Ben and Jerry's business model and corporate practices

Ben and Jerry's Incorporated has become a famous name in the world of ice cream throughout the world. The company is well-known for its innovative array of ice cream flavors and for the unique way in which the company conducts business. The purpose of this discussion is to assess the business ethics associated with Ben and Jerry's Inc. Let us begin our discussion by describing the values of the company.

Ben and Jerry's Values

According to the company's official website it is committed to three core missions: Product Mission, Economic Mission, and Social Mission. The product mission is to dispense & sell the finest quality ice with all natural ingredients ("Our Mission Statement"). The company is committed to integrating wholesome, natural ingredients and encouraging business practices that value the Environment. The Economic Mission of the company is to operate the business on a stable financial basis of profitable expansion which will improve stakeholder & increase opportunities for development and career growth for employees ("Our Mission Statement"). Finally, the social mission of the company is to conduct the business in a way that acknowledges the primary purpose that businesses play within society ("Our Mission Statement"). The company is committed to doing this by developing pioneering ways to enhance the quality of life locally, nationally & internationally ("Our Mission Statement").

All of these values have assisted in making Ben and Jerry's one of the most respected companies in the country. These values are consistent with a business ethics policy that ensures that the company is responsible as it relates to employees, the environment and the product that it produces. The next section of this discussion focuses on the manner in which Ben & Jerry's treats employees.

Ben & Jerry's Treatment of employees

According to the company's Social & Environmental Assessment Report of 2005, the company appears to be very committed to hiring quality employees and retaining these employees. To this end, the company conducts what is referred to as Global People Surveys every two years ("Social & Environmental Assessment Report of 2005"). These surveys evaluate the aspect of the company that employees do like and the aspects of the company that employees do not like. The company takes the results of the surveys and develops strategies and policies to retain employees.

One of the most unique things about the manner in which Ben & Jerry's employees are treated has to do with the fact that company offers employees a living wage. The company is at the forefront of American companies that go beyond offering employees only a minimum wage. According to the report,

Ben & Jerry's is committed to paying all of its full-time manufacturing workers a livable wage. In 1995 we established a method for calculating a livable wage figure for Vermont. We defined it as the starting wage for a single person that will sustain a quality of life to include expenditures for housing, utilities, out-of-pocket health care, transportation, food, recreation, savings, taxes, and miscellaneous expenses. Since then, we have adjusted this livable wage based on COLA (Cost-of-Living Adjustment) data to ensure the relative value is sustained in today's marketplace ("Social & Environmental Assessment Report of 2005")."

Using the aforementioned formula the company found that the livable wage for the year 2005 was $10.38-hour, or $21,590 per year ("Social & Environmental Assessment Report of 2005"). For this reason every full-time employee at Ben & Jerry's were paid $10.38 or more in the year 2005 ("Social & Environmental Assessment Report of 2005"). The report also explains that this compensation will be reevaluated for 2006 to determine what if any changes need to be made to ensure that employees are making a living wage.

In addition to the living wage the company also offers employees certain benefits. Theses benefits include paid leave, tuition reimbursement, a room for nursing mothers, a pension plan, health, dental and life insurance, $1,000 incentives to purchase hybrid vehicles, health club memberships, a nap room, a work environment that is pet friendly, 401K plain that features automatic company contribution and company match, and three pints of ice cream each day ("Workplace Practices").

In addition, the company has a community service benefit that is available to all employees in the Central Support. This benefit allows employees to take 40 hours of paid leave to volunteer with any non-profit organization ("Workplace Practices"). This benefit was introduced in 2005 in the wake of Hurricane Katrina when eight employees form the company went to assist in the recovery effort ("Workplace Practices").

In addition to the aforementioned benefits the company also has bonus incentive plans in place. The plans are available to full-time employees and the bonuses allow employees to receive pay that is above base pay ("Workplace Practices"). The company explains that this incentive allows the businesses to build the skills of employees and competencies and to realize positive business results. Managers are eligible for the New Variable Pay Award Plan which allots bonuses derived from the Company's financial performance and the progress made by the individual as it relates to goals ("Workplace Practices").

In addition the other full-time employees are entitled to the Performance and Savings Incentive Plan (PSIP). The standard payout for PSIP during 2005 was $1,229 ("Workplace Practices"). Employees that do not work for the company full time are eligible for many different bonus plans based on which segment of the company they work with.

Environmental Policies of Ben & Jerry's

Ben & Jerry's also set a standard as it relates to the company's interaction with the environment. The company's commitment to the environment was made apparent in 1992 when the company signed the CERES Principles. The CERES principles acknowledge a commitment to such things as the protection of the biosphere, reduction of waste and the disposal of waste, the conservation of energy, the restoration of the environment, reduction of risk, and the sustainable use of natural resources ("Our Three Part Mission Statement").

In an effort to conduct business with the aforementioned principle in mind, the company has developed several strategies and policies. For instance during 2001 the company developed the indicators of sustainable agriculture associated with dairy farmers. In addition, on the continent of Europe the company created an initiative known as the Caring Dairy. This initiative was consistent with policies adopted in the United Sates and the initiative was created to assist the production of Ben & Jerry's Ice Cream in the Netherlands.

The company is also active in ensuring that the packaging is environmentally progressive. This has resulted in the development of the Eco-pint which is made from renewable resources. The company is also dedicated to raising awareness among consumers as it relates to the impact of global warming. The company has also been actively pursuing the development of the thermo-acoustic refrigeration. Thermo-acoustic refrigeration "is an alternative refrigeration technology that utilizes sound waves to create cooling, as opposed to the traditional means of mechanical refrigeration reliant on the compression and expansion of specialized gases ("Thermo-acoustic Refrigeration")."