When your entire business is built around the values of doing things for the right reasons, and being ‘punk,’ customers can see decisions such as abandoning the Real Living Wage as a shift away from what they like about you, and into something more ‘corporate.’
Punks don’t care about profit, but companies do. And I know it’s easy to say that Brewdog is a company and has to put profits first, but by abandoning core values, you abandon core appeal.
What has Brewdog done to its Values?
Brewdog, the renowned craft beer giant, recently announced its decision to cease paying its employees the real living wage, opting instead for the UK government’s national minimum wage.
This move, justified as a necessary step for returning to profitability after a £24 million operating loss, has drawn criticism from both current and former staff who accuse the company of abandoning its principles. This shift sheds light on the long-term consequences that can result from a company deviating from its core values, particularly in the face of financial challenges.
The Voluntary Wage and Values:
Since 2015, Brewdog had been voluntarily paying its staff the real living wage, a rate calculated independently based on the cost of living in the UK. This move was not only a financial commitment but also a part of the company’s public identity, proudly displayed on its website and emphasised in its communication as a core belief. The decision to abandon this practice, as revealed in a letter to employees, has led former staff and advocacy groups to express disappointment, claiming that Brewdog has forsaken its principles.
Employee Backlash and Collective Action:
Former staff members, organised under the Punks with Purpose campaign group, have characterised Brewdog’s move as a betrayal of its identity. They argue that the real living wage had been a cornerstone of the company’s commitment to fair pay and equitable treatment. Workers’ union representatives, such as Bryan Simpson from Unite, have condemned the decision as particularly egregious during a time of acute cost-of-living challenges. Plans for collective action to challenge Brewdog’s decision are already underway, demonstrating the potential for internal strife and reputational damage.
Consequences for Corporate Identity:
Brewdog’s departure from its voluntary wage commitment has wider implications for its corporate identity. Blog posts on its website referencing living wage status have been removed, eroding the transparency and accountability that characterised its public image. The move raises questions about the company’s commitment to its stated values, potentially alienating customers who supported Brewdog for its perceived ethical business practices.
Brewdog’s decision to abandon the real living wage serves as an example of the potential long-term effects of compromising values for short-term financial gain. The backlash from employees, advocacy groups, and the public highlights the significance of a company’s commitment to its principles. As Brewdog navigates its path back to profitability, it must consider the lasting impact on its corporate identity and the trust of its stakeholders. The episode underscores the delicate balance that companies must maintain between financial viability and upholding the values that define their character.
