DOCSLIB.ORG

Center for Business Ethics at BENTLEY UNIVERSITY

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Center for Business Ethics at BENTLEY UNIVERSITY Center for Business Ethics AT BENTLEY UNIVERSITY Raytheon Lectureship in Business Ethics OCTOBER 18, 2011 Inventing a Win-Win-Win-Win-Win Future GARY HIRSHBERG Chairman, President, and CEO of Stonyfield Farm Raytheon Lectureship in Business Ethics BENTLEY UNIVERSITY is a leader in business education. Centered on education and research in business and related professions, Bentley blends the breadth and technological strength of a university with the values and student focus of a small college. Our undergraduate curriculum combines business study with a strong foundation in the arts and sciences. A broad array of offerings at the McCallum Graduate School emphasize the impact of technology on business practice, including MBA and Master of Science programs, PhD programs in accountancy and in business, and selected executive programs. Enrolling approximately 4,000 full-time undergraduate, 250 adult part-time undergraduate, 1,400 graduate, and 20 doctoral students, Bentley is located in Waltham, Mass., minutes west of Boston. The Center for Business Ethics at Bentley University is a nonprofit educational and consulting organization whose vision is a world in which all businesses contribute positively to society through their ethically sound and responsible operations. The center’s mission is to provide leadership in the creation of organizational cultures that align effective business performance with ethical business conduct. It endeavors to do so by the application of expertise, research, education and a collaborative approach to disseminating best practices. With a vast network of practitioners and scholars and an extensive multimedia library, the center offers an international forum for benchmarking and research in business ethics. Through educational programming such as the Raytheon Lectureship in Business Ethics, the center helps corporations and other organizations to strengthen their ethical culture. 3 Executive Director Center for Business Ethics and Hieken Professor of Business and Professional Ethics Bentley University W. Michael Hoffman, PhD If you want to get a sense of the richness and variety of business ethics, you should simply reflect on the richness and variety of business itself. Every year, many new types of business emerge and each one of them involves unique issues and opportunities, not only in terms of products and services, but also in terms of business ethics. In this monograph, we have an outstanding presentation by Gary Hirshberg, the chairman, president, and CEO of Stonyfield Farm, the world’s largest producer of organic yogurt. “Yogurt?” you say. “So is this a discussion on yogurt ethics?” In a way, yes; but it is much more than that. Gary Hirshberg’s lecture is an important one if you happen to eat food. Spend some time with Hirshberg and you will soon recognize the ethical complexity associated with food production. It involves everything from what we feed animals to how they are treated, the pesticides used in food production, and how waste is managed. And it doesn’t stop there… How should companies handle profits? How should they work with their suppliers, etc.? Both in terms of business and ethics, Stonyfield Farm is a microcosm of the world around us. And Hirshberg faces it all with realism and passion. His response has been to take to heart the ethical interests of all his company’s stakeholders. How? By producing “yogurt on a mission.” What mission? One answer is “to save the planet.” No one company can do that single-handedly. But Stonyfield Farm doesn’t just produce yogurt; it also models the power of ethical business. This lecture is one of the most lucid practical illustrations of stakeholder theory I’ve ever heard. Moreover, in its commitment to ethics, Stonyfield has pushed the envelope on innovation as well. And here is the good news: it works. Hirshberg took a seven-cow organic farming school and turned it into a business with $370 million in annual sales, with a compounded annual growth rate above 23 percent for more than 18 years! The results speak for themselves… and for the power of ethical business. Inventing a Win-Win-Win-Win-Win Future 1 The RAYTHEON LECTURESHIP IN BUSINESS ETHICS at Bentley University is made possible through the generous support of the Raytheon Company. Raytheon is a technology and innovation leader specializing in defense, homeland security and other government markets throughout the world. With a history of innovation spanning 90 years, Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as a broad range of mission support services. The company reported sales of $25 billion in 2011 and employs 71,000 people worldwide. It has built a reputation for adhering to the highest ethical standards in the industry. The Raytheon Lectureship in Business Ethics series aims to illuminate and promote ethical values and conduct in business, highlighting best practices in corporations throughout the United States. Learn more about Raytheon online at www.raytheon.com. 2 Raytheon Lectureship in Business Ethics Chairman and Chief Executive Officer Raytheon Company William H. Swanson Ethics in business is about so much more than just following rules. Fundamentally, it is a matter of creating the right culture in our organizations, so that people have the ability and support to make decisions that are not only effective, but consistent with the values and principles we hold dear. Raytheon has worked very hard in establishing an ethical business culture that is accepted by our employees and woven into the fabric of the ways in which we work. Our continued growth and profitability depend on it. Raytheon has supported the Center for Business Ethics at Bentley University for many years, and our sponsorship of its Lectureship in Business Ethics is an important commitment for the company. We recognize the enormous value of the leadership given by the center for more than three decades, to promote ethical business practices and cultures in the United States and around the world. And ethical leadership — illuminating and inspiring conduct that is instinctively ethical — is what the Raytheon Lectureship in Business Ethics is about. I’m proud that Raytheon can play a part in bringing to the Bentley campus highly respected leaders of companies that have a manifest and deep-rooted commitment to doing business in the right way. Their insights contribute much to an important discourse on how the business community can and should achieve ethical excellence. Inventing a Win-Win-Win-Win-Win Future 3 Stonyfield, celebrating its 28th year, is the world’s leading organic yogurt company. Its certified organic yogurt, smoothies, milk, cultured soy, frozen yogurt and ice cream are distributed nationally. The company advocates that healthy food can only come from a healthy planet. Its use of organic ingredients helps keep more than 200,000 farm acres free of toxic, persistent pesticides and chemical fertilizers known to contaminate soil, drinking water and food. To help reduce climate change, Stonyfield offsets all of the CO2 emissions generated from its facility energy use. The company also started a nonprofit called Climate Counts (climatecounts.org) which shows people how they can help fight climate change by the way they shop and invest. Stonyfield also donates 10 percent of its profits to efforts that help protect and restore the Earth. For more information about Stonyfield Farm, its products and initiatives, visitwww.stonyfield.com or follow Stonyfield on Twitter @Stonyfield and @StonyfieldBiz, and on Facebook www.facebook.com/at StonyfieldFarm. (FROM LEFT) W. Michael Hoffman, PhD, founding executive director of the Center for Business Ethics and Hieken Professor of Business and Professional Ethics at Bentley; David Lajoie, director, Business Ethics and Compliance for Raytheon’s Integrated Defense Systems Business, Gary Hirshberg, chairman, president and CEO of Stonyfield Farm; and Gloria Larson, president of Bentley University. 4 CHAIRMAN, PRESIDENT AND CEO STONYFIELD FARM Gary Hirshberg Gary Hirshberg is the chairman, president and CEO of Stonyfield Farm. Since Hirshberg took the reins of the company in 1983, Stonyfield Farm has only been recognized not only as an organic industry leader, but a pioneer in social and environmentally responsible corporate practices as well. From its infancy as a seven-cow organic farming school to its current $370 million in annual sales, Stonyfield has enjoyed a compounded annual growth rate of more than 23 percent for more than 18 years by consistently producing great-tasting products and using innovative marketing techniques that blend the company’s social, environmental, and financial missions. Stonyfield Farm has been the recipient of numerous awards, including Ethisphere magazine’s 2011 “World’s Most Ethical Companies Award,” and the EPA’s 2009 “Clean Air Excellence Award.” Inventing a Win-Win-Win-Win-Win Future 5 Inventing a Win-Win-Win-Win-Win Future Raytheon Lectureship in Business Ethics at Bentley University October 18, 2011 GARY HIRSHBERG Chairman, President, and CEO of Stonyfield Farm Thank you, Dr. Hoffman, and thank you evidence of what I’m talking about — this to all of you for being here. tendency of commerce to take and not always give back. I hope to persuade you otherwise; I want to say a word about my title and this is why I talk about this as a win-win- the history of commerce. I’m the son and win-win-win prospect. grandson of shoe manufacturers. I grew up in New Hampshire just up the road from here, I am going to get you depressed for a couple so I speak from a longer-term perspective. of minutes. Bear with me, I’ll get over that. Today’s problems are serious. We know that The history of commerce to my mind has we will have 9.2 billion co-inhabitants in always had somebody paying the price for about 40 years.
Load more

Recommended publications
  • Key Codes on the Table More on Methodology Where Did They
    Where did they go? Three companies depart the list this year, having been ac- quired early enough in 2007 to not be listed. Alto Dairy was Key Codes on the Table purchased last year by Saputo, Cass Clay was acquired at in 2007 by Associated Milk Producers, and Crystal Cream and C=Cooperative Pu=Public company Pr=Private company Butter was bought out early last year by HP Hood. Joining the P=Parent company S=Subsidiary T= Tie in rank list for the first time are BelGioso Cheese (No. 75), Ellsworth Creamery (84) and Roth Kase USA (96) all from Wisconsin. Next year Winn-Dixie will come off the list, having divested its dairy processing capabilities (some of it recently to Southeast More on Methodology Milk Inc.). Supervalu tells a similar story, with the final plant of While sales figures represent the most recently completed fiscal the former Richfood Dairy having been sold to Dean Foods year, company descriptions, facilities descriptions and person- this year. Finally, Wilcox Dairy of Roy, Wash., has given up the nel reflect recent changed where possible. Some entries will dairy business for eggs, and its listing will be gone next year. include an explanation of recent changes. U.S. & Canadian Index (No. in parentheses is last year’s rank) A Foster Farms Dairy ....................................... 50 (48) P Agri-Mark Inc. .............................................. 29 (29) Friendly Ice Cream Corp. ...............................55 (56) Parmalat Canada .........................................12 (13) Agropur Cooperative .........................................6 (9) G Perry’s Ice Cream ........................................ 97 (97) Anderson Erickson Dairy Co. ......................... 66 (71) Glanbia Foods Inc. ........................................ 23 (32) Plains Dairy Products ....................................95 (99) Associated Milk Producers Inc.
    [Show full text]
  • Fresh Dairy Products
    business 34a41_baf2 24/05/05 15:02 Page 34 business> 035 7.8% organic growth in 2004, the best ever for DANONE. A review of our three worldwide business lines: Fresh Dairy Products, Beverages, and Biscuits & Cereal Products. 049 036 Nueva Font Vella Toque de Limón 043 DANONE 2004 business 34a41_baf2 24/05/05 15:02 Page 36 > 037 BUSINESS DAIRY resh Dairy Products had a with strong showings from Italy, Spain and Highlights Dairy record year in 2004, confirming other countries to the south as well from the business line’s place as the the UK and Germany to the north. France BRAND AWARENESS Health driver for the Group’s growth. was something of an exception, since per- > In 2004, research institute Sales volumes showed the formance suffered from soft demand for GFK rated Danone the top brand fstrongest rise ever, putting on 8.8% or mass-market consumer goods as well as in terms of spontaneous, top-of- drives success close to 350,000 metric tons more than in the government-sponsored initiative for mind awareness (33%), placing 2003, as did sales revenues, up 10.5% to concerted retail-price reductions in the it well ahead of competitors. Fresh Dairy Products posted record growth in 2004, consolidating u6.9 billion or nearly half the consolida- second quarter. DANONE’s world leadership in the field. Momentum reflects the ted total. Operating income was up from ADDED SCOPE FOR success of product concepts and brands centered on health and u845 million to u947 million, setting the Asset brands— PARTNERSHIP WITH a strategy structured for close relationships with consumers.
    [Show full text]
  • 2009 a Special Information Supplement OF1
    THE GLOBE AND MAIL THURSDAY, NOVEMBER 12, 2009 A special information supplement OF1 A healthy, growing industry Organic foods nce seen as a niche cat- pre-packaged organic products and antioxidants in food can egory confined to farm- and organic dairy. help protect against disease, The Canadian industry sees a wealth of O ers markets and health A number of factors are and it’s proven that these are opportunity in the growing demand for organic, food stores, organic foods have driving more consumers to present in higher levels in hit the mainstream. While the buy organic foods, say indus- organics.” but there are challenges. Even though more sector has experienced its chal- try experts, including the ben- Mr. Hirshberg agrees that lenges along the way, a num- efits of chemical-free and sus- environmental concerns are Canadian producers are moving to organic, ber of healthy developments tainable farming and a desire another key motivator. “It was suggest the future of organic among Canadians to support the environment that drew me Canadians’ demand for organic food is far foods is bright. smaller producers. The organ- to the organic business. I was Statistically, the Canadian ic standards’ commitment to studying climate change and outpacing the Canadian supply. organic food market has animal welfare is another moti- discovered there is an enor- grown at least 20 per cent vator. mous carbon footprint to con- Learn more at www.organicbiologique.ca annually for the past several According to a 2008 sur- ventional agriculture, and that years.
    [Show full text]
  • Life Cycle Assessment of the Stonyfield Farm Product Delivery System
    Report No. CSS01-03 April 5, 2001 Life Cycle Assessment of the Stonyfield Farm Product Delivery System Dov Brachfeld, Tad Dritz, Shinsuke Kodama, Alan Phipps, Elyse Steiner Gregory A. Keoleian, Project Director LIFE CYCLE ASSESSMENT OF THE STONYFIELD FARM PRODUCT DELIVERY SYSTEM Dov Brachfeld Tad Dritz Shinsuke Kodama Alan Phipps Elyse Steiner Dr. Greg Keoleian, Project Director The Center for Sustainable Systems University of Michigan Ann Arbor, Michigan April 2001 Report No. CSS01-03 Document Description LIFE CYCLE ASSESSMENT OF THE STONYFIELD FARM PRODUCT DELIVERY SYSTEM Dov Brachfeld, Tad Dritz, Shinsuke Kodama, Alan Phipps, Elyse Steiner Gregory A. Keoleian, Project Director Center for Sustainable Systems, Report No. CSS01-03, University of Michigan, Ann Arbor, Michigan April 5, 2001 356 pp., tables, figures, appendix This document is available online: http://css.snre.umich.edu Center for Sustainable Systems The University of Michigan 430 East University, Dana Building Ann Arbor, Michigan 48109-1115 Phone: 734-764-1412 Fax: 734-647-5841 Email: [email protected] http://css.snre.umich.edu © Copyright 2001 by the Regents of the University of Michigan Acknowledgement The authors gratefully acknowledge the cooperation of Nancy Hirshberg of Stonyfield Farm Inc. and Stephen Robert of Polytainers Inc. Their constant support of this project as primary representatives of their respective companies was fundamental in the efficient progress of the study. The authors would also like to thank Jaymie Meliker, Ph.D. candidate of the University of Michigan School of Public Health, for his valued counsel and contribution to this report. We would like to thank our Project Director, Gregory Keoleian; without his vision and guidance this project would never have been conceived or finished.
    [Show full text]
  • Open Alexandra Cohen Thesis.Pdf
    THE PENNSYLVANIA STATE UNIVERSITY SCHREYER HONORS COLLEGE DEPARTMENT OF FINANCE A FINANCIAL AND LOGISTICAL ANALYSIS OF DANONE’S ACQUISITION OF WHITEWAVE FOODS ALEXANDRA COHEN SPRING 2017 A thesis submitted in partial fulfillment of the requirements for a baccalaureate degree in Finance with honors in Finance Reviewed and approved* by the following: Robert Novack Associate Professor of Supply Chain Management Thesis Supervisor Brian Davis Clinicial Associate Professor of Finance Honors Adviser * Signatures are on file in the Schreyer Honors College. i ABSTRACT The food industry is undergoing changes as consumers have begun to place greater value on healthy and sustainable eating and drinking options. This shift from traditional consumer packaged food options to nutritious and organic alternatives is causing movement in the consumer packaged food industry. In order for food giants to penetrate this market, they can either grow organically or merge with or acquire a company already in this market. The conventional approach for analyzing M&A deals is a financial analysis. However, the examination of integration at the logistical level has proven to be a vital component to the success of M&A transactions. From the viewpoint of Danone’s acquisition of WhiteWave Foods, this thesis provides a financial analysis that can be applied to other companies in the sector. A logistics network analysis framework is developed to determine areas of synergy ranging from raw materials to product and market synergies. Through this combination, this thesis develops and provides a methodology for analyzing horizontal integrations in the food industry. ii TABLE OF CONTENTS LIST OF FIGURES ..................................................................................................... iii LIST OF TABLES ......................................................................................................
    [Show full text]
  • Case: Strategic Mission–Driven Sustainable Business: Stonyfield Yogurt”, Chapter 13 from the Book Sustainable Business Cases (Index.Html) (V
    This is “Case: Strategic Mission–Driven Sustainable Business: Stonyfield Yogurt”, chapter 13 from the book Sustainable Business Cases (index.html) (v. 1.0). This book is licensed under a Creative Commons by-nc-sa 3.0 (http://creativecommons.org/licenses/by-nc-sa/ 3.0/) license. See the license for more details, but that basically means you can share this book as long as you credit the author (but see below), don't make money from it, and do make it available to everyone else under the same terms. This content was accessible as of December 29, 2012, and it was downloaded then by Andy Schmitz (http://lardbucket.org) in an effort to preserve the availability of this book. Normally, the author and publisher would be credited here. However, the publisher has asked for the customary Creative Commons attribution to the original publisher, authors, title, and book URI to be removed. Additionally, per the publisher's request, their name has been removed in some passages. More information is available on this project's attribution page (http://2012books.lardbucket.org/attribution.html?utm_source=header). For more information on the source of this book, or why it is available for free, please see the project's home page (http://2012books.lardbucket.org/). You can browse or download additional books there. i Chapter 13 Case: Strategic Mission–Driven Sustainable Business: Stonyfield Yogurt LEARNING OBJECTIVES 1. Look at the role a sustainability-focused mission and strategy can play in identifying organizational purpose and guiding a business. 2. Understand the complexity of managing what can be at times competing and conflicting environmental, social, and business demands and values.
    [Show full text]
  • Stonyfield Farm, and Starbucks
    I N P URSUIT OF THE T RIPLE B OTTOM L INE1 ECONOMIC, SOCIAL, AND ENVIRONMENTAL COMMITMENT AT CLIF BAR, STONYFIELD FARM, AND STARBUCKS Master of Arts in Law and Diplomacy Thesis Submitted by Kristen Rainey January 2007 © 2007 Kristen Rainey http://fletcher.tufts.edu 1Elkington, John. Cannibals with Forks: the Triple Bottom Line in 21st Century Business. Stony Creek, CT: New Society Publishers, 1998. Table of Contents Chapter One: Introduction………………………………………………….3 Chapter Two: CSR in the Food Sector…………………………………5 The Economist on CSR………………………………………………..5 Doing Good? Or Greenwashing?...........................................................5 Moving Beyond Philanthropy…………………………………………7 Measuring CSR………………………………………………………..9 Health as a CSR issue………………………………………………..10 Nestlé: the Baby Formula Scandal…………………………………...11 McDonald’s: Big Macs, Big Butts.......................................................12 CSR at McDonald’s: An Oxymoron?......................................14 Coca-Cola……………………………………………………………16 Human Rights Violations…………………………………….17 Water Problems………………………………………………17 Marketing to Kids: Sodas in Schools………………………...19 Beyond the Bad Guys………………………………………………..23 Chapter Three: Clif Bar …………………………………………………….27 Staying Private……………………………………………………….27 Too Much Social Good?......................................................................28 A Holistic Philosophy………………………………………………..30 The Workplace……………………………………………………….36 The Community……………………………………………………...37 Chapter Four: Stonyfield Farm…………………………………………..40
    [Show full text]
  • Business 34A41 Baf2 24/05/05 15:02 Page 36 Dairy Drives Success Health a Strategy Structured for Close Relationships with Consumers
    business 34a41_baf2 24/05/05 15:02 Page 36 > 037 BUSINESS DAIRY resh Dairy Products had a with strong showings from Italy, Spain and Highlights Dairy record year in 2004, confirming other countries to the south as well from the business line’s place as the the UK and Germany to the north. France BRAND AWARENESS Health driver for the Group’s growth. was something of an exception, since per- > In 2004, research institute Sales volumes showed the formance suffered from soft demand for GFK rated Danone the top brand fstrongest rise ever, putting on 8.8% or mass-market consumer goods as well as in terms of spontaneous, top-of- drives success close to 350,000 metric tons more than in the government-sponsored initiative for mind awareness (33%), placing 2003, as did sales revenues, up 10.5% to concerted retail-price reductions in the it well ahead of competitors. Fresh Dairy Products posted record growth in 2004, consolidating u6.9 billion or nearly half the consolida- second quarter. DANONE’s world leadership in the field. Momentum reflects the ted total. Operating income was up from ADDED SCOPE FOR success of product concepts and brands centered on health and u845 million to u947 million, setting the Asset brands— PARTNERSHIP WITH a strategy structured for close relationships with consumers. operating margin at 13.7%. Results reflect local know-how MCDONALD’S vigorous trends in several geographical for global concepts > Since March 2004, regions, in particular Latin America, where McDonald’s has offered Fruit & sales rose 22% overall. Major contribu- The main sources of momentum were the Yogurt, Europe’s first on-tap tions came from both Mexico and business line’s asset brands.
    [Show full text]