NBB and AB InBev CSR Case Studies

NBB and AB InBev CSR Case Studies

NBB AND AB INBEV CSR CASE STUDIES 6

NBBand AB InBev CSR Case Studies

NBBand AB InBev Compared

Thepractice of CSR is regarded as important by corporate organizations.Different organizations implement their CSR in different ways due totheir differences in priorities. However, most of them havefundamental similarities due to their similarities in operation. Thisis the case in NBB and AB InBev, where implementation methods formthe basis of the differences. These two organizations focus onreducing energy use, improving farming methods and promotingcommunity welfare. The discussion on their CSR practice will presenttheir similarities and differences and explore more on NBB’s impacton the society.

Oneof the similarities is that the two organizations focus on conservingthe environment. At NBB, the strategies for conserving theenvironment include the use of wind energy so that they can cut onthe amount of fuel used (RationalMiddle Energy Series, 2015).This significantly reduces the amount of harmful gases that isemitted in the air. In fact, NBB estimates its annual reduction ofcarbon dioxide at 8million lbs (RationalMiddle Energy Series, 2015).In addition, the company uses natural light and better equipments toreduce the electricity and fossil energy. In a similar way, AB InBevuses better machines, and equipments with a view of minimizing energyconsumption (AB InBev, 2014). It is for this reason that the firm wasvoted to be the most energy efficient organization in the breweryindustry.

Oneof the key concerns of the two companies is water conservation andmaintenance. The programs adopted by both NBB and AB InBev haveproven that they are committed towards water conservation through CSRinitiatives. NBB adopts the philosophy of beer is water, and theirbelief that saving water is saving beer. They therefore partner withorganizations like the Environmental Protection Agency (EPA) topreserve water (Brodwin,2015). According to the US News, NBB joined EPA in 2014 to campaignfor water safety and observation of the clean water rule andpromoting the Clean Water Act (Brodwin,2015). This is the same with AB InBev, which has been recognized bydifferent organizations for water conservation efforts (EnvironmentalLeader, 2015). Per hectoliter of beer production, the firm savedwater with a ratio of 3.2 hectoliters (Environmental Leader, 2015).

Inaddition, the CSR of the two companies focuses on improving farmingfor their barley, an input in the brewery business. AB InBev has inthe recent years adopted the smart barley farming methods that seekto reduce the water used for growing barley (AB InBev, 2014). This isbecause they believe that saving water will help farmers and thecommunities in the farming regions. In a similar way, the NBB savesabout 30,000 tons of water per year because of the initiative toavoid the use of virgin grains of barley (RationalMiddle Energy Series, 2015).These methods show the commitment by NBB and AB InBev to promotebetter farming and water management in barley farming.

Despitethe similarities, there are differences between the two. One of themain differences is that AB InBev focuses more on partnering withNon-Profit Organizations to support communities, while NBB has notpartnered with many. For instance, during the California drought andthe challenges that followed the community, AB InBev partnered withIndieGogo to assist residents with drought relief (Sasha, 2015).Another difference is that the budget size of the NBB CSR program islower than that of the AB InBev. This is mostly because AB InBev hasa higher disposable budget from its size. Moreover, NBB focuses a lotof management attentions to its employees, more than AB InBev hasdone. According toRational Middle Energy Series (2015),thefirm prefers natural lighting and safer equipment that do not hurtits employees during work.

Competitiveadvantage and NBB’s CRS Credibility

TheCSR programs and initiatives by the NBB will certainly give thecompany a competitive advantage in the industry. This is because thepublic will view the company as a contributor to the society’sdevelopment rather than a producer of harmful drinks. The corporateimage of the company will improve in the eyes of the public as aresult of its initiatives to improve the lives of the community. Inaddition, the CSR programs will gain positive publicity for thecompany, whenever its initiatives are covered in the media or in thepublic. At the same time, the initiatives to reduce energyconsumption, seek to lower the operation costs of the company(RationalMiddle Energy Series, 2015).This therefore reduces the company’s prices and gain competitiveadvantage in pricing.

Companiesthat produce alcoholic beverages and tobacco can truly and validly besocially responsible. This is because social responsibility seeks topromote the wellbeing of the society and not the company. The actionsand initiatives by the NBB are therefore honest and true indicatorsof a socially responsible corporation. Engaging in CSR gives NBB theopportunity to take spend the revenues they have earned from thesociety, back to the society for a good cause.

TheNBB CSR actions are responsible because their initiatives like waterconservation are aimed at improving the lives of the society and thecommunity. The initiatives like green energy and energy conservationare also aimed at making the world a better place by reducingenvironmental destruction. This responsibility is the reason thecompany has won the ethics awards, such as in 2002 (BizJournals,2002). More importantly, the CSR initiatives of NBB leave thebeneficiaries better than they were before. Therefore, the actionsand CSR initiatives by NBB are indicative of a socially responsiblecorporation, just like any other organization.

References

ABInBev, 2014. The 2014 Global Citizenship Report, BringingPeople Together For a Better World.Anheuser-Busch InBev, Retrieved From,&lthttp://www.ab-inbev.com/content/dam/universaltemplate/abinbev/pdf/sr/global-citizenship-report/AB_InBev_GCR_2014.pdf&gt13September, 2015

Brodwin,D. (2015). TheHigh Cost of Dirty Water,US News, Retrieved From,&lthttp://www.usnews.com/opinion/economic-intelligence/2015/06/08/epa-clean-water-rules-benefits-outweigh-its-costs&gt13September, 2015

BizJournals,D. (2002). NewBelgium Brewing wins ethics award,US News, Retrieved From,&lthttp://www.bizjournals.com/denver/stories/2002/12/30/daily21.html&gt13September, 2015

EnvironmentalLeader, (2015). ABInBev ‘Most Water Efficient Brewer’Environmental Leader News, Retrieved From,&lthttp://www.environmentalleader.com/2015/06/05/ab-inbev-most-water-efficient-brewer&gt13September, 2015

RationalMiddle Energy Series, (2015).A Day in the Life of Sustainable Beer: New Belgium Brewery.Youtube,RetrievedFrom,,&lthttps://www.youtube.com/watch?v=Qv8gMuSVhvI&gt13September, 2015Sasha,O. (2015). ShockTop partners with IndieGogo and NGOs for California drought relief.BusinessReview USA, Retrieved From,&lthttp://www.businessreviewusa.com/marketing/5091/Shock-Top-partners-with-IndieGogo-and-NGOs-for-California-drought-relief&gt13 September, 2015