Corporate Social Responsibility at the Boston Beers - Essay Example

 Date: November 04, 2013 To: Thomas Lance, Head of the Department of Operations, Boston Beers Co. From: Saif Halabi, GMU Subject: Corporate Social Responsibility at the Boston Beers At Boston Beer Company, the vision is to seek long-term lucrative expansion by having the best value products to the beer drinker in the States (The Boston Beer Company). Providing quality products to those the company serves not only entails the sole product, which is beer, but incorporates in it all the services the company owes to its clients and its environs. Given the rise in concern for the environment, it is essential that policies be adopted to ensure an environmentally friendly process in manufacturing. After a lot of reflection and consultation, I feel the company should preserve the surroundings by ensuring that water released into the environment following manufacturing is fully treated, which is a low cost program for Boston Beers and will reduce water pollution. The following is a discussion on its benefits to the community and the company. Concerns in the Community Resources such as clean water and air are getting more elusive daily, both in the community we operate within and in the world over. In Boston, Massachusetts, one of the major problems faced is water pollution (United States Environmental Protection Agency, 2013). Some members of the public continue to raise concerns over the frequent pollution of their primary water sources that they use as sources of drinking water, domestic consumption and industrial uses, among other things (USEPA, 2013). Often, members of the public have articulated that unclean water infiltrates their water lines, causing the water supplied to be unusable, especially domestically. In a study conducted by the Massachusetts Department of Environmental Protection (2012), it was discovered that the water pollution in the Boston area went as high as 35.71% on the pollution index (MassDep, 2012 p.18). The study was based on water collected from beaches, rivers and residential areas. The beach water were voted most polluted owing to the quantity of chemical effluent discovered on testing the samples collected from them (NRDC, n.d.). Apart from chemicals, the water consisted of other wastes such as plastics and sewage. This has raised major concerns over the measures taken by the relevant parties in ensuring access to clean and usable water in the community. Where Boston Beers Comes in Boston Beers Company has a role to play in ensuring reduction in the level of water pollution in the environs of the company. The company is not solely to blame for water pollution. Even so, there are several reasons as to why the Boston Beers ought to be at the front line in making efforts to reduce water pollution. The samples of water that underwent testing, especially water from rivers, was high in brewery effluents. Brewery effluents are rich in nitrogen, carbohydrates, and cleaning reagents (Massachusetts Ports Authority, 2013 p. 70). These are some of the most common water pollutants and are notorious for reducing oxygen in the water and consequently a rapid depletion in plant and animal life. It also leads to many avoidable ailments in the community that stem from consuming contaminated water. Secondly, Boston Beers Company performed poorly on the rating scales for measures against water pollution (USEPA, 2012). The company’s performance reflects in community’s opinions. As far as the community is concerned, Boston Beers is not doing enough to protect the environment against water pollution. There is a need to address this promptly and in the best means available. Finally, Kim Marotta of the MillerCoors once stated, “Without water, there is no beer.” (Roach 2013). Polluted water is rendered unusable for consumption and production). As a company that is highly dependent on a steady flow of water, which is one of the primary ingredients, there is need for Boston Beers to participate actively in guaranteeing a steady flow of water. The Program and Implementation As earlier stated, the aim of the program is to protect the environment. The company can achieve this by embarking on treatment of wastewater that ensues from the brewing process. Currently, the main means of disposing of wastewater is by releasing into major water bodies. There have been progressive steps towards improving the safety and cleanliness of the water overtime, since the inception of the company. Recently, however, I have looked into the possibility of treating and recycling the wastewater for reuse in the company. This method produces the best results so far and the company should consider adopting it in the near future. The implementation phase will involve purchasing machinery that will facilitate the processing and treatment of water on-site. The details of the relevant equipment that will be used for this purpose are available for dispatch to the relevant parties. The by-product of on-site treatment will be methane, the designated primary source of energy in production within the brewery. Methane, being an efficient fuel, will be used in powering the generator that is used to power the brewery. The feasibility study conducted involved an investigation into the costs to be incurred by engaging in treatment of water. The company will have to bear the initial costs of obtaining and setting up the necessary equipment. However, eventually program is highly cost effective. This is because it has been estimated that by implementing the program, the company can cut down on fuel costs tremendously (Fillaudeau, Blanpainavet & Daufin, 2006), since it will be using methane from the treatment process to power generators. Secondly, water will be recycled for internal and external use and therefore, the cost of obtaining water for use is bound to decrease. Cost I would like to assure you that the program would be one that is of low cost to the company. According to Fillaudeau, Blanpainavet, and Daufin (2006), wastewater costs the company not less than two hundred thousand USD annually. This figure is bound to rise given the emerging environmental concerns. Local water authorities are constantly raising the taxes levied upon breweries that pollute the major water sources, and rightfully so. The Natural Resources Defense Council (n.d.), as they discuss breweries that are making an effort towards preservation of water sources, points out that many breweries are opting for this plan, owing to the low costs that setting up this treatment plan attract. Some of the other breweries singled out in their report are the La Birreria in New York and the Central Waters Brewing Company, both of which remain top competitors for the Boston Beers Company. They project that this method saves breweries up to 50% on water and energy. The treatment plan has been audited by a number of authorities. First, Fillaudeau, Blanpainavet and Daufin (2006) point out that this treatment plan is cheaper to implement in comparison to other capital-intensive ones, such as the CIP system. The equipment costs much less, (nearly less than 50 % of the CIP treatment method). Mcateer (2011) recommends this process, owing to its efficiency in terms of costs to the brewery and the environment around the brewery. Bougherara, Coasta, and Teisl (2013) show that consumers are conscious of companies that take deliberate measures to protect the environment. The authors mention that consumers are willing to pay more for the products of companies that take up environmental conservation. Therefore, this project should result in a larger and happier client base. One of the ways by which the company can market the project cheaply is by using social media. This will entail writing in detail what the project entails and even posting a few photos of new equipment as proof of progression towards the goal. Following all the research conducted on the costs of the project, it is worth concluding that it will benefit the company to take it up. Following up on Important Issues The memo has highlighted the water pollution problems faced by the community around Boston Beers. In addition to this, there has been a discussion of the role that Boston Beers can play in reducing on pollution in the area, that is, by treating water and recycling the water used in the process of production. Finally, the memo outlined the reasons why the project would benefit the company by reducing fuel and water costs specifically. Implementing the program would mean that Boston Beers Company participates in environmental protection. Because the issues addressed in the memo are vast, I intend to schedule a follow up meeting in two weeks’ time, during which any queries arising from the raised subject will be addressed. Meanwhile, for pressing issues, contact me on shalabi2@masonlive.gmu.edu. I look forward to a fruitful cooperation. References Bougherara, D., Coasta, S., and Teisl, M. 2013. Making or Buying Environmental Public Goods: Do Consumers Care? Land Economics 89(4) pp. 767-781 Fillaudeau, L., P. Blanpainavet, and G. Daufin. 2006. Water, Wastewater and Waste Management in Brewing Industries. Journal of Cleaner Production 14(5) pp. 463-71. Massachusetts Department of Environmental Protection. 2012. Section 319 Nonpoint Source Program Indicative Project Summaries FFY 2008 – 2012. Retrieved October 15, 2013 from http://www.google.co.ke/url?sa=t&rct=j&q=&esrc=s&source=web&cd=8&ved=0CGAQFjAH&url=http%3A%2F%2Fwww.ecy.wa.gov%2Fprograms%2Fwq%2Ftmdl%2Fdeschutes%2Fadvisorycomm%2FUpdatedBIModelResults.pdf&ei=WjReUq3TCcS3rgfV1YGgDA&usg=AFQjCNGlnT4HPaHRyvCZbg4tHnTPpkL_5w&sig2=IW7ZhJs3wCqumYEqj6Z9Qg Massachusetts Port Authority. 2013. Final Supplemental Environmental Impact Statement and Massachusetts Final Environmental Impact Report (EOEA #12958) Retrieved October 13, 2013 from http://www.google.co.ke/url?sa=t&rct=j&q=&esrc=s&source=web&cd=9&ved=0CGgQFjAI&url=http%3A%2F%2Fwww.nae.usace.army.mil%2FPortals%2F74%2Fdocs%2Ftopics%2FBostonHarbor%2FDeepDraftFSEIS2013.pdf&ei=WjReUq3TCcS3rgfV1YGgDA&usg=AFQjCNEJ5W8OKJb0fgVjTYYxHEG3NtLwcw&sig2=LNqvVhHEmGqu7lnzT3EByg Mcateer, J. 2011. Brewery Wastewater Treatment. Rep. Veolia Water. Natural Resources Defense Council (n.d.). Breweries for Clean Water. Retrieved October 25, 2013 from http://www.nrdc.org/water/brewers-for-clean-water/ Roach, J. 2013, September 3. No water, no beer: brewers race to save the ales. Nbcnews. NBC News. Retrieved December 3, 2013 from http://www.nbcnews.com/science/embargo-9-3-10am-et-no-water-no-beer-brewers-8C11042467 The Boston Beer Company (n.d.). The Boston Beer Company, INC. Investor Relations Website!.bostonbeer.com. Retrieved October 7, 2013, from http://www.bostonbeer.com/phoenix.zhtml?c=69432&p=irol-overview United States Environmental Protection Agency.2012. Recreational Water Quality Criteria. Retrieved October 14, 2013 from http://water.epa.gov/scitech/swguidance/standards/criteria/health/recreation/index.cfm Read More