Greyston Bakery Case Study

Introduction

Today, most businesses of all sizes and types have received a growing recognition from all corners of the world, thus increasing their profitability. Geyston Bakery is one company that has been in the vanguard of this movement and is located in Yonkers, New York. The company was founded by Bernie Glassman in 1982 and in 2000; Mike Brady became the CEO after the step down of Bernie Glassman. Brady introduced the "new era" for Greyston and introduced a new modern of business making the company to be registered as the first benefit corporation of New York. The paper, therefore, explores the case study of Greyston Bakery by identifying its problem/opportunity and using the Porter and Kramer theory of shared value to analyze the case.

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The Problem/Opportunity

Greyston Bakery has leveraged an enlightened approach of having a thriving business that supports a wide range of society-based services for those in need. In a social sense, the priority of the company is to provide an "Open Hiring" policy whereby anyone can be hired regardless of their background checks or pre-hiring screening. This creates an opportunity for not only the unemployed, but also the homeless individuals, the immigrants, the disabled, and those with addiction problems. In a statement, the CEO of Greyston foundation, Steven Brown notes that "the extent that we can create value and opportunity is the path out of distress for many of these communities" (Leipziger, 2013). A report given showed that most residents of Yonkers lives below the poverty line and having Greyston Bakery premises, it gives individuals an opportunity for self-sufficiency through work hence eradicating poverty and problems of addiction.

Porter and Kramer Theory of Shared Value

It is important for companies to take lead in bringing businesses and community back together. To do this, they must understand the principle of shared value which not only creates the economic value for the business, but also for the whole society. According to Kramer and Porter (2011), shared values are policies and operating practices that promote the company's competitiveness while concurrently enhancing the economic and social status of the society in which it is based. Shared value creation purposes on highlighting and intensifying the link between societal and progress of the economy. In Greyston Bakery case, shared value has been created in various ways and one of them is through re-conceiving products and markets. The needs of the society are huge and Yonkers regions have been struggling with issues regarding health, poor housing, nutrition, financial security, environmental damage, and other greatest unmet needs. The demand for products and services that meets the needs of society is increasing rapidly. Greyston Bakery creates shared value by helping marginalized people while creating and sustaining a profitable enterprise. It not only concentrates on taste and quantity in driving more consumption but also look at how it can create security, equality and a better environment in the regions where it is based.

Another way through which Greyston Bakery creates a shared value is through redefining productivity in the value chain. The value chain of a company is inevitably affected by various communal issues including health and safety, natural resource and working conditions in the company. The value chain of Greyston Bakery involves its suppliers and its main customers like Unilever and their subsidiary Ben & Jerry's which all form a layer of alignment with a common commitment to a social and environmental goal. One way through which they do it is through enhancing livelihood on which they purpose on creating sustainable sourcing and enhancing the lives of farmers and distributors. Another way is through minimizing environmental impacts like greenhouse gases and lower waste footprint.

Recommendations

One action to recommend is for Greyston to establish a Corporate Social Responsibility (CSR) strategy. To do this, the company should put more emphasis on people and relationships. They should come up with an empowered workforce and workers who have a sense of purpose. Teamwork should be enforced among the staff members and employees should be valued so as to make them feel content with their work. If the relationship between the company and the employees is enhanced, it will impact the company and the lives of those workers in a measurable way and as a result, making the company be more effective and profitable than before.

Another action to recommend is for Greyston Bakery to expand to other cultural and geographical regions like the Muslim Community. Working with such a community will help to improve their skills set and value. They can also partner with companies in the Muslim community so as to bring executives from other organizations to their company so as they can bake the brownies thus giving them flavor which can add value to their companies. Significantly, this will not only bring profits to the Greston Bakery Company but also it will ensure that most of the Muslims are employed and have opportunities for higher earnings. Also, it will ensure there is a union between different cultural groups within the country hence reducing any form of conflict. For Greystone Bakery to expand to the Muslim community, it will enable them to find other likeminded companies just like they found with Ben & Jerry's who can join them in their venture. This will enable them to address any problem that may arise like that of debt while maintaining their social goals.

References

Kramer, M. R., & Porter, M. (2011). Creating shared value. Harvard business review, 89(1/2), 62-77.

Leipziger, D. (2013). Greyston Bakery: Combatting poverty by making a profit. The Aspen.