CSR Cases New Belgium and AB InBev

CSR Cases New Belgium and AB InBev

CSRCases: New Belgium and AB InBev

Thecorporate social responsibility (CSR) practices adopted by differentorganizations differ depending on the priorities that each firmplaces for the practice. Some organizations will prioritize certainprograms, which others feel should not take the center stage of theirCSR. Taking New Belgium and AB InBev as two case studies, thisdiscussion will critically analyze their CSR to find out theirprogress. Despite the differences in the CSR programs adopted by thetwo companies, there are fundamental similarities in existencebetween the CSR by New Belgium and AB InBev.

Thetwo companies have strong similarities. One of them is theircommitment to conserve the environment. New Belgium uses naturallight and wind energy to reduce the emissions and save electricityused (Farren 1). The company engages in these two initiatives atpremium costs to reduce the carbon dioxide emissions, which stands at8million lbs of carbon dioxide per year (Rational Middle EnergySeries 1). Similarly, AB InBev is keen at water efficiency in theirbeer production plants. In June 2015, the company was recognized asthe most efficient in the world in terms of water usage (Amossoms 1).By 2014, AB InBev was on course to achieve the 2017 globalenvironmental goals by reducing emission lower than the recommendedglobal margins.

Anothersimilarity is in their farming lines and relationships with farmers.The two companies have adapted better methods of farming barley toefficiently improve production. The AB InBev implements the smartbarley program in addition to better water management practices. NewBelgium avoids the use of virgin grains, which saves 30,000 tonsevery year (Rational Middle Energy Series 1). The two programsadopted by the two firms seek to reduce emission by farm equipmentand improve efficiency in water usage. The AB InBev also partnerswith nonprofit organizations (NGOs) to provide essential services inthe society (Orman 1). For instance, the firm partners with NGOs likeIndieGogo to help in drought relief in California (Orman 1).

Despitethe similarities, there are differences between New Belgium and ABInBev. One of them is the priority placed by the firms. New Belgiumis focused on promoting the interests of the workers, more than thecommunity as compared with the efforts by the AB InBev. New Belgiumundertakes its production in a space that is conducive for workersand promotes a healthy working environment. For instance, the firmuses natural light and efficient machines that do not harm theworkers at the brewery (Rational Middle Energy Series 1). At the sametime, employees of New Belgium are involved in an ownership program,where they own equity in the company (Dahl 1). On the other hand, theAB InBev focuses much of the CSR efforts in volunteering for thesociety. In 2014, the company volunteered over 225,000 hours throughits 61,000 employees (2014 Global Citizenship Report 34). Thevolunteer work in the community supported a variety of communityactivities in different regions.

Anothersignificant difference is the size of the CSR program that each ofthe two companies engages into. In terms of the size of the program,the AB InBev has a bigger impact on the community than the NewBelgium. This is because AB InBev has a larger market share, coveringaround 25% of the global beer market (CSR Wire 1). On the other hand,the New Belgium has a lower impact program such as the favorablebarley production and green energy.

Corporateorganizations gain competitive advantage of the CSR programs adopted.In this regard, the CSR program by the New Belgium will provide acompetitive advantage for the firm. This is because the CSR programspromote the integrity of the company as a global brewer and asignificant player in the industry. In addition, the company willgain the confidence of the consumers who are the beneficiaries of theCSR program. Moreover, the company will gain competitive advantage byreducing costs of operation and production due to the adoption ofgreen energy and environmental friendly business models.

Allcorporate organizations can engage in valid CSR programs despitetheir line of products. I believe that the New Belgium initiativesand actions are valid indicators of a socially responsiblecorporation. This is because these initiatives have verifiablepositive impacts on the society that changes the lives of thebeneficiaries. For instance, involvement in water conservationcampaigns in Colorado has a verifiable impact on the right use ofwater and preservation of River Colorado (Farren 1). The engagementin clean water advocacy has helped the community in Colorado topreserve water

Atthe same time, the actions and initiatives of New Belgium aregenuinely aimed at minimizing the impact of the company’sproduction on the environment and the society. The use of wind energyand better brewing equipment reduces emissions in verifiable amounts.This reduces the impact that the firm has on the community. Moreover,the CSR initiatives by New Belgium supporting the communities andtransfers the income of the firm to the company. This translates intoinitiatives to industrial production into positive impacts on thesociety that directly benefit people. This makes the actions and theinitiatives employed by New Belgium indicative of a corporation thatis socially responsible.


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2014Global Citizenship Report, BringingPeople Together For a Better World.Anheuser-BuschInBev, Web, Accessed, 7 September 2015,&lthttp://www.ab-inbev.com/content/dam/universaltemplate/abinbev/pdf/sr/global-citizenship-report/AB_InBev_GCR_2014.pdf&gt