Culture and Organization

An analysis of the culture of an organization

Ben & Jerry’s

Module code: HR0372

Module title: Culture and Organization

Programme title: International Business Management

Word count : 3251

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Table of contents   :

I) Ben & Jerry’s Background and environment:................................................2

II) Focus of the report and motives of the framework’s choice:........................3

III) Explanation of the Edgar H. Schein’s Organizational culture framework:. .3

A) Artifacts:.....................................................................................................3

B) Beliefs and Values:......................................................................................3

C) Basic Underlying Assumptions:...................................................................3

IV) Ben & Jerry’s analysis:................................................................................3

A) Artifacts:.....................................................................................................3

B) Beliefs and Values:......................................................................................3

C) Basic Underlying Assumptions:...................................................................3

V) Conclusion:....................................................................................................3

VI) Reference list:.............................................................................................3

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I) Ben & Jerry’s Background and environment:

Ben & Jerry’s was founded by Ben Cohen and Jerry Greenfield who firstly met in seventh

grade. This long friendship brought both men to settle in Vermont where they decided to

start an ice cream business. Thus, after having completed a 5$ course on ice cream making

Ben and Jerry created their own company and started to produce ice-creams. In 1978, the

first Ben & Jerry’s shop was opened in a refurbished gas station of Burlington. Already, the

company was using innovative strategies in order to be known. For instance, founders were

organizing open-air movies sessions projected on their shop’s wall with free sampling of

their products. However, this first shop experience was about to end. Instead, Ben and Jerry

decided to distribute their products in an old Volkswagen wagon. Shortly after, an article

from the Time magazine (1981) considered Ben & Jerry’s products as the world’s best ice

creams. Since, company’s sales were increasing each year (Denis et al, 1998). As a result, in

1985 Ben & Jerry’s entered in the NASDAQ stock exchange. Thereby, a harsh competition

went on with Häagen-Haägen-Dazs (held by Pillsbury) who is the direct competitor. Ben &

Jerry’s was finally acquired by Unilever in 2000. Nowadays, the company is present all over

the world through franchises or shops and is one of the major players of the luxury ice-

cream sector.

However, Ben & Jerry’s success was not only based on their product’s quality. In effect,

company’s culture and values are also major reasons of this successful development.

It appears that the former “hippie” founders (Dana, 1999) were expecting more than simply

profits from their company (Denis et al, 1998). The two men are convinced that business

should benefit to the community. Thus, the Ben & Jerry’s Foundation was created in 1985.

This foundation receives 7, 5% of pre-tax profits. Environmental care and social justice are

examples of areas in which the company is involved. Ben & Jerry’s is also taking care of their

employees. For instance, the company is trying to create user-friendly offices and work-

places for the employees’ benefit. These work-places are not only created by designer but

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employees are also involved in this process (Capowski, 1993). With reference to Austin and

Leonard (2008), the company has three main motives “people, profits and planet. These

three main concerns are also defined on the company’s website as missions; a social

mission, a product mission and an economic mission.

Another crucial aspect of the Ben & Jerry’s business is “Fun”. The fun spirit is expressed

through Joy Gang activities. These activities were created in 1987 at the demand of

employees and are now a key motivation tool. Besides, company’s packaging and global

perception is deeply linked with the fun spirit. Also, Ben & Jerry’s is sponsoring funny and

original events and the fun zone of their website.

II) Focus of the report and motives of the framework’s choice:

As presented previously, the company’s success does not only rely on its products but also

on its culture. Thereby, this report will analyze, through a theoretical framework,

components of the Ben & Jerry’s culture. More precisely, this report will focus on a

particular practice and behavior of the company which is its social responsibility. Ben Cohen

and Jerry Greenfield, the initial leaders, decided to create a socially responsible company.

This corporate social responsibility is externally expressed by different symbols and

elements. Thus, internal motives probably influenced external observable elements shown

by the company. Therefore, in order to fully understand the Ben & Jerry’s corporate culture,

the Edgar H. Schein’s framework would be applied to the company. Schein’s framework has

been chosen because it provides a structured analysis of all layers of Ben & Jerry’s culture.

As a result, this analysis will show not only internal motives and external observable

elements but also links between these different culture dimensions.

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III) Explanation of the Edgar H. Schein’s Organizational culture framework:

First of all, with reference to Schein (2004) a group culture can be defined as “a pattern of

shared basic assumptions that was learned by a group as it solved its problems of external

adaptation and internal integration, that has worked well enough to be considered valid and,

therefore, to be taught to new members as the correct way to perceive, think, feel in

relation to those problems”.

Culture defined, Schein suggests analyzing this one through different layers which are

composing it. Schein distinguishes three main levels. These levels are organized in a

hierarchy (figure 1). This hierarchy goes from the most observable aspects of a culture to the

most deeply hided which are at “the essence of culture” (Schein, 2004 p.25).

Figure 1: Edgar Schein Organizational culture levels.

By R.Beadle, Organizational Culture 2011, adapted from Schein.

These three levels are Artifacts, Espoused Beliefs and Values and Basic Underlying

Assumptions. The following lines will respectively explain each one of these levels.

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A) Artifacts :

Artifacts are the external elements of a culture which can be experienced. That is to say

according to Schein (2004) what can be seen, heard and felt. These artifacts, as shown on

the figure 1, can be related to the corporate language and its vocabulary, to symbols such as

logotypes, work-place architecture and other common attributes. Schein argues that even if

these artifacts can be easily perceived it is complex for an external person to get the right

understanding of these symbols. This understanding can also be biased by person’s own

vision and culture. That is to say that interpretation can lead to error of judgment, because it

is an interpretation and not a reading through the appropriate culture’s scope. Thus, it is

crucial to be careful and to try to prevent any bias while leading the analysis of corporate

artifacts.

B) Beliefs and Values:

Espoused beliefs and values are in the middle between observable artifacts and deep

assumptions. These beliefs and values correspond to the adoption of particular behaviors or

thoughts regarding a particular situation. However, these particular reactions are not

assumptions. These reactions are likely to be a common agreement, yet non-implemented

and non-transformed into assumptions, on a behavior to adopt in order to face a situation.

At this point of culture leaders are emerging, as they are proposing reactive attitudes to

given issues. If these attitudes are tested and considered efficient by the group, then they

will be considered as shared beliefs and values (Schein, 2004 p.28). These beliefs and values

can be, as shown in the figure 1, relative to honesty, achievement, motives of rewards,

loyalty… However, they are not implemented and transformed in the next step which is

assumptions.

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C) Basic Underlying Assumptions:

Basic Underlying Assumptions are at the deepest point in a group or corporate culture.

Assumptions are tested and implemented reactions which efficiency has been proved by

experience. Schein distinguishes different assumptions about “external issues, internal

integration…”.This reactions are strongly acquired and it is very difficult to change these

ones (Schein, 2004 p.31). Furthermore, an assumption review according to Schein (2004,

p.31-32) can lead to unpleasant situations in which people can tend to refuse or change their

perception of reality so this one will match people’s assumptions. In a sense, assumptions

are conditioning our reactions to, and estimation of a given situation. Assumptions can be

unconscious (Schein, 2004 p.33) and because they are deeply incrusted in an entity identity

they can lead to situation of dissonance and misunderstanding. Thereby, it is necessary to try

to understand a group’s assumptions before joining it, in order to avoid unproductive

situation. However, Schein argues that even if assumption can hardly be changed,

interaction is possible. Furthermore, new values and beliefs can become new assumptions.

As a result, integration and evolution are also part of group’s or corporate culture.

Besides this analysis, Schein gives an important role to leaders in the definition of a

corporate culture. Schein considers that “culture and leadership are two sides of the same

coin” (2004, p.10). Leaders by giving first examples of reactive attitudes are forming a group

culture through the beliefs, values and assumptions system. Thereby, leader’s behaviors,

assumptions and deep motivation are going to decide on the aspects of the corporate

culture.

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IV) Ben & Jerry’s analysis:

As presented previously, Ben & Jerry’s corporate culture carry notions of fun and of a socially

responsible company. The following analysis will apply Schein’s framework to the Ben &

Jerry’s company. The objective of this analysis highlight Ben & Jerry’s artifacts, beliefs and

values and assumptions linked with their fun spirit and social responsibility.

A) Artifacts:

The first symbol of the company that can be considered is the cow. Cows are present on all

company’s products and observable in a major part of their advertisements and websites.

Besides, the cow named “Woody” became a corporate myth and hero. Indeed, number of

related stories and games were created around this key corporate character. This cow acts

like a symbol of fun and also for the natural dairy aspect of Ben & Jerry’s products.

The green aspect of woody is crucial as Ben & Jerry’s are engaged in a strong environmental

policy. Besides this symbol, the company guarantees to use free range eggs and special

processed milk. With slogans “lick global warming” or “if it’s melted, it’s ruined” which are

present on companies websites, Ben & Jerry’s wants to make people aware of their green

commitment. Besides, the company tries to reduce the pollution impact of their products

and of the distributions system. Furthermore, it is précised on the packaging that Ben &

Jerry’s is trying to go on green packaging with the “eco-pint”. On the packaging can be seen

the logo of the fair-trade system. Indeed, the company is trying to promote fair-trade around

the world, and following this fair ideas is supporting the “Occupy movement”.

The company is also acting for the community through its foundation which a pure symbol of

their commitment to social responsibility. In addition to what, Ben & Jerry’s communicate on

the fact that they give 7,5% of their pre-tax profits to this foundation.

It is interesting to compare the Ben & Jerry’s website and the Foundation website. Both are

observable artifacts. It can be observed that the foundation website is more restrained on

colors, more sober. The company’s website is far more colorful, with a fun section where it is

possible to play game. There is a contrast between the two websites, and the foundation

appears to be the serious activity.

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Ben & Jerry’s is also organizing each year the “free cone day” a day during which all cones

are free for customers. This kind of “free-action” made the company’s notoriety as they once

distributed ice-cream to New-York traders after a stock exchange crash.

The company is also acting for its employees. According to Capowski (1993) the work-place

design is developed with professional designers but also employees, in order to create the

better place to work. This architectural artifact is designed with a general sense of fun and in

order to be user-friendly. Besides this care, Ben & Jerry’s is known for its good wages policy.

Employees also have the right to take three free samples of ice-cream; they also have the

right to go to special gym classes. Finally, the Joy Gang day is organized every for the

motivation and satisfaction of employees.

As a result Ben & Jerry’s has a range of artifacts representing their different commitments.

B) Beliefs and Values:

Considering the previously enounced artifacts, the purpose of this section is to determine

Ben & Jerry’s beliefs and values.

As the company is trying to get the best components for their products quality can be

considered as one of Ben & Jerry’s values. The quality care appears to be effective through

choices made in order to promote the use of quality components such the free range eggs or

the particular milk. This behavior matches the Ben & Jerry’s value of product.

Capowski (1993) argued that for Ben & Jerry’s the aspect of the work-place was crucial. It

was important because, as Schein expressed it (2004), in architecture of the work-place are

expressed values of the company. As Ben & Jerry’s want their work places to be user

friendly, it can be considered that one of the company’s values is efficiency. Besides, the

company is organizing events such as the Joy Gang not only to satisfy its employees but also

to motivate them. Furthermore, the high wage policy is, in a sense, similar to Ford’s policy

which aim was to increase workers motivations and company’s sales. Thus, a clear value of

efficiency is demonstrated by these symbols. This point matches the economic mission of

the Ben & Jerry’s company.

Actions taken in favor of the fair-trade are symbols of a belief in justice. Besides actions

taken in order to minimize the pollution impact of products and production is also a claim for

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equality because of the unique aspect of the planet’s resources. Furthermore, profits given

to the Foundation are symbol of a belief of justice and equality. Thus, decisions taken would

probably be made while taking these beliefs in consideration. Also, this third point matches

the Ben & Jerry’s value of a social responsibility.

Another aspect of values and beliefs that should not be forgotten is the one linked with the

idea of fun. For the founders, do something was worthless if it was not fun (Capowski, 1993).

All aspects of the Ben & Jerry’s business are fulfilled with fun. The ice-cream tastes have

original names (i.e. Cherry Garcia), the architecture of workplaces was designed for

efficiency and enjoyment, and original events were created and sponsored (i.e. Joy Gang).

Thus, besides fun Ben & Jerry’s value innovation and originality. These two values are linked

with the open minded aspect of the company. As for instance, on the Ben & Jerry’s blog or

after the visit of the Vermont manufactory ideas and propositions of new flavors are taken

into account and can be produced. This value of fun is also a value of sharing. This fun was

created in order to be shared and through this fun share business and other values.

This value of sharing is reinforced by the communities created through social media, and

interactions made available by the company. For instance, people were able to post their

New Year wishes on the main page of the French Ben & Jerry’s website. This idea of sharing

can only be strengthened by the company’s implication in the social sphere.

Ben & Jerry’s have different values and beliefs some of which could be transformed into

basic assumptions.

C) Basic Underlying Assumptions:

Ben & Jerry’s was created on a particular belief which was that a company can bring more

than profits (Denis et al, 1993). This belief has been experienced and approved as Ben &

Jerry’s became one of the leaders of the luxury ice-cream market. Thereby, this belief

became a basic assumption of the company. This was illustrated by the contrast between

the company’s website and the foundation one. Even if, the fun spirit is also a key aspect of

the corporate culture, the contrast was an observable external symbol of an internal

assumption. A key assumption is that business is not an end in itself but a mean.

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Besides, the company’s quality care is also hiding an assumption. This assumption is the one

linked with the idea of well-being. The well-being philosophy was the spirit of the founders

as they decided to launch a hedonistic company based on their life expectations.

Furthermore, ice-cream is linked with childhood, pleasure and happiness. This constant

research of a better life appears through practices such as global care. The well-being

philosophy applies not only to the founders but to all employees. Indeed, the company is

working together with its employees in order to create a better work-place, which is user-

friendly and enjoyable.

Another important aspect is that this well-being should be shared. Thereby the idea of

sharing is another assumption of the company. But this is not simple sharing, because as

précised by Capowski (1993), the company has important traits of individuality. This share

came from own actions and achievements. And this can be linked with the first identified

assumption; if a business is profitable it should benefit to the good of the greatest. It is in a

sense, the American idea of care.

Linked with care comes the assumption of global equality and that everybody deserves the

best (well-being).

Finally, the idea of fun is crucial. Behind this idea is the supposed assumption that money

and business are entertaining, it is a good joke but real matter is the human being and its

environment.

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V) Conclusion:

The Schein analysis of the Ben & Jerry’s company offered a number of elements explaining

the corporate culture of this company. As expressed previously and with reference to Schein,

leaders, and therefore founders, are at the basis of a corporate culture. Their role in the

definition of the corporate culture is major because it through their own inclinations and

culture that they will decide aspects of their company’s culture.

As their company was developing, Ben Cohen and Jerry Greenfield implemented the

corporate culture with the assumption that a profitable business was not an end in itself but

a mean for greater social achievements.

Thereby, with a particular humor considering the business as a cash-cow called woody they

decided to get involved in project of social care. The well-being, equity and care assumptions

showed-up through three main values; the social, the economic and the product dimension.

These dimensions were expressed to publicly through corporate communication tools such

as marketing, packaging, advertising. Thus, the two founders influenced the corporate

culture with their own commitment, but they also influenced the whole range of symbols

and images that the company uses to communicate.

Through different actions oriented on the environment conservation, the social justice or the

care of their employees the company can be considered, regarding the following definition,

as socially responsible.

“A concept whereby companies integrate social and environmental concerns in their

business operations and in their interaction with their stakeholders on a voluntary basis.”

Commission of the European communities, 2001

However, with the Unilever acquisition of Ben & Jerry’s divers concerns emerged on the

durability of this kind of corporate behavior. After negotiations with Ben & Jerry’s Unilever

accepted to maintain a board of director for the company, as well as the 7,5% pre-tax

donation to the foundation, and the employee’s benefits. Unilever also accepted to maintain

social and environmental actions. Nevertheless, the communication of Ben & Jerry’s and

particular commitment should be softened as Unilever ethical conduct code impose to be

non-politically engaged (Austin and Leonard, 2008). But it is a profitable arrangement for

both companies. Unilever, such as L’Oreal with the acquisition of the Body shop, will benefit

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of a renewed brand image and of a company with important profitable perspectives. Ben &

Jerry’s will benefit of the networks and resources of Unilever in order to increase their sales

and results which could be invested for the environment, employees or the social justice.

Even if, it is strategic for Unilever to keep the Ben & Jerry’s brand image, change is operating

inside the company. Indeed, at the time when Ben Cohen and Jerry Greenfield were the top

decisions-makers the objective was to do business not simply for profits. The corporate

social responsibility was part of the corporate identity and in the essence of the corporate

culture. The risk with appointment of professional managers and the loss of the two

founders is that the social responsibility will become a strategy. The importance of

leadership in corporate culture (Schein, 2004) has been expressed previously. The risk is that

new top executives can consider this aspect of the company as a competitive argument in

order to be distinguished from the competition. This change is possible because it do not

imply radical change and the establishment of new basic assumptions. In effect, it will just be

the same culture but regarded differently. Thereby, the idea of the business a mean for

social change would be lost and the initial corporate culture would be changed.

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