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Honest Tea and Mycorrhizal Applications

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Examine the positive impact of two successful businesses that have direct ties to the natural world, Honest Tea (http://www.pearsoncustom.com/mct-comprehensive/asset.php?isbn=1269879944&id=11693) and Mycorrhizal Applications, Inc. (http://mycorrhizae.com/) As you review the content in this video and website, think about the relationships between population growth, utilization of resources, and the opportunities afforded by economic growth and the success of these businesses.
Address the following topics for each company after you have reviewed the above resources:
1. What aspect of the natural world are these companies marketing?
2. How are they incorporating social responsibility into their business plan?
3. How are they incorporating environmental responsibility into their business plan?
4. What role is technology playing in facilitating the efficiency of production?
5. What role does education play in the ethics of these companies?
6. How are their products and outreach programs providing solutions to problems that population growth and climate change create for our natural world?
7. What role do you think ethics should play in business development and economic growth? (Be sure to define ethics and economic growth briefly.)

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Solution Summary

This solution of 640 words examines two companies, Honest Tea and Mycorrhizal Applications for their environmental impact and social responsibility.

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1. What aspect of the natural world are these companies marketing?

Honest Tea is marketing natural foods, in particular, teas. Mycorrhizal Applications is marketing mycorrhizal fungus seeds.

2. How are they incorporating social responsibility into their business plan?

In the first year of business, Honest Tea started a business partnership with an economically disadvantaged group, the Crow Nation tribe, and brought First Nation Tea to market. A portion of the sales is given back to the community. Prior to this, the community had a high unemployment rate (67% unemployment). The goal is for the community to be able to produce a particular peppermint and cultivate it for the tea business.

Honest Tea has agreements with farmers in South Africa, where there was an 87% unemployment rate. A certain type of tea grow in the wild there, and the community has started cultivating it. Honest Tea pays a 1% royalty to the community. The more Honest Tea buys, the more money the community receives. The business has increased the economic empowerment of the families in the community. In addition, customers feel like they are developing ...

Solution provided by:
J Pye, MSc
Education
  • MSc, California State Polytechnic University, Pomona
  • MBA, University of California, Riverside
  • BSc, California State Polytechnic University, Pomona
  • BSc, California State Polytechnic University, Pomona
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