hey buddy, please when you answer these questions especially DQ1 (do not make you answer general)
in the files evreything you need to complete the answer
DQ 1, The social responsibility of business
You do not need to use the 7-step framework for this assignment, but you must consider and
weave into your arguments and discussion, some of the key elements like key stakeholders
and the major ethical frameworks of utilitarianism, deontology (rights, duties, justice), and
virtue in examining the ethical issues arising from these two opposing views.
Fifty years ago, Chicago economist Milton Friedman argued that the the sole responsibility of
business was to increase profits for its shareholders (also known as the Friedman doctrine). He
argued that companies should focus on increasing profits and maximizing returns to shareholders,
while shareholders can decide what social initiatives to support. Over the years, it has been argued
by many that he was wrong and that business and capitalism have a broader “social responsibility.”
Review the (3) articles posted below and any additional readings that you may want to do on this
subject.(But please reference/indicate your sources in your submission). Write an essay that looks at
the pros and cons of each of these positions – capitalism versus social responsibility, and your
reflection/conclusion. Please make sure to number your answers.
1. Make an argument for Milton Friedman’s capitalism and profits proposition.
2. Then, make an argument for the social responsibility proposition.
3. Reflect on these and develop your overall conclusion, which you should support with logical facts.
Articles
The Social Responsibility of Business Is to Create Value for Stakeholders.pdf
Milton Friedman Was Right About Shareholder Capitalism – Bloomberg.pdf
Profits and Social Responsibility_ Revisiting Milton Friedman – The New York Times.pdf
DQ 2, Based on your review of the readings, PPTs and video clips this week, summarize and
“synthesize” your key learnings from at least one of the video clips and 2 different articles. One of
the videos you watch and reflect on must include Michael Sandel on Artificial Intelligence. Your post
must demonstrate that you have absorbed the key concepts. About 2 pages.
Video: Artificial Intelligence | “AI Will Change What It Means To Be Human” – Michael Sandel
Video: The rise of ESG investing
Video: Why Starbucks CEO pushes social responsibility
Video: Reasons and Rationalizations
Articles
Powerpoint: Corporate Social Responsibility
Article: Ben & Jerry’s linked prosperity
Article: John Huntsman on ethical leadership
Article: Ethical marketing – 5 examples
All the articles will be upload it
2/22/17
6. Social responsibility
Prof. Ravi Dhingra
Sacred
Prof.Heart
Ravi University
Dhingra
© 2011
Pyramid of social responsibility
Social
Responsibilities
being a
“good corporate citizen;”
contributing to the
community and quality of life
Ethical Responsibilities
being ethical; doing what is right, just,
and fair; avoiding harm
Legal Responsibilities
obeying the law (society’s codification
of right and wrong)
Economic Responsibilities
being profitable
Source: Adapted from Archie B. Carroll, “The Pyramid of Corporate Social Responsibility: Toward the Moral
2-332
Management of Organizational Stakeholders.” Business Horizons 34 (July/August 1991): 42.
R.S. Dhingra
© 2011
1
2/22/17
From compliance to conviction
© 2011
Corporate social responsibility
• CSR is about how companies manage their
business processes to produce an overall
positive impact on society
• Achieving business success in ways that
honor ethical values and respect people,
communities and the environment
© 2011
R.S. Dhingra
2
2/22/17
Corporate social responsibility
• Obligation to serve its own interest and those
of its stakeholders. Includes:
• Economic responsibilities
• Legal responsibilities
• Ethical & social responsibilities
(environment & sustainability, philanthropic
responsibilities)
© 2011
Corporate social responsibility
ECONOMIC
Be profitable
LEGAL
Obey the laws
ETHICAL
Conduct
business
ethically
© 2011
R.S. Dhingra
3
2/22/17
Corporate social responsibility
• https://www.youtube.com/watch?
v=xoE8XlcDUI8 (5 mins)
• Pros and cons of social responsibility
© 2011
Economic responsibility
• Produce goods and services that consumers
want and make an acceptable level of profit
© 2011
R.S. Dhingra
4
2/22/17
Legal responsibility
• Carry out its business activities while
complying with all federal and local laws
and regulations
© 2011
Ethical and social responsibility
• Employees: Diversity, safe working
conditions,
• Communities
• Environment:
© 2011
R.S. Dhingra
5
2/22/17
Ethical and social responsibility
• Create a safe working environment for all
its employees around the world
• Treat employees with dignity and respect
• Good citizen in its communities
• Promote diversity
• Environment: Reduce greenhouse emissions
and carbon footprint; sustainability
© 2011
© 2011
R.S. Dhingra
6
2/22/17
Social justice in the tech age
• https://www.youtube.com/watch?
v=2mCQCp9p-TM (15 min)
• Leila Janah TedX
© 2011
Video: social responsibility
• http://www.youtube.com/watch?
v=lM7hLWeIUz8 (57 min)
© 2011
R.S. Dhingra
7
2/22/17
Video: Unilever Foundation
• http://www.unilever.com/aboutus/
foundation/aboutfoundation/index.aspx
• (4 min)
© 2011
Patagonia social responsibility
• http://www.youtube.com/watch?
v=WexueycQgmY (5 min)
© 2011
R.S. Dhingra
8
2/22/17
Philanthropic responsibility
• Supporting the arts, education disastr relief
• Community service and volunteerism
• Bill & Melinda Gates Foundation –
children’s health and education in
developing nations
• Carnegie Foundation – funding of arts,
education
© 2011
Sustainability
• Doing business in a way that respects future
generations and their right to the world’s
limited natural resources
• Land, water,
atmosphere,
minerals
• Environmental
stewardship
R.S. Dhingra
© 2011
9
2/22/17
Social responsibility
• Is the decision economically sound?
• Is the decision socially responsible?
• Is the decision environmentally sound?
• Three P’s: PROFIT, PEOPLE, PLANET
© 2011
New Belgium Brewery
• https://www.youtube.com/watch?
v=DArgNX7AfEg (4 min)
© 2011
R.S. Dhingra
10
2/22/17
The Stonyfield story
• https://www.youtube.com/watch?
v=OcIyqGDrjHQ (1 min)
© 2011
Starbucks social responsibility
• https://www.youtube.com/watch?
v=Nly_OdvORQY (8 min)
© 2011
R.S. Dhingra
11
2/22/17
Doing business ethically
• https://www.youtube.com/watch?
v=JuAxvUwzeMU Tata India (35 min)
© 2011
Nike sweatshops
• http://www.youtube.com/watch?
v=hauUyoYD5-o (2 min)
• https://www.youtube.com/watch?
v=M5uYCWVfuPQ (20 min)
© 2011
R.S. Dhingra
12
2/22/17
GE Hudson River clean-up
© 2011
GE Hudson River clean-up
• PCBs – polychlorinated biphenyl: A group
of toxic chemicals once widely used as
coolants and lubricants in transformers,
capacitors and other electrical equipment
• Now banned – insoluble and resistant to
natural decay; difficult to destroy
© 2011
R.S. Dhingra
13
2/22/17
GE Hudson River clean-up
• http://www.youtube.com/watch?
v=hI27Vg3oNyo
© 2011
R.S. Dhingra
14
Ethical Marketing: 5 Examples of Companies with a Conscience | WordStream
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Ethical Marketing: 5 Examples of
Companies with a Conscience
Did you know that 92% of Millennial consumers are more likely to buy
products from ethical companies? Or that 82% of those consumers believe
ethical brands outperform similar companies that lack a commitment to
ethical principles?
These are just two of the findings of a recent Aflac survey (PDF) into the
potential business impact of ethical commerce and corporate philanthropy.
Brand authenticity has never been more crucial to a business’ success, and
companies that have dedicated themselves to the greater good instead of
solely to their bottom lines have seen a remarkable surge in support – and
revenue.
In this article, we’ll learn what ethical marketing is and take a look at how five
different brands have proven their commitment to ethical marketing. The
following examples show the principles of ethical marketing in action, as well
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as why championing good causes is so effective for today’s brands.
What Is Ethical Marketing?
Before we dive into the examples, let’s take a moment to clarify what ethical
marketing means.
Image via World Fair Trade Organization
Ethical marketing refers to the process by which companies market their
goods and services by focusing not only on how their products benefit
customers, but also how they benefit socially responsible or environmental
causes.
To put this another way, ethical marketing isn’t a strategy; it’s a philosophy. It
includes everything from ensuring advertisements are honest and
trustworthy, to building strong relationships with consumers through a set of
shared values. Companies with a focus on ethical marketing evaluate their
decisions from a business perspective (i.e. whether a particular marketing
initiative will deliver the desired return) as well as a moral perspective (i.e.
whether a decision is “right” or morally sound).
With that out of the way, let’s get to the good stuff.
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Ethical Marketing Example #1: TOMS
My wife loves her TOMS ballet flats. They’re cute, comfortable, and best of
all, socially conscious.
TOMS isn’t just engaged in corporate philanthropy to make a quick buck; it’s
a core part of the company’s values and brand.
TOMS was founded by Blake Mycoskie in 2006 following a trip to Argentina.
During his visit, Mycoskie saw firsthand how people living in impoverished
areas of Argentina had to live without shoes, a challenge that many of us
likely give little thought. Inspired by his trip, Mycoskie decided to establish
his company with giving in mind.
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Since 2006, TOMS’ footwear business has donated more than 60 million(!)
pairs of shoes to children in need all over the world. As if that weren’t enough,
TOMS’ eyewear division has given more than 400,000 pairs of glasses to
visually impaired people who lack access to ophthalmological care.
The company has further diversified its operations to include clean water
initiatives through its coffee business, and its line of bags has helped support
projects to expand access to birthing kits to expectant mothers in developing
nations as well as training for birth attendants. To date, TOMS has helped
more than 25,000 women safely deliver their babies.
How Does TOMS Use Ethical Marketing?
TOMS puts its social and environmental philanthropy on full display in
virtually every aspect of its branding. This not only lets potential customers
know the kind of company they’re dealing with right off the bat, but also
reinforces TOMS’ brand values consistently across all channels.
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Take a look at TOMS’ homepage. Right underneath the carousel, the
company tells you that, for every product you purchase, TOMS will help
someone in need:
TOMS’ mission is so central to the company’s branding, it’s given almost
equal emphasis on its website as the products it sells. In fact, it’s almost
impossible to navigate through TOMS’ site without seeing further examples
of how TOMS helps people around the world.
This isn’t a typically cynical attempt to capitalize on empty gestures or a feelgood sales tactic; it’s the same principle leveraged by brands that use display
advertising. Just as many display ads are designed to promote brand
awareness and achieve top-of-mind presence among consumers, TOMS’
philanthropic mission is constantly reinforced throughout its website and
marketing materials. As a result, it’s almost impossible to think of TOMS as a
brand without thinking of the company’s various outreach projects and
corporate giving initiatives.
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Ethical Marketing Example #2: Everlane
Clothing manufacturing is among the most controversial industries in the
world. During the past 20 years or so, much greater attention has been paid
to how and where our clothes are made, particularly in light of tragedies such
as the blaze that tore through a garment manufacturing facility in Bangladesh
in 2012, killing 117 people – a factory that supplied clothing to American
retailers including Walmart and Sears.
In light of greater awareness about the use of sweatshops, demand for
ethically made clothing has soared in recent years, a trend that has given rise
to dozens of companies that want to change how we make and view clothing,
including Everlane.
Founded in 2010 by Michael Preysman, Everlane is boldly committed to
ethical manufacturing. All of Everlane’s garments are made in factories that
meet the most stringent quality standards – not only in terms of the clothes
themselves, but also in how workers are treated. Everlane only partners with
manufacturers that demonstrate a strong commitment to their workers’
welfare, a fact the company prides itself upon in its marketing material.
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How Does Everlane Use Ethical Marketing?
Like other ethical brands, Everlane’s About page tells its brand story,
including how the company champions the rights and well-being of the
workers who make its clothes. What’s really interesting about Everlane,
though, is its commitment to radical transparency.
An Everlane warehouse worker prepares garments at the company’s
Mola, Inc. tee-shirt factory in Los Angeles, CA. Image via Everlane.
Everlane isn’t content to merely tell you that its clothes are manufactured and
sold ethically; the company also provides customers with a detailed cost
breakdown for each and every one of its stylish, minimalist garments. This
includes details on the cost of materials, labor, transportation and logistics,
excise taxes and duties, and even hardware such as zippers and buttons.
The company’s Elements jacket, for example, costs $60 to produce, and you
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can see exactly how much each of the manufacturing and logistical elements
affects the retail price:
Typically, the production costs of most commercially produced clothing are a
closely guarded secret. This isn’t merely because a breakdown of such costs
would reveal a brand’s potential profit margin on a specific item, but also
because they highlight the desperately poor pay and conditions many people
working in garment manufacturing endure.
By boldly revealing precisely how much each of its garments costs to make,
Everlane can offer its customers the kind of transparency consumers want
while enjoying the considerable karma this kind of radical transparency
offers.
Ethical Marketing Example #3: Dr. Bronner’s
Consumer demand for ethically produced cleansing products has intensified
in recent years, and although there are literally hundreds of brands of soap
available on the market, few are as unique or memorable as Dr. Bronner’s,
the top-selling organic liquid soap brand in America.
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If you’ve ever bought or seen a bottle of Dr. Bronner’s soap, you’ll already
know that the company is a little different to other soap companies. For
starters, the product’s unique packaging features the company’s fascinating
“Cosmic Principles,” a 30,000-word philosophical screed that company
founder and self-styled doctor Emanuel Bronner spoke of while touring the
United States’ lecture circuit in the late 1940s. Bronner offered his nowfamous peppermint liquid soap as a freebie for people who attended his
lectures, but it didn’t take long for him to realize most people would only turn
up at his speeches to grab their free sample of soap.
It wasn’t just Emanuel Bronner who demonstrated a commitment to social
and environmental activism. Bronner’s grandson, David, was arrested in 2012
for publicly harvesting hemp from inside a locked cage outside the White
House, a stunt orchestrated to protest what David Bronner felt was the
federal government’s undue oversight of hemp production in the United
States.
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Image via Mother Jones
In the years since the cage incident, David Bronner has been extremely active
in many areas of social and environmental justice, including the fight for
greater oversight into the labeling of products that include genetically
modified ingredients.
How Does Dr. Bronner’s Use Ethical Marketing?
Dr. Bronner’s is such a unique brand because of the eccentricity of its
founder. Indeed, it’s hard to imagine how different the Dr. Bronner’s brand
would be without the “Moral ABCs” that Bronner lectured about shortly after
World War II.
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As a result of the company’s unorthodox founding, Dr. Bronner’s is uniquely
positioned to leverage its history of ethical manufacturing in its marketing. In
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many ways, the company’s iconic product packaging serves as the perfect
introduction to the firm’s philosophy; I often find myself reading the Moral
ABCs while showering.
Of course, the company’s commitment to what it calls “constructive
capitalism” goes far beyond its unusual packaging and mission statement. Dr.
Bronner’s is what’s known as a Benefit Corporation (or B-Corp), a
designation that states such companies must be for-profit operations that
have a “positive impact on society and the environment according to legally
defined goals.”
To this end, Dr. Bronner’s succeeds admirably. The company is committed to
several tangible objectives, including raising awareness of crucial
environmental and social justice issues, the use of USDA-certified fair-trade
ingredients whenever possible, and to equitable compensation structures that
limit executive pay to five times that of lower-level employees. (For a little
perspective, Dunkin’ Donuts CEO Nigel Travis said in 2015 that paying
workers a minimum wage of $15 per hour was “absolutely outrageous”
despite the fact that he personally “earns” approximately $4,889 per hour.)
Ethical Marketing Example #4: Conscious
Coffees
Coffee is serious business – and I’m not talking about lame “don’t bother me
before I’ve had my first cup” jokes. Globally, the coffee industry directly
supports the livelihoods of more than 120 million of the world’s poorest
people, and few industries are likely to experience the kind of disruption
wrought by climate change as intensely as agricultural coffee production; in
worrisome news for the constantly caffeinated, literally half the world’s coffee
farming land could be lost by 2050 if climate change isn’t tackled
aggressively.
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Image via Global Agriculture
To that end, many companies are seeking to improve conditions for coffee
farmers and producers around the world, and one of the best is Conscious
Coffees. Headquartered in Boulder, Colorado, Conscious Coffees was founded
in 1996 by Mark and Melissa Glenn, who later sold the business to current
owner Craig Lamberty earlier this year.
Since its founding, Conscious Coffees has worked tirelessly to improve its
production pipelines to benefit growers, farmers, and suppliers across South
America. Like Dr. Bronner’s, Conscious Coffees is a certified B-Corporation,
and earned a community impact score in the top 10% of all certified BCorporations worldwide for its work.
How Does Conscious Coffees Use Ethical Marketing?
Everything about Conscious Coffees, from its name to its logo, reinforces the
company’s mission and ethical production philosophy – so much so that
Conscious Coffees doesn’t use ethical marketing as much as it embodies the
principle as a brand.
Conscious Coffees-affiliated growers preparing coffee beans.
Image via Conscious Coffees.
In addition to its strong commitment to ethical production processes and
fair-trade commerce, Conscious Coffees engages in a wide range of
community outreach initiatives.
Its CAFE Livelihoods Program empowers people in El Salvador, Guatemala,
Mexico, and Nicaragua to own and operate their own coffee businesses
through training workshops and ongoing guidance and support. The
company regularly donates coffee to the local Community Cycles program, a
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project run by cycling enthusiasts from across the Boulder region who help
other cyclists with repairs, maintenance, and refurbishment of old and used
bicycles. Conscious Coffees’ team of coffee experts offer technical advice and
support to growers and farmers as part of the USAID-funded Farmer-toFarmer initiative, which helps coffee growers across South America learn new
techniques that can help them maximize yields and engage in fair-trade
economic practices with North American suppliers.
Bike enthusiasts at a Community Cycles event. Image via
Conscious Coffees.
Conscious Coffees is the perfect example of a brand that not only uses ethical
marketing practices, but embodies them in everything it does.
Ethical Marketing Example #5: Farmer Direct
Co-op
Ever watch one of those food documentaries on Netflix about industrialized
agriculture? If so, you’ll already know that farming is not only one of the
hardest jobs in North America, but that it’s also one of the most unethical
industries. From corporate strong-arming of family owned farms by huge
corporations to the abject cruelty and misery inflicted on livestock, farming is
a far cry from the bucolic, pastoral scenes presented to us on the packaging of
many foods in our local supermarkets.
That’s what makes central Canada’s Farmer Direct Co-op so exciting. An
entirely worker-owned cooperative, Farmer Direct is farming with a mission.
The cooperative’s network of more than 60 privately owned and operated
farms across southern Alberta, Manitoba, and Saskatchewan is firmly
committed to truly sustainable agriculture and responsible environmental
stewardship. The co-op is affiliated with several organizations with a focus on
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sustainable farming, including the Cornucopia Institute and the Fair World
Project.
In terms of what Farmer Direct actually sells, all of the co-op’s produce is
certified organic, and includes produce such as beans, peas, and oats, all of
which are sold at Whole Foods locations across North America.
How Does Farmer Direct Use Ethical Marketing?
Like all of the examples above, ethical marketing lies at the heart of Farmer
Direct’s operations. In addition to its vibrant, active social media presence
(through which Farmer Direct offers a range of healthy eating tips, recipes,
and other fun content), Farmer Direct maintains a lively blog and newsletter,
both of which serve as further opportunities to help people make better
decisions about their food and live a more conscientious lifestyle as
consumers.
Perhaps a little unusually for an agricultural organization, Farmer Direct also
maintains a surprisingly good Pinterest profile, which is always great to see
alongside the mainstays of Facebook and Twitter.
Farmer Direct’s mission may be a little more challenging than that of the
other companies featured in this post. Not because they’re not trying to sell
something (they are), or because there’s no demand for organic, authentically
grown produce (there is), but because they want to change the way people
think about food and where our food comes from. This is a much longer-term
goal, and a really ambitious one, too. Industrialized agriculture has
transformed the way we eat – and not in a good way.
Image via Food and Agriculture Organization of the
United Nations
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Another element of Farmer Direct’s ethical marketing that’s worth
mentioning is its strong dedication to truly sustainable agriculture from an
environmental perspective. Many farms emphasize their organic
certifications or their beautiful pastures where their livestock are free to roam
and wander, but Farmer Direct wants to raise awareness of how factors such
as topsoil erosion can devastate rural farming communities and even
individual farms.
Businesses Can Do Good AND Do Well
Although each of the businesses featured in this post are distinctly different,
they all share a common characteristic: a commitment to giving back and
protecting the rights and livelihoods of some of the world’s most vulnerable
people. These companies have embraced ethical marketing not as a cheap
gimmick they can exploit to drive sales, but as a core part of their mission and
values as organizations.
Ethical marketing relies on a long-term strategy of continuing education,
campaigning, and activism. It’s about helping consumers make better, more
conscious choices about the products they buy and the stores they frequent.
It’s about changing the way we think about how goods are provided, the
people who make and sell the things we buy every day, and the communities
that rely on fair, ethical trade to survive. It’s about cultivating brand loyalty
by aligning your organizational values with those of your ideal customers.
Hopefully these examples have given you some ideas on how you can develop
and incorporate philanthropic principles in your own organization. Not every
company will be suited to ethical marketing – there are no fair trade
plumbers, after all – but those that are may find that focusing on people and
not just profit could be a wise investment.
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Originally from the U.K., Dan Shewan is a journalist and web content
specialist who now lives and writes in New England. Dan’s work has appeared
in a wide range of publications in print and online, including The Guardian,
The Daily Beast, Pacific Standard magazine, The Independent, McSweeney’s
Internet Tendency, and many other outlets.
Ethical Marketing: 5 Examples of Companies with a Conscience
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Ben & Jerry’s and the “linked prosperity” business model
1/10/19, 10:09 PM
This key metric is how Ben &
Jerry’s measures success
Profits and revenue are important, but “linked
prosperity” is the ice cream maker’s North Star.
As companies increasingly talk about their values and place in society,
many managers have started to talk about leading with “purpose.” Ideo
designer and doctoral student Nina Montgomery invited several senior
executives to share their own experiences navigating the intersection of
business and social responsibility; she compiled their essays in a book,
Perspectives on Purpose:Leading Voices on Building Brands and Businesses
for the Twenty-First Century, which will be released in February. In this
excerpt, Rob Michalak, the global director of social impact for Ben & Jerry’s,
explains the company’s commitment to “linked prosperity,” the notion that
as the business prospers, its community of stakeholders such as suppliers
and employees will benefit, too.
You’ve probably heard of Ben and Jerry, but you might not know about
Bernie. Bernie Glassman, a space-age aeronautical engineer turned Buddhist
Zen Master, had a bakery in Yonkers, New York by the name of Greyston
Bakery. From its start, Greyston was a local, purpose-driven business making
wonderful cakes for high-end restaurants in the New York City area. Greyston
did things a bit differently from most. It hired people with barriers to
employment–a practice it called open hiring–and its application process
required no resume. They cared not about who you were yesterday, but rather
about who you are today, and who you could be tomorrow.
In the late 1980’s, Ben & Jerry’s was looking for a thick brownie wafer that
https://www.fastcompany.com/90287777/this-key-metric-is-how-ben-jerrys-measures-success
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Ben & Jerry’s and the “linked prosperity” business model
1/10/19, 10:09 PM
could be used for a decadent ice cream
sandwich. Cofounder Ben Cohen
serendipitously met Glassman at a
gathering of socially responsible
enterprises, and for both, the concept
of a mission-driven ice cream maker
working with a mission-driven bakery
was a no-brainer. Greyston committed
to baking up a couple of tons of
brownie wafers for Ben & Jerry’s new
ice cream sandwich.
[Photo: Ben & Jerry’s]
The first shipments of brownies were
baked in Yonkers, but hastily packed before cooling properly. By the time
they arrived in Vermont, what had been brownie wafers had melded into two
tons worth of fifty-pound brownie blocks. Those weren’t going to be easy to
turn into ice cream sandwiches. So, it was time for a little resourceful
innovation. Instead of sending the brownies back to Greyston (which really
couldn’t afford the loss of a shipment that size at the time), the Ben & Jerry’s
team started chipping the brownie blocks into brownie chunks that could be
mixed into a pint of ice cream.
And with that, Ben & Jerry’s Chocolate Fudge Brownie was born.
The flavor sold well, which meant Ben & Jerry’s soon needed more brownies.
More brownies meant more bakers, allowing Greyston to hire and train more
people from the Yonkers community who couldn’t otherwise find jobs.
Between 1990 and 2018, Greyston created over three thousand browniebaking jobs, generating about $65 million in payroll and providing benefits to
about 19,000 families through the Greyston Foundation.
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Ben & Jerry’s and the “linked prosperity” business model
1/10/19, 10:09 PM
Imagine saving the world through chocolate brownies and ice cream.
Hyperbole? Well, maybe. But even if we’re not saving the world, the humble
brownie is a great example of what is at the center of Ben & Jerry’s purposedriven business model, which, when done well, can create a lot of good.
[Photo: Ben & Jerry’s]
The Greyston Bakery story is a great example of the Ben & Jerry’s business
model in action. As we see it, there are three core pillars of our business: We
serve the first pillar, our product mission, by making a great flavor (in this
case, Chocolate Fudge Brownie). The second pillar, our economic mission, is
achieved through high sales numbers (special thanks to our many fans who
have loved and bought this flavor over the years!). And the third pillar, our
social mission, is accomplished in this case through Greyston’s hiring of more
people with barriers to employment and contributing to families within the
community.
These three pillars–product, economic, and social–hold up our business
model vision: we are dedicated to a sustainable corporate concept of “linked
prosperity.” The idea is as simple as it is radical. As a company prospers, all
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Ben & Jerry’s and the “linked prosperity” business model
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those touched by the company must also prosper, including employees,
suppliers, customers, communities, and everyone else within our value chain.
[Photo: Ben & Jerry’s]
We’ve been working on how to best practice linked prosperity throughout
every aspect of our business ever since we first wrote our mission in 1988.
Good examples include our livable wage policy, our ongoing support for
family dairy farms and sustainable agricultural practices, our support for
smallholder agricultural producers around the world through the purchase of
Fairtrade-certified ingredients, and our values-led sourcing partnerships with
social enterprises.
In addition to these corporate policies and practices, we see our franchised
scoop shop model as allowing Ben & Jerry’s to deliver on linked prosperity at
a more local level: locally-committed owner-operators are empowered to
engage with their communities and foster mutually beneficial relationships.
Each year, Ben & Jerry’s scoop shops help to raise money for local charities
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Ben & Jerry’s and the “linked prosperity” business model
1/10/19, 10:09 PM
but also actively engage in providing direct benefits to the community
through a variety of activities. On one special day in the spring of each year,
Ben & Jerry’s scoop shops globally celebrate their local communities on Free
Cone Day. The day creates important levels of awareness for local non-profits
and raises tens of thousands of dollars for local charities, not to mention
provides about two million free scoops of ice cream to our fans, whom we
deeply appreciate all year ’round.
You might be thinking, “That’s a nice idea, but at the end of the day, business
is business:does this linked prosperity business model actually work?” To that
I’d say a resounding yes: doing good for the community is also good for
business. We know that people have deeper, more loyal connections to
businesses that have shared values. We see this in the successful companies
that are growing the certified B Corp movement. They will stick with those
companies longer, through good and bad times, helping to smooth out rough
patches along the way. We’ve seen that through the dramatic moments in the
global economy of the recent past. Our internal research supports this, telling
us that Ben & Jerry’s fans who know and understand our values-led business
model are more than twice as loyal than those who don’t know about it. The
Millennial generation in particular favors authentic, purpose-driven
businesses, and its members are twice as loyal to us as they are to other
companies. The next generation up, Generation “Z” (or “Zennials,” as some
cleverly call them) are demanding even more from purpose-driven businesses
and expect authentic, transparent relationships with the businesses they will
support.
Linked prosperity is a business model. It’s not public relations. And it’s not
philanthropy. This means as we continue to grow our business, we will
continue to grow our social impact. And that’s something pretty awesome.
Excerpted from Perspectives on Purpose: Leading Voices on Building Brands
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Ben & Jerry’s and the “linked prosperity” business model
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and Businesses for the Twenty-First Century, edited by Nina Montgomery
with permission of Routledge, a member of Taylor & Francis Group.
Copyright © 2019.
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Remembering Jon M. Huntsman, Sr.: Lessons from a Compassionate Leader – Knowledge@Wharton
2/7/18, 8:27 AM
Wharton, University of Pennsylvania
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In September 2005, Jon M. Huntsman, Sr. travelled to China. He was at a business school in
Shanghai to speak about his recently published book, Winners Never Cheat, but in an o!-the-cu!
detour that fascinated his audience, he ended up talking about funerals.
“I have attended many funerals in my life,” Huntsman said, adding that he had conducted almost
200. “I have never heard in a funeral that this person made a lot of money or is politically very
strong. They never discuss that. In a funeral, people discuss how this person was kind or gracious
or had character and integrity. … For some people who are not kind, thoughtful or gracious, their
funerals are very short. Nobody has anything to say. I learned from the funerals that we must plan
our funerals when we are young. Plan your funeral, start early, by being kind.”
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By that measure, Huntsman’s own funeral will not be short. He presumably planned his memorial
long before his death on February 2 at age 80, because he was among the kindest and most
compassionate business leaders and philanthropists of our times. Though he grew up in modest
circumstances, Huntsman had an astute business mind. During the 1970s, he launched a
packaging firm that made, among other products, plastic clamshell containers that McDonald’s
used for the Big Mac. After that company was sold, Huntsman went on to build Huntsman
Corporation, a global chemicals giant with operations in more than 30 countries, $8 billion in
annual revenues and 15,000 employees. Huntsman also had an active, though brief, political
career in the Nixon administration.
At a time when ethical leadership is badly needed in business and politics, Huntsman stands out
as a leader of enormous integrity. In Winners Never Cheat, published in 2005, Huntsman wrote
that while bribery might seem to o!er a temporary advantage, it “cheapens the way business is
done, enriches only a few corrupt individuals and makes a mockery of the rules of play.” He
learned — and taught — this lesson memorably in the 1980s when Huntsman opened a $30
million chemical plant in Thailand. A government minister invited Huntsman home for dinner
and showed him a garage filled with 19 cars, given as “gifts” by foreign companies. Soon a request
followed, channeled through a Japanese partner, for kickbacks of $250,000 a year. Huntsman’s
response: “We had no intention of paying even five cents toward what was nothing more than
extortion.”
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Remembering Jon M. Huntsman, Sr.: Lessons from a Compassionate Leader – Knowledge@Wharton
2/7/18, 8:27 AM
Jon M. Huntsman on Ethical Leadership
Rather than succumb to corruption, Huntsman sold the plant and moved operations out of
Thailand. “We lost about $3 million short term,” Huntsman later noted. “[Over the] long haul, it
was a blessing in disguise. When the Asian economic crisis came several years down the road, the
industry went down the drain.” Once the word spread that Huntsman would move his operations
out of countries that demanded “fees,” he no longer faced such requests in Thailand or other
countries.
Huntsman combined integrity with warmth and compassion. Always a tough negotiator, in 1999,
he was involved in ferocious discussions with Charles Miller Smith, then president and CEO of
Britain’s Imperial Chemical Industries, to buy some of ICI’s chemical divisions. “It would be the
largest deal of my life, a merger that would double the size of Huntsman Corp.,” he later wrote. “It
was a complicated transaction with intense pressure on each side. Charles needed to get a good
price to reduce some ICI debt; I had a limited amount of capital for the acquisition.” As the talks
dragged on, Huntsman learned that Miller Smith’s wife had terminal cancer. As a result, the ICI
CEO became emotionally distracted, and later — after her death — distraught. Though the
negotiations were still going on, Huntsman decided to settle. “I probably could have clawed
another $200 million out of the deal, but it would have come at the expense of Charles’s
emotional state,” he said. “The agreement as it stood was good enough. Each side came out a
winner, and I made a lifelong friend.”
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Remembering Jon M. Huntsman, Sr.: Lessons from a Compassionate Leader – Knowledge@Wharton
2/7/18, 8:27 AM
Compassion also inspired Huntsman’s philanthropy. In a 2014 conversation about his memoir,
Barefoot to Billionaire: Reflections on a Life’s Work and a Promise to Cure Cancer, Huntsman told
Wharton’s Adam Grant about his approach to entrepreneurship and philanthropy.
“One woman … died and left her dog $10 million.
What’s a dog going to do with that kind of money?
Help other dogs?”
–Jon M. Huntsman, Sr.
Why True Entrepreneurs Go Down ‘and Still Come Back Fighting’
In 1992, Huntsman funded the Huntsman Cancer Institute at the University of Utah and, over the
years, gave more than $1.9 billion to cancer research. He was also generous with Wharton and
Penn — which Huntsman attended as an undergrad — in terms of time as well as money.
According to Wharton Dean Geo! Garrett, “Jon’s extraordinary vision and commitment created
an amazing home for the [Wharton] school in Jon M. Huntsman Hall. He founded the Huntsman
Program in International Studies and Business and established the Patrick T. Harker
Professorship. He received the Dean’s Medal, Wharton’s highest honor, which recognizes
contributions to the global economy that improve the lives of people worldwide.”
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Remembering Jon M. Huntsman, Sr.: Lessons from a Compassionate Leader – Knowledge@Wharton
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What made Huntsman the kind of man he was? He provided part of the answer in the introduction
to his memoir. “I desire to leave this world as I entered it — barefoot and broke,” he wrote. “To
many, that may seem like an odd, unrealistic, even foolish thing. Not to me. Too many wealthy
people hoard their riches, believing that dying with a large bank account is a virtue. I read about
one woman who died and left her dog $10 million. What’s a dog going to do with that kind of
money? Help other dogs? I see it another way: If I die with nothing because I have given it away,
humanity is the beneficiary.” And so it has — humanity has indeed been the beneficiary of his
legacy.
Thank you, Jon Huntsman.
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Pennsylvania (http://www.upenn.edu/).
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