Module Code: HR0372

Assignment of Culture and Organization:

An analysis of the culture of an organization

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Table of contents

I. Presentation of Ben & Jerry’s.....................................p3

II. Ben & Jerry’s: a strong social dimension....................p4

III. What is organizational theory?..................................p5

IV. Schein’s theory of organizational practice.................p6

V. Analysis of Ben & Jerry’s organizational practice applied to Schein’s theory.......................................p10

1) Basic assumptions...............................................................p102) Values, beliefs and reward..................................................p113) Artefacts and others............................................................p13

VI. Conclusion and recommendations..........................p15

VII. Références...............................................................p16

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I. Presentation of Ben & Jerry’s

Ben & Jerry’s is an American firm that produces and commercializes ice cream, frozen yogurt

and sorbet. The two founders, Ben Cohen and Jerry Greenfield opened their first shop in

1978, in Burlington, Vermont. In our days, Ben & Jerry’s count more than 750 shops in 27

countries. It is also distributed in hypermarkets and by catering chains (notably in the fast-

food business).

Ben & Jerry’s is today the first premium ice-cream seller in the US and the second one in the

world, with 36% of market share in 2008, after its main competitor Häagen-Dazs, which

owns 44% of market share the same year (Le Figaro).

Only seven years after its creation, Ben & Jerry’s is listed on the stock exchange, and knows

its first takeover bid by Häagen Dazs, which will be refused twice.

In 2000, the company is taken over by the British-Dutch conglomerate Unilever for £203.

However, the brand keeps its independence with a head office in Vermont and an

independent board of directors.

The success of the brand lies on three pillars, defined in a mission statement:

-an active social role: Ben & Jerry’s wants to use the firm’s facilities to improve the life of the

local, national and international community

-high quality products: all the recipes are exclusive and original, all natural products-based. A

large choice of flavors is offered.

-satisfied financial performances: the firm is exploited on a sound financial base of growth

that allows good financial effects for shareholders and employees.

This is on this first pillar, the most “original one” compared to other firms that my analysis is

going to focus on.

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II. Ben & Jerry’s: a commitment to Fairtrade and environment

Ben and Jerry’s success is therefore founded on the importance they attach to social

responsibility. Since its creation, the firm has carried on marketing and responsible actions,

by organizing free events, participating to communal projects...

In 1985, the founders create the Ben and Jerry’s foundation, which helps people in difficulty.

7.5% of pretax profit goes to a worthy cause that workers help to choose, like rainforests,

children’s defense, AIDS patients, homeless people...

B&J also supports and participates in a lot of organizations with non-lucrative goals, such as

WWF, Emmaus...

In 2006, Ben and Jerry’s commercialize its first ice cream with “Max Havelaar” label (quality

label to products that have been produced according to principles of Fairtrade). In 2010, a

commitment to go fully Fairtrade has been made by the ice creammaker. The company

wants every ingredient they use that can be Fairtrade certified to be certified by 2011 in

Europe and 2013 in the world.

Fairtrade consists in:

-making sure underprivileged producers and craftsman have a fair remuneration, enabling

them to provide for needs.

-respecting all human rights

-building sustainable relations between economic partners

-favoring protection of the environment

Ben & Jerry’s has therefore undertaken to follow all these principles. This specific

organizational practice to do their utmost to achieve fairness and sustainable has always

existing within the firm. That is why it seems to me to be relevant to analyze it. Additionally,

this specific practice represents significant part of B&J organizational culture. Hence, it is

important to first know what exactly organizational culture means.

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III. What is organizational culture?

According to Robbins (2004) and Schein (1985) organizational culture corresponds to a

system of shared meaning that members have. This shared meaning distinguishes one

organization from another. Robbins claims that organizational culture measures how

employees perceive their organization, and is different from job satisfaction. The first one is

descriptive (Are there clear objectives and performance expectations?...) whereas the

second one is evaluative (what employees think about, what their opinion is about the

objectives and performance expectations).

Robbins also explains that even if members share common perceptions, some perception

can be different, creating subcultures, especially in large organizations, where there is a

dominant culture and sets of subcultures. The organizational culture refers to the dominant

culture, to the “macro view”.

Maanen and Barley (cited in Hatch, 2006) share this notion of subcultures in their definition

of organizational culture.

Hatch (2006) adds the fact that organizational culture is influenced by national or regional

culture, sometimes leading to culture clashes.

Finally, Frost (1985) and Alvesson (2002) agree on the fact that organizational culture refers

to the importance of symbolism for people: rituals, myths, the interpretation of experiences

or events...All these concepts are shaped the different way people live, or groups within they

live. Schein (1985) add to these concepts the importance basic assumptions and values in

organizational culture. This is precisely this last author’s theory that I am going to explain.

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IV. Schein’s theory of organizational culture

I have therefore chosen Schein’s theory of organizational culture. The author defends the

idea that there is a hierarchy: our basic assumptions represent our “unconscious” culture.

They lead to explicit beliefs and values which will lead to symbols.

Thus, the organizational culture starts from the basic assumptions. They represent the reality

in which members live. Members are not aware at all of their basics assumptions; they don’t

think or try to question them. What composes their basic assumptions is obvious for them.

Schein explains that those assumptions influence the way cultural members perceive things,

feel and think. They play a role in every part of cultural life or experience members live. Basic

assumptions are almost innate. They are the basis on which individuals are respected inside

an organization, the basis of the firm’s ability to compete.

From the underlying assumptions follows the values. They correspond to social principles,

goals and standards. Moral code can sometimes also correspond to values, because they

dictate what is right and what is wrong. Values show to the member its priorities, what he

care about most. People are not completely conscious of their values, but if someone asks

them what they are, they are able to recognize them, contrary to basic assumptions. They

will especially recognize them if they are challenge. Often, it is someone that is not fully part

of the organization that is most likely to challenge values (for instance a new manager,

revolutionaries...). According to a study from Massachusetts Institute of technology on

Schein’s theory (1988), values are usually the level that is measured through survey

questionnaires. They have an influence on perceptions, behavior and emotional states. Thus,

norms for behavior directly flow from values.

Norms are expressions of values. Norms allow individuals to know what is expected from

them, and how to adapt their behavior. Inside an organization, business norms indicate for

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instance when to inform the superior of potential problems... In some organizations norms

are clearly expressed by rules and statements, but in others they are communicated

informally (members will regard other member weirdly...).

In short, values define what is important to the members of a culture whereas norms define

what kind of behavior to adopt and expect from others. Behavior is sanctioned by norms

(rewards, punishment) and outcome is valued or not.

However, the problem is that the norms can be interpreted wrongly; they are often

ambiguous. One same norm that is executed by a member can be followed for two complete

different reasons. This extends to artifacts.

Artifacts appear because norms and values encourage activities that produce them. They are

manifestations or expressions of norms and values. But there is a big distance between the

cultural core from which come assumptions and values and artifacts. As a consequence, it is

all the more difficult to interpret the significance of artifacts unambiguously.

Sometimes, artifacts create a counterculture norm. (A norm that people are not used to

follow but that is inside them and that they would like to apply).

Schein claims that they can be considered as indicators of assumptions and values. But

before recognize which values are involved according to the artifacts, a lot of artifacts must

be studied. According to Mitroff and Joyce (1980), Schultz (1995) and Jones (1996) artifacts

can be gathered in three groups:

-objects: architecture of the organization’s building, décor, furnishing, dress, appearance,

equipment...

-verbal expressions: names, nicknames, explanations and theories, humor, jokes,

superstitions, rumors...

-activities: ceremonies, rituals, meetings, traditions, custom, social routines, gestures, play,

recreation...

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Schein's theory of organizational culture

In other words, according to Schein, organizational culture can be seen in three different

layers. Basic assumptions are the first one, “the essence of organizational culture lies in this

level”. Then Values and Beliefs are the main part of the second layer. This layer is also

composed of honesty, trust (how much members can trust their superiors, how much

honest they are), the basis of reward the organization lies on, and effort (has the

organization a culture of hard-working...). Finally, the third layer represents the artefacts.

The main concepts composing this layer are also:

-norms: described above

-language: language is not just a mean of communication but also a determinant how people

comprehend the world. Andrew Brown (1998) by reworking Schein’s theory explains that in

order to work together in an organizational setting, people must develop mutual

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understanding through the common use of language and conceptual categories. Indeed, the

level of anxiety reduces when members don’t undergo misunderstandings or ambiguities

with their colleagues because of different interpretations of language.

-Myths and stories: stories are narratives focusing on a sequence of events that are drawn

from the institution’s history. Stories are told by organizational actors because they want to

influence other people’s understanding of situations and events, to illustrate how the

organization works, to show that they are loyal to other members...

Myths are most of the time also circulated in the organization in the form of narratives, but

they are distinguishable with difficulties from stories. The difference is that the events are

fanciful. They are unjustified beliefs that influence how organizational members understand

and react to their social situation. Boje et al. (1982) have suggested that they are four basic

types of organizational myth. For example, some myths create, maintain and legitimize past,

present or future actions and consequences in the organization. Others maintain and

conceal political interests and value systems.

-Ceremonies, rites and rituals: they are recurrent features of behavior in the organizational

life. Ceremonies can be considered as celebrations of organizational culture, or collective

acts that reinforce the values of the organization. Rites and rituals sets of activities that are

evenly realized. They also consolidate the organization’s values. They can be events,

moment of social interaction...Rites are important because they structure the way we

understand our organization, the way we think it works.

-Symbols are words, conditions, objects or acts that have an important meaning for an

individual or a group. They signify something different, wide compared to what the others

would think about the same thing. Symbols for an organization can be corporate logos, or

the fact that some employees work overtime, just to show their loyalty to the company.

I decided to choose Schein’s model of organizational culture to analyze Ben & Jerry specific

practice of social responsibility because through this practice the firm has built up a whole

identity that owns real values, and even basic assumptions. Hofstede’s theory of culture, for

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instance, would not have corresponded, because it assesses the similarities and differences

between two countries. Ben & Jerry’s has a strong culture, and has implemented the same in

all the countries that commercialize its products. Ben & Jerry’s devotion to the

underprivileged, to Fairtrade and to the environment is a cause to which all members of the

organization are conscious of.

Hofstede’s model could have worked to analyze the acquisition of the British-Dutch group

Unilever over Ben & Jerry’s, but not just to analyze the American ice cream maker.

V. Analysis of Ben & Jerry’s organizational practice applied to Schein’s theory

1. Basic assumptions

According to Schein, the center of organizational culture is composed of the basic

assumptions. Every other feature of culture flows from them. Then, what are Ben & Jerry’s

basic assumption their commitment to Fairtrade and to the environment? The first that can

be named is the importance of social performance. Indeed, the two founders, since they

started business have always been very implicated in social responsibility. Wanting to help

others at this point, and through one’s job shows that they both were very generous and

altruistic. It is features that they had inside, that don’t come just with time or experience.

Maybe later they accentuated this image of environmentally friendly firm to use it as a sell

argument to make more profit, but the basic assumption definitely here. The protector and

generous side of the founders has created the basis of the firm’s culture. Employees, when

they enter B&J, are immediately put in the picture: they know what the firm is fighting for,

what means a lot to it. The importance of these characteristics little by little influences them,

“rub off” on them without they realize it. For example, a study shows that people working in

the firm in Vermont practice a lot more sorting of rubbish into different types for recycling,

which other people in the US do not do (Bayle Cordier, 2010). People are not forced to do it;

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they just do because deep down they want to. Being environmentally friendly is obvious for

them, it is taken for granted.

Another basic assumption is the firm’s business ethic. Even though the company does not

have a formal code of ethics, or an ethics and communications program, Ben & Jerry’s,

especially from the point of view of Fairtrade, has always respected an excellent ethic.

Furthermore, without knowing it, in the practice of Fairtrade, the firm is a green pioneer. At

the time of its creation, taking care of environment and being fair to partners was not

common in business. This avant-garde approach is also part of the firm’s assumptions. Ben &

Jerry’s is the first ice cream maker to take a commitment as important to Fairtrade through

its entire range.

Finally, the two founders met each other in one’s schooldays in 1966. Since when, they kept

inside them their hippie spirit. They start from the principle that helping others is good and

so can make them happy. That is why they convey an image of happiness, play spirit and

optimism.

2. Values, Beliefs and reward

From those assumptions then flows the second dimension of Schein’s model. Features that

compose the commitment in Fairtrade and environment, and of which members of the

culture are aware of, even if they can’t always precisely describe them. From social

responsibility comes social activism. This activism was instilled in the company because the

founders believed in these issues.

The firm gets all the values flowing from Fairtrade. Jerry Greenfield, co-founder said in a

declaration concerning that fact that all their products will be certified Fairtrade:

“Fairtrade is about making sure people get their fair share of the pie. The whole concept of

fair-trade goes to the heart of our values and the sense of right and wrong. Nobody wants to

buy something that was made by exploiting somebody else.”

Values of the brand are then respect of equity between everybody, whatever the race,

gender... is. For example, Ben & Jerry’s insist so that scoop shops (independent shops) are

run by persons coming from ethnical minority or women. It affirms that it is not about doing

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favourable discrimination but it is about give chance everyone to occupy a management

post.

What is more, these values help the company distinguishing their brand from larger

corporate brands and attracted a loyal customer base. This is partly why these values are

retained as part of the corporate culture and are taught to new members.

Furthermore, another value is to be international in the organizational practice of Fairtrade.

The sugar comes from Belize, the vanilla from India, the chocolate from Belgium, the

almonds from Pakistan, the cocoa from Dominican Republic and Ghana, the coffee from

Mexico... According to FLO, Ben & Jerry’s is going to contribute to improve the life of 24000

small farmers all around the world.

Concerning the reward flowing from their basic assumptions of social responsibility, and

their values of goodness and equity, Ben & Jerry’s, when it has been taken over by Unilever

has restructured the advantages for employees. The cost by employee has amounted to

12.667$ per employee in 2006. It covered, for instance, reimbursement of school

expendiures, Milky Way room for new mothers... Additionally, two bonus systems exist:

- The VPA (variable pay award) that reward employees when the firm has a good

performance

- The KTE (keys to enterprise) that reward employees working full time in a factory

In addition, to increase employee’s standing, the firm has a Reward and Recognition

program. Employees receive trips, coupons and sometimes bonuses. However, this last one

is not too much used. Hence, we notice that B&J rewards first everybody if it has the

opportunity to, and after the effort of employees. The culture is then not very focused on

hardworking. The most important is to have fun by working.

Ben & Jerry’s also, from this point of view of environmental commitment, rewards once a

year, the young person that has the best project of environmental protection. Thus, last year

a girl won 7000 euros that will serve to a project of recycling water from ski resorts. We can

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see that originality and innovation is reward, which makes this features ones of the values of

Ben & Jerry’s.

Concerning honesty, Ben & Jerry’s is not always completely honest. The 28th of September

2010, the company announced that it would remove the “All natural” label from some of its

ice creams. The products whose package label are changing include ingredients such as

alkalized cocoa, hydrogenated soybean oil. The CEO, later, stressed that “the company uses

the most natural ingredients it can find, and feels its products are “all natural” in the way

reasonable consumers would understand the term” (fooducate, 2010). This example shows

that as far as Fairtrade is concerned, the company is not always honest with consumers. This

can influence the way employees work; “If the company does not tell the truth to the

consumers, should I tell the truth to my colleagues, to my managers?”

However, this feature can be questioned, because B&J has an image of honest company.

(Entreprise-Business, 2012).

Ben & Jerry’s is also very attached to its roots. It integrates values of Vermont through the

practice of its social commitments. First the main factories of production for the Americas

are in Vermont, as the head office. Concerning Fair Trade, the milk and creams come from

little farmers also in Vermont. Besides, this enables to reduce pollution by transporting

products. Ben & Jerry’s also defends causes which Vermont first defended. In 2009, it

supports the Vermont’s decision to officially recognize wedding of same sexes. To illustrate

that, the ice cream Chubby Hubby is recalled Hubby Hubby. One more time, we can see Ben

& Jerry’s attachment to originality, and even cheek.

3. Artefacts and others

As far as artefacts are concerned through the practice of social commitment, the statement

mission, in which all the mission that Ben & Jerry’s has decided to execute is the main

artefact. It is the written proof of the firm’s spirit, of its values and beliefs. Moreover, the

founders Ben Cohen and Jerry Greenfield can also be considerate as artefacts. Indeed, the

two of them are the basis of success, the main part of the company’s culture come from

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them and their way of managing the business. They can even be considered as heroes for

some people. For example, the firm gets one’s supplies from Greyston Bakery, a bakery

which employs underprivileged people and helps them to rehabilitate through work. Ben

and Jerry decided to work with this bakery to give them money in the long term. People

working in it are likely to consider them as heroes, or symbols.

Ben & Jerry’s has a lot of rites and rituals surrounding their organizational practice of social

responsibility. For example, every two years, a “global people survey” is proposed to the

employees. This survey enables to go up the information concerning their work, their

organization...Every year, B&J also celebrate the Free Cone Day, which is the anniversary of

the firm. Free ice-creams are distributed by people dressed up as cows... This also helps

members of the organization entering the spirit of B&J.

Stories at Ben & Jerry’s are mostly speaking about events, anecdotes concerning what Ben &

Jerry did to lead its social actions. For example, a lot of employees tell the story of when the

American government wanted to allow animals cloning to production. Ben & Jerry’s, with

100 people sharing the same opinion against cloning went to demonstrate in front of the

White House, dressed up as cows. This kind of stories make employees aware of Ben&Jerry’s

cause, and help them to understand the organizational culture.

Symbols representing the firm are for example their mascot, the cow, or their slogan: “If it’s

not fun why do it?” These symbols bring an atmosphere of joy and game on the

organization’s culture.

One of the myths that surround Ben & Jerry’s concerns the fact that Ben and Jerry are a

couple. The rumor received a huge boost when the firm came out with the “Hubby Hubby”

flavor for one month. However, this myth was just created from the same values of B&J:

fighting for equality.

In short, all the activities and actions that B&J organizes through the social commitment

show a little of the firm’s organizational culture.

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VI. Conclusion

To conclude, we can say that Ben & Jerry’s was therefore a real precursor of sustainable

development in the 90’s thanks to the founders’ basic assumptions of social responsibility.

From these assumptions have come the values and beliefs that helping community through

specific practices in the way of running their business was fundamental. Thanks to the

company’s other assumption, the hippie and peaceful spirit, this specific practices were set

up in the form of partnerships advocated equity, and events, rituals, celebrations that

represented the ludic and happy spirit of the firm. Thus, thanks to its organizational culture,

Ben & Jerry’s has manages to become the first ice-cream maker to take such an important

commitment for Fairtrade and sustainable development. This culture has also contributed to

make the company a leader on the ice-cream market.

The first recommendation that can be given to Ben & Jerry’s is, as the company grows, to

keep the social mission as a primary focus. Indeed, since the firm was sold to Unilever, Ben &

Jerry’s could go away from its social commitments. A striking example is the company in

2004 suspending its program of diversity of suppliers, which traditionally enabled it to

choose its suppliers with displayed ethical values.

Otherwise, Ben & Jerry could add organizational infrastructure devoted exclusively to social

mission, which would even more improve its image.

Total: 3685 words.

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VII. References

Alvesson M., (2002) Understanding Organizational Culture. London: SAGE Publications

UMR2959Bayle Cordier J.(2010) The impact of an M&A on a target firm: a Socially Responsible Organizational Identity Perspective. Ecole doctorale “Science du Management/GODI”

Ben and Jerry’s websites. Available at:www.benjerry.fr () Ben and Jerry’s (1999) Employee Motivation Custhelp. Available at:http://benjerry.custhelp.com/app/answers/detail/a_id/69/~/employee-motivation ()

Brown, A., (1998) Organisational Culture. Second Edition. London: Financial Times Pitman Publishing

Cohen, Ben R. (1997) Ben & Jerry’s double dip: lead with your values and make money, too. New York: Simon & Schuster

Celine, (2009) Haagen Dazs versus Ben & Jerry’s Entreprise Business Available at :www.entreprise-business.com/haeagen-dazs-versus-ben-jerrys#comment-174740239 (accessed)

Frost P.J., (1985) Organizational Culture. Beverly Hills: London

Guillaume, (2010) “Les glaces de Ben & Jerry’s entièrement équitables » Ekitinfo. Available at :www.ekitinfo.org/journal/les-glaces-ben-and-jerrys-entirement-equitables

Hatch, MJ., (2006) Organization Theory: modern, symbolic, and postmodern perspectives. Second edition. New York: Oxford University Press

McCornick R. Ben and Jerry’s goes 100% Fairtrade Dairy Industries International (2010) Vol75 (4), p11

Pellecuer D. (2009) Ben & Jerry’s et Haagen-Dazs, les frères ennemis Le figaro. Available at :www.lefigaro.fr/societes/2008/08/22/04015-20080822ARTFI

Pettigrew, A.M. (1979) On Studying Organizational cultures. Aministrative Science Quaterly (28:3), pp 339-358

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Powershow. Available at:www.powershow.com/view/175cd-NWYyY/Ben_and_Jerrys ()

Robbins S.P., (2004) Essentials of Organizational Behavior. Eighth edition. Pearson

Schein E.H., (1985) Organizational culture and leadership. San Francisco: Jossey-Bass

Schein E.H., (1992) Organizational culture and leadership. Second edition. San Francisco: Jossey-Bass

WP 2088-88. (1988) Sloan School of Management Working Papers, Massachussets Institute of technology

York University Website Organizational culture theory Available at:www.sdo.nihr.ac.uk/files/adhoc/91-revised-final-report.pdf ()

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