Ben Jerry's Scoop Shops example essay topic

The Board of Directors of the Company has since 1988 formalized its basic business philosophy by adopting a three-part 'mission statement' for Ben &Jerry's. The statement includes a 'product mission,' 'to make, distribute and sell the finest quality all natural ice cream'; an 'economic mission,' 'to operate the Company on a sound financial basis... increasing value for our shareholders and creating career opportunities and financial rewards for our employees'; and a 'social mission,' '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 statement has been further simplified by the Company's statement of 'Leading with Progressive Values Across our Business. ' 'Underlying the mission of Ben & Jerry's is the determination to seek new and creative ways of addressing all three parts, while holding a deep respect for individuals inside and outside the Company and for the communities of which they are a part. ' Since 1988, the Company's Annual Report to Stockholders has contained a 'social report' on the Company's performance during the year.

The Company's social mission has always been about more than philanthropy, product donations and community relations. Ben & Jerry's to integrate into its day-to-day business decisions a concern for the community and to seek ways to lead with its progressive values. The Company makes cash contributions equal to 7.5% of its pretax profits to philanthropy through The Ben & Jerry's Foundation (the 'Foundation'), Community Action Teams, which are employee led groups from each of its five Vermont sites, and through corporate grants. Excluded from the 7.5% are contributions out of a portion of the proceeds of incidental operations, not directly relating to Ben &Jerry's core business of the manufacturing and selling of Ben & Jerry's frozen desserts, such as a portion of the admission fees for plant tours. Also excluded from the 7.5% are corporate sponsorships that have as one of their purposes the furtherance of Ben & Jerry's marketing goals. For 1999, the 7.5% amounted to approximately $1,120,000.

The amount of the Company's cash contribution is subject to review by the Board of Directors from time to time in light of the Company's cash needs, its operating results, existing conditions in the industry and other factors deemed relevant by the Board. See 'The Ben & Jerry " foundation. ' In some instances where the Company pays royalties for the licensed use of a flavor name, the li censor donates all or a portion of these royalties to charitable organizations. For example, in 1997, the Company launched Phish Food (TM) ice cream and during 1999 paid the Vermont-based band Phish $244,918 in royalties.

The band established the Water Wheel Foundation to support the protection and preservation of Lake Champlain. Ben & Jerry's maintains a special tie to the Vermont community in which it has its origins. The Company donates product to public events and community celebrations in the Vermont area. As already noted, Community Action Teams a teach site make grants in Vermont. Also, the Company, acting as an agent, transfers funds to charitable organizations throughout Vermont derived from the sale of product to participating Vermont retail grocers. Ben & Jerry's has, through the years, taken actions intended to strengthen the Company's ability to remain an independent Vermont-based company focused on carrying out its three-part corporate mission.

Ben & Jerry's believes these actions have been in the best interests of the Company, its stockholders, employees, suppliers, customers and the Vermont community. See 'Anti-Takeover Effects of Class B Common Stock, Class A Preferred Stock, Classified Board of Directors, Vermont Legislation and Shareholders' Rights Plans. ' In 1991, the Company decided to pay not less than a certain minimum price for its dairy ingredients other than yogurt cultures, to bring the price up to an amount based upon the average price for dairy products in certain prior periods. This commitment is part of an effort to foster the supply of Vermont dairy products and thereby also seek to maintain the long-term viability of the Company's source of dairy ingredients, against the marketplace background of a continuing trend of decreasing family dairy farms in Vermont. In early 1994, the Company's agreement with the St. Albans Cooperative Creamery was amended to include, as a condition for payment of the premium, an assurance from the St. Albans Cooperative Creamery that the milk and cream purchased by the Company will not come from cows that have been treated with recombinant Bovine Growth Hormone ('rBGH'), a synthetic growth hormone approved by the FDA. In December 1997, the St. Albans Cooperative Creamery's board of directors approved a motion to allow for controlled use of rBGH by a limited number of member farms beginning July 1, 1998.

The Co-op assures that it will continue to provide Ben & Jerry's with rBGH-free dairy supply. The Company pays a premium to the Co-op for member farms that do not use rBGH. In 1992, the Company became a signatory to the CERES Principles adopted by the Community for Environmentally Responsible Economies. The CERES Principles established an environmental ethic with criteria by which investors and others can assess the environmental performance of companies. Ben & Jerry's is also a member of Business for Social Responsibility, Inc. ('BSR'), an organization in San Francisco, California, which promotes a concept of business profitability that includes environmental responsibility and social equity.

Ben & Jerry's is also a member of the Social Venture Network and Vermont Businesses for Social Responsibility. The Super Premium Ice Cream, Frozen Yogurt and Sorbet MarketMarketingBen & Jerry's marketing is characterized by a strategic discipline that continues to build brand equity, a solid reputation for the Company and, most importantly, profitable customer relationships. Ben & Jerry's marketing strategies remain consistent with the Company's three-part mission. Building on Ben & Jerry's significant brand name recognition, the Company continues to emphasize the high quality, natural ingredients in its products while highlighting its commitment to social change through innovative promotional and advertising campaigns. Ben & Jerry's continues to facilitate brand awareness by focusing its marketing efforts on communicating the Company's unique business approaches via Public Relations campaigns designed to generate unpaid newspaper, magazine, radio and TV news coverage. Company founders Ben Cohen and Jerry Greenfield continue to make personal appearances on TV and radio.

A 1999 Harris Interactive Poll regarding public perceptions of corporate reputability ranked Ben & Jerry's fifth overall, and first in the 'social responsibility' category. The survey, the results of which were published in the Wall Street Journal, used an assessment tool developed at New York University " 's Stern School of Business to measure a company's reputation, based upon several key areas - social responsibility, emotional appeal, products and services. In 1999, Ben & Jerry's became the first U.S. ice cream company to convert a significant portion of its pint containers to a more environmentally-friendly unbleached paperboard. The debut of the Company's 'Eco-Pint' made headlines in consumer and financial press nationwide. Additional media opportunities in 1999 included placement of the Company's products in popular sitcoms and movies. Scenes from an upcoming feature film starring Jim Carrey were filmed at the Company's Waterbury factory.

Ben &Jerry's conducts guided tours of its facility in Waterbury, Vermont to approximately 300,000 visitors annually, making it the single most popular tourist attraction in the state. Ben & Jerry's increased internet presence was driven by several web-based promotions, including a Halloween promotion in which consumers were invited to trick or treat online, and a Yahoo! (R) Careers promotion in which consumers could win a day as a Ben & Jerry's flavor developer. Ben & Jerry's scoop shops, substantially all of which are franchised, also contributed significantly to the growth of the brand. In April, Ben & Jerry's marked its 21st Anniversary with a record-breaking Free Cone Day covered by local and national media. Almost 200 Ben & Jerry's scoop shops served up more than a half million free cones as a 'thank you' to their customers in this coast-to-coast event.

The Ben & Jerry's Foundation In 1985, Ben Cohen, co-founder of the Company, contributed a portion of the equity of the Company which he then owned to The Ben & Jerry's Foundation, Inc., a charitable organization under Section 501 (c) (3) of the Internal Revenue Code, in order to enable the Foundation to sell such equity in 1985 and invest the net proceeds (approximately $598,000) in income-producing securities to generate funds for future charitable grants. The Foundation, with its employee-led grant-making committee under supervision of the Foundation's directors, provides the principal means for carrying out the Company's charitable cash giving policy across the nation. The Foundation continues to target its grants to small grassroots social change organizations.