BEN AND JERRYS SUPER AUDIT CRUNCH

EXECUTIVE SUMMARY
Organization usually submits audit reports which contains
financial data which are positive and favourable to them and
sugar coat the failures and other details. Ben and Jerrys
Homemade, Inc took the risk to showcase both financial and
social issues. The difficulty arises when the company sales is
down.

Executive
Summary Word Count-48

CASE ANALYSIS
Organizations usually submit their audit reports featuring
numbers, audits, portraits that displays the positive aspects
and they sugar-coat the bad aspects such as failures. They are
mainly considered about the financial aspects of the
organization and not concerned about the social aspects of the
company.
Ben and Jerrys Homemade, Inc., the Waterbury, Vermontbased, super-premium ice cream was an exception for this
case. They published their reports considering both financial
and social aspects.
CHANGES BROUGHT IN AUDIT
They provided unedited financial statements keeping in
mind that it could provide a chance of improvements that
the company can in their respective fields.
Their social audit rates the companies in areas such as
employee benefits, plant safety, ecology, community
involvement and customer involvement.
They displayed honesty in submitting their reports, for
example, they criticised the company for its poor plant
safety. They even kept the negative aspects of the
company without any sugar coating.
Introduction of 7:1 salary ratio, in this highest paid
employee gets not more than seven times of the lowest
paid employee.
They displayed the loss in production that occurred due to
accidents that occurred inside the company. That is
number days lost by the persons who met with accidents
and production loss that occurred due to accident
They also introduced charity programs which was absolute flops
such as Save the Family Farm campaign which was severely
criticised in their audit reports.

ADVANTAGES
By providing unedited reports they could display both
positives and negatives that occurred in a financial year.
By this they could get suggestions from all the members
of the organizations for the improvements.
By introducing 7:1 salary ratio they could send a real
social message to the people that there is not much salary
gap between highest and lowest paid employees.
They can get clear idea about what all areas to be
improved in their organization.
DISADVANTAGES
By introducing 7:1 ratio many key positions left
unoccupied as the employees could get higher salaries in
other companies.
This type of publishing reports can be only done when the
company is presently running at high profits and not when
the company is running is loss.

CONCLUSION
Ben and Jerrys main aim was to signal through transparency
that is by submitting reports considering social aspects .They
could get the improvement aspects from all the members of the
company. But this type of reports can be submitted when the
company is running on profit and not when the company is
running on loss.

CASE ANALYSIS
WORD COUNT-422