978-1337614436 Cases New Belgium Brewing

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subject Authors Ferrell, John Fraedrich, O. C. Ferrell

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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
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Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
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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
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Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
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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
© 2017
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Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permi$ed in
a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

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