Pro Ethical Decisions
Issue
Since the establishment of New Belgium Brewery (NBB) in 1991, the company has been successful, making it become the third prevalent craft brewery in America. The successful triple bottom line corporation started as a small company but moved to become 100 percent worker ownership (Laporte, 2017). Because of the success, the company has experienced since its inception, Katie Wallace, director of sustainability, recommended that NBB should either pursue the certification of B Corp or not.
In regards to business activities, NBB has been more successful, whereby it has produced more than 750,000 barrels of beer and attaining about $50-100 billion (Laporte, 2017). For that reason, the company prides itself on social responsibility, and it is the reason it has been successful in attaining its goals. The philosophy of NBB revolves around “philanthrocapitalism” with the purpose of completing projects to achieve a greater connection with members of the community. One of the projects that the company was involved in is the One Percent for the Planet Organization, where NBB donated one percent of its annual revenue towards financing the sustainability of the environment. As such, the way the company’s workers carry themselves is like a family where they tend to focus on the firm’s values and allowing NBB to achieve its shared vision. The vision of NBB is “Operate a Profitable Brewery,” which Males our Love and Talent Manifests (Laporte, 2017).” Therefore, the statement serves to prove that when an organization works and connects as a united team, it will be able to achieve amazing things. In brief, NBB is an excellent firm that is focused on helping members of the community by promoting the sustainability of the community.
Katie Wallace is contemplating whether or not NBB should move towards B Corp certification. If NBB is to move towards the certification of B Corp, the company will use its power to solve both the environmental and social challenges it is facing. For a long time, B Corp has been providing a competitive advantage to NBB. For instance, when Philadelphia city offered tax breaks for all firms with B Corp certification, it provided a competitive advantage to firms with the certification over other firms in the market. Regardless of the numerous pros that come with company certification, there are also many cons for certification of NBB. For an organization to become B Corp certified, they ought to have completed the certification process. The process of certification is composed of a three-step program that tackles the meet performance needs, makes certification official, and meets a State’s legal requirement. Although Katie Wallace was certain that the firm would pass the certification process, she knew that it was money and time-consuming. For an organization to become B Corp certified, it will require an estimated amount of between $15,000-25, 000 based on NBB’s annual income. Therefore, since NBB is an employee-centered firm, Wallace is not sure of how the workers will react to company certification.
Analysis
Stakeholders play an essential role in the success of the New Belgium Brewery Company. The stakeholders include community, environment, consumers, and employees who are all attached to the business.
Employees
For about 28 years, the firm has developed from a small home brewery maker to a commercial enterprise that produces about 764,424 beer barrels annually (Laporte, 2017). As a result, the company has become America’s third-largest craft brewery after Boston Beer Company and Sierra Nevada Brewing firm. NBB is 100 percent employee ownership characterized by an employee stock ownership plan. Besides, employees at the company also help in voting for the Board of Directors, Trustees, and CEO. The board of trustees helps workers in the company to cast votes based on the issue that is circulating in the company, thereby enabling each member to be valued as one vote.
Community
New Belgium Brewery is involved in a Philathrocapitalism that enables the firm to connect with members of the community around. It is involved in multiple projects that are aimed at creating a better environment for the people that they are operating from. One of the known projects is the One Percent of the Planet, whereby the company contributes one percent of its annual revenue towards conserving the environment (Laporte, 2017). Besides, NBB is also involved in numerous community involvement programs like “Beer Scouts,” where workers are paid for volunteering two hours of their time to encourage the work team to undertake things that they are passionate about.
Environment
NBB has led the brewery industry in promoting sustainable environmental practices. For instance, NBB changed the environmental standards where it started holding other firms responsible for their carbon footprint. As such, it encouraged other firms in the brewery sector to design environmentally friendly packages. Therefore, not only was NBB trying to promote environmental-friendly practices in the country but also around its plant where it undertook distinct steps that would help improve the sustainability of the environment.
Reflection and or Conclusion
Katie Wallace is in the dilemma of whether or not NBB should go after B Corp certification. Although there are numerous challenges, Wallace is still skeptical about her decision. Nonetheless, after analyzing the case, I have opted to base my argument off the impacts that primary stakeholders will face. After reviewing NBB’s current role in the triple bottom line with specifics of the community, environment, and employees, New Belgium Brewery Company should avoid B Corp Certification but continue with its usual way of operation (Laporte, 2017). It is because the process of becoming a B Corp certified business in money and time consuming though NBB can complete the process. NBB is currently operating a successful business; hence, it will not be worth it for the firm to complete the certification process. In the case study, the use of the triple bottom line has been mentioned numerous times in the case and how it has made the company successful.
It is evident that the community and employees play a significant role in the success of NBB. Therefore, by allowing employees to participate and have fun based on activities that they enjoy doing, the firm will be boosting the morale of the workers by improving their effectiveness while members of the community will be supportive of the company practices. Since the company intends to close employee ownership of the firm, certification of the company is not the best option for Wallace. B Corp is known to keep company operations in a structured way, thereby making the workplace boring and demolish the sound working environment that was created by NBB. If B Corp is to be used by NBB, it will be without doubt that workers will not have power regarding company operations, thereby making them unhappy.
Wallace should use the triple bottom line where employees will be required to vote to get their feeling and view regarding the certification of the company. It is evident that New Belgium Brewery holds its workers as one to one value; hence, they should be given a chance to exercise their power to make decision-based on the decision that will be beneficial to them. It is evident that NBB has numerous tools that can make it successful in the market and that the firm is using the tools to ensure that it attains its goals.
Reference
Laporte, T. (2017). New Belgium Brewing Company and B Corporation Certification. Ivey Business Publishing.