Ben & Jerry’s Homemade Ice Cream Inc.: Keeping the Mission(s) Alive

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Ben & Jerry’s Homemade Ice Cream Inc.: Keeping the Mission(s) Alive 392-025

It’s our objective to run Ben & Jerry’s for long-term financial and social gain. We are becoming more comfortable and adept at functioning with a two-part bottom line, where our company’s success is measured by both our financial and our social performance.

We are convinced that the two are intertwined. And, we are convinced that attention to excellence, quality, and the social needs of our communities will lead to solid, stable growth of both our bottom lines.

Observers of the company who agreed with Ben’s statement pointed to a number of factors. The unusual strength of the social mission caused a promotional boost, as interested reporters covered the company extensively. Many employees were motivated at least partly by it, and morale was high (see Exhibit 11). A Roper poll indicated that 52% of the population would pay 10% more for a brand made by a socially responsible company. The idea that doing well and doing good are consistent had gradually gained converts as the company continued to progress in both dimensions.

The orientation to the social mission had some questionable repercussions at the firm, however. Much less attention to cost and profit was demonstrated than in most businesses. For example, the company’s three-year business plan contained no numbers, and only 3 of 70 points in the plan referred to economic characteristics of the firm. Some traditional business methods that might have strengthened the company were either rejected in the zeal for an anti-establishment ethic or not discovered in the first place. The self-conscious rejection of hierarchy at the company made decision making and communication laborious and complicated. Everyone felt comfortable going to see Chico with problems or suggestions. This put an enormous burden on Chico, who was not necessarily the right person to deal with the issue in the first place.

As the number of people in the company grew, not everyone necessarily subscribed to the company philosophy. Practical pay and promotion issues predominated with many of them. As the potential for chaos increased with size and complexity, a smoothly functioning, well-organized system became more important. The company didn’t rate as well on these issues as on others (see Exhibit 12).