Case 1: Monsanto Balances the Interests of Multiple Stakeholders

Synopsis:    

This case focuses on Monsanto’s desire to balance the many significant benefits that its products bring to society (and the company’s resulting profits) with the interests of a variety of stakeholders. The case examines Monsanto’s history as it shifted from a chemical company to one focused on biotechnology. Monsanto’s development of genetically modified seeds and bovine growth hormone are discussed, along with the safety and environmental concerns expressed by a number of Monsanto’s stakeholders around the world. Some of Monsanto’s ethical and patent-enforcement issues are addressed, along with the company’s major corporate responsibility initiatives. The case concludes by examining the challenges and opportunities that Monsanto may face in the future.

Questions

1. If you were Monsanto’s CEO, how would you best balance the conflicting needs of the variety of stakeholder groups that Monsanto must successfully engage?

2. Companies, like Monsanto, that can offer technology to improve human lives are often said to have a moral obligation to society. How can Monsanto best fulfill this moral obligation while also protecting society and the environment from the potential negative consequences of its products?

3. Monsanto has developed a differentiated, patent-protected product that produces superior yields when compared to traditional seeds. How has this successful marketing strategy been impacted by the potential negative side effects and the potential negative environmental impact of genetically modified seeds?

4. What can Monsanto do to alleviate stakeholder concerns? How could these actions be woven into the marketing strategy for the company’s products?

Case 2: New Belgium Brewing (A): Gaining Competitive Advantage Through Socially Responsible Marketing

Synopsis:  

From its roots in a Fort Collins, Colorado, basement, New Belgium Brewing has always aimed for business goals loftier than profitability. The company’s tremendous growth to become the nation’s third-largest craft brewery and ninth-largest overall has been guided by a steadfast branding strategy based on customer intimacy, social responsibility, and whimsy. The company’s products, especially Fat Tire Amber Ale, have always appealed to beer connoisseurs who appreciate New Belgium’s focus on sustainability as much as the company’s world-class brews. Despite its growth and success, New Belgium has managed to stay true to its core values and brand authenticity—the keys to its marketing advantage in the highly competitive craft brewing industry.

Questions

1. What environmental issues does the New Belgium Brewing Company work to address? How has NBB taken a strategic approach to addressing these issues? Why do you think the company has taken such a strong stance toward sustainability?

2. Do you agree that New Belgium’s focus on social responsibility provides a key competitive advantage for the company? Why or why not?

3. What are the challenges associated with combining the need for growth with the need to maintain customer intimacy and social responsibility? Does New Belgium risk losing focus on its core beliefs if it grows too quickly? Explain.

4. Some segments of society contend that companies that sell alcoholic beverages and tobacco products cannot be socially responsible organizations because of the nature of their primary products. Do you believe that New Belgium’s actions and initiatives are indicative of a socially responsible corporation? Why or why not?