New Belgium Brewing: Ethical and Environmental Responsibility
Small companies sometimes make big contributions to surrounding communities, and become leaders as they set social agendas and enact initiatives to address community issues. Such is the case for the New Belgium Brewing Company (NBB), which has gone to great lengths to incorporate environmentally sensitive and energy-saving alternatives into its brewery process. For example, it was the first brewery in America to be completely wind powered, and its brewery is LEED certified. The company is constantly experimenting with ways to reduce water consumption and waste, and to recycle a greater proportion of waste products. Currently, the company recycles around three-quarters of all of its waste. The brewery even donates barley and hop mash leftover from the brewing process to local pig farmers to use as feed. NBB has developed an organic wheat beer, making it one of the largest craft brewers in the country to do so.
Beyond its commitment to the environment, New Belgium Brewing has become a model for social responsibility as a result of its philanthropic efforts in the states in which it is distributed. For example, for every barrel of beer sold, NBB donates $1 to a philanthropic cause within that state, amounting to nearly a half a million dollars annually. NBB also donates 1 percent of its profits to environmental causes. Because its primary product is beer, New Belgium focuses a lot of efforts on education about alcohol abuse and encouraging responsible consumption.
Question
1. What environmental issues does the New Belgium Brewing Company work to address? How has NBB taken a strategic approach to addressing these issues? Why do you think the company has chosen to focus on environmental issues?
2. Are New Belgium’s social initiatives indicative of strategic philanthropy? Why or why not?
3. Some segments of society vigorously contend that companies that sell alcoholic beverages and tobacco products cannot be socially responsible organizations because of the nature of their primary products. Do you believe that New Belgium Brewing Company’s actions and initiatives are indicative of an ethical and socially responsible corporation? Why or why not?
