Green Mountain Coffee Case Study Essay


Conscientious capitalism underscores the importance of aligning stakeholders’: employees, clients, shareholders, suppliers, community, plus the environment, interests into the company’s decisions simply by refocusing purposely instead of revenue, which incidentally results in a prosperous bottom line (Sacks, 2009). The operating viewpoint of conscientious capitalism incorporates three presumptions: interconnectedness, healthy wealth, and traversing time through multiple generations.

Green Mountain Coffee Roasters (GMCR) has built-in this moral continuum into their operational technique, which has led to their current success. Interconnectedness GMCR represents interconnectedness through their gross annual summit group meetings that use an Appreciative Inquiry (AI) 4-D unit and through their organization’s cultural dedication. At the peak meetings, multiple internal and external firm stakeholders convene to strategically plan for the future, assess stakeholder value and contributions to success, along with reflect on company and industry historical tendencies, all which promote the positive core of GMCR (Neville, 2008).

Interconnectedness is also apparent by the agreement of GMCR’s inaugural five core beliefs: a passion for coffee (recreating Stiller’s first experience of the perfect glass of coffee), financial functionality, a destination workplace, ethics, and determination to cultural responsibility (Neville, 2008). By simply engaging the stakeholders, particularly with annual journeys to the “origin”, GMCR produces a unified allegiance to sociable and honest responsibility that produces great ethical and financial results for the business.

Holistic prosperity GMCR 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 net worth beyond capital piling up and earnings (Beck & Britzelmaier, 2011). One way that GMCR uses VBM to develop net worth is definitely through flexible cash flow designs provided to coffee farmers. The model entails featuring interest-free pecuniary resources to coffee declaring no to prop preceding the harvest, which will secures never ending payments for the suppliers, invariable profits for the farmer’s friends and family, and an uninterrupted coffee circulation for GMCR (Neville, 2008).

Another example of VBM is usually GMCR’s using Fair Operate initiatives and family farming contracts that employ direct buying agreements granting maqui berry farmers fair rates for their seeds. By employing these types of social standards as a tradeoff for long term sustainability, GMCR makes all stakeholders feel valued, which often increases their very own passion for productivity and subsequently GMCR’s bottom line. Crossing time through multiple generations With a global focus on agricultural replenishment and perpetuity, the normal emphasis for businesses in this market has been increasing the vivaciousness of plants across multiple generations.

Provided that 30 caffeine trees have to provide 1, three time per day coffee drinker with enough espresso and with the fact that the trees need to remain viable for at least a decade to produce a financially profitable harvest, GMCR’s commitment to organic food operations promotes to the concept of multiple generations of time, allowing farmers to pass their crops through generations (Neville, 2008). By simply trading a regular business paradigm for one centered on an all-inclusive value-based continuum that involves interconnected systems of maqui berry farmers, stakeholders, area, and visible and hidden time, GMCR is a prime example of just how conscientious capitalism can promote corporate and financial achievement.

  • Category: Ethics
  • Words: 532
  • Pages: 2
  • Project Type: Essay

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