This case study is about the New Belgium Brewery (NBB) that started home brewing in 1991. Today, the NBB is the third largest craft brewing company is the USA with revenues between $50 and $100 million. They are focussed on the triple bottom line and their main goals include reducing their environmental impact and corporate social responsibility. The company has several core values and beliefs such as reducing their environmental impact; producing world-class beers; environmental stewardship; and kindling social, environmental, and cultural change as a business role model.
NBB holds a lot of value in their employees and their families that is has put in place an Employee Stock Ownership Plan (ESOP) in which the employees are the owners of the company. The ESOP system gives each employee one vote and they can cast votes on various issues, such as voting on the board of directors, who then appointed the CEO and a trustee. The ESOP along with their commitment to cooperate social responsibility all contribute to the 97% employee retention rate.
The board of directors have asked Katie Wallace, the director of sustainability, to decide whether to seek the B Corp Certification. The certification is a rigorous and expensive process that would involve devoting a lot of NBB’s resources to attain and maintain the certification. There are many advantages and disadvantages to the certification that Katie must consider in her decision.
The B Corp Certification would legitimize the business model that NBB had been practicing and promoting through their core values, and business and environmental practices. Some of the advantages are that the certification would allow NBB to communicate their values to customers and the public. The ext...
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... in her decision are more ethical in nature rather than moral. Morals refer to an individual’s own principles, while ethics refer to rules provided by an external source such as the company values and mission statement. She has an obligation to make decisions that will help the company increase its profits and shareholder value for the future success of the company and the employees. On the other hand, she also has an ethical obligation to the core values of the company that emphasises social responsibility to the environment and to society.
The final decision that Katie will make will have future implications for the company, the employees, the customers, the environment, and to society. She will have to weigh the ethical and moral implications, along with the advantages and disadvantages, in her final recommendations to the board of directors and the shareholders.
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