Ben And Jerry's Mission Statement example essay topic

A recent analysis has allowed us to examine the Ben and Jerry's Corporation's operating activities in relation to its mission statement. Ben and Jerry's mission statement incorporates product, societal and economic aspects which govern its operating activities. After careful analysis, we feel that the dilemma facing this organization is whether it can simultaneously be socially responsible and remain profitable. Ben and Jerry's notion of "caring capitalism" attracts considerable consumer and media attention due to its uniqueness and originality. As the mission statement claims, Ben and Jerry's tries "To operate the company in a way that actively recognizes the central role that business plays in the structure of society by initiating innovative ways to improve the quality of life of a broad community - local, national, and international". This atypical concern with societal issues illicit's an emotional response from consumers to its products.

In our increasingly environmentally aware society, Ben and Jerry's offers a quality product while conveying a message that eases consumers' consciences. For example, the company promoted its involvement in the preservation of the rainforest by placing the following message on its Rainforest Crunch ice cream: "Money from these nuts will help Brazilian forest peoples start a nut shelling cooperative that they own and operate". In 1992, they also made consumers aware that the company would only use recycled packaging in their Peace Pops ice cream and frozen yogurt bars. Along these same lines, 7.5% of Ben and Jerry's pretax income is donated to The Ben and Jerry Foundation, which makes awards to nonprofit and charitable organizations. Ben and Jerry's has also vowed to purchase its milk exclusively from Vermont farmers, despite the fact that the prices charged are considerably higher than average market prices. This concern for society's well-being makes Ben and Jerry's customers some of the most loyal in the industry.

This loyalty to Ben and Jerry's products justifies their significantly higher prices. Unfortunately for Ben and Jerry's, it is becoming increasingly difficult to continue using this socially conscious marketing strategy. In particular, recently imposed FDA regulations have forced the company to remove labels claiming that its products were made from "all natural" ingredients. Another hindering force in Ben and Jerry's marketing strategy is the rapid growth of its business.

Increased sales have caused the company to alter its operating activities. More specifically, as sales of Rainforest Crunch expanded, Ben and Jerry's had to purchase 95% of its nuts from commercial suppliers. Previously, it had claimed to purchase all of its nuts from a cooperative operated by rainforest people in Brazil. This inability to make these socially conscious claims detracts from the corporation's original marketing image and from consumers' willingness to pay inflated prices. An additional concern not only of Ben and Jerry's, but of the entire ice cream industry, is society's movement toward a healthier lifestyle. This is reflected in the low growth forecast for ice cream in the United States.

To compensate, companies in this industry, including Ben and Jerry's, have reacted by expanding their product lines to include low fat ice cream and frozen yogurts. The low growth forecast coupled with consumers' changing tastes has created an increasingly competitive environment. Ben and Jerry's no longer holds a competitive advantage in terms of social responsibility and "all-natural" marketing. Without these critical advantages, it is plausible that consumers will respond by purchasing substitute goods. Aside from factors influencing the entire ice cream industry, there are issues that affect Ben and Jerry's alone. Many critics have recently charged the company with unethical behavior; some even claim that Ben and Jerry's social mission is simply a gimmick.

These accusations have stemmed from activities in which the company has not been completely honest with its consumers. One example of this unethical behavior is the previously mentioned Rainforest Crunch labeling issue. Another instance of questionable ethics was the "Yo, I'm your CEO" contest. The contest was unethical because consumers were falsely led to believe that they had a chance of winning the position, when in actuality a search firm was hired to find the new CEO. After considering the various aspects affecting the Ben and Jerry's Corporation, we have compiled a list of alternatives to help it remain socially responsible and continue making profits. The first alternative is to concentrate more exclusively on the socially responsible portion of their mission statement.

This assumes that Ben and Jerry's would rebuild ties with its consumers by staying true to its environmental promises. The following alternative is based on two flawed assumptions: 1) that Ben and Jerry's will pay exorbitant costs to produce its socially responsible product and 2) that consumers will be willing to pay the resulting inflated prices. A second alternative is to revise Ben and Jerry's product market definition by focusing exclusively on low fat and no fat products. This alternative takes into account the low overall growth forecast of ice cream and consumers' movement toward healthier lifestyles. However, this option is not feasible because Ben and Jerry's already has an extremely loyal consumer base.

Any fundamental shift in product lines could mean losing this hard earned group of loyal consumers. Ultimately, the risks of redefining its operations could outweigh the benefits. Eliminating the socially responsible mission statement as a marketing tool and focusing on producing quality products at a lower price is a third alternative. The company would also be encouraged to expand its line of healthy, lower-fat items. By choosing this option, Ben and Jerry's would no longer be tied exclusively to over-priced suppliers, and it would be able to capitalize on society's recent health surge. As a result, this will lower operating costs and raise profit margins.

The lower priced, high quality products will add to its already loyal customer base. As for being socially conscious, a higher income will allow Ben and Jerry's to continue its charitable donations. This is the optimal solution because the company could increase profits, maintain its customer base, and remain true to its socially responsible tradition.