Research Paper on:
Case Study Analysis of Ben & Jerry’s

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by Ben Cohen and Jerry Greenfield when they established the company in 1977. This policy was established by the co-owners who believed that all corporations had social responsibility to the  people and communities around them. The purpose of the 5 to 1 Ratio policy is to guarantee there is no wide discrepancy between company salaries as in traditional corporations. The  normal ratio is 90 to 1 for the Board and higher officers of a corporation. This is the exact wealth distribution discrepancy Ben and Jerry avoided when they established the  5 to 1 Ratio policy. As a result, the student may note, the company is experiencing a problem drawing the management talent that they  could normally draw as a $2.4 million company, even amongst company employees, who find their jobs cushy. Key Management and Belief Systems  Certain key management positions have changed over the years, while others have remained constant. For example, Chico Lager, the outgoing CEO, was convinced that the  policy had to change due to the fact that he never got an increase in salary over his eight-year tenure. His total salary and bonuses was based on the lowest  paid incoming salary of $6.50 an hour, keeping his pay at $81,000 for his entire tenure, though the company had grown at an average of sixty percent annually to achieve  and retain the #2 spot in the specialty ice cream market, falling only behind Dreyers. Lagers main concern has always been for the  financial success of Ben & Jerrys and he accepted his own sacrifice, but the 5 to 1 Ratio policy affects his ability to do his job effectively. Employees have no