New Belgium Brewing: Social Responsibility as a Competitive Advantage Essay Example

as their products and services, if they take responsibility for the well-being of the societies and environments in which they operate. These companies are practicing social responsibility in a manner that generates significant returns to their businesses. Social responsibility makes a company more competitive and reduces the risk of sudden damage to the company’s reputation and sales. New Belgium saw social responsibility as part of a continuing process of building value. Social responsibility helps improve the company’s reputation, and establish long-term relationships with customers and other stakeholders.

3. What are the challenges associated with combining the need for growth with the need to maintain customer intimacy and social responsibility? Does NBB risk losing focus on its core beliefs if it grows too quickly? Explain. The main reason any company would object to maintain customer intimacy and social responsibility is the associated costs. With social responsibility, a company pays for environmental programs, more employee training and efficient waste management programs.

Proponents of social responsibility agree that any expenses to businesses are ultimately covered by stronger relationships with key stakeholders. However, some argue that investment in social responsibility programs may not necessary result in measurable financial results. Another challenge for companies when considering social responsibility is the possible negative perception of shareholders. Historically, publicly-owned companies had a primary focus of maximizing shareholder value. Now, they must balance the financial expectations of company owners with the social and environmental requirements of other stakeholder groups.

Some shareholders are happy to invest in companies that operate with high integrity. Others may not approve of the expenses of operating under social responsibility guidelines. New Belgium decided to capitalize on customer intimacy and social responsibility

right from the start. New Belgium believes that, when managed effectively, social responsibility programs and projects can create significant benefits in terms of reputation and returns as well as the motivation and loyalty of employees. I don’t think NBB would risk losing focus on its core beliefs as it grows.

4. 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 products. Do you believe that New Belgium’s actions and initiatives are indicative of a socially responsible corporation? Why or why not? As a company that produces alcoholic beverages, New Belgium targets a specific market – men ages 25 to 44. While the company promotes its beer it also encourages “the responsible enjoyment of beer” (New Belgium website).

Such promotion falls into place with New Belgium’s strategic objective that aims to remain a business role model by “kindling social, environmental and cultural change”. It is a social responsibility of the company to educate the consumer of the affects of the product, while also encouraging the responsibility of the consumer itself. New Belgium successfully ties in the cultural and social perspectives of responsible consumption of beer. It is, therefore, a socially responsible corporation. *Textbook: Marketing Management Strategies, Ferrell, 5th edition