Financial Business Ethics and Social Responsibility

Question: Discuss about the Financial Business Ethics and Social Responsibility. Answer: Introduction The indispensability of business ethics and social responsibility has grown in the recent past with many companies focusing on the development of the business image as social and environment friendly business. Especially in the alcohol industry social responsibility has given paramount importance since most of the consumers have become highly concerned about the environment and society and alcohol is still considered a taboo due to its ill effects on the environment as well as the human health. In business could be defined as the codes that distinguish right and wrong (Jenkins, 2009). It is important to mention that business ethics are extremely effective since it helps the business to go in the right direction. Even though it is very tough to define ethics since it is vast subject it could be said a company following ethical practice should be able to keep its stakeholders content with effective returns and good quality products and services and always working in the right path even during competition. Corporate Social Responsibility or CSR is an effective ethical framework which mainly means that an entity be it an organisation or an individual is obligated to work towards the good and welfare of the environment (Thorne et al., 2010). Social responsibilities of the companies help them top come closer to its consumers and gaining their trust and also helps them to contribute substantially to the welfare of the society as well as the environment (Du et al., 2010). Social responsibility of companies should reflect on its work and activities and should also highlight the good that happens due to the implementation of the CSR strategies (Turker, 2009). The New Belgium Brewing Company is one of the renowned names in the alcohol industry in Colorado which specializes in brewing the best quality ales just like Belgium. The company has become a very renowned name eventually after a rugged start from a small garage of Mr. Jeff Lebesch from where it kept on developing. Over the years the company has not only improved its economic performance but has also had a significant influence of its ethical practice on the consumers. The Corporate Social Responsibility practices done by the company has had a strong influence on the consumers in Colorado which has helped the company gain in size and stature across the place. The present study discusses the significant environmental issues that the company has taken up to resolve and also the different social concerns and constantly working on the strategies to ensure they are properly addressed. Even though the company has implemented effective strategies to work towards the different social problems and environmental issues, it being an alcohol company seriously questions the righteousness it shows (Lindgreen Swaen, 2010). As an alcohol brewery its movements for social responsibility could be seriously questioned given the nature of products it sales and hence it becomes extremely important to discuss the e fficacy of the strategies used by the company to get that tag of socially responsible company (Hartman et al., 2014). Hence the present study will take an opportunity to answer that long sticking dogma on the alcohol companies through their social responsibility actions and to analyse whether New Belgium Brewing Company could be given the status of socially responsible company considering the initiatives it takes towards the well being of the society and the environment (Kolk Van Tulder, 2010). Hence it could be stated that the present assignment will try to answer the key questions related to the concepts of business ethics and social responsibility taking NBB as the case study. Discussion on Ethics and Social Responsibility Environmental issues addressed by NBB and its movements towards sustainability New Belgium Brewing Company has always focused sustainability and has tried to work towards the sustainability of the company by ensuring that the company works towards the sustainability of the environment. The company understands that sustainability is an extremely important issue and hence in order to come closer to the consumers and gain their trust as a sustainable business it is important for the company to work towards environmental sustainability. There are number of environmental issues that the company endeavors to address and one of the most key issues that the company tries to address is to make the company environment friendly (Smith et al., 2010). The New Belgium Brewing Company is the chairman of the sustainability subcommittee and the company focuses on making the business eco friendly. In the recent past energy issues have become one of the key environmental issues and the company realises to handle this issue effectively and hence gives on using cost effective eco f riendly energy saving process to run its operation. The company unanimously takes decision on the issues of environment and the issue of energy is given paramount preference to deal with it efficiently (Turker, 20009). The company has taken a strong stance regarding the clean water concept an initiative by the Environmental Protection Agency. The company has showed support in the in the Clean Water Act which clearly shows its support towards a favorable and clean environment. The company takes serious interest in reducing waste and uses a splendid waste management procedure which has helps the company to contribute towards the well being of the environment (Ferrell Fraedrich, 2015). New Belgium Brewing Company has taken initiatives to reduce pollution especially air pollution and water pollution and has also taken initiatives regarding building greener environment. It is important to mention that the company has handled above issues very effectively by implementing a strategic approach towards these environmental issues. The company has developed effective water treatment and uses only 3.5 gallons of water to make 1 gallon of beer which no other company has been able to do, it is at least 20% less than what other companies will use. The company has invested in newer technology which helps to conserve energy and also cost which is an extremely important movement by the company. The company has installed photovoltaic cells and has also unanimously taken the decision of installing wind turbines to use the wind energy for the operation of the business. The company has installed equipments that use low power to brew ales which has made the business energy efficient ( Godos-Dez et al., 2011). The smart grid installation has made it possible. The use of sun tubes that uses low power illuminates the operational area throughout the day. It is essential to mention that the company has not only supported the EPA Clean Water Act but also has developed a strong water manage. It is essential to mention that the company has not only supported the EPA Clean Water Act but also has developed a strong waste water management system which helps the company to use its waste water in the operation purpose again. The extraction of methane from the waste water management helps the company to use it for around 15% of the brewerys power needs. In order to use the maximum of the materials NBB focuses on recycling almost all the solid waste products even the office materials and this helps the company to act as an example for the concept of Reduce, reuse, recycle (Ramasamy Yeung, 2009). With the time passing by the company has had few lessons in its journey which has helped the company to act efficiently in order to conserve energy and develop the make the product system cost effective. The environmental friendliness of the company has helped it to develop implement certain effective strategies which has served its purpose of being environmentally sustainable (Castaldo et al., 2009). From the use of waste water to the use of sun tubes and the application of wind energy has helped the company to develop a strong platform where it can conserve energy and make their operations cost effective. In the last few years the company has completely dependent upon using renewable sources of energy in the form of solar and wind energy which has helped the company to address then environmental issues taken up by the company. The company completely recycles its waste water to use the 99% of it in the production purpose that helps the company to be environmentally sustainable (Peloza Shang, 2011). The company has made significant movements to reduce carbon emission in the year of 2015. It has developed a sustainable supply chain where it has developed a purchasing guideline that helps the company to identify and address the loopholes in the supply chain for sustainable supply of materials. To continue its environment friendly operations and making sure that it can contribute to the well being of the environment the company conducts life cycle analysis which helps it to understand the shelf life of its packaging components and accordingly takes stance to address these issues (Maon et al., 2009). Overall it could be said that these key environmental issues which the company has taken up is addressed effectively with the help of different strategic approach mentioned above. It is true that the company has taken a stance towards effective and better environment and sustainability as it feels that it has some responsibilities towards the environment which has to be fulfilled. It co uld be said that it is not merely a movement to come closer to its consumer base as it has always tried to act in favor of the environment when it was in the phase of becoming a brand and hence it could be said that the company understands its obligations towards the environment and so NBB takes stance towards sustainability which also has a secondary focus on gaining the trust of the consumers that it has been able to manage with strategic approach to environmental sustainability. Social Responsibility and competitive advantage of the company New Belgium Brewing Company is one of the leading alcohol brewery in Colorado but it experience significant competition in the market which clearly points that the company would have to implement certain strategies which help the company to gain competitive advantage in the market. It is important to mention that the social movements of the company are critical in providing competitive advantage in the market. As stated in the earlier section that the company has been able to manage to work sustainably and also work towards safeguarding the environment effectively and this has clearly helped the company to gain competitive advantage in the market. It is important to mention that the company that the company has judiciously used water so far and has published their sustainability report that has helped the consumers to know the possible movements that the company makes to safeguard the environment as well as work on the social concerns have helped the company to gain trust and confide nce of the consumers. Over the last few years the company has developed its market base by gaining the competitive advantage in the market (Carroll Buccholtz, 2014). The company is a consistent employer and provides employment to a large number of people which makes it one of the significant players in the employment market in its area. The philanthropic involvement of the company has helped a lot of people to know about the company and its activities through its sustainability movements effectively. Event sponsorship and involvement in the charity programs have helped the company to let people know about its intentions to work towards the development of the environment and the well being of the society. The attempt of New Belgium Brewing Company towards the environment has been appreciated by people and this has created significant competitive advantage for the company in the market. The company has continued work towards the community by donating $1 for each barrel of beer sold t o the philanthropic needs of the community which has helped the company to give something back to the community which has been hugely appreciated (Zadek et al., 2013). In the local following the company has been able to get success due to its constant service towards the community for charity and for children that clearly differ the company from the other alcohol selling companies. The company states that success for them not only means economic development of the company but also social development which clearly indicates their gesture towards the community. Hence it could be said that the company has focused on consistently contributed to the social concerns which also make it an important performer from the social context. Overall it could be said that the company has built a strong moral support for itself in the market over the years with its effective sustainable responsibilities. So, it could be said that the company has been able to gain competitive advantage in the market t hrough its sustainable activities for the society (Fassin et al., 2011). Alcohol selling and socially responsible business There has been number of arguments about the beer making companies being not socially responsible due to their primary products. It apparently seems that alcohol companies have their primary products that affect the human health and this is where the biggest controversy lies. As far as the operations and movements of the New Belgium Brewing Company are concerned it could be said that the company has been able to act responsible towards the environment as well as towards the society which has to be said as sustainable. Its movements regarding saving energy, effective waste water management, effective handling of the social concerns like unemployment and addressing of charities and helping NGOs clearly indicate the company is not only focused on the economic development of the organisation but it also its social development by coming closer to the consumers through its sustainable operations. According to David Edgar the former director at the Brewing Association in Colorado the compan y has developed a very sustainable brand image among the consumers which clearly shows the effect of acting sustainably (Lindgreen et al., 2010). The company understands that its key assets are quality, responsibility and concern for the society. The company has continuously worked for the welfare of the environment for instance working on the green building project, through energy conservation system, using renewable energy sources for operation et cetera which clearly tells that the company is working only for the sake of profit and clearly feels strongly for the environment and the society which makes the company close to the society and loved by the consumers as well as the society. Given its continuous movements towards safeguarding the environment and working on the social concerns of the society has helped the company to gain the trust of the common people and hence it could be said that the activities of the company shows that it is more than a brewing company and feels for its stakeholders and the environment that establishes the organisation as a socially responsible corporation (Lin et al., 2009). Conclusion Ethics and social responsibility plays a vital role for every business nowadays and the case study of New Belgium Brewing Company has helped to understand that very easily. Over the years the company has been able to gain trust of the consumers through its signature and quality ale and effective sustainable actions which has helped the company to develop a strong position for them in the market (Cavanagh, 2012). 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