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Honest Tea - Case Solution

Paul A. Gompers | Harvard Business Review ( 201076-PDF-ENG ) | March 08, 2001 (Revision: 2023-09-13)
Abstract:

This case study looks into the leadership style of Seth Goldman, one of the founders of Honest Tea. The company is a start-up engaged in ready-to-drink beverages.

Case Questions Answered

  • Describe the leadership approach of one of the founders of Honest Tea, Seth Goldman.
  • Describe the achievements of the company under Goldman's leadership.
  • What business strategy did the company under the leadership of Seth Goldman have?

Seth Goldman’s Leadership Performance

Describe the leadership approach of one of the founders of Honest Tea,

Seth Goldman.

The leadership performance of Seth Goldman, one of the founders of Honest Tea, is based on the provided resources. Goldman’s leadership performance on the concept of the Triple Bottom Line basically focuses on enhancing transparency and sustainability in the business environment.

Seth realizes the lessons of the Triple Bottom Line based on the experience of the tea gardens in South Central China.

With regard to this, it is noted that there were neither roads nor any infrastructure, and this created a poor environment where pure tea was grown. The region was flooded, and the people around were actually poor.

There was no bridge, and the resources around were protected. There was no existence of the threat of runaway development. Seth wanted a solution- oriented society. Society was rather good at developing solutions that were causing more problems.

As one of the founders of Honest Tea, Seth understands that the sustainability of organizations should basically be in line with society’s well-being (Savitz & Weber, 2014). At times, people listen to the advice of doctors who tend to give a prescription for drugs that sometimes do more harm than good.

Seth argues that we need to understand the root cause of the problem and find a reasonable solution. We need to be focused and remain focused to achieve a sustainable society, and Seth believed that the only way to achieve this is by changing our thoughts and directions.

It is essential to note that the United States is enjoying the 40th-best life expectancy in the world because of the lifestyle and the kind of relationship they have with the environment. Businesses were part of the cause of the problems that people were having. Mr. Goldman has worked for many organizations and has experience.

The company removed calories from the diet of Americans. Honest Tea…

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