| Perhaps the privacy rights of CanGo's customers and the financial interests of the organization can be reconciled. What if CanGo took a strong stand in favor of custumer privacy and publicized that stand? It's possible that CanGo's ethical position would prompt customers to choose CanGo's site over those of its competitors.
You can explore this possibility in more depth considering the case of Ben and Jerry's Ice Cream. Ben and Jerry's Homemade, Inc. is famous for its three-pronged mission statement that addresses the issue of high quality products, sound finances, and corporate social contributuions. To meet the goals of the the third part of their mission statement, Ben an Jerry's donates 7.5 percent of its pre-tax earnings to social causes. The company is also committed to buying higher priced Vermont milk that has not been treated with bovine growth hormones.
However, the performances of Ben and Jerry's stock over the past few years has been rather poor. In the spring of 2000 the company, after a failed attempt to go private, agreed to be bought out by the British conglomerate Unilever. Under the buy-out agreement, Ben and Jerry's will according to a recent press release:
...operate seperatly from Unilever's current U.S. ice cream business. There will be an independent board of directors, which will focus on providing leadership for Ben and Jerry's social mission and brand integrity.
With this transaction, shareholders will be rewarded for their investment; Ben & Jerry's will be protected; the current social mission of Ben & Jerry's will lead to improved performance in this area; and an opportunity has been offered to Ben and Jerry's to contribute to Unilever's social practices world wide.
This laudable goal notwithstanding, many experts see the Ben & Jerry's experiment in social responsibility as a failure, because the firm was unable to maximize shareholder value while pursuing various social issues.
First, do you agree with this conclusion? Before you answer, research the current state of the situation by visiting the Unilever Web site and the Ben and Jerry's Web site. Has anything changed since the takeover? Is there any evidence that Ben and Jerry's has had any influence on Unilever in the area of social responsibility? Does Ben and Jerry's fit with the Unilever culture?
Second, what can the management of CanGo learn from Ben and Jerry's as they endeavor to act socially responsible. |
