Ben & Jerry's Corporate Sustainability: Competitor Analysis & Strategy

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This report provides a comprehensive analysis of Ben & Jerry's corporate sustainability practices, focusing on its economic, social, and environmental initiatives. It begins with an introduction to the company, its history, strengths, and competitors. The report then delves into Ben & Jerry's sustainability activities, followed by an examination of competitor's sustainability efforts. It identifies areas where Ben & Jerry's can improve, offering recommendations for economic, social, and environmental enhancements. Furthermore, the report explores the potential of social media platforms like Facebook, Instagram, and YouTube to promote Ben & Jerry's sustainability efforts, including examples of how to leverage existing social media pages. The analysis provides a detailed understanding of Ben & Jerry's corporate social responsibility, including a marketing strategy with competitor analysis and social media campaign, and concludes with a synthesis of key findings and recommendations.
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Executive summary
This report carries an analysis of corporate social responsibility of the company chosen.
Corporate sustainability aims to create long-term value of stakeholders with the help of
implementing the business strategy, which focuses on social, ethical, cultural, economic, and
environmental dimensions of the executing business. Further, it is being compared to
competitor`s sustainability. Moreover, deficiencies of Ben & Jerry which it is not
accomplishing political, social and environmental factors. At last, some of the marketing
recommendation has been created due to create a sustainable imprint of the organisation.
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Contents
Executive summary....................................................................................................................1
Introduction................................................................................................................................3
Introduction of the company......................................................................................................3
History........................................................................................................................................3
Strengthens and scale in terms of employees, profits, and revenue...........................................4
Competitors................................................................................................................................4
Sustainability activities of the company....................................................................................5
Competitors sustainability activities..........................................................................................6
What else the company can do apart from they are currently analysing competitor’s
activities again in below areas?...............................................................................................8
Social Media Platforms..............................................................................................................9
Ben and Jerry’s can use these platforms to promote its sustainability activities...................10
Recommendation......................................................................................................................11
Conclusion................................................................................................................................11
References................................................................................................................................13
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Introduction
This report brings out a discussion on sustainability services provided by Ben & Jerry and its
competitors. Actually, the action of Ben & Jerry was in such a direction that it started
embedding the concept of CSR in its business model. Further, this report had the introduction
the company and further reflects the actions of the company as ethical especially is case of
ben & jerry whereas other competitors has not such history of executing CSR activities
before it was even complied and asked as the legal requirement. The company has undertaken
several actions such as in form of social actions, environmental actions, and social
resolutions. Further, the reliable comparison has been made between Ben & Jerry, and its
competitors on the basis of their sustainability reports that are in the criteria of political
factor, social factors and environmental factors (Bj social responsibility, 2017).
Introduction of the company
Ben & Jerry`s is an American company who manufactures frozen yogurt, sorbet and ice-
cream. The company was found in 1978 in vermount. Therefore, it operates at global level
which is fully owned and subsidiary by the Unilever. At present, the company operates in
Waterbury, vermount (Ben & Jerry’s, 2018a).
History
The company was started with a person named Ben and other Jerry. In 1978, they both
decided to create and own a company of their own. Firstly, they thought of bagels but they
realised that it was quite expensive and finally opted to open an ice-cream parlour through as
converted gas station in Vermont (Ben & Jerry’s, 2018b). In 1999, the organisation
announced a notice of interest from other big organisations and then 2000 international food
MNC named unilever purchased the company with $326 million. Ben & jerry was operated
separately from the other brands of unilever (Ben & Jerry’s, 2018a).
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Strengthens and scale in terms of employees, profits, and revenue
Ben and jerry is an prestigious global and successful operator while evaluating it in terms of
sales in Europe, USA, and Asia. The company distributes ice cream and other non-dairy
products for the people. In 2018, the company had a revenue generation of $243.6 million
with estimated employees of 1614 (Marketing Teacher Ltd, 2019). In terms of corporate
social responsibility, Ben & Jerry was the first firms in US who have applied the concept of
CSR into its business model. Being a multinational food and personal company that has
recently acquired by unilever. It is seen that directors have approved a share of nearly 43.60
per share of almost 8 million (Bj social responsibility, 2017).
Competitors
The main competitors of the company are sweet rose creamery, deliciously Ella, and Scoop
sights. Currently, the organisation earned a revenue of $243.6 million with the workforce of
1624 employees (Sweet Rose Creamery Copyright, 2018). Other strategic competitors can be
Starbucks, nestle, and health choices. The principle competitor in this superior ice-cream
category are many as diversified companies has greater resources as compared to ben &
Jerry. Other more competitors are Haagen-Dazs and Dreyers. Rivalry can be featured as
severe and intense which lays that there exist numerous competitors, as the cost of switching
to another rival company is low. On the other hand, Dreyers are employing applying several
tactics to increase the sales and other rivalry that will further threatens boost rivals. Usage of
high quality ingredients and other eco-friendly packaging that has created unique brand,
which will help to develop unique brand image, which will develop brand loyalty and can
beat rival competitors into the market (Sweet Rose Creamery Copyright, 2018).
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Sustainability activities of the company
Economic- Sweet rose creamery operates with fewer 1577 employees as compared to ben
and jerry. Scoop insights generates the revenue of $243.7million, which is less, then the
revenue of ben & jerry. Deloicious Ella has 1543 employees born then 1543. While
evaluating the economic factors, it seems that whether the company is able to generate
enough profits to serve its shareholders (Sweet Rose Creamery Copyright, 2018).
Social- the main social mission of the company is to collect all the flavours of from grant
making foundation and support the farm aid in 1990. The current efforts focused on racial,
criminal justice, racial, and free trade. Ben and jerry have decided that there could be a new
business model if they wants to treat social purpose complied with economic purpose. Social
mission is important when ben and jerry was sold to unilever in 2000 and purchase agreement
was above corporation structure where governance and directors over the social mission and
brand integrity (Aqueveque, Rodrigo, and Duran, 2018).
In 2012, the company has extended its social mission work that includes racial justice, which
further explains on its website where it is a journey to understand better issues of race in the
country so that it can acknowledge the presence of organized racism to spread about the
racial equity. As the company culture is featured with the diversity in the organisation as well
as its supply chain and Ben & Jerry became a leader to understand a racial justice movement.
The organisation has worked with a non-profit organisation and other social experts to
conduct a workshop and other programs in order to raise awareness about the implicit bias
and racial equity.
The company is quite concerned with the social responsibility alignment with the suitable
organizations so that it would create better environment to work as the company had set up a
base in order to assist in learning and educating the general public in those undeveloped
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countries for the charity purpose. For example- the company contribute to $0.05 from one
litre ice cream container.
Environmental- Ben and Jerry foundation funds the community Action team that was
created to allow ben and jerry to support their employees and support the organisation where
they work and live. Further, CAT (community action grant) funds has been providing a range
of programs that involve social services, recreational and other community celebrations. The
CAT will prioritise special attention to youth, low income communities and seniors. Every
year, the company work together in order to improve large scale community service projects
that is made to fix, build and clean which will further improve the quality of life. The
company has also contributed amount that can be used by the farmers in order to
continuously improve such practises of the farms in the Netherlands. It help the organisation
to tie-up with the farmers in order to persuade them to sell fresh milk to the company.
The organisation conducts a recycling programme in order to recycle the garbage, which they
never wanted to add to the environment. This has help them to keep their environment clean.
Competitors sustainability activities
While evaluating the sustainability and CSR that has been actively performed by the
organisation has set some levels of bars in regards to complying with the CSR activities and
these bars are set by those who perform at first. By analysing the reports, it can be that sweet
rose creamery has not performed too many CSR activities as the concept of CSR has emerged
as one of the most powerful recognition that can result into long term sustainable growth of
the business. As after complying with the CSR compliance and social responsibility, it is seen
that organisation develop a sense of good reputation among the stakeholders (Aminu,
Harashid, and Azlan, 2015). Apart from this, while comparing social, political and
environmental actions with the Ben & Jerry, it can be seen that this company was the first
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mover who actually embedded social responsibility in its business model. Sweet rose
creamery is a homegrown company of the ice-creams that make small batches of handicraft
ice-cream, organic ice cream and also the daily Santa Monica kitchen (B the Change, 2018).
With the passage of time, the organisations have realised the value of using CSR in their
business models. For example- one of the competitor of the Jen & berry is the Starbucks who
has fulfilled its activities in such a way that it is among the most reputed company
(Dudovskiy, 2017).
CSR activities performed by the Starbucks-
En
vironmental factor- Starbucks retail stores in the whole world had undertaken a huge change
by commercial recycling the procedure of wastes such as cardboards and milk jugs. The
company has started promoting initiatives in regards to local communities so that recycling
process can be easier. In regards to undertake the steps to save the negative consequences of
the organisation, it can be seen that organisation have started treating cups. The company has
offered 10% cost reduction to those customers who come up with the used cup. The company
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knows that each retail store in different countries produces huge carbon footprint, this time
the company has created 80% carbon footprint (Dudovskiy, 2017).
Social factor- the company has undertaken partnership with the conservation international
association in order to provide development of proper guidelines with the help of ethical
sourcing of coffee. Several practises with a set of guidelines through coffee and farmer equity
(CAFE) practises that have allowed the farmers to produce coffee beans in such a manner
that it does not necessarily affect the people around. Another social factor which is
considered by the Starbucks is that conserving energy and maintaining the quality of water
resource can conserve the biodiversity. In order to educate people regarding plaques, the
retail store elaborates whether it works in a green environment or not. Starbucks have decided
to grow the coffee responsibly and engage them in trade. The company has formed Ethos
water fund that can help the people in increasing awareness among people of nearly one
billion people. This Ethos water fund assists the child so that it can access clean water
drinking. Same as Ben & Jerry, Starbucks also initiated the CSR activities at a considerable
level. For shareholders, it has invited the concept of GRI who ask several companies to fulfil
the shareholders expectation in a form of a written document. It is a self-regulating CSR
initiative that is extended beyond what is demanded by the law.
What else the company can do apart from they are currently analysing competitor’s
activities again in below areas?
Economic- individually, the brand should estimate to generate greater profits so that it can
contribute greater amount in employing people from the society. It can enhance the lives of
the people economically (Fassin, 2009).
Social- irrespective of all the issues are already treated such as racism and unemployment
concerns. Apart from these, the company lacks diversification in the organisation. Diversity
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can lead to generation of new ideas and thoughts that will ultimately contribute to the
organisational success where new flavours can be derived that can make the company and its
product more popular (Ben & Jerry’s, 2018a).
Environmental- straightforwardly, embedding the concept of social responsibility in the
business model without any external force has led the organisation to attain great success.
The company is already supporting unorganised group of farmers and motivating them to
serve dairy products to their ice cream centres (Ben & Jerry’s, 2018a).
Social Media Platforms
Social platforms are used by the organisation in order to promote its product and services, to
get the sustainable business conditions, the organisation can publish CSR activities that it had
undertaken to publicise the concerns for the people around (Mainwaring, 2016).
Facebook- with the help of Facebook`s personal page, the organisation can allow the
customers to share their memories. Organisation can also make attractive videos that
expresses the experiences of the customers. This video helps the organisation to attract the
customers who more rely on looks and taste of the ice-cream. As the organisation has been
acquired by unilever as it is one of the fastest growing unilever brands that needs to be
advertised not only on the basis of its taste but also various CSR activities to serve people
(Azar, Schmalz, and Tecu, 2018).
Instagram- Instagram is famous for the pictorial purpose. To manufacture the product and
distribute, and finally sell it the best quality as it provides the natural flavours of the ice-
cream and also the euphoric concoctions by continuing the commitment to incorporate
wholesome items in it by embedding natural ingredients and encouraging business practises
so that it can respect environment.
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YouTube- videography is the best method of popularising the product where both economic
and social missions can be used to manage the company`s sustainable financial growth. It can
use innovative ways to improve the quality of life nationally, and internationally. For this
promotional activity, the company has to maintain ownership and find the appropriate
partners to understand the creditability. The company seeks to support and leverage of the
existing partners where it shares the crucial values (Glowik, 2017).
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Ben and Jerry’s can use these platforms to promote its sustainability activities
It is important to consider the effectiveness of the ice cream product, a critical step has to be
undertaken that decides whether it will be able to mobilise the brand community in return of
their services. The message sent should be simple as the message sent to the customers are
profound. It should be very much clear that the company is committed to social impact of the
advertisement made. On the second note, it serve as a demonstration that the problems are
larger as compared to other person and the company which it trust to collaborate and partner
in order to create the change and positions which further creates opportunities for the
organisation to own their own brand (Fast company, 2018).
For example- its recent partnership with Telstra is to increase its awareness regarding the
climate changes. As making of advertisements needs huge cost, the company had to be very
effective in its advertisement video and experience flairs. Being the part of Ben & jerry year,
save our swirled advertisement campaign that sought to motivate people in the world in order
to support the global movement. The iconic ice-cream discarded the conventional truck of
ice-cream that is in favour of customised emissions-free tesla (Corp, K. D., 2018).
Usage of existing social media page to promote their sustainability activities and demonstrate
changes they can do to include the activities.
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As far as inducement and attractiveness of social media is concerned, it should be informative
as well as attractive. The company should improve the embedded image with the help of
Photoshop, picktochart and other many graphical application. This page is more informative
and do not attract as videos should be at first in their first impression that would further
contribute to long term growth and sustainability (Corp, 2018).
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Recommendation
Although, Ben & Jerry faced a lot of challenges such as due to increasing expansion of the
business but rapidly it was seen that it is important fight against the unethical actions but the
company has adopted Boston`s Hagen Dazs (another business).
In order to improve the court to obstruct the distribution of the products and this way the
company has gained sympathy and directed through politically incorrect grass roots leading
the campaigns. Other competitive organisation can see ben & jerry as an example where they
both entrepreneurs tried their best to serve the society whether in terms of social, moral or
environment issues. Whereas, there is a lot to learn from the situation discussed as remaining
aware of hard-working attitude to earn high profits is not at all sufficient.
Organisation should make attractive Instagram and Facebook templates so that the company
can attract the young people.
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On the basis of certain corporate and various environmental changes, there is a proper
integration of situations. The company has maintained its performance both in terms of work
life and social life. The main concern is how efficiently the company has insulated the self
from the sugar from the future competition that has threatened the position as a leader due to
premium frozen dessert industry. Now after the acquisition process, it is recommended that
unilever maintains a same level of market leader while executing economic, social and
environment business practise (Boone, 2017).
According to the survey, it is seen that popular social media application, which are
influencing them the most, are Facebook, Instagram, Twitter, and Facebook messenger.
Facebook contributes 90%, instagram contributes 62%, Facebook messenger contributes
56.8%, and twitter contributes 36.4%.
The organisation can take advantage of positive actions in political environment as
sometimes government too provides leverage to the organisation who has maximum share in
the industry.
Conclusion
Form the above discussion, it can be concluded that currently complying with the CSR has
been necessity of the organisation. According to the case studied, it is seen that organisations
in the same industry has to comply with the same political, social, and environmental factors
as competitors lie in the same industry but what differs is the way how it treats the factors to
achieve the sustainable growth. The main purpose of this report is to compare the
sustainability reports of different companies (Ben & Jerry and its competitors) in the same
criteria such as political, economic, and social factors. On the other hand, there is a need to
improve the CSR activities in its code of conduct. This code of conduct have shown that ben
& jerry has collaborated with black-owned farmers in order to get high quality dairy products
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that can improve farmer’s life as well as the environment. Moreover, other competitors have
started these regulates after the enforcement of the government regulations as before only
Ben & Jerry was the one who accomplished the importance of social responsibility. Further,
appropriate marketing platform have been used such as Facebook, Twitter, and Instagram to
enhance the sustainability of the organisation.
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References
Bj social responsibility (2017). Ben & Jerry's Corporate Social Responsibility. Retrieved
from: https://bjsocialresponsibility.weebly.com/csr-for-society.html
Aminu, H. A., Harashid, H. M. and Azlan, A. (2015) Corporate Social Responsibility: A
Review on definitions, core characteristics and theoretical perspectives. Retrieved
from: https://mpra.ub.uni-muenchen.de/75040/1/MPRA_paper_75040.pdf
Aqueveque, C., Rodrigo, P. and Duran, I. J., (2018). Be bad but (still) look good: Can
controversial industries enhance corporate reputation through CSR initiatives?.
Business Ethics: A European Review, 27(3), pp. 222-237.
Azar, J., Schmalz, M. C. and Tecu, I., (2018). Anticompetitive effects of common ownership.
The Journal of Finance, 73(4), pp. 1513-1565.
B the Change, (2018). B Corp’s Social Mission Grows and Evolves through the Years.
Retrieved from: https://bthechange.com/ben-jerrys-educating-themselves-and-others-
about-racial-equity-929866bec474
Ben & Jerry’s, (2018a). Community Involvement. Retrieved from:
https://www.benjerry.com/values/how-we-do-business/community-action
Ben & Jerry’s, (2018b). 2017 Social & Environmental Assessment Report. Retrieved from:
https://www.benjerry.com/about-us/sear-reports/2017-sear-report
Boone, C. (2017). In the News: An Exploration of Starbucks and the Media. Retrieved from:
https://trace.tennessee.edu/cgi/viewcontent.cgi?referer=https://scholar.google.co.in/
&httpsredir=1&article=3101&context=utk_chanhonoproj
Corp, K. D., (2018). CORPORATE SOCIAL RESPONSIBILITY IMPLEMENTATION BY
VIETNAMESE ENTERPRISES. Retrieved from:
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https://www.theseus.fi/bitstream/handle/10024/54543/Nguyen_Vo.pdf?
sequence=2&isAllowed=y
Dudovskiy, J (2017). Starbucks CSR: Corporate Social Responsibility. Retrieved from:
https://research-methodology.net/starbucks-csr-corporate-social-responsibility/#_ftn1
Fassin, Y. (2009). the Stakeholder Model Refined. Journal of business ethics, 84(1), pp. 113–
135.
Fast company, (2018). This key metric is how ben & jerry`s measures success. Retrieved
from: https://www.fastcompany.com/90287777/this-key-metric-is-how-ben-jerrys-
measures-success
Glowik, M., (2017). 4.7 Case study: Starbucks. Global Strategy in the Service Industries:
Dynamics, Analysis, Growth, p. 156.
Mainwaring, S. (2016). What Ben & Jerry’s Does Differently That Makes Its Marketing So
Successful [VIDEO]. Retrieved from: https://www.digitalistmag.com/improving-
lives/2016/08/01/what-ben-jerrys-does-differently-makes-its-marketing-successful-
04338598
Marketing Teacher Ltd, (2019). Ben and Jerry’s SWOT. Retrieved from:
https://www.marketingteacher.com/ben-and-jerrys-swot/
Sweet Rose Creamery Copyright, (2018). Our Story. Retrieved from:
https://www.sweetrosecreamery.com/our-story/
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