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New belgium brewery social responsibility

24/04/2021 Client: muhammad11 Deadline: 2 Day

It was the winter of 2012. In contrast to the quiet cold outside, there was a roar of clapping inside the New

Belgium Brewery (NBB) in Fort Collins, Colorado. Employees applauded as a fleet of cruiser bikes

ceremoniously rolled in to greet the employees celebrating their first year anniversary at NBB. The

greater prize came along with the new bikes: ownership in the company. Although employees had always

partially owned the NBB, the company planned to be fully employee-owned by the end of the year. Such

dedication and willingness to share with their employees had always been a part of NBB whose values

also extended to the natural environment and philanthropy. With a focus on the triple bottom line NBB

had grown tremendously over the years. Not only were they the third largest craft brewery in the U.S., but

they were also giving strong consideration to opening a second brewery. Such economic growth was,

perhaps surprisingly, accompanied by a reduction in their carbon footprint and an increased impact on

their industry and society through their philanthropy and lobbying for stricter environmental

requirements.

Their success with the triple-bottom-line was also driving them to consider B Corporation certification, an

independent third-party certification process that could legitimize the business model NBB had been

practicing for so long. While rigorous and potentially cumbersome and risky, B Corp Certification also

presented a number of benefits such as increased exposure to informed investors, policymakers,

customers, and likeminded businesses. Furthermore, it represented a movement toward what had been

called stakeholder capitalism. Stakeholder capitalism was meant to protect companies seeking to move

past the profit-maximization paradigm where they were legally responsible to place shareholders above

all stakeholders. In essence, stakeholder capitalism turned shareholder capitalism on its head and

companies were legally required to consider and include all stakeholders in their business decisions. Such

a paradigmatic shift in the purpose and goals of business was consistent with NBB’s values, yet it also

exposed them to new risks. Accordingly, Katie Wallace, the director of sustainability, had to make a

recommendation to the board of directors at NBB on whether they should pursue B Corp certification.

Katie had nearly a decade of experience with NBB and had helped steward and encourage movement

towards the company’s goals including reducing their environmental impact.1 Though this ceremony

shined a light on their achievements, it was her fellow employees that amazed her daily with what they

accomplished. To think this all began with a bike ride in Belgium and a promise of doing business better,

all before a single beer was brewed.

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