Discuss about the Relationship Business Ethics and Social Responsibility.
The corporate social responsibility has become a critical success factor for the modern day contemporary organisations, as it helps to build a long-term brand image. This scenario has become more crucial for the wine and beer industry, as the majority of the stakeholders perceive that the brands fail to execute socially concerned behaviour in its global operation platform. The current study evaluates the way environmental issues are addressed by the New Belgium Brewing Company. Individual evaluation has been made to identify whether the social responsibility provides as a key competitor advantage or not. To establish the view, a potential justification has been made by the current researcher.
The part researches conducted by the previous scholars reflect that the complexities in brewing operation are increasing with time. The society expresses a contradictory side with respect to the brewing product acceptance (Aras et al. 2009). The society express an affirmative attitude towards the consumption of the beverage lines, however, it creates several objection towards its operational and manufacturing process. In the context of the specific aspect, Bujisic et al. (2013) mentioned that the New Belgium Brewing enterprise has experienced huge issue in the initial tenure in placing its product lines on the store shelves. The enterprise has experienced the challenge of convincing the potential customers of the other competitor that already developed its good will within the market place. However, Giudici and Figini (2007) figured out that the marketing unit has emphasised hard effort in finding out a small but devoted base of customers.
Moreover, NBB has organised the events like Faith programs, where indifferent batches of small brews like Ranger IPA, Abby, La Folie, etc showed the interest of creating the internal celebration of the landmark events (Jones et al. 2006).
Conversely, the above effort has benefitted the enterprise to create sufficient awareness regarding its brand identify and product lines, yet, the profit margin generated from the events is extremely narrow. Thus, the management has withstood a marginal profit, which was not productive for the enterprise to attain a financial sustenance (Mason et al. 2014). Rather, to order the events the brand had undergone indifferent hectic methods, which had almost increased the fatiguness amongst its internal resources.
After a certain point of time, the product lines of the enterprise have managed to create its unified set of the customer based in the Coloradan market. The specific aspect has provided the administration with a sufficient confidence of expanding the distribution lines through the entire beverage market of United States. Vericker (2012) forecasted that although the distribution department has segregated the product lines with a proportional margin, but the CRM (Customer relationship Management) department has received various emails and message regarding its non availability of its product lines within the other part of the region. As per the statement of Parker et al. (2011), the customers have already started consuming the product without identifying its representative brands. Therefore, the marketing layout has been changes entirely, where the products were executed along with its brand name through the BTL (Below the Line) activity. The particular process has enlightened the customers regarding its brand name. Thus, NBB has managed to overcome the hurdle of spreading its brand identity.
In the circumstance of the existing subject, Sharma (2009) determined that in the year 2013, NBB has managed to develop a 30 seconds television advertising campaign named “Pairs Well with People”. Through the television campaign, the managed has managed to explore the unique service qualities of NBB. The television ad campaign also describes the approaches the enterprise has initiated towards the employee ownership programs and also its environmental consciousness. Moreover, Bedaque (2010) asserted that the marketing strategy planned by the unit involves the criteria like linking with the quality of the product lines. The marketing unit has also performed its tremendous commencement towards creating the awareness regarding the positive actions of the enterprise (Beere, 2012). The lucrative marketing strategy has helped the managed to create an awareness regarding its CS actions and the financial contribution the brand make towards the community developmental actions. According to Ghasemi et al. (2014), the market is highly driven by the CSR concept. Therefore, the participation of NBB into the community developmental programs has been effective for increasing the brand reputation. Hence, the management of the enterprise has found the CSR action to be most beneficial aspect to increase its brand sustenance within its target market.
In the opinion of Hrsg and Filho (2008) inference can be drawn that the NBB has strived for various cost effective energy saving alternatives for proceeding with the internal operation of it business and simultaneously reducing the impact over the environment. The specific action has been initiated by the management in order to reduce the hazardous impact over the environment. For the above initiative, the management had to invest a considerable financial figure in the initial tenure. Parker et al. (2011) claimed that the HR process of the enterprise is highly lucrative, which serve adequate flexibility to its internal resources. Therefore, the brand has simultaneously receives adequate commitment and dedication from the employee sides. With the purpose of being true to the company’s core-culture and believes the brewery’s employee-owners have unanimously agreed to invest in the brand’s turbine project (Jones et al. 2006). The collective efforts of the internal resources have contributed the enterprise to first wind-powered brewery in the United States. The employee support has turned up to be the most valuable aspect for NBB, which leaded the management to initiate the diversified actions confidently. Furthermore, Giudici and Figini (2007) asserted that NBB has introduced a smart grid of installation to ease the communication channel with the electricity providers. The specific communication methods had facilitated the enterprise to increase its energy conservation planning.
The management of the New Belgium Brewing (NBB) Company has managed to expand its business with lucrative operational process and it managed to create a wider employment opportunity for the regional population. In the background of the specific statement, Parker et al. (2011) stated that the enterprise is also undertaken further initiatives to provide exclusive products and services to its target audience in the smaller markets, which the leading giants fail to serve. The administrative personality of the organisation has enhanced its monetary contribution margin and volunteered the time schedule to mitigate the local issues faced by the community (Jones et al. 2006). The brand often serves as a community leader and chooses to apply the internal resources to tackle the societal issues. The specific action the brand initiate with the exclusive purpose of developing the community benefits. According to Giudici and Figini (2007), the managers and the larders of the specific enterprise have become the role models for serving the community ethically and also conducting the social responsible actions. Since, the time period of the inception, NBB has introduced its triple bottom-line approach within the business. The management of the specific enterprise has strategized on its profit making process by keeping in mid the CSR activities (Hrsg and Filho, 2008). The foremost objective of the enterprise is enhancing its productivity by aligning its process with the ethical norms of the region. The CSR actions are undertaken with the exclusive focus of increasing the community and the standards of living of the common population.
Therefore, the brand is worth receiving the product recognition and appreciation the society provides.
Moreover, Parker et al. (2011) indicated that the directors of NBB have donated $7 million to the philanthropic causes and an additional amount of $1 million to the philanthropic causes within its distribution territories. NBB also participates in the philanthropic network, ‘One Percentage for the Planet, where the company has made the commitment of donating 1 percentage of its sales figure (Hrsg and Filho, 2008). The management has also kept the criteria, where the employees are supposed to join the Humanity group in order to serve the community non-financially with its individual expertises (Jones et al. 2006). As per the opinion of Parker et al. (2011), the NBB maintains a community bulletin board and post the positive arrays regarding the community developmental initiatives. The specific action is undertaken to create awareness amongst the employees. The employees are also left with the choices to opt for the CSR actions. The corporate website of the company also serves certain dedicated link that leads the organisation to apply for the societal grants. Assessing on the latter statement, Giudici and Figini (2007) inferred that the enterprise participates in the community developmental actions in order to emphasise a special focus on the water conservation programs, bike advocacy, sustainable agriculture, women education and sensible transportation. The management executes a special interest in sponsoring certain events like ‘human-powered’ (Beere, 2012). The specific event emphasise a special focus on the crating the minimal damage to the natural resources. The above action has facilitated the enterprise to create brand recognition in its target market. Simultaneously, the brand has undertaken the most suitable and probable CSR initiatives, which turned beneficial for both the brand and the community. Therefore, inference can be drawn from the above information that NBB has managed to conduct a well framed CSR action, which has served the enterprise to attain a competitive advantage in its existing market.
The brand New Belgium Brewing uses environmentally friendly innovation and technologies to the society. Also, New Belgium Brewing (NBB) also tries to improve the living status of the local community in its operating region. Supporting to this fact, the Deconinck et al. (2015) stated that corporate social responsibility offers by NBB are unique as compared to the competitors. The rationale can be obtained from the past and recent event sponsorship programs conducted by NBB. It has been identified that since its business initiation, the brand NBB had started donating a lump sum in the account of philanthropic causes. Gilinsky et al. (2015) also stated that more than $7 million contributions had been made to the humanitarian causes. Also, the firm tries to donate $1 to the philanthropic caused against the sales of every barrel of beer (www.newbelgium.com, 2016).
The donations as mentioned above are distributed among the states of operation on the overall sales volume. The brand NBB aims to implement cost effective energy saving alternatives for doing the business (Kleinová et al. 2015). Furthermore, the brand has also prioritised on reducing the production of wines on the operational environment as well (www.newbelgium.com, 2016). Supporting to this fact, Hafto (2011) stated that NBB’s desire is to create a learning community by offering energy saving technology.
The brand also offers barley to the local people as a part of the corporate social responsibility. Furthermore, to avoid pollution, sometimes the employees are also asked to use other modes of transportation so that the carbon emission can be reduced. In this regards, Lee and Gartner (2015) stated that reduce, reuse and recycle the three environmental stewardship programs offered by NBB in its operating platform. The product purchase attempt of the local community is also supported by the firm NBB. The most significant approach conducted by NBB is the partnering of employees with the habitat for the humanity. This initiative is aimed to remake the house for the family who had lost the home due to the fire. Thus, the brand NBB can be termed as the socially responsible firm.
Alongside, funding decisions made by NBB are conducted by a philanthropic committee. In this approach, the employees along with the owners, leaders and production workers are involved to obtain a sustainable brand strategy. Olsen et al. (2007) also pointed out that creativity, diversity and innovation is characterised by employing all stakeholders of the firm NBB. The engagement of the local community in the corporate social responsibility process has enabled the brand offering unique values to the customers. Different non-profit organisations are communicated by the firm NBB to demonstrate the creativity within the business. In this regards, Pickering et al. (2014) stated that the philanthropic community employs the local community and survey process is conducted to improve the existing operation action of the firm. Eventually, the company gets an idea regarding the need for the local community, and respective proposals are passed as a part of the community development process. Hence, the corporate activity conducted by NBB is justified enough to meet the corporate events.
In the context of approach as mentioned earlier, it has been identified that NBB follows a bulletin board showing the community facility provided by the firm. Santos (2011) also added that an array of community involvement activity and sustainability proposals are featured on the board and increase the community awareness regarding the social events conducted by NBB. On the other hand, the firm is accountable for allowing tourists and employees to observe opportunities to help the local community as well (Smith and Marsh, 2007). Along with this, the non-profit organisations in the USA also get benefited through the firm NBB, as it helps the non-profit companies to conduct social works against a lucrative funding option. On the contrary, Squazzoni (2008) stated that NBB is a corporation company grants the funding for other organisations as well. The website of NBB shows a link where the non-profit groups can apply for the further grants. The company also frequently donates for the water conservation, sensible transportation and bike advocacy as well. In addition to that sustainable agriculture and youth environmental education is provided by the firm to develop the community in a sustainable degree.
The extracurricular activity of the local community also gets adequate support from the NBB’s end. The company conducts many human powered sports to increase the community motivation. Alongside, the community also feels valued and the trust index towards the brand NBB increases. Considering the fact, Thach (2009) stated that the involvement of human powered sports creates a minimal damage to the natural environment. ‘Tour de Fat’ is one of the event sponsorship programs, which supports social, environmental and cycling non-profit firms as well (www.newbelgium.com, 2016). This activity includes the handover of the car keys and vehicle against the exchange for NBB’s commuter bikes. In this regards, Smith and Marsh (2007) stated that the approach creates a way of promoting a sustainable communication and transportation. Most interestingly, the participants are encouraged through the television media where the audiences become able to view the sustainable initiatives taken by each candidate and the current organisation as well.
A few communities still believe that NBB fails to generate socially responsible behaviours due to the lack of offering free education initiatives, health campaigns, and other community development initiatives as well. However, the feedback promoted by the CEO and other statutory bodies indicate that the brand NBB has created a positive image within the beer consuming smart community. Pickering et al. (2014) supported the fact and stated that the smart corporate decision making process helps the brand to deliver a potential sustainable growth for the community as well. It has been observed that responsible drinking campaign employed by the brand has generated a sound appreciation from several community members. In regards of contributing to the society, the brand conducts every possible step to contribute to the society (Kleinová et al. 2015). The firm frequently hosts the New Belgium Beer Dinner, where all courses of meals are served with the complimentary culinary test. The detailed discussions made by Smith and Marsh (2007) also indicate that the CSR approaches initiated by NBB have become a possible example for the other rivals operating in the similar industry segment. On the other hand, it has been identified that community criticism also states that continued expansion of the beer plant requires travel long distance for distributing the products to the customers. Eventually, it enhances the usage of fossil fuels. This scenario goes against the socially responsible behaviour of the firm.
Pickering et al. (2014) also place a criticism against the enterprise NBB, as the beer plant uses a few degrees of natural gas and the plant gets partially heated with the same. A sharp criticism can be placed against the NBB, as the brand does not fully utilise electric power from the renewable sources. Although the brand had received the Environmental Achievement Award in the FY 2004, the brand still lacks from executing corporate citizenship behaviours (www.newbelgium.com, 2016). It has been identified that capital investment in the local community needs to be improved. The most valuable asset of the brand is the greater concern for the overall society. Thus, a single mistake or lacking could reduce the brand image of NBB thereby failing to manage greater sustainability in the operating platform.
Although a range of criticisms has encountered, the recent goal of the brand to use only 3.5 gallons of water to make 1 gallon of beer, can be considered one of the strongest social initiatives adopted by the name (Kleinová et al. 2015). The approach of generating a closed loop wastewater system and the water treatment plant is also considered a sustainable approach. A steep reduction of 25% carbon per barrel also promotes a socially responsible behaviour conducted by the brand NBB. The overall analysis indicates that although the communities think that the firm cannot provide socially responsible actions, the action employed by NBB is absolute indications for a socially responsible corporation. Only a few minor changes in the CSR approach could help the brand bringing a more sustainable future in the beer industry. The triangulation of quality, responsibility and societal concern has helped the brand meeting the sustainable corporate citizenship behaviour towards the community.
Conclusion:
The overall study indicates that NBB is potentially following socially responsible behaviour to manage its sustainability. However, lowering the usage of fossil fuel and natural gas could provide an additional benefit over the existing viability of the brand NBB.
References:
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