The notion Corporate social responsibility (CSR) has provoked an extensive history of academic debate whether corporations have a social as well as financial responsibility to the community or not. The main conflict in this field has been associated with the evolution of the concept and the definition of CSR. Even though this concept has a long and varied history, which arose centuries ago, the formal writing on social responsibility, however, is mostly a product of the past 50 years. During that time, there have been many papers published by academics and business practitioners. Bowen (1953) marks the beginning of the modern period of literature and argued that centralised power of big corporations had influence on the lives of citizens, by company’s actions and decisions. Davis (1960) became famous because he emphasised the correlation between social responsibility and business power and justified socially responsible business decision in light of a good chance of bringing long-run prosperity to the corporation. In arguing against CSR, Milton Friedman (1970) seems to be widely accredited. In fact, he does not dispute the validity of CSR, but rather argues that when these activities are carried out for reasons of self-interest, then they are merely profit-maximization under the cloak of CSR. He set forth that the social responsibility of business is to increase their profits and its managers’ responsibility to act solely in the interest of its shareholders (maximising shareholders-value). This being said as a short introduction to the academic development of CSR, highlights that CSR is not at all common sense and therefore needs further theoretically examination.
Besides these debates in the academic world, there has been also a development in practise. The business world offers numerous examples of companies not only focusing on short-term profit without considering social and environmental issues. There have been an increasing number of companies containing ethical and moral values in their corporate strategy and considering their society and environment as important factors towards a long-term success. Successful companies such as Body Shop, Stonyfield Farm or Ben & Jerry’s have been establishing strategies which main focus relies on Corporate Social Responsibility and appreciated CSR as a business driver.
The aim of this paper is to critically evaluate social responsibility of business in a global economy.
Table of Contents
1. Introduction
2. Corporate Social Responsibility as an umbrella Term
2.1 Corporate Social Responsibility
2.2 Corporation
2.3 Theoretical perspectives on CSR
2.3.1 Shareholder Theory
2.3.2 Stakeholder Theory
2.3.3 Carroll’s four-part Model of CSR
3. Business benefits of Corporate Social Responsibility
4. Ben & Jerry’s Homemade Inc.
4.1 Formation of Ben & Jerry’s
4.2 Product Mission
4.3 Economic Mission
4.4 Social Mission
5. Critics about Ben & Jerry’s
6. Conclusion
Objective and Research Focus
The primary objective of this paper is to critically evaluate the social responsibility of businesses within a global economy, specifically analyzing whether corporations can fulfill social obligations alongside financial goals. Using Ben & Jerry’s Homemade Inc. as a case study, the work investigates how the integration of social and environmental commitments can serve as a business driver and enhance corporate reputation.
- Theoretical analysis of Shareholder versus Stakeholder theories of the firm.
- Evaluation of Carroll’s Four-part model of Corporate Social Responsibility.
- Examination of the business benefits derived from ethical corporate strategies.
- Case study of Ben & Jerry’s alignment of Product, Economic, and Social Missions.
- Discussion of challenges and criticisms regarding corporate sustainability practices.
Excerpt from the Book
4.2 PRODUCT MISSION
As mentioned, the Ben & Jerry’s Product Mission is to create and to invent outstanding ice-crème for its customers. Their commitment is to deliver ice-crème which is made by the finest quality and all natural ingredients. Furthermore, the product should be manufactured by using business practices that respect the earth and the environment. Additionally, Ben & Jerry’s Homemade Inc. is to maintain its commitment to incorporating wholesome (Ben & Jerry’s Website, 2011c). This mission is reflecting in the various ingredients they are using to produce their ice crème such as their Cage Free Eggs, their Caring Dairy, their chocolate brownies and their Fair Trade products. Ben & Jerry’s has even been the first ice-crème company in the world using Fair Trade certified ingredients starting in 2005 (Lucas, 2011).
It is noticeable that Ben & Jerry’s is only using Eggs coming from chickens on certified cage-free farms as they believe that happy hens lay good eggs (Ben & Jerry’s Website, 2011d). Similarly is their approach in respect to the milk and cream. This approach goes even deeper. The ice-crème maker has a high degree of quality-conscious and is exceedingly monitoring where its milk supply is coming from and which kind of standards have been adhered to. They have established long-standing partnerships with local farmers for more than 20 years, agreeing on avoiding the use of Bovine Growth Hormone (rBGH) (Dennis, Neck and Goldsby, 1998, p.389). In return, Ben & Jerry’s remunerate its farmer by paying milk prices which are above market price (Dennis, Neck and Goldsby, 1998, p.389; Taylor, 1997). Moreover, the firm is also supporting the local farmers in terms of helping the famers to adopt leading-edge sustainable practices. Ben & Jerry’s accentuate that “Caring Dairy is a boon to cows, a boost for farmers, and beneficial for the plant” (Ben & Jerry’s Website, 2011e).
Summary of Chapters
1. Introduction: This chapter provides an overview of the academic debate surrounding Corporate Social Responsibility and outlines the paper's aim to evaluate corporate responsibility using the case of Ben & Jerry’s.
2. Corporate Social Responsibility as an umbrella Term: This section defines CSR as a heterogeneous concept and discusses key theoretical perspectives, including the Shareholder Theory, Stakeholder Theory, and Carroll’s four-part model.
3. Business benefits of Corporate Social Responsibility: This chapter examines the economic arguments for CSR, noting how it helps companies attract talent, differentiate products, and improve corporate reputation.
4. Ben & Jerry’s Homemade Inc.: This chapter details the history, acquisition, and the implementation of the company's triple bottom-line mission, specifically focusing on their Product, Economic, and Social goals.
5. Critics about Ben & Jerry’s: This section addresses past shortcomings of the company, such as labeling controversies and supply chain failures, highlighting that even socially responsible companies face challenges.
6. Conclusion: The final chapter summarizes the findings, asserting that businesses can successfully reconcile profit maximization with social responsibility through long-term sustainable commitment.
Keywords
Corporate Social Responsibility, CSR, Shareholder Theory, Stakeholder Theory, Carroll’s Model, Ben & Jerry’s, Triple Bottom Line, Fair Trade, Sustainability, Business Ethics, Profit Maximization, Corporate Reputation, Environmental Protection, Values-led Business, Social Mission
Frequently Asked Questions
What is the primary focus of this work?
The work explores the critical evaluation of corporate social responsibility within a global business environment, questioning whether firms can simultaneously balance financial success with social obligations.
What are the central theoretical themes covered?
The paper focuses on the tension between the Shareholder Theory and Stakeholder Theory, and further applies Carroll’s Four-part Model of CSR to analyze corporate duties.
What is the core research objective?
The goal is to demonstrate that corporations can use CSR as a strategic driver to differentiate products and build brand integrity while remaining economically viable.
Which methodology is employed in the study?
The study utilizes a theoretical literature review combined with an in-depth case study analysis of Ben & Jerry’s Homemade Inc. to illustrate practical applications of CSR.
What does the main body of the work address?
It covers the historical development of CSR, theoretical frameworks, the economic benefits of responsible business, and a detailed look at the triple bottom-line strategy of Ben & Jerry’s.
Which keywords best characterize the paper?
Key terms include Corporate Social Responsibility, Stakeholder Theory, Triple Bottom Line, Sustainability, and Business Ethics.
How does Ben & Jerry’s implement its "Social Mission"?
The company promotes its social mission through Fair Trade ingredients, support for the anti-war movement, and grants made via the Ben & Jerry’s Foundation.
What specific criticism is raised against Ben & Jerry’s?
The paper discusses instances where the company failed to meet its own high standards, such as the "all natural" labeling controversy and previous supply chain issues related to rainforest products.
Does the author believe that CSR is profitable?
Yes, the author concludes that investing in CSR often pays off for companies, as it creates value that benefits both the firm and society.
What role does the "Caring Dairy" program play?
It is a specific initiative by Ben & Jerry’s to support dairy farmers in continuous social, environmental, and economic improvement, aligning with their goal of promoting sustainable dairy practices.
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- Sebastian Kress (Autor:in), 2011, Evaluate the social responsibility of Ben & Jerry's in a global economy, München, GRIN Verlag, https://www.grin.com/document/183313
