Ben & Jerry's

Definition

Ben & Jerry's is a popular ice cream company known for its socially conscious and environmentally friendly business practices. The company was founded in 1978 by Ben Cohen and Jerry Greenfield, with a mission to create high-quality ice cream while also making a positive impact on the world.

5 Must Know Facts For Your Next Test

1. Ben & Jerry's was one of the first companies to adopt the Benefit Corporation (B-Corp) legal structure, which requires them to consider the impact of their decisions on their workers, customers, suppliers, community, and the environment.
2. The company is known for its commitment to using fair trade, organic, and non-GMO ingredients in its products, as well as its efforts to reduce its environmental footprint through initiatives like using renewable energy and reducing waste.
3. Ben & Jerry's has a long history of supporting social and political causes, including LGBTQ+ rights, Black Lives Matter, and climate change activism, often through limited-edition ice cream flavors and advocacy campaigns.
4. The company's founders, Ben Cohen and Jerry Greenfield, have been outspoken advocates for using business as a force for good, and have worked to embed their values of social responsibility and environmental sustainability into the company's operations and culture.
5. Ben & Jerry's has faced some challenges in balancing its social and environmental mission with the demands of being a profitable business, but has generally been successful in maintaining its commitment to its values while also growing its brand and market share.

Review Questions

• Explain how Ben & Jerry's approach to business ethics and social responsibility relates to the concept of profitability.
  • Ben & Jerry's has demonstrated that a business can be both profitable and socially responsible. The company's commitment to using ethical and sustainable practices, such as fair trade ingredients and renewable energy, has helped it build a strong brand and loyal customer base. At the same time, Ben & Jerry's has been willing to take stands on social and political issues, even when doing so may have short-term impacts on profitability. This suggests that a focus on stakeholder interests, rather than just shareholder returns, can be a viable and successful business strategy.
• Describe how Ben & Jerry's efforts to 'make a difference in the business world' through its social and environmental initiatives have influenced the broader business landscape.
  • Ben & Jerry's has been a pioneer in the socially conscious business movement, serving as a model for other companies that want to balance profit-making with a commitment to social and environmental responsibility. The company's success has demonstrated that consumers are willing to support businesses that align with their values, and has inspired other companies to adopt similar practices. Additionally, Ben & Jerry's advocacy for issues like climate change and racial justice has helped raise awareness and spur action on these important topics within the business community. By using its platform and influence to drive positive change, Ben & Jerry's has set a precedent for how businesses can leverage their resources and reach to make a meaningful difference in the world.
• Evaluate the extent to which Ben & Jerry's has been able to maintain its commitment to its social and environmental mission while also achieving long-term financial success and growth as a business.
  • Ben & Jerry's has largely been successful in balancing its social and environmental mission with its business goals, though it has faced some challenges along the way. The company's decision to become a Benefit Corporation has helped enshrine its values into its legal structure, ensuring that social and environmental considerations are always factored into decision-making. Additionally, Ben & Jerry's has been able to build a strong brand and loyal customer base by staying true to its values, which has contributed to its financial success. However, the company has at times faced pressure from its parent company, Unilever, to prioritize profits over its social mission. This tension highlights the ongoing challenge of maintaining a commitment to social responsibility while also achieving long-term financial sustainability. Overall, Ben & Jerry's has demonstrated that a socially conscious business model can be viable, but that it requires constant vigilance and a willingness to make difficult trade-offs at times.

Related terms

Social Responsibility:

The idea that businesses have an obligation to consider the interests of the community and environment in their operations and decision-making.

Sustainable Business Practices: Business practices that meet the needs of the present without compromising the ability of future generations to meet their own needs, often focusing on environmental and social impact.

Stakeholder Theory:

The concept that businesses should consider the needs and interests of all stakeholders, including employees, customers, suppliers, and the community, not just shareholders.