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New Belgium Brewing: Ethical and Environmental Responsibility

CASE 85

NEW BELGIUM BREWING: ENGAGING IN

SUSTAINABLE SOCIAL

RESPONSIBILITYCRAFTING A FRESH SOCIAL

RESPONSIBILITY AND SUSTAINABILITY

INITIATIVE

CASE NOTES FOR INSTRUCTORS

This case is an example of a socially responsible company—Fort Collins, Colorado’s New Belgium

Brewing Co. (NBB). Small companies sometimes make big contributions to surrounding communities

and become leaders as they set social agendas and take initiatives actively addressing community

issues. Such is the case for NBB, which has gone to great lengths to incorporate environmentally

sensitive and energy-saving alternatives into its brewery and the brewing process. For example, it was

the first brewery in America to be completely wind-powered, and its brewery is LEED certified. The

company is constantly experimenting with ways to reduce water consumption and waste and to recycle

a greater proportion of waste products. The brewery even donates barley and hop mash left over from

the brewing process to local pig farmers to use as feed, thereby reducing the amount of waste it

generates. NBB has been so successful it opened another location in Asheville, North Carolina. The

grand opening of its Asheville brewery coincided with NBB’s 25th

anniversary.

New Belgium is also popular with its employees. NBB is 100 percent employee-owned, and employees

are viewed as partners in the company. As a way to encourage its employees to actively take part in

NBB’s sustainability initiatives, the company provides employees with a mountain bike after a year of

employment so they can ride to work instead of drive. NBB offers a number of unique incentives, such

as free beer at quitting time, and allows a democratically elected group of employees to act as a liaison

between the board, managers, and employees.

Beyond its commitment to employees and the the environment, New Belgium Brewing has become a

model for social responsibility resulting from its philanthropic efforts in the states in which it is

distributed. For example, for every barrel of beer sold, NBB donates $1 to a philanthropic cause within

that state. NBB also donates 1 percent of its profits to environmental causes. Because its primary

product is beer, which is an inherently controversial product, New Belgium focuses efforts on education

about alcohol abuse and encourages responsible consumption.

QUESTIONS AND DISCUSSION

1. What environmental issues does the New Belgium Brewing Company work to address? How has

NBB taken a strategic approach to addressing these issues? Why do you think the company has

taken such a strong stance toward sustainability?

This question asks students to reflect on New Belgium Brewing’s strategic efforts to provide quality

products while creating minimal damage to the environment. The discussion should center on the

accessible website, in whole or in part.

New Belgium Brewing: Ethical and Environmental Responsibility

such as the firm’s investment in wind energy to power its brewery; use of innovative heating and

cooling and lighting systems, such as its steam condenser and sun tubes; and recycling and reusing

Sustainability has been a major part of the company’s mindset since its founding. One of its core

values involves environmental stewardship, or “minimizing resource consumption, maximizing

energy efficiency, and recycling.” For this reason, NBB strives to incorporate environmental

responsibility directly into its business strategies. NBB’s founders deeply embedded their values in

2. Do you agree that New Belgium’s focus on social responsibility provides a key competitive

advantage for the company? Why or why not?

Students’ answers may vary, but they should support their view with reasoning. Most students will

likely answer yes, to some extent NBB’s focus on social responsibility does give it a competitive

advantage. If nothing else, it helps to differentiate the brand. It also attracts stakeholders who care

about social and sustainability issues. One could argue that NBB has incorporated social

responsibility into its operations as a type of strategic philanthropy, or the synergistic and

mutually benecial use of organizational core competencies and resources to

deal with key stakeholders bringing about organizational and societal benets.

3. Some segments of society contend that companies that sell alcoholic beverages and tobacco

products cannot be socially responsible organizations because of the nature of their primary

products. Do you believe that New Belgium’s actions and initiatives are indicative of a socially

responsible corporation? Why or why not?

This question challenges students to consider whether a company can ever be truly socially

responsible when its primary product is alcohol—a substance that is addictive and subject to abuse.

There is no “correct” response; the question encourages students to think about all of a company’s

actions, not just the social responsibility initiatives it promotes. Many students will argue that NBB

accessible website, in whole or in part.

Case 5: New Belgium Brewing: Ethical And

ADDITIONAL RESOURCES

New Belgium Brewing’s Beer Ranger hip hop video: http://www.youtube.com/watch?

v=wj6Tha_ELlw

New Belgium website: http://www.newbelgium.com/home.aspx

Tinkerer with the US Pro Challenge commercial: https://www.youtube.com/watch?

v=KCnzyX-x-WQ

NBB listed among best companies to work for…again:

https://www.forbes.com/sites/darrendahl/2016/11/19/new-belgium-brewings-ownership-culture

-wins-again/#1a65fa422b6a

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