Case Study: Brewing Sustainable Success - Principles of Management

1. What challenges does New Belgium Brewery face in pursuing environmental goals?

   New Belgium Brewery, while committed to sustainability, faces several challenges in pursuing its environmental goals:

   • Cost Considerations: Implementing sustainable practices often involves higher upfront costs, such as investing in renewable energy sources like wind and solar power. This could lead to reduced profitability, especially in a competitive market where price sensitivity is high.

   • Resource Limitations: Brewing is an inherently resource-intensive process, particularly concerning water usage. Managing and reducing water consumption while maintaining production levels can be difficult.

   • Consumer Expectations: As consumer awareness regarding sustainability grows, expectations around transparency and ethical practices increase. Balancing these expectations with the realities of production and profitability can create tension.

   • Supply Chain Complexity: Sourcing sustainable ingredients and materials can be challenging, as it requires partnerships with suppliers who share the same commitment to environmental stewardship. Disruptions in the supply chain can affect sustainability initiatives.

   • Changing Regulations: The regulatory environment can impact sustainability efforts. Companies may need to adapt to changing laws and standards related to environmental practices, which can necessitate additional resources and adjustments.

2. Can you think of any other examples of companies that try to “do good” while also doing well?

   Several companies are recognized for successfully integrating social and environmental goals with their business objectives:

   • Patagonia: This outdoor clothing company is committed to environmental sustainability and social responsibility. They encourage customers to repair and recycle their products and donate a percentage of their profits to environmental causes.

   • TOMS Shoes: Known for its "one for one" model, TOMS donates a pair of shoes for every pair sold. This model not only helps those in need but also appeals to socially conscious consumers.

   • Ben & Jerry's: This ice cream brand is famous for its commitment to social justice, environmental sustainability, and Fair Trade practices. Their focus on using ethically sourced ingredients resonates with their customer base and aligns with their brand identity.

   • Warby Parker: The eyewear company has a "buy a pair, give a pair" program that provides glasses to those in need with every purchase made, addressing both consumer needs and social responsibility.

3. Would you like to work for an organization that is committed to something more than just profitability, even if it meant your salary or bonus would be smaller?

   Personally, I would be inclined to work for an organization committed to social and environmental causes, even if it meant a reduction in salary or bonuses. This preference stems from several reasons:

   • Alignment with Values: Working for a company that shares my values regarding sustainability and social responsibility would provide a sense of purpose and fulfillment. It is essential for me to contribute positively to society and the environment through my work.

   • Engagement and Satisfaction: Organizations committed to doing good often foster a culture of engagement, motivation, and collaboration among employees. This environment can lead to greater job satisfaction and a stronger sense of community within the workplace.

   • Long-Term Perspective: I believe that businesses with sustainable practices are more likely to thrive in the long run. By investing in ethical practices and social responsibility, these organizations can build brand loyalty and resilience, ultimately leading to sustainable profitability.

   • Positive Impact: The ability to contribute to meaningful change, whether in environmental sustainability, social justice, or community well-being, can provide a sense of accomplishment that transcends financial rewards.

Reflective and Reactive Decision-Making

2. What are the two systems of decision-making in the brain?

   The two systems of decision-making in the brain are:

   • Reflective System: This system is logical, analytical, deliberate, and methodical. It involves the prefrontal cortex and is used for making well-considered decisions based on facts, data, and structured reasoning. This system is typically engaged when individuals have time to think and analyze information before arriving at a conclusion.

   • Reactive System: This system is quick, impulsive, and intuitive, relying on emotions or habits. It is governed by more primitive parts of the brain, such as the basal ganglia and amygdala. The reactive system is often activated in high-stress situations, allowing for immediate responses based on instinct or past experiences without the need for thorough analysis.

These two systems work together in decision-making processes, with the context and urgency of a situation often determining which system is employed.

Sources: Karen Crofton, “How New Belgium Brewery leads Colorado’s craft brewers in energy,” GreenBiz, August 1, 2014, https://www.greenbiz.com/. Darren Dahl, “How New Belgium Brewing Has Found Sustainable Success,” Forbes, February 8, 2016, https://www.forbes.com/. Jenny Foust, “New Belgium Brewing Once Again Named Platinum-Level Bicycle Friendly Business by the League of American Bicyclists,” Craft Beer.com, February 18, 2016. Robert G. Eccles, Ioannis Ioannou, & George Serafeim, “The Impact of Corporate Sustainability on Organizational Processes and Performance,” Management Science, 60, 2014, https://doi.org/10.1287/mnsc.2014.1984. New Belgium Brewery Sustainability web page, http://www.newbelgium.com/sustainability, accessed September 18, 2017