such strategic development in the company. It opted for a three bottom line approach that considers society and environment as equally important as economic condition of the company. Social responsibility as competitive advantage CSR is a crucial business activity, it is also considered as a strategic action that helps organizations in generating resources, creating activity support networks and building social and reputation capital. CSR can be defined as a management tool that helps in enhancing organizational performance, it also facilitate in creating positive brand image in stakeholders mind; CSR activities involve responsible behavior towards society and environment (Mirfazli, 2008). CSR is inescapable for companies due to immense pressure from media, activists and government. CSR policies of the company ensure that it comply with all legal, ethical, national and international norms. It also helps in enhancing shareholder trust and interest in the company and reduces business risk and makes strong positive impact on all stakeholders such as customers, employees, suppliers, government and society at large. CSR activities needs to be analyzed through the same framework as business use to decide their core business, it will help in understanding the way CSR is more than cost or a mere charitable deed towards the society, it can become major competitive advantage for the brand (Saeed Arshad, 2012). It is indeed true that social responsibility activities are acting as a key competitive advantage for NBB. According to Michael Porter and Mark Kramer, it is crucial that corporate responsibility actions should not be treated as zero sum game for the company, if this happen then CSR activities remain as mere responsibility due to government pressure, rather companies should try to evaluate consequences of their social action, to discover opportunities that benefit both society and the company (Porter Kramer, 2006). It also states that CSR should not be treated as damage control strategy or a mere public relation campaign rather it should be seen as business opportunity. CSR activities undertaken by NBB have helped the brand in achieving huge market success, positive brand image, energy efficiency, profitability. Different CSR activities such as technological innovations, energy saving technologies and methodologies, company has also invested $7 million on philanthropic causes. Different philanthropic causes include distribution territories to support local community, to Planet ; company employees are also socially active, they are part of Habitat for humanity that help in building home for people who lost their house in fire. Different CSR activities help NBB in its tremendous growth, it received business ethics award for its dedication and excellence towards environmental friendly brewing process; it also received award from Wall-street as best mid-sized brewing company. It helped the company in creating positive brand image in public, it is being considered as a socially responsible organization. It has created image of a responsible drinker, company states that it promote only responsible drinking. There is continuous increase in sales and business of the brand; it has expanded its territory in different parts of US. The sustainability and social actions taken by the company helped in its growth through market expansion, high customer expansion and acceptance. The water management plant helped in producing methane rich has that can be converted into electricity, therefore it fulfill 15 percent of electricity requirements of the company; this strategy helped in environmental growth as well as cost cutting. The solar photovoltaic panels also helped in reducing 200 KW. Therefore, environmental friendly actions and strategies are helping the brand in manufacturing the product at low cost and in efficient manner. Word of mouth is the primary marketing strategy of the company, such awards, positive actions to famers, community and society helps in creating positive perspective that creates positive marketing. Another advantage is higher employee satisfaction and cooperation; company offer 100 percent stock options to employees, they are also member of charitable organizations and participate in sustainability actions such as opting for alternative transportation mode, providing fat-tired cruiser bike after one year of employment; employees are also allowed to ask question regarding financial position of the company, it helps in fostering higher corporate governance, honesty and transparency within organization. Such strategies helped the company in improving employee relation that in turn lead to better customer service, long term CRM, fulfilling customer expectation as well as environmental stewardship. Analysis shows that CSR actions taken by NBB helped it in making its market position stron g, happy customers, satisfied employees and a strong company therefore it is its major competitive advantage that helped the brand in making its distinguish market position vis--vis its competitors. This answer aimed to evaluate whether such sustainability action helped the brand in gaining any competitive advantage in the market or not. Findings shows that corporate social responsibility is not a zero sum game, rather it helps in creating win-win situation for both company and other stakeholders. Findings also shows the way sustainability actions by NBB helped the brand in saving cost, minimizing its operational expenditure, motivating its employees, building positive brand image, enhancing its sales as well as profitability. Social responsible actions by NBB Third question in the case study states that there are certain segments in the society that believes that companies that sell alcoholic products and tobacco cannot be held responsible due to primary nature of their business, therefore on such parameters can NBB actions can be regarded as socially responsible. It is very difficult to evaluate whether a company that manufacture a product that can also cause death, some of the industries that raises this grey concern include alcohol and tobacco (businessrespect.net, 2005). There are certain arguments on corporate social responsibility that it is crucial to consider the way companies create wealth than it spends it. The question of selling such product cannot be answered by a single company, it is a border societal concept, as if the product is bad society should top consuming it, government should ban it, but it is not happening. Further, the concept of ethicality is different for different people; one cannot decide whether a particular action taken is ethical or unethical. Drinking in a business party can be ethical whereas drinking and driving can be unethical therefore ethicality differs with scenario (inspiredeconomist.com, 2011). NBB cannot be regarded as a non-responsible company. Rather, NBB has tried to ensure that proper information reaches to consumers, they promote responsible drinking. It is not among those brands that sell n number of products without bothering its consequences. NBB is among one of those company that take society, environment and employee as part of their organizational success, company is involved into serious research and development, strategic actions to improve its environment impact carefully by reducing emission of gas, by reducing waste water, harmful air, ensuring maximum recycling of waste, treat suppliers in supply chain with ethical respect, provide employees opportunity to contribute to society, therefore there is eagerness in NBB core belief and strategic action that management aims to improve society and want to give them back. Another key factor that makes NBB a truly socially responsible company is lack of heavy advertisement, if company would have been bothered about increasing sales, promoting alcohol consumptions in the society then it would have opted for aggressive commercials, however, major tool of advertisement is word of mouth with minimum advertisement commercials that too in new markets with the objective of creating awareness. Marketing objective of company never aimed to increase sales; rather it focuses on serving set customer base. Even the marketing campaigns are themed as to protect, to pour, to partake that create fun and hip image of the brand, it promote beer as a social and fun element and not part of daily lifestyle. It does not feature any ad campaign in Colorado region as people are well aware about the brand, therefore it does not want to push sales. Company follows a pull strategy; therefore sales are made according to customer demand and not push to increase beer consumption in the market. I would say that National Belgium brewery is a socially responsible company, though it produces alcohol but it does not promote unnecessary consumption, rather it is being portrayed as fun element and social drinking. Government and society also have roles to play as they can stop access to such products in the market, but these products are being well purchased and industry is operating in the market. Therefore, one company cannot be blamed for operating in this industry, Rather, NBB is trying hard to implement range of strategic actions that help in upliftment of society, employees, suppliers, government and customer; it is investing its resources, time and capital towards continuous effort of social responsibility. This question was little tricky to judge whether an alcohol selling company can be regarded as socially responsible as the product itself is unethical. However, findings for this answer states that NBB does not promoted drinking alcohol, it always endorsed responsible d rinking, less advertisement, sponsoring events, taking extra effort towards environment development shows that NBB is truly committed towards social responsibility. Conclusion This case study helped in understanding various elements of CSR, a company is not more a profit making unit, rather it helped in understanding the broad picture and long term vision of the organization. It shows the way organizations can ensure their growth through societal development. NBB was a small company but it does not only focus on its growth and profitability rather it focus on community development and environmental protection. This in return helped in creating positive brand image of the company among consumers. It also facilitate in bringing more profit to the company through energy efficiency, waste reduction and other ways of resource management. NBB did not achieve this goal all alone, rather its team work and employee dedication helped in developing a culture of learning, sharing and accountability that helped in gaining cooperation from all employees. Management also participated in various political and environmental laws and climate change agreements to advocate society development. Analysis also shows dedication from top management of the company towards environment protection and goal achievement that helped in promoting a unique value system throughout organization. It also provided its employees with various motivational tools such as resources, autonomy, financial benefits to dedicate their time towards sustainability development. 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