Honest Tea Case Solution

1. Describe the leadership approach of one of the founders of Honest Tea, Seth Goldman.

Goldman’s leadership performance centered on the concept of Triple Bottom Line. This approach aims to enhance transparency and sustainability in the business environment. As the case mentions, Honest Tea was the first recipient of America’s Award for Best Sustainable Product. Seth understood that if sustainable practices are used in organizations, it will lead to the well-being of society. According to Seth, it can be made possible by changing our thought processes and actions to create businesses that solve people’s problems. Along with pursuing financial objectives, the management, directors, employees, and investors of companies should also focus on developing more healthy corporate cultures.   

For new startup ventures, Goldman used the following principles in his leadership approach. There needs to be a vision before you succeed in building what you want to build. The vision has to be communicated with the team so everyone can work towards a common goal. Moreover, he provided his team with the resources they needed to make that vision a reality. Likewise, Honest Tea had a vision to take care of the planet its customers, and it is how Goldman passed this vision to his employees that has led to Honest Tea becoming a successful company. 

Moreover, Seth Goldman believes that fair trade equals good business. It is an essential concept towards his brand, and he believes fair trade plays an important role in keeping the integrity of his business. As the case mentions, a portion of the royalties that Honest Tea receives from I’tchik got to the Pretty Shield Foundation, a nonprofit that caters to the needs of native American youth. In this way, Honest Tea gives back to its community.