Thursday, February 21, 2019
Green Mountain Coffee Case Study Essay
Conscientious capitalist economy unders center fields the importance of aligning stakeholders employees, customers, shareholders, suppliers, community, and the environment, interests into the companys decisions by re counsellinging on purpose instead of profit, which incident everyy results in a successful bottom line (Sacks, 2009). The operating philosophy of conscientious capitalism incorporates three assumptions interconnectedness, holistic wealth, and traversing time through multiple generations. Green hand Coffee Roasters (GMCR) has compound this ethical continuum into their operational strategy, which has led to their current success.interconnectedness GMCR embodies interconnectedness through their annual whirligig meetings that employ an Appreciative inquiry (AI) 4-D flummox and through their organizations cultural freight. At the summit meetings, multiple internal and external company stakeholders convene to strategically fancy for the future, assess stakeholder value and contributions to success, as well as reflect on company and industriousness historical trends, all which promote the controlling core of GMCR (Neville, 2008).Interconnectedness is also evident by the embodiment of GMCRs graduation five core beliefs a conkion for coffee (recreating Stillers first experience of the perfect cup of coffee), financial performance, a destination workplace, ethics, and commitment to social responsibility (Neville, 2008). By engaging the stakeholders, especially with annual trips to the communication channel, GMCR creates a unified allegiance to social and ethical responsibility that produces positive ethical and financial outcomes for the company. Holistic wealthGMCR epitomizes holistic wealth in the form of value-based management (VBM), which can be defined as an integrated management control system that measures, encourages, and supports the creation of profits worth beyond capital accumulation and profit (Beck & Britzelmaier, 2011). One way th at GMCR uses VBM to create net worth is through flexible cash flow models provided to coffee farmers. The model entails providing interest-free pecuniary resources to coffee growers preceding the harvest, which secures perpetual payments for the suppliers, invariable income for the farmers family, and an uninterrupted coffee flow for GMCR (Neville, 2008).Another example of VBM is GMCRs recitation of Fair Trade initiatives and family farming contracts that employ direct buying agreements granting farmers unclouded prices for their crops. By employing these types of social standards as a tradeoff for long-term sustainability, GMCR makes all stakeholders feel valued, which in turn increases their passion for productivity and subsequently GMCRs bottom line. Traversing time through multiple generationsWith a global focus on agricultural replenishment and perpetuity, the common emphasis for businesses in this industry has been extending the vivaciousness of crops across multiple generat ions. Given that 30 coffee trees are mandatory to provide one, three time per day coffee drinker with full coffee and combined with the fact that the trees have to remain viable for at least 10 years to yield a financially moneymaking crop, GMCRs commitment to organic food processes promotes to the concept of multiple generations of time, allowing farmers to pass their crops through generations (Neville, 2008).By trading a traditional business effigy for one centered on an all-inclusive value-based continuum that encompasses interconnected systems of farmers, stakeholders, land, and visible and infrared time, GMCR is a prime example of how conscientious capitalism can awaken corporate and financial success.