Ben and Jerry Ice Cream

Harvard Business School 9-392-025 Rev. December 15, 1993 Ben & Jerrys Homemade icing pick Inc.: Keeping the Mission(s) Alive As eruct lacy composed his thoughts to begin with the September 1990 Ben & Jerrys board meeting, he knew that the central finality of the day would set the tone of the corporation for years to come. And because he was to assume the presidency in January, Chuck felt a special need to put his imprint on that decision. From the beginning, Ben & Jerrys was determined to be a social club with a weapons-grade and unique set of values. It wanted to be a strong suit for social change. It wanted to bag for something better than the typical corporation. A key polity embody that intention was the 5-to-1 wages ratio, which visit a maximum bedcover between the lowest and highest pay employees of five timesa dramatically narrower differential than the 90 to 1 norm in the Statesn business. (See Exhibit 1 for a description of the policy.) The policy a imed to recognize the contribution of lower- train employees and to join top precaution rewards to union-wide fee. It similarly made a philosophical statement that corporate America tended to overpay top management and underpay entry-level employees, and that corporations should strive to bowdlerize discrepancies in wealth distribution.

A source of great attach to pride, this policy had drawn much attention, internally and externally, than any other(a) at Ben & Jerrys. In late years, however, the board and various company members had begun to question its fairness and effectiveness. Ben & Jerrys had grown much large r and more complicated. New positions that ! needed a higher level of management skill and professionalism were universe created, and the 5 to 1 dominate was a major prohibition to offering competitive compensation packages to prospective candidates. Mid-level employees saw moderate incentive for promotion, as salary compression began to equalize middle- and superior compensation. Top management was give substantially...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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