Executive Summary

EXECUTIVE SUMMARY
Summary of key points in the case

The Case is all about Ben and Jerry, an ice cream maker which started to publish unedited
versions of annual reports based on finance and social performance of the organisation rather
than following the usual path. Due to the transparency and accountability in the report how
they got credibility from all stock holders. Organization usually submits audit reports which
contains financial data which are positive and favourable to them and sugar coat the failures
and other details. Ben and Jerry's Homemade, Inc took the risk to showcase both financial
and social issues. Their way of an annual report was quite different from the other companies
which ended up playing in their favour. There were series of mistakes that the company made
which is visible in the given case study. E.G: the 1991&1992 audit which was published and
even the “save the family farm” campaign which they ran. Different people had different
perspectives about whether the decisions being made by the company is good or bad.
Identification of key issues

The key issues which we identified were
1. The salary cap of 100,000$
2. Poor plant safety
3. 7:1 ratio salary policy
4. Employees leaving organisation because there was no proper pay
5. Not treating their own suppliers with the right price
Analysis of case study using concept

Feedback Control System
Feedback control is future-oriented. It is historical in nature and is also known as post-
action control. The implication is that the measured activity has already occurred, and it is
impossible to go back and correct performance to bring it up to standard. Rather, corrections
must occur after the act. Here we saw that that injuries on the plant were already on a high
scale and in the 1992 report, they went even higher which shows that controlling was not in
line, and the management had decided to take action after the same was mentioned in the
audit report.
Identification of Control Problem:

Here it was observed that the Company was following a two bottom line concept wherein
they projected the growth of the company and social aspects of the company too. This was a
good move by the company to measure the social problem. But the company also has to work
on bettering the problem instead of just identifying them, Ben and Jerry’s identified the
problems earlier too, but never brought them to work and hence the deviation in the 1992
report was higher which was noticeable by the stakeholders too. The company needs to focus
on solving problems which can be shown as a positive aspect in the next audit report.
Possible solution
Looking at the issues we identified in the case study elimination of this issues would bring
about a healthy change in the inc. here are a few possible solutions for the company which
can help them
1. Removal of the salary cap of 100,000$ and 7:1 ratio salary policy
2. Improvement in safety of the plants and safety of the workers
3. Treating the supplier with right price for the raw materials
Solution selected by the group? and why?
The solution which the group agreed upon and thinks will help the company is Removal of
the salary cap of 100,000$ and 7:1 ratio salary policy. Reason being that this will eliminate a
lot of other problems which the company is facing and might face in future. Due to this issue
the company was facing a problem of employees leaving the company for a better paid job.
Second was that this led to a lot off vacancies in the company. But the vacancies were not
being filled up due to this problem. Further they were risking possible high skilled, high
educated employees which are well suited for the company. Removal of this problems would
bring in more manpower which are technically skilled and can do a good job. Which would
help the company to grow. This would also bring in a sense of trust in the employees already
working for the company and would make them feel treated equally. This would further
create a good picture of the company that a few people were criticizing.

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EXECUTIVE SUMMARY

Summary of key points in the case

Identification of key issues

Analysis of case study using concept

Identification of Control Problem:

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