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New Belgium Brewing: Ethical and Environmental Responsibility, Case 8

James O Royal 10/24/19

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 taken such a strong stance toward sustainability?
NBB had 3 basic issues facing them: Energy saving and cost-efficient alternatives to operate

business, lessening the impact of NBB’s operation on environment and developing reuse, recycle

and green building techniques. To accomplish these outcomes, the company began a cost efficient

and energy saving technology to perform the operations of the brewery with minimal impact on

the environment .New Belgium was the first brewery in the US to totally utilize wind power.

Switching from coal power NBB has reduced its Carbon Dioxide emissions by 1800 metric tons

per year which cancels carbon footprint, this done by the use a new canning line. This measure

alone diverts about 99% of the waste. The Company also uses a steam condenser that uses the hot

water used to boil the grains in the production of beer. The steam for this process is used to heat

the floor tiles and de ice the loading docks in freezing temperatures. Day time lighting is utilized

with the something called “sun tubes”. NBB introduces 3R’s of environmental stewardship. The

3R’s include reduce, recycle, and reuse.

Reducing the use of energy includes, the motion sensors of lights in entire premise, induction fans

that help to chill the beer, all assist the company in offsetting the need of energy to be an

environmentally efficient and effective operation.

Recycling all waste products into grain to feed livestock, to turning keg caps into tabletops. The

recycling program includes converting anything and everything it seems. The company also

purchases recycled products as well as paper products.

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Reuse comprises of heat emissions in the brewing process, cleaning of chemicals, water etc. NBB

also engages in reducing wasting waste through recycling and creative reuse strategies. They

provide local farmer grains to feed their pigs in an on-site silo. Employees are also encouraged to

their part by reducing air pollution and use company “cruiser bikes” instead of driving to work.

NBB has taken such a strong stance toward sustainability because it had a long-term interest in

“Green building techniques” NBB to agree to incorporate new technologies to help them find ways

to utilize green technology in the heating, lighting and operation of the plant. To encourage

sustainability throughout the supply chain, NBB adopted sustainable purchasing guidelines which

allowed them to pinpoint eco friendly suppliers and work with them closely to create sustainability

throughout the entire value chain. In its stance toward sustainability:

 NBB is producing a world class beer and promote the culture of beer and the

enjoyment on has while drinking beer and meeting the expectations of the clients

and customers

 The company has adopted a constant change in the quality and efficiency in

improvements

 Environment stewardship by minimizing the consumption of resources and

maximizing the efficiency to use energy,

 Managing social cultural and environmental changes

 Serves as business model for other organizations

 NBB also commits authentic relations with the employees, stake holders and

communities they serve

 Effective Communication internally and externally

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 Analyzing potential by learning new things, management and by adopting new

opportunities

 The company also tries to balance the needs of staff, employees and families

2.Do you agree that New Belgium’s focus on social responsibility provides a key competitive

advantage for the company? Why or why not? Are New Belgium’s social initiatives indicative

of strategic philanthropy? Why or why not?

Well I just believe that that Mr.Lebesch just loved the outdoors and the environment… he just

“marched to the tune of his own drummer”. No, I don’t believe this is a case of strategic

philanthropy. His idea to start the company began with him cycling through Belgium he and his

wife visited the Rocky Mountain National Park to write what they thought would become the

company’s purpose. I felt like Mr. Lebesch thought it was his responsibility to build his business

as an environmentally friendly company. He really didn’t take the stakeholders in to account.

For every barrel of beer sold NBB donates $1 to philanthropic causes within their distribution area.

Since the beginning the NBB has donated millions of dollars to local community organization to

further its mission of philanthropy and sponsorship Not only do they support communities local

who purchase their products they support 16 other states with funding. All funding decisions are

done by the NBB Philanthropy committee which is made up of employees, owners, employee

owners area leaders and production workers. In donating funds NBB searches for creative

innovative approaches for groups that involve the community in reaching their goals.

NBB also participates in One Percent for the Planet, a philanthropic network to which the company

donates 1 percent of its sales. In addition, NBB employees also partnered with Habitat for

Humanity to build a house for a family who had lost their home to a fire.
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NBB also sponsors several events that cause minimal damage to the natural environment. The

Tour de Fat NBB supports various environmental social and cycling nonprofit organizations. It

also sponsors The Best Damn Bike Tour a two day fully catered bike tour. All proceeds from it

benefit more than 5000 local people with MS. Additionally the NBB sponsors the Ride the Rockies

bike tour, which donates the proceeds from beer sales to local nonprofit groups. The money raised

from this annual event funds local projects such as improving parks, and bike trails. Even though

the company is a big business NBB strategic philanthropy positions itself to connect with a not for

profit organization cause. Because its primary product is beer NBB focus a lot of effort on

education about alcohol abuse and encouraging responsible consumption. NBB is so community

friendly it maintains a community bulletin board in its facility where it posts an array of community

involvement activities and proposals. This allows everyone to see the many ways they can help

their community and it gives nonprofit organizations a chance to make their needs known.

Organizations can give to the NBB website and apply for such grants.

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?

In all reality people are going to consume alcohol and tobacco products . NBB manufactures

alcohol legally but they are very responsible in their business model. They are promoting

responsible drinking and discouraging the sale of alcohol to minors, then I believe that they are

being ethically and socially responsible.

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NBB’S APPROACHES TOWARDS ETHICAL AND RESPONSIBLE CONDUCT:

 They stop producing tobacco and made their brew without alcohol or using a minimum

alcohol.

 They have to be aware of sponsors in playground, because most of the sport friends are

children.

 They can try to monitor their beer from non-adult selling.

 They should always be careful of the demographics of the fans of those sports.

 They should make sure that they are choosing sports that have fan bases that are of legal

drinking age.

 They should take step against drunk driving.

With all that NBB does it actually helps the industry that they socially responsible in countering

other brewers which are irresponsible. They are not just looking to make a profit at any cost. I

think they are doing an outstanding job for their efforts to do the right thing ethically,

environmentally and socially in this dog eat dog economy. Their image is very enlightening and

very positive . Mr.Lebesch set out to share his love for the environment but wound up with a

company not only promotes beer but promotes social responsibility. In 2004 NBB received the

EPA’S regional Environmental Achievement Award . I believe NBB will continue to find bold

new ways improve their corporate citizenship. NBB reflects quality, responsibility and concern for

society. It seems to be more than a beer company it is a caring organization that is concerned with

all stakeholders, including the community, the environment, and employees. Every 6 pack of NBB

displays the phase “ In this box is our labor of love, we feel incredibly lucky to be creating

something fine that enhances people’s lives.” That truly sums up the company.
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Additional Reading Resources

1. New Belgium Brewery: Ethics and Sustainability Case

gardencitycc.instructure.com/courses/2785/...
Beyond its commitment to the environment, New Belgium Brewing has become a model for social
responsibility resulting from 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.
2. Policy and Industry | New Belgium Brewing
www.newbelgium.com/sustainability/community/...
New Belgium is closely tracking efforts to shift end-of-life responsibility for consumer goods
packaging away from citizens and municipalities and onto producers or brand owners. The
sustainability of our products are impaired by the lack of available recycled content for our
packages.
3. Business ethics case study of New Belgium brew - SlideShare
www.slideshare.net/NafisChowdhury007/business...
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