DECEMBER 2014 Page 9 Using Shared Value to Create Business & Social Value Page 14 Leverage Your CSR Activities Page 16 When Beer, Trust and Authenticity Collide

THE CONSCIOUSNESS OF BUSINESS CSR'S EVER-CHANGING Mindfulness LANDSCAPE Wisdom

Global citizens

Employee Meditation engagement

1 INSIDER Authenticity December 2014 naturalproductsinsider.com #NatProdInsider CONTENTS

What Corporate Social Responsibility Says to 3 Viewpoint 18 Consumers

The Consciousness of 4 Business 21 Fostering Global Citizens

Nutrition Companies Can Corporate Social Responsibility: Go Further in Solving Social Benefits of Doing the 9 Problems 22 ‘Right Thing’

How Ice Cream Can Change the World One Scoop at a 12 Upping the ‘Day Job’ Ante 25 Time: The Ben & Jerry’s Story

Five Ways to Leverage Your Tetra Pak—Protecting Food, 14 CSR Activities 28 People and Futures

How NOW Foods Built 16 Conscious Brewing 31 CSR into its DNA

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2 INSIDER CSR December 2014 Viewpoint

Inspiring CSR, for Good

orporate social responsibility (CSR) is an increasingly popular term, particularly as we hit year’s end with annual reports from companies touting their efforts, and the emphasis at the holiday Cseason on “goodwill to all men.” What’s great to see is that this concept is taking on greater importance among consumers, driving their decision-making processes, and among workers who are invested in companies that want to do good in the world. This issue offers insights from companies that are doing good, both within their organizations and around What’s great the globe, as well as thoughts from market research leaders as to why making CSR part of your company’s strategy makes good business sense. to see is that As I mentioned in our fall issue, we are now part of Informa PLC, a multinational this concept is organization operating in key areas such as academic publishing, events and taking on greater conferences, and business intelligence. Emma Blaney, head of corporate responsibility and group HR director at Informa, noted in our company’s 2013 CR Report, “We refer importance to our sustainability programme as ‘Louder than Words,’ reflecting our focus on outputs among rather than gestures. Louder than Words also signals the growing confidence, across all our businesses, to define what sustainability means for them and how we can manage consumers, it better.” I’m excited to be part of an organization that has set goals, including having driving their 20 percent of Informa employees volunteering and reducing emissions by 10 percent at our top 10 global offices by the end of 2015. And significantly—and certainly in decision-making line with what our team focuses on—a focus on editorial integrity and making content processes, and increasingly accessible. among workers Heading into 2015, we’re excited to continue to explore key issues that impact your business and can drive success. Look for us to tackle packaging/design, food who are invested safety, technology and “All About Women,” offering marketing insights, success in companies that stories, challenges around health care and more. If you’ve ever wondered “what women want,” we’re hoping to bring you some answers (while still keeping a sense want to do good in of mystery, of course). the world. Best regards,

Heather Granato Vice President, Content, Health & Nutrition Network [email protected] @heathergranato

3 INSIDER CSR December 2014 The Consciousness of Business BY ALISSA MARRAPODI

orporate social responsibility (CSR) was formerly, and simply, known as responsible behavior) and specific psychological the intersection between social-environmental efforts and business. characteristics of managers (affect, values But the status quo of CSR is starting to shift. and cognitive reasoning, referred to as ‘social C consciousness’) that enhance the emergence Social doesn’t start or stop at volunteering at of socially responsible behavior. Implications are a local food shelter or donating a lump sum to a drawn for a better understanding of learning good cause; social, as many CEOs, multi-billion processes connected to CSR, as well as for dollar organizations and corporate employees the design of management education in this are discovering, can be mindfulness inside the specific domain.” workplace, meditation and silence techniques, So rather than investing in traditional CSR vulnerable and authentic environments, and approaches, research is supporting a shift to many more unconventional practices. Although the “new CSR,” which focuses on personal these concepts seem unrelated to social development that not only boosts productivity responsibility inside corporate environments, and the overall well-being of the individual, you’d be surprised. but indirectly impacts the individual’s socially M responsible behavior. Let’s see what this looks How Personal Development Begets like in the marketplace. Socially Responsible Behavior When you are As part of the large-scale research project Mindfulness = Lower Stress, RESPONSE, four companies took part in Better Productivity mindful, it puts you randomized controlled experiments to test What is mindfulness? Although there are the effectiveness of different approaches to many working definitions (and approaches), in the present. It management education designed to develop mindfulness is, according to Ellen Langer, socially responsible behavior (J Corporate Ph.D., a social psychologist with more than makes you more Citizenship. 2010;(39)). The data provides 35 years of research on mindfulness and the evidence that traditional approaches to first female professor to gain tenure in the sensitive to context management education are not effective in psychology department at Harvard University, changing decisions made regarding CSR “the process of actively noticing new things.” and perspective. dilemmas. Data from the RESPONSE project During an interview with the Harvard Business survey of about 800 managers indicated Review (March 2014), she said, “When you do It’s the essence of attending in-company CSR training programs that, it puts you in the present. It makes you engagement. And it’s produces little impact on decisions taken in more sensitive to context and perspective. It’s scenarios involving social responsibility. These the essence of engagement. And it’s energy- energy-begetting, not findings point to an acute need for academic begetting, not energy-consuming. The mistake research to address the relative effectiveness most people make is to assume it’s stressful energy-consuming. of different approaches to management and exhausting—all this thinking. But what’s education with regards to developing socially stressful is all the mindless negative evaluations responsible behavior. we make and the worry that we’ll find problems According to the researchers: “Approaches and not be able to solve them.” aimed at personal development, such as So how will having mindful employees help training techniques of relaxation and mental your business? According to Langer, “There silence meditation, even without explicit are many other advantages to mindfulness. It’s reference to CSR, show a strong impact easier to pay attention. You remember more of on changes in the decisions made (socially what you’ve done. You’re more creative. You’re

4 INSIDER CSR December 2014 able to take advantage of opportunities when improvements on perceived stress, sleep they present themselves. You avert the danger quality and the heart-rhythm coherence ratio of not yet arisen. You like people better, and people heart-rate variability. The two delivery venues like you better, because you’re less evaluative. for the mindfulness program produced basically You’re more charismatic.” equivalent results. The researchers determined Mindfulness also makes you less judgmental both the mindfulness-based and therapeutic about others. In her interview with HBR, Langer yoga programs may provide viable and effective described a study her team conducted, asking interventions to target high stress levels, sleep people to rate their own character traits (what quality and autonomic balance in employees. would you change about yourself and what do This study is significant because highly you value about yourself?). The results were stressed employees, as noted by the interesting. “The traits that people valued researchers, are subject to greater health risk, tended to be positive versions of the ones increased cost and productivity losses than they wanted to change,” Langer said. “So the those with normal stress levels. reason I personally can’t stop being impulsive Mark Bertolini, CEO of Aetna Insurance, said is that I value being spontaneous. That means he starts each morning with asana, pranayama if you want to change my behavior, you’ll have and meditation. In fact, to date, 3,500 Aetna “There is one to persuade me not to like spontaneity. But employees have gone through a yoga- chances are that when you see me from this meditation program and it has so phenomenally proper perspective—spontaneous rather than reduced health care costs that Aetna has management impulsive—you won’t want to change me.” packaged this program and offers this service Several organizations have formed to to its clients. principle that help individuals and companies implement Another large corporation putting these mindfulness. A program developed by practices to work is General Mills. For almost I aspire to live eMindful and piloted in the United States 10 years, a large and growing number of by Aetna, Mindfulness at Work®, helps General Mills employees have been practicing by more than participants manage stress, improve meditation, yoga and mindfulness in the creativity, enhance focus and concentration, workplace. According to The Financial Times, and feel more energetic. Putting mindfulness 89 percent of General Mills’ senior executives any other … to the test, eMindful and a group of five said they have become better listeners as a employers found productivity increased by result of mindfulness training. that principle an average of 69 minutes per week, per “Compassion to ourselves, to everyone participant, yielding a return-on-investment around us—our colleagues, customers—that is managing (ROI) of more than 11:1. And stress levels is what the training of mindfulness is all about,” decreased by more than 37 percent, as said Janis Marturano, former vice president, measured by the Perceived Stress Scale, a public responsibility and deputy general counsel compassionately.” validated assessment instrument. at General Mills. In collaboration with Aetna and Duke – Jeff Weiner, Integrative Medicine, eMindful researched the Wisdom + Technology benefits of the Mindfulness at Work program. Since 2013, the annual Wisdom 2.0 The randomized, controlled pilot study, Conference has been exploring the merging CEO, LinkedIn published in the Journal of Occupational Health of wisdom and technology. Executives from Psychology, had two objectives: to evaluate the Google, LinkedIn, Zappos, Ford Motor Co., viability and proof of concept for two mind- Facebook, Twitter and Microsoft, and influencers body workplace stress-reduction programs like Arianne Huffington and Alanis Morissette (one therapeutic yoga-based and the other have connected with experts in mindfulness mindfulness-based) in order to set the stage for and yoga to bring conversations about these larger cost-effectiveness trials; and to evaluate concepts into the workplace. It “addresses two delivery venues of the mindfulness-based the great challenge of our age: to not only live intervention (online vs. in-person). connected to one another through technology, A total of 239 employee volunteers were but to do so in ways that are beneficial to our randomized into a therapeutic yoga worksite own well-being, effective in our work and useful stress-reduction program, one of two to the world.” mindfulness-based programs or a control This provocative movement is questioning group that participated only in assessment. all our assumptions about what it means to Compared with the control group, the mind- develop and operate a business. Elements like body interventions showed significantly greater mindfulness, wisdom, meditation, compassion

5 INSIDER CSR December 2014 and authenticity in the workplace are no longer Conscious Capitalism®. Conscious Capitalism seen as new age-y or flaky, but as integral “builds on the foundations of capitalism— qualities to include in any for- or non-profit voluntary exchange, entrepreneurship, endeavor. People are increasingly seeking work competition, freedom to trade and the rule that is meaningful, engaging and that aligns of law. These are essential to a healthy with their deeper life purpose, and they are functioning economy, as are other elements taking these elements home to their families of Conscious Capitalism including trust, and out into their communities and the world compassion, collaboration and value creation.” around them. Keeping in mind that transformation doesn’t The Courage to be Vulnerable happen overnight, it also doesn’t infiltrate in Brene Brown—author, vulnerability and one fell swoop; it works from the top-down. shame researcher, Oprah regular and TED Talk In fact, compassion, wisdom and mindfulness presenter—defines vulnerability as uncertainty, begin at the individual level. As Meng Tan, jolly risk and emotional exposure. In her book good fellow (and previous software engineer) Daring Greatly, she talks about implementing at Google, explained during Wisdom 2.0 2014, vulnerability into the workplace and the affect it “You are the champion; it starts with your has on business. own practice in wisdom, kindness and In her TED Talk on vulnerability, Brown compassion.” Then it moves to others stressed that people are really just looking for authenticity. “Be it regarding an oil spill or a PURPOSE and then into a corporation/ organization. Tan candidly product recall—because authenticity is about admitted that Google is only taking responsibility for your actions, but it also beginning to figure out the is about realizing that your actions do affect organizational step. other people.” At Wisdom 2.0, Authenticity requires vulnerability, and that’s Karen May, vice not a concept corporate America has really CONSCIOUS president for people embraced. After Brown’s first TED Talk, she CULTURE BUSINESS STAKEHOLDER development, Google, received a flood of invitations to come speak told a story about at various organizations and companies. But a leadership team they didn’t want her to talk about vulnerability brought together inside or shame; they wanted her to talk about of Google that started innovation, creativity or change. every meeting with a What many don’t realize, and what Brown two-minute meditation. clearly points out, is, “Vulnerability is the LEADERSHIP After four or five months, birthplace of innovation, creativity and change.” May’s boss asked the team Contrary to conventional business ethics, whether they wanted to continue embracing vulnerability and authenticity, and the meditation. He played a little reverse cultivating a supportive and safe environment psychology on them, May explained, and acted does wonders to business. And there’s research as if he wanted to stop the meditation. But the to prove it. team member who was the biggest skeptic at Research by Peter Fuda, founder and the onset spoke up: “I don’t know about you principal of The Alignment Partnership and an guys, but I’m a person for those two minutes, adjunct professor at the Macquarie Graduate so I think we should keep doing it.” School of Management (MGSM), Sydney; and As Raj Sisodia, co-author of Conscious Richard Badham, professor of management Capitalism: Liberating the Heroic Spirit of at MGSM, uncovered seven interdependent Business with Whole Foods’ cofounder metaphors on how CEOs “spark and sustain John Mackey, said, “There are no perfect change.” In their 2011 article published in companies.” But mindful leaders can elevate the Harvard Business Review, they outlined their company to what Sisodia calls a four: fire (representing ambition), snowball conscious business by tapping into four basic (accountability), mask (authenticity) and movie principles: higher purpose beyond profit, (self-reflection). Two metaphors speak directly stakeholder orientation (recognizing that to the idea of vulnerability in the workplace there is no business without a life-sustaining and creating social change: snowball and ecosystem), conscious culture among team fire. The snowball starts rolling when a members and, finally, conscious leadership. leader is willing to be vulnerable with his/her These four principles are the pillars of subordinates. Team members see this act of

6 INSIDER CSR December 2014 Michael Gervais, sports psychologist of the Seattle Seahawks, said when he's working with the players, “We don’t talk about winning at all. We talk about being engaged in a really rich level to figure out and explore what’s possible in [their] own life. If you get enough people resonating in an organization, the after effect is winning.”

vulnerability, according to Fuda and Badham’s and authentic life’ and to push his organization The next step is about having different research, as courageous and it inspires them toward worthy social causes. Within three conversations with your team: What would it to do the same. years he had done just that and he helped take for your team to be more trusting? If the “Fire represents the forces that initiate a found the Earth Hour campaign, which in 2011 trust isn’t there, no one is going to engage in personal or organizational transformation and led more than one billion people around the vulnerability. “So leaders must evaluate how sustain it over time,” they said. “Conventional globe to turn off their lights in a symbolic stand much trust is there and build upon that first,” change literature suggests that fear is a against climate change. This initiative won his DeSalvo explained. “If the leader is willing to necessary and even desirable motivator. By agency a Titanium award, the most prestigious put themself out there first and put in the time contrast, our research suggests that although advertising award in the world.” [Note: Check that it takes, then it tends to work.” fear may provide the initial spark for action, out the Fire Animation video on the Boardroom These types of “interventions” are aspiration is a far more important motivator. Journal landing page to hear more.] redesigning the way teams meet together. Sustainable change requires the fire of a Conversations about vulnerability are tough Meetings start with employees checking in ‘burning ambition.’” to have. It’s an intimate thing and it requires in an environment where everyone is heard. Fuda and Badham tell two stories to a lot of trust. Tina DeSalvo, owner of The Soul At first, the questions are simple, DeSalvo illuminate these concepts a little more: Purpose, does work around “creating safe and explained, like: What’s delighting you today at Snowball collaborative and collectively intelligent leaders work or at home? But over time, the check- Clynton is the managing director of a large and environments.” Inside of a company, ins get deeper and more revealing, and the German corporation. He realized his style of DeSalvo does a lot of work to increase self- questions become more intimate such as: leadership was preventing senior managers awareness and create self-aware leaders. And What are the five stepping stones in your life from taking initiative. “He could have worked with self-aware leaders, self-aware teams that made you who you are today? in private to change his behavior—but are created. “We start with the people who “The whole point of a check-in is we are all instead he stood up at an annual meeting have the biggest impact on the organization here together; everyone has a voice; this is our of his top 60 managers, acknowledged his through a series of coaching, education, etc.,” meeting, not his or her leader’s meeting and failings, and outlined both his personal and she explained. “We work with leaders to teach we are here to do something together in a way organizational roles. He admitted that he them how to first, get comfortable with having that we haven’t done before,” DeSalvo said. didn’t have all the answers and asked his different conversations with their teams around So how has vulnerability in the workplace team for help leading the company.” Because the executive table, and then sharing a piece impacted an organization’s profits and of this, Fuda and Badham said Clynton’s of themselves a little more each time.” processes? “A leader, one of my favorite effectiveness surged, his team flourished, At its core, DeSalvo’s work is about teaching clients, who was in it for the long haul, took there were increases in initiative and leaders how to open themselves up and be over a division of 22,000 employees in seven innovation, and his organization went on to vulnerable enough to say things like, “I feel different regions,” DeSalvo recalled. “The way outperform much larger competitors. the tension in the room and I want to make the organization is structured, each region is Fire sure it’s not me that’s causing it or my title. I measured and ranked against their peers—in “In 2004, Tim was desperate to turn around want to welcome you to disagree with me even their own division and in two other divisions. his advertising company. Profits were down, though that’s uncomfortable for me right now.” There was no incentive for any two regions in employees were quitting and competitors “There is a lot of squishy legwork that same division to help each other. This leader were gaining ground. He had personal issues, goes into it to work the muscle to allow for said: ‘That’s not OK with me. We’re all an too. He was insecure about his leadership vulnerability,” DeSalvo said. Once that’s in organization; we’re one division. I won’t be abilities and worried about his health. Listening place, she explained, you can have a group happy until all those rise and we’re the top to his story, and hearing similar ones from of 200 leaders in a room discussing things seven regions out of 22, or whatever it is, and other executives, we couldn’t help thinking like, “If we allowed for vulnerability in our that means we have to help each other.’ of the proverbial burning platform: Tim was workplace, what would that mean for our To have collaboration between the regions, putting out fires. But many conversations later, employees and our customers? What place trust was required. And that took getting these we found something else burning in Tim— does vulnerability have in our organization? seven different regions and leaders in a room ambition. He told us he wanted to ‘lead a big What gets in our way?” to take them on that journey.

7 INSIDER CSR December 2014 “So fast forward four years later and yes, how they are spending their time and their life, mission accomplished,” DeSalvo said. “Almost and they make different life choices,” DeSalvo all of the seven regions are on the top, they are pointed out. “I can be showing up differently the best division in the organization, they have here and I can be present.” the least amount of turnover, they have the most collaboration in the entire organization, The Skeptic and more people are applying to work for Still not a believer in conscious corporations this division than any other division in the or starting meetings with therapeutic yoga organization because there was a kind of notion and meditation, or leading with compassion, like, ‘What’s in your Kool-Aid over there?’ vulnerability, wisdom, mindfulness and “Don’t get me wrong, they have a tough authenticity? Do you think your organization is leader. This leader who also believes in this stuff the most toxic, unconscious place you’ve ever has a bar higher than any other leader I’ve ever seen? Then let me leave you with one final story worked with and his work ethic is incredible. He Gopi Kallayil, chief evangelist for Google+, told believes in getting people in the room where at Wisdom 2.0 for the die-hard skeptics. “It only takes every voice matters—and he’s very front-line “Let me walk you into what could be employee friendly.” considered one of the most toxic work one person, one They needed to create space and methods environments you can ever imagine: the for people to collaborate and share without fear prison system. Tihar Jail in New Delhi, India, sparkplug to fire of punishment. is notorious for drugs, corruption and is “One of the things they put into place was overcrowded. Into this toxic environment up imagination in getting the top 125 leaders in a room twice a stepped a woman police officer named Kiran year. No other division does that,” DeSalvo said. Bedi. She was the inspector general of the the organization “Now, nobody can catch up to these guys. Their prison and was the first woman officer in the employee engagement scores are high; they Indian Police Service. The operating manual of and be that agent have the highest score in the entire company the prison was based on oppression, separation for a great place to work every year over year by and isolation, with the intention that it would of change. Are you the employees, and turnover is very low. Their prevent prisoners from ever committing a crime profit margins are higher, and they are faster in again. Bedi said, ‘This is not going to work.’ going to be that creating models of efficiency because there’s And asked, ‘Is there any way we could use much less political stuff going on. They are able understanding and compassion?’” sparkplug, that to get in a room and hash it out without anyone Bedi introduced a yoga and meditation taking change personally, so change happens a program into Tihar Jail. The first program agent of change lot faster and they’re known as the pace setters was held in 1994, where 1,000 inmates to transform your in the organization. They have gone to models participated. Today, it is the largest vipassana that create efficiencies that have saved millions meditation program ever (both staff and organization into of dollars in cost. They’ve been way more prisoners participate) inside and outside of innovative in how they service their customers, prison with phenomenal results. There is a more conscious which means their customer turnover is a lot reduced aggression and violence in the prison less. There’s definitely been a financial impact; and reduced crime when the prisoners leave corporation?” no doubt about it. If the employees are happy, (reduction in relapse behavior). the financial metrics will come.” “It only takes one person, one sparkplug to – Gopi Kallayil, DeSalvo said there is nothing more fulfilling fire up imagination in the organization and be and profound than the day somebody reveals that agent of change,” Kallayil said. “Are you chief evangelist something about themselves, big or small, going to be that sparkplug, that agent of change and you know they know it was OK. “They to transform your organization into a more for Google+ have this look on their face that says, ‘Wow conscious corporation?” that feels so good. I feel validated or seen or heard or witnessed or supported or lighter or whatever it is.’” Alissa Marrapodi is a managing editor of Informa's People who feel validated and more authentic Health & Nutrition Network. in the workplace are going to be better parents and spouses at home. “People start to evaluate

8 INSIDER CSR December 2014 Nutrition Companies Can Go Further in Solving Social Problems BY MICHELLE MORGAN-NELSEN

hared value is a strategy to create simultaneous business and social Nigeria in 2009. Geraets oversaw one of value. As a leader in the nutrition industry, you may already identify Nestlé’s most popular foods in Central and with this. It’s what you do, because the entire purpose of your West Africa—Maggi spice bouillon cubes. These compact seasonings, used to flavor company is to make nutritious foods, beverages or supplements. S stews and soups, had become ubiquitous in Your products build your business and deliver societal benefit. the region. Nestlé sold more than 100 million Now ask yourself honestly: Do you identify a cubes each day there that year. social issue—under or over nutrition—look at So the problem wasn’t sales—sales were the drivers of those issues and recognize how excellent. Rather, Geraets’ challenge was your product fits in that ecosystem? Is your that executives and nutritionists from Nestlé’s R&D department focused on identifying and Corporate Wellness Unit—a strategic unit understanding unmet nutrition needs, where dedicated to driving the nutrition, health and they are, in what segments of the population wellness orientation across the company— and for what fundamental social reasons? had asked him to fortify the bouillon cubes Innovative companies are using the with iron so that consumers would be less at underlying social issue as the driver to risk of anemia and other related conditions understand where nutrition needs to go in that afflict malnourished and impoverished their products. They’re not satisfied with populations. In some parts of Central and ? believing a product alone will solve the West Africa, up to 90 percent of children were problem (nor grow their business). They are anemic. In Nigeria, the problem affected more How do also fundamentally rethinking delivery of the than 75 percent of preschool-age children. product, marketing of the product and the next While the proposed changes would address you fix a product innovation. They’re also measuring serious public health concerns, adding iron the results, tracking the social impact of their would raise production costs. If that translated best-selling products and realizing that by understanding into a price increase, sales could drop. The the interrelated progress on both the business changes would also alter the color and taste product that and social side can unlock even greater of the cubes—potential turn-offs to loyal growth potential. customers. If any of these risks played out, This is the spirit of innovation that drives consumption would fall. Then Nestlé’s goal isn't even shared value even for companies that already of combating iron deficiency would not be have a strong social purpose at the heart of achieved and the bottom line would suffer broken? what they do. as well. So Geraets considered how to fix his best-selling product, which at the time wasn’t Reimagining the Nutrition Industry even broken. To understand how shared value can drive Over the next two years, Geraets more intention within a social purpose, let’s collaborated with colleagues across Nestlé’s explore an example from a nutrition, health and Corporate Wellness, sales and marketing, and wellness company that is creating shared value R&D units to conduct market research, adjust with measurable results, as detailed in the case recipes and test reformulated versions of the study, “Built to Create Shared Value: How Nestlé seasonings. Nestlé’s first concern was flavor. Tackles Malnutrition in Developing Regions.” “Taste is paramount,” explained Christiane Nestlé business manager Maarten Geraets Kuehne, head of the Nestlé Food Strategic had a problem with one of his products in Business Unit. “There must be absolutely no

9 INSIDER CSR December 2014 taste change. Also, color is very important to organizations and governments to leverage the dishes.” the power of market-based competition in Iron can turn food brown, and Africans addressing social problems. cooking at home would be dissatisfied if the In 2011, the Harvard Business Review color of their stews suddenly turned muddy. defined shared value in an article, “Creating So researchers in Nestlé’s Product Technology Shared Value,” by Professor Michael E. Porter Centre in Germany tweaked the recipe until it and Mark R. Kramer. The authors identified was just right. three ways shared value can be created: Three ways shared “It was fortified with a form of iron that 1. Reconceiving products and markets: was not only neutral in taste, but also was Defining markets in terms of unmet value can be created: easily absorbable by the body; it had good needs or social ills and developing bioavailability,” said Denis Barclay, Ph.D., profitable products or services Reconceiving products nutrition advisor at the Nestlé Corporate and markets that remedy these conditions. For Wellness Unit. example, BD developed a new type Defining markets in terms of unmet needs or Meanwhile, Geraets wrestled with the of safety syringe to reduce health social ills and developing profitable products price. Nestlé did not want to increase costs care worker needle-stick injuries. or services that remedy these conditions. For for consumers from lower socio-economic This product innovation grew to $2 1example, BD developed a new type of safety groups who were both very price-sensitive and syringe to reduce health care worker needle- billion, approximately a quarter of the the most at-risk of iron deficiency. So Nestlé stick injuries. This product innovation grew company’s revenue. to $2 billion, approximately a quarter of the created different solutions depending on local 2. Redefining productivity in the value company’s revenue. conditions. In Nigeria, the recipe was modified chain: Increasing the productivity of the to absorb the cost of iron—so taste, color and company or its suppliers by addressing bioavailability were maintained through a cost- the social and environmental constraints Redefining productivity in the neutral solution. in its value chain. For example, by value chain With his renovated product in hand, Geraets reducing packaging and improving Increasing the productivity of the company went to market in 2011 with fingers crossed delivery logistics, Wal-Mart saved or its suppliers by addressing the social that the new bouillon cubes would sell well— $200 million in distribution costs while and environmental constraints in its value and they did. The new bouillon formulation growing the quantities being shipped. 2chain. For example, by reducing packaging was pleasing to Nigerian consumers, and 3. Local cluster development: and improving delivery logistics, Wal-Mart because Nestlé had discovered a cost-neutral Strengthening the competitive context saved $200 million in distribution costs while solution to incorporate the iron, the price in key regions where the company growing the quantities being shipped. remained level. Over the next two years, sales operates in ways that contribute to the remained strong as the new cubes sold at company’s growth and productivity. For Local cluster development similar rates as before. By 2013, hundreds example, Cisco reduced a key constraint of millions of Africans had incorporated the to growing its addressable server market Strengthening the competitive context in key iron-fortified seasonings into their daily diets. by launching the Networking Academy regions where the company operates in ways In Nigeria alone, people consumed more than to train more than four million network that contribute to the company’s growth and 30 billion iron-fortified individual servings per productivity. For example, Cisco reduced a administrators globally. 3key constraint to growing its addressable year. Geraets could feel proud that Nestlé Shared value is not about redistributing server market by launching the Networking was delivering a wide-scale societal benefit value created through philanthropy or about Academy to train more than four million through a financially sustainable product. including stakeholders’ values in corporate network administrators globally. The Maggi spice bouillon cube example decisions. Rather, shared value focuses on the illustrates how Nestlé embedded their social creation of meaningful economic and social purpose into their business strategy. The value—new benefits that exceed the costs for orientation of nutrition and health companies the business and society. toward impact and their interest in measuring The Shared Value framework defines a health outcomes position them at the new role for business in society that goes vanguard of shared-value measurement. beyond traditional models of CSR. Rather than focus on mitigating harm in the What is Shared Value? company’s existing operations, shared-value Shared value is a management strategy strategies engage the scale and innovation focused on companies creating measurable of companies to advance social progress. business value by identifying and addressing social problems that intersect with their Measuring Shared Value business. The shared value framework creates As the nutrition industry turns its attention new opportunities for companies, civil society to the vast health needs of our growing global

10 INSIDER CSR December 2014 The Shared Value framework defines a new role for business in society that goes beyond traditional models of CSR. Rather than focus on mitigating harm in the company’s existing operations, shared-value strategies engage the scale and innovation of companies to advance social progress.

population, the new logic of finding business From Strategy to Movement opportunities in saving and extending lives When a business engages in shared demands measurement of those outcomes. value, it creates real change. But it isn’t easy. Yet, measurement is an ongoing challenge Adopting a shared-value strategy requires for those testing shared-value approaches. a mindset shift that will allow a company Why? Currently, it’s not customary for to grow and innovate in new ways. Leaders companies to tie economic results to social require new skills as well as new types of outcomes. For companies in the health sector, partnerships. Launched in 2012 as a Clinton many shared-value initiatives are nascent Global Initiative Commitment to Action, the so there are few learning examples to draw Shared Value Initiative empowers those upon. Further, companies that address unmet leaders to implement shared value through needs in resource-constrained settings find direct support. gathering evaluative data to be challenging Operated by FSG, a team of eight dedicated and expensive. Initiative staff serves an expanding community To tackle this issue, the Shared Value of practice for shared-value leaders around Initiative, a global community of leaders the world. The community represents more who find business opportunities in societal than 30 supporters from multinational challenges and who are accelerating shared- corporations, private and corporate value innovation, with FSG, a mission-driven foundations, development banks and consulting firm, gathered more than 20 nonprofit organizations; a consulting network corporate leaders and global health experts of more than 40 firms; and nearly 4,500 to tackle the challenge of measurement. It online community members who believe that became clear that shared value changes business has a vital role to play in solving measurement needs because it requires social and environmental problems at scale. attention to both the effectiveness of the Nutrition leaders are encouraged to tap into intervention and the impact on the population. the tools, research and network of the Shared To create shared value, companies must Value Initiative to accelerate their shared understand effectiveness in terms of the value innovations and lead the global business actual health outcomes achieved in their community in putting social innovation at the target populations. core of their business strategy. This shift creates unforeseen measurement challenges for companies: 1. There is more to measure, at greater Michelle Morgan-Nelsen is the senior manager of depth. Companies need to understand communications at the Shared Value Initiative. whether investments in training, creating awareness, etc., are enabling greater access, coverage and appropriate use. 2. There are more audiences for measurement. Internally, marketing and market access departments need the insights from measuring the innovation to inform their strategy.

11 INSIDER CSR December 2014 UPPING THE 'Day Job' Ante BY SUSAN LANGER

efore Morgan Patrick started work at General Mills, she already knew ideas about the role the business community she wanted to do more than just her day job. She wanted to use the should be playing to help strengthen the skills she had learned in grad school not only to advance within a African food sector. The two met and, in 2008, Jeff founded Partners in Food Solutions inside company but also to do something that fulfilled her personally—and B the General Mills headquarters in Minneapolis. maybe even make the world a better place. Partners in Food Solutions is a pioneering Morgan learned about Partners in Food not-for-profit that connects professionals Solutions, a global not-for-profit based on at multinational food companies with small the General Mills campus, before she even and growing food businesses in Africa. At interviewed with the company. “It was one General Mills’ invitation, Cargill soon joined of the big things the campus recruiting team the effort, along with the Dutch nutrition talked about,” she said. “It was a big draw.” and pharmaceuticals company Royal DSM Morgan has now been working as a and Swiss technology company Bühler. The scientist in R&D for General Mills for more heart, soul and mind of Partners in Food than two years—and she’s been volunteering Solutions are the nearly 700 employees with Partners in Food Solutions for most at these companies who have volunteered of that time. In fact, she recently took on a their time and skills to help more than 600 leadership role and has, with her department’s food companies in Ethiopia, Kenya, Malawi, and her supervisor’s full support, co-led a two- Tanzania and Zambia. week series of training seminars in Ethiopia. What’s most remarkable about the Partners in Food Partners in Food Solutions model is that Nourishing Lives these volunteers are able to reach across Solutions is a Like Morgan, General Mills as a company 8,000 miles without even leaving their offices seeks to do more in the world. Its stated and labs. Scientists like Morgan, along with pioneering not-for- goal is to “stand among the world’s most nutritionists, marketers and engineers, and socially responsible food companies” others use email, Skype and proprietary cloud- profit that connects and it works to do this through health, based software to connect with the small sustainability and community initiatives. businesses identified by TechnoServe and professionals at General Mills also empowers its employees USAID, our partners in Africa, much the same to choose organizations that are important way as they interact with their own colleagues multinational food to them and use some of their work hours to around the world. volunteer. This has created a culture in which companies with small volunteering is not only supported but, to Learning New Skills some degree, expected. While Ken Powell’s and Jeff Dykstra’s and growing food In the mid-2000s, General Mills CEO Ken initial vision may have been a stronger food Powell was attending the World Economic processing sector in Africa, it’s undeniable businesses in Africa. Forum in Davos, Switzerland. He listened to that having Partners in Food Solutions within speakers talk about the enormous problem General Mills’ walls and having so many of hunger in Africa and he felt personally employees involved has made the company challenged: What was General Mills doing to and its people stronger as well. help end hunger and was it doing enough? Take Morgan, for example. As a scientist Around that time, a young man named in R&D she works on cross-functional teams, Jeff Dykstra had just returned from Africa to making prototypes of ideas that only exist Minnesota. He had both international aid and on paper. She’s thriving in her job, but to business experience, and he had some strong be an even better employee, she’s going

12 INSIDER CSR December 2014 Morgan has worked on several projects involving milling and baking in Ethiopia. In March 2014, she and a partner developed and led a series of workshops in Ethiopia’s largest cities.

to need to hone some important skills: this particular issue. She had to use her own Most importantly, volunteering with leadership, problem solving, communication problem-solving skills to teach the bakers Partners in Food Solutions gives employees and networking, for example. Her volunteer how to adjust. at General Mills, Cargill, DSM and Bühler the work with Partners in Food Solutions has A big part of Morgan’s role with Partners chance to stretch and challenge themselves. challenged her in all of these areas. in Food Solutions is communicating across Sometimes they do projects that are closely Just a few months after joining General cultures. She has learned that there are cultural aligned with their job descriptions, like Mills, Morgan signed up with Partners in divides not just between Minnesota and Addis Jessica Schwartz, a packaging expert who Food Solutions. But she didn’t just ask to be Ababa, but sometimes between teams— led the team that redesigned packaging for put on a project here and there: She raised engineers and marketers, for example. the Kenyan food company Soy Afric Ltd. her hand to take the lead on work with a “The biggest thing I have learned is Sometimes they reach farther from their particular small and growing business. This how to ask the right questions,” she said. comfort zone, like Earl Hensel, a maintenance meant coordinating communication with the “Because everything we do is cross-cultural electrician who used his passion for company in Africa and among all the other or cross-functional. We all speak a little equipment to help build and test a peanut volunteers who were working on that project. different language. So much of it is about butter processing machine that is now It meant motivating a team located all over asking the right questions, more than just helping expectant mothers get the nutrition the globe and keeping them on task. executing a task.” they need in Malawi. “Leading meetings over the phone is one Her volunteer work, beyond building her After just two years with Partners in Food of the hardest things for me,” Morgan said. skills, has also built her profile within her solutions, Morgan is now the lead volunteer “Learning how to be more comfortable with department and across the company. She coordinating work with Ethiopia. that made me more confident in my day job.” says it has helped her build a much wider “If it makes you feel nervous, it’s probably Morgan has worked on several projects network than she would have otherwise had. the right thing for you to be doing,” she said. involving milling and baking in Ethiopia. In “I can already see the impact of whom That’s good advice whether you’re trying to March 2014, she and a partner developed I’ve met and what I’ve been able to work get ahead in your career or make the world a and led a series of workshops in Ethiopia’s on,” she said. better place. Or both. largest cities. The goal was to help wheat And Morgan’s not alone. She looks processors and bakers improve the quality of around and sees young men and women their products, and many of the challenges just like her, who want something more Susan Langer is the vice president of marketing and they faced were familiar to Morgan. But than just their day jobs in their lives, development at Partners in Food Solutions. one in particular came as a surprise: She whether that’s volunteering, intensive learned that the salt available to food hobbies or side gigs. processors in Ethiopia doesn’t come in a “There’s a general sense of wanting to consistent coarseness. There was nothing get more out of our jobs,” she said. “Going in her American training or her General Mills to work for 30 years and then retiring is not work that had taught her how to deal with a millennial trait.”

13 INSIDER CSR December 2014 Ways to Leverage Your CSR Activities 5 BY SHELLEY MAYER

he health and nutrition of your customers is your bread and almond 2. Weave CSR into your marketing and butter. And nowhere is social responsibility more aligned with customer communications strategy interest than in our industry, so corporate social responsibility (CSR) Including your company’s CSR principles within communications is a beneficial way to activities are an ongoing priority for all of us. T continuously align your brand with your cause. You are doing and will continue to do all For example, Vancity’s tagline is “Make these great things because it’s the right thing Good Money™.” Named the best bank in to do and we applaud you. And with careful Canada for corporate social responsibility,4 planning, you can and should make sure that Vancity extended its “good” mandate by you get the most marketing value from your donating $1 million to help build the world’s CSR activities so that your customers know first fully integrated refugee center,5 joining about all your great work. the Council for Clean Capitalism6 and many Here are the top five ways: more. Doing “good” is a fundamental part Having a clear 1. Select a focus of its marketing strategy, allowing the company to bring CSR-related messages This might sounds simple, but it into all of its communications. CSR focus will also is a powerful way to strengthen your While your brand might not need to communications. explicitly announce your CSR practices in your be valuable when When selecting your focus, consider the slogan, there are many other communication following questions: What causes do your pieces that will work as a soapbox to share evaluating potential customers align with and what is important your practices. to them? What impact is your organization opportunities and having on the planet and how can you 3. Talk about it neutralize this impact? Talking about it doesn’t have to mean activities for your Named one of the Global 100 Most bragging about it. Many companies with Sustainable Corporations in the World by amazing CSR programs do a lackluster job company. When Corporate Knights1, Campbell’s CSR strategy of talking about it. It sounds simple, but this deciding whether to is line with its 145-year history of “doing important practice is often overlooked when what’s right.”2 Campbell’s defines three producing company collateral. There are many sponsor a charity focuses: advancing global nutrition and places within your existing communications wellness, helping build a more sustainable that CSR messages can live. event or non-profit environment and honoring our role in society, Some include websites (front page or a from farm to family.3 devoted section), press releases, packaging, program, consider Having a clear CSR focus will also etc. [see full list on pg 16] be valuable when evaluating potential Additionally, consider publishing a if it matches your opportunities and activities for your sustainability or CSR report, similar to an company. When deciding whether to annual report, or a video to share the full focus. Otherwise, sponsor a charity event or non-profit extent of your CSR work. This is a great, direct program, consider if it matches your focus. way to share with stakeholders and customers it will be unlikely Otherwise, it will be unlikely to generate the positive impact you are having and how much marketing value. they can get involved. to generate much By selecting a focus, this will also Another way to continue leveraging your allow your messaging to be specific and CSR activities is to apply for one of the marketing value. consistent, thereby making it impactful many social responsibility awards. When you and easily digestible for your consumers win, talk about it; this will ensure seamless and stakeholders. integration into your PR activities.

14 INSIDER CSR December 2014 CSR messages can live: Website Advertising Business cards Press releases Social media Holiday gifts and cards Newsletters Retail location Company voicemail Packaging Office signage On-site collateral Marketing materials Email signatures

How you talk about your CSR activities is event-level activations that go beyond logo brings health and nutrition to your customers important, too. Try to quantify your specific placement. For example, if you have a food and the world, and by highlighting your impact whenever possible; it’s much better to or beverage product, ensure that your event contributions to CSR, you will align your say that you “diverted X tons of waste” rather sponsorship provides the opportunity for priorities with your customers, increase than “we are committed to recycling.” Make product sampling rather than just a logo on customer loyalty, and build your brand and sure prospective customers know that you a sign. Use the event as an opportunity to your business at the same time. care about the same things they do and are demonstrate to potential clients what you are taking meaningful actions in that regard. good at. 4. Leverage your employees Providing a donation? Request recognition Shelley Mayer is the president and founder of and sales networks to the charity’s supporter that goes beyond Ramp Communications—the positive impact agency By using your company’s human resources your logo on the website. For example, for positive impact brands™. Mayer can be found on effectively, it will act as a natural way to many charities have regular digital or printed Twitter @shelleymayer. spread your social responsibility from the newsletters that are sent to supporters. Offer inside out. Take advantage of this great to write a short story about your company’s References: resource by ensuring that everyone fully commitment to the charity. Once the piece 1. http://global100.org/global-100-index/ understands the area of focus, scope and is out, the charity can share on social 2. http://www.campbellcsr.com/ extent of your brand’s commitment. media, calling out your brand’s handle and 3. http://www.campbellcsr.com/Strategy/ McDonald’s recognizes worldwide increasing exposure. Approach.html employees who are “Planet Champions” or When reviewing sponsorship packages, a 4. https://www.vancity.com/AboutVancity/ “Energy All Stars” in the United States— structured opportunity list is just a guideline. VisionAndValues/History/Highlights/ winners are chosen based on innovation, Most charities will go beyond what is listed 5. https://www.vancity.com/AboutVancity/ scalability, business integration and and customize a package that’s right for your VisionAndValues/History/Highlights/ environmental impact.7 It has also created brand, if you just ask. Think of creative ways 6. https://www.vancity.com/AboutVancity/ a competition for employees called “Best to be involved and promote yourself within VisionAndValues/History/Highlights/ of Green” where employees submit ideas their networks—this could redefine your best 7. http://www.aboutmcdonalds.com/mcd/ for decreasing waste or increasing energy practices for your CSR work moving forward. sustainability/signature_programs/ efficiency in restaurants. The employees It’s helpful if you share your communication best_practices/bog-committee-and- with the best ideas receive recognition and a goals and objectives with the charities. The planet-champtions.html monetary reward.8 more information you give them, the easier it 8. http://www.workforceforgood.com/4fgDz/ There are many ways to get your will be for them to craft specific ways for you WFG_WhitePaper_2013LoRes.pdf employees engaged in and talking about to reach your, and their, ultimate goal. your CSR activities. Make the learning and Before signing the dotted line, evaluate participation fun! And engage your employees the charities and NGOs you are considering in meaningful activities related to the cause, working with. By selecting partners that to increase their pride and motivation to talk have a large network of supporters or more about your CSR mandate. sophisticated communications in place, there 5. Exploit all opportunities for added will be a greater opportunity to get your marketing value message out. When engaging with charities and NGOs, Seamless integration of your CSR activities don’t be afraid to ask for brand exposure into your marketing initiatives is possible as part of the exchange. When sponsoring when you use our tips combined with a or participating in an event, try and obtain lot of passion and hard work. Your brand

15 INSIDER CSR December 2014 CONSCIOUS BREWING

ew Belgium Brewery Co. is crafting more than beer at its home or misunderstandings. So, we realize that base in Fort Collins, Colorado. Sure, the employee-owned brewery sometimes the human relations part of it can is famous for its beer, its Tour de Fat traveling bike celebration and get in the way of us doing really good work and feeling good working together. its green values. But we’re more interested in how it empowers its N [The company’s Crucial Conversations class employees, and helps them up their creativity and authenticity. is a two-day workshop that teaches basic INSIDER (INS) spoke with Katie Wallace, communication skills to encourage employees assistant director of sustainability, “Purveyor to have open and honest conversations. of The Good Life” at New Belgium, to It equips them with tools to have difficult hear how honoring the humanness of its conversations and how to work through conflict employees (instead of blaming them for it) in a respectful way.] has reimaged the workplace, why among Having the tools to approach conversations its 590 employees there’s a 95-percent openly and honestly helps us act out of an retention rate, and what it means to authentic place, and when that happens, communicate with coworkers from a place of plenty of research shows we have higher trust and authenticity. levels of motivation and higher levels of INS: Do most of the employees at New enjoyment that ultimately benefits the Belgium have a long tenure? business. For each person, the level of Wallace: The majority of our leadership excitement going in to the workshop varies. “We are profitable, team has been here almost from the Afterward, a lot of times, there is a lot of joking beginning. Many of our directors actually because it’s kind of cheesy; you have to role not in spite of started bottling beer or working reception. We play, so you’re with all your new coworkers believe in treating people with a deeper level and you get to be vulnerable with one another our social and of respect that they belong to this family, and in a cool way. Barriers come down because we want to take care of each other. We treat you have to be kind of cheesy, so there’s a environmental each other like humans in this process, and lot of humor involved. Most people within at that point, you generate a lot of loyalty that their first year are not going to have a tough efforts, but leads to a higher level of energy and creativity conversation; they’re not typically running in a coworker. By inspiring environments into misunderstandings with people right because of them.” where people are able to act autonomously away, but being able to have those tools early and be empowered in that process, you get a on helps to avoid those misunderstandings –Kim Jordan, CEO lot more productivity, loyalty and creativity. altogether. Some people use it more than INS: In 2002, New Belgium implemented others, so it’s not perfect, but by and large that and co-founder, the Crucial Conversations communication type of communication—trusting and being workshop (mandated for new coworkers). authentic with one another—is the norm in New Belgium How does this workshop affect the employee, our organization. The difference is there is a coworkers and business as a whole? lot more trust and a lot less fear because we Brewing Co. Wallace: One of the things that New know we can go have a conversation about it Belgium acknowledges is we are all human if we need to. beings and we come to work with our rational INS: Some of your CSR initiatives (trust, minds that help us to get the job done, but balance, fun, etc.) are out of box compared to we also come to work with a fair amount standard CSR values, but in New Belgium’s of emotions, and it’s not always a clear-cut case, these points seem to be the foundation thing to have a conversation with someone of your business. So, how have these affected and navigate the differences of opinions New Belgium and set you apart from not

16 INSIDER CSR December 2014 There's a great quote by Francis Bacon: "Nature to be commanded must be obeyed." If we want to master our work in the world–all that comes through humans–then it's best to obey the laws of nature in a sense. We each bring these emotional, physical and intellectual needs to work every day. So at New Belgium, we're honoring the whole [human] being in the process.

only others in your industry but from other INS: Coworkers at New Belgium receive said, ‘OK we’ll keep it.’ So this conversation businesses overall? a bicycle and company ownership on their didn’t happen in a boardroom; we brought Wallace: Business has been very one-year anniversary, an all-expense paid people into that process because we know mechanical historically and it’s left the week in Belgium to bike around breweries at this is an important reason why people psychological side of things up to other their five-year anniversary, and a four-week love working here. We know people are realms of society. But the reality is we are not sabbatical for their 10-year anniversary, emotionally connected to those benefits, and machines; we are human beings and very among other perks. What’s the attitude as a we want to make sure we’re involving people complex creatures, and by honoring that in result of these incentives? and not making assumptions. There are tears the process it’s re-humanizing business. Wallace: We look at these things as a in people’s eyes when they accept their bike There’s a great quote by Francis Bacon: sign of gratitude, not incentives—that person or accept ownership. “Nature to be commanded must be obeyed.” being celebrated is a special moment. We are INS: Is there a favorite brew among If we want to master our work in the world— really big on ritual and tradition, so we have employees? all that comes through humans—then it’s an annual ritual when you get ownership, Wallace: The cool thing is we have so best to obey the laws of nature in a sense. you give a speech and you get your bike. It’s many great beers. But the one beer that We each bring these emotional, physical kind of a big deal, and we make it special. isn’t always great in sales because we don’t and intellectual needs to work every day. So Integrating ritual and tradition around it market it a bunch is Blue Paddle Pilsner. And at New Belgium, we’re honoring the whole makes it more meaningful; I think if we just we’ve tried to cancel it a few times because [human] being in the process. Research dropped off the bike at someone’s house, it’s not a high-seller and coworkers riot. supports that when people feel like they and we didn’t celebrate them where they ride It’s definitely the most popular staple beer can trust one another, they have a sense of their bike out of the meeting then it would [among coworkers], but it’s obscure, and belonging, they feel like their life is balanced probably be less special. It nurtures a sense I think we like the fact that it’s kind of our and they are having fun, the brain functions of belonging. secret beer. on a higher level. Neglecting humanness We brought coworkers together in a limits the performance and the enjoyment a focus group and said, “We are growing as coworker can experience; their performance a company, and we can’t do everything for and enjoyment directly affect the flavor of everyone, so what benefits are essential our brand, how efficiently we are with our and what can go?” Keeping the Belgium trip spending, and creativity and innovation in our is really expensive, for example, but it’s so daily operations. deeply important to our coworkers so we

17 INSIDER CSR December 2014 WHAT CORPORATE SOCIAL RESPONSIBILITY SAYS TO CONSUMERS BY HAYDEN HARRISON

he day when consumers cared way to reduce a company’s environmental aren’t actually dishing out the cash to support solely about the product is long impact and increase profitability, but moving social responsibility.” However, more than gone. What’s inside (i.e., the forward, it may not be enough to keep half (55 percent) of global respondents in ingredients), how it’s made, consumers engaged. Nielsen’s survey said they are willing to T From February to March 2014, Nielsen, pay extra for products and services from where it’s made, its shade of green a global information and measurement companies that are committed to positive and, now, corporate social responsibility company, polled more than 30,000 social and environmental impact—an (CSR) are increasingly of interest— respondents with Internet access across increase from 50 percent in 2012 and enough to sway a purchase decision. 60 countries about CSR, meaning it’s 45 percent in 2011. According to Nielsen’s June 2014 global reflective of those with access to the web, Fifty-two percent of global respondents CSR report—Doing Well by Doing Good— not entire populations. The firm focused on said they’ve purchased one or more products people around the world feel each individual three factors: in the last six months from a socially is responsible to give back socially and • How passionate consumers are about responsible company; respondents in Latin environmentally; this includes corporations. sustainable practices when it comes to America, the Asia-Pacific, the Middle East The report found 55 percent of consumers purchase considerations. and Africa exceed the global average. will “pay extra for products and services from • Which consumer segments are most The Natural Marketing Institute (NMI), companies that are committed to positive supportive of ecological or other socially an international strategic consulting and social and environmental impact.” responsible efforts. market research company, conducted Plenty of companies have been a part • The social issues/causes that are an online survey across nine countries of socially responsible causes for a while; attracting the most concern. to understand how global attitudes and but, as people become more consciously behaviors are changing in regard to aware of environmental and societal issues, So, Who’s Buying It? sustainability engagement; it split people up the number of people interested in CSR You may be sitting here thinking, “Well, into five segments. According to the survey, continues to rise. Yes, going green is one consumers said they care, but they probably the “sustainable mainstream” population,

MILLENNIALS ARE MOST RESPONSIVE TO SUSTAINABILITY ACTIONS AMONG GLOBAL RESPONDENTS RESPONSIVE TO SUSTAINABILITY ACTIONS

GENERATION Z MILLENNIALS GENERATION X BABY BOOMER SILENT GENERATION (UNDER 20) (21-34) (35-49) (50-64) (65+)

PAY EXTRA FOR SUSTAINABLE PRODUCTS $ 9% 51% 25% 12% 3%

CHECK THE PACKAGING LABELS TO ENSURE POSITIVE SOCIAL/ 10% 51% 25% 12% 2% ENVIORNMENTAL IMPACT

PREFER TO WORK FOR A SUSTAINABLE COMPANY 9% 49% 26% 13% 3%

18 INSIDER CSR December 2014 RESPONDENTS RESPONDENTS TOP CAUSES OF EXTREME RESPONDENTS CONCERN GLOBALLY WILLING TO PAY EXTRA ACTIVE VOLUNTEERS INCREASING ACCESS TO CLEAN WATER 59% 67% 66%

IMPROVING ACCESS TO SANITATION 53% 63% 64%

ERADICATING EXTREME POVERTY AND HUNGER 53% 62% 60%

COMBATING NON-COMMUNICABLE DISEASES 51% 58% 57% ENSURING ENVIRONMENTAL SUSTAINABILITY 50% 63% 61%

REDUCING CHILD MORTALITY 50% 58% 56% a cluster of three of the five segments, will mitigating climate change; both companies beneficial to a company. Out of the top 20 choose products from sustainable companies committed to implementing industry-leading causes Nielsen included in its study, more instead of conventional products. They are science-based targets to reduce greenhouse than 50 percent of global respondents are also more likely to become a repeat buyer if gas emissions, including supply chain “extremely concerned” about “increasing the company is mindful of sustainable issues emissions from agriculture. Additionally, both access to clean water, improving access such as the environment and society. Coca-Cola and PepsiCo have committed to to sanitation, eradicating extreme poverty Millennials, according to Nielsen, zero tolerance of land grabs. and hunger, combating non-communicable are leading the way in the sustainable In the latest study published October diseases, ensuring environmental frontier. Fifty-one percent will pay extra for 2014, PepsiCo has increased its score by sustainability and reducing child mortality.” sustainable products and check labels, and 11 percent; General Mills’ growth ranking What’s more interesting is when these 49 percent prefer to work at a sustainable is second with a 9-percent increase due six concerns are connected with people company. This is more than double the to policy changes. Even the top-ranked who are most passionate about social percentage of Generation X and more than companies are still increasing their scores by and environmental causes—indicated by quadruple the Baby Boomer generation. improving sustainably. their willingness to spend more money for It doesn’t stop at purchasing power. a sustainable product and offer up their Oxfam’s GROW campaign Behind the Succeeding at CSR own time to volunteer—these percentages Brands is an example of consumers taking a There are many ways to succeed at increase by almost 10 percentage points. stand for what they believe is right related to sustainability. But first, it’s important to But these are only the tip of the iceberg. the largest food and beverage companies in know your consumers, as it will lead to Consumers care about myriad issues, the world. Currently with more than 700,000 the greatest results alongside precision ranging from providing relief after natural supporters, Behind the Brands creates a marketing. Although a company may want disasters to promoting gender equality and scorecard for the “the Big 10”—the 10 to support a certain cause, it’s important to empowering women to supporting small largest food and beverage companies in the look at the causes consumers care about. business and entrepreneurship. world—and ranks how they are performing in Nielsen’s research unveiled interesting In this day and age, getting the word seven aspects: transparency, women equality, data on consumers’ current altruistic out is as easy as clicking a button, which workers, farmers, land, water and climate; activities. Half of respondents around the means people expect more information to each aspect is weighed equally. world (49 percent) said they actively engage be provided. When it comes to informing the The campaign gives people an easy in volunteer work and/or donate monetarily public about what a company is up to, there medium to tell big companies to change to organizations involved in social and should be a mix of marketing, conversation their ways via social media, and since environmental programs. Developing regions and labeling. February 2013 (the first scorecard), see the highest amount of engagement— Fifty-two percent of Nielsen’s global companies have been listening and Middle East/Africa (59 percent), Asia- respondents check a product’s label adapting. All of the brands have published Pacific (58 percent) and Latin America (46 before purchasing to see if the company new policies or assessments related to the percent); North America (40 percent) and is committed to positive social and campaign. In May 2014, the Behind the Europe’s (33 percent) level of engagement environmental impact. In addition to Brands campaign set out to drive food and is comparatively lower. packaging, friends and family are another beverage companies to do more to mitigate Initiatives that appeal to a diverse group influencer. Globally, 47 percent of climate change. General Mills first, and then of buyers but focus on the most passionate respondents said they are influenced by Kellogg’s responded with commitments for and profitable ones will be the most their friends and family.

19 INSIDER CSR December 2014 The results from a March 2014 year-over-year analysis supports the assertion annual sales increase of 2 percent for products with that product labels are a powerful influencer on the path to purchasing. The sustainability claims on the packaging and a rise of 5 analysis reviewed retail sales data for a cross-section of both consumable and percent for products that promoted sustainability actions non-consumable categories across 20 brands in nine countries. These brands through marketing programs. Compared to brands included either sustainability claims on packaging or they actively promoted (n=14) without sustainability claims or marketing, sales sustainability actions through marketing efforts. The results showed an average rose only 1 percent. “At the moment of truth—in the store, online and elsewhere—consumers are making a choice and a choice that is heavily influenced by brands with a social purpose,” said Amy Fenton, global leader of public development and sustainability at Nielsen. “This INFLUENCERS ON THE PATH TO PURCHASE behavior is on the rise and we are seeing this manifest PERCENTAGE USING THE FOLLOWING SOURCES TO ENSURE A BRAND IS into positive impact in our communities as well as share COMMITTED TO POSITIVE SOCIAL AND ENVIRONMENTAL IMPACT growth for brands.” Nielsen also published a five-part approach for succeeding at sustainability through brand strategies: ASIA-PACIFIC LATIN AMERICA MIDDLE EAST/ 1. Vision: Be clear, actionable and global AFRICA 2. Endorsement: Get adoption and action from senior EUROPE NORTH AMERICA leadership 3. Strategy: Focus on outward messaging and consistent cause messaging 4. Accountability: Use key performance indicators, I CHECK THE PRODUCT PACKAGING internally and externally 5. Measurement: Quantify program outcomes and return on investment consistently across markets 63% 62% 62% Even though it’s important to keep customers’ wants in mind, understand how far your company can realistically commit to going green. The report warns that although “many consumers may perceive sustainable products to cost more, you need to understand optimal 36% price point and the impact on volume and profit,” But 32% keep in mind, no matter how much consumers yearn to be sustainable, they are not willing to give up taste to go green; standards cannot be compromised. Consumers want more, there’s no doubt about it— more from the products they buy and the companies that produce them. As interest to support CSR continues to grow, opportunity for companies “to do good” also increases. Success will depend on the ability for your I RELY ON FAMILY AND FRIENDS company to connect with the people. “It’s no longer a question if consumers care about social impact,” Fenton said. “Consumers do care and show they do through their actions. The question is 62% 59% ‘how is your brand marrying the appropriate social cause and consumer segments?’.” 45%

Hayden Harrison is an editorial intern with the Health & 29% 28% Nutrition Network of Informa Exhibitions.

Disclaimer: All data, charts and graphs have been sourced from Nielsen’s June 2014 global CSR report—Doing Well by Doing Good.

20 INSIDER CSR December 2014 FOSTERING GLOBAL CITIZENS BY ALISSA MARRAPODI

progress, a gap still exists regarding the development of a model that encompasses mplementing corporate social responsibility (CSR) into an organization is not the key elements of corporate sustainability efforts from inception to implementation. a black and white process. Many institutions and businesses have a desire Consequently, sustainability efforts have not to foster socially conscious employees, processes and business ethics, but been as productive as they could be, in part I they simply don’t know how. because management teams often fail to The values and behaviors that contribute ‘cultural levers’ (staffing and selection, connect sustainability to business strategy.” to the unique social and psychological workforce communications, training and This is where the Global Citizenship Model environment of an organization comprises development, goals and measures, rewards comes into play. The model is applicable to organizational culture; however, according and recognition, organizational structure, various global citizenship efforts and can be to a 2013 study published in the Journal of decision-making, rules and policies, physical applied to any industry or company, regardless Corporate Citizenship, many managers ignore environment, and ceremonies and events),” of size, undertaking global citizenship initiatives. organizational culture because it appears so Galpin said. difficult to manage March( 2013;(49):34-47). In a 2012 study, Galpin highlighted the Managers, instead, focus on the more tangible cavity between sustainability and business Alissa Marrapodi is a managing editor at Informa's aspects of the organization such as operations, strategy (2012;33(4):40-48). "Despite recent Health & Nutrition Network. finance and information technology. But, if there is one thing research and case Figure 1 studies confirm, it’s that sustainable change Mission works top-down. It starts with the CEO, the (incorporating global citizenship) manager, the higher level executive, the individual and works its way out and down. Values So, in order to create a globally conscious (incorporating global citizenship, e.g. environmental practices, long-term organization, socially conscious employees and view, positive social impact) management must be present. Unfortunately, at the organizational level, it’s difficult to know Goals how to set these things into motion. (incorporating global citizenship, e.g. resource use reduction, Timothy Galpin, clinical professor of community involvement) management at Colorado State University and author of the study, developed an evidence- Strategy (incorporating global citizenship, e.g. business processes, community based model that provides practicing outreach, branding) managers with a pragmatic approach to help them create a culture of global citizenship Cultural Levers [Figure 1]. “The pragmatic approach builds (reinforcing the organization’s global citizenship mission, values, goals global citizenship/CSR (however they defined and strategy) it) into their organization’s mission, values, goals and strategy, and into the organization’s 1. Staffing and selection 6. Organizational structure 2. Workforce communications 7. Decision-making 3. Training and development 8. Rules and policies 4. Goals and measures 9. Physical enviroment 5. Rewards and recognition 10. Ceremonies and events

21 INSIDER CSR December 2014 Corporate Social Responsibility: BENEFITS OF DOING THE ‘RIGHT THING’ BY STEVE FRENCH

any companies are finding what they stand for is often as important these initiatives into a business plan can be as what they sell. As consumers become increasingly invested positive for all stakeholders. in social and environmental issues, they incorporate responsible Defining CSR behaviors in many aspects of their lives. A majority feels being There are many different types of CSR M programs, but the overarching theme is a environmentally friendly is part of their everyday life and they demonstrate this in myriad ways. From basics like recycling and finding ways to conserve water and company’s continuing commitment to be energy to making “green” purchases such as natural and organic foods, energy responsible and work in ways that serve efficient vehicles or natural cleaning products, consumers are looking for ways to to improve social, ethical, environmental and humanitarian concerns. This can be responsible and engaged citizens. encompass measures that directly impact Increasingly, however, many consumers go the company, such as paying employees a a step further and demand that the companies fair wage or ensuring products are made they patronize demonstrate their level of in an environmentally friendly way, to more responsibility and commitment. Thus, corporate society-at-large focused initiatives, such as social responsibility (CSR) should be an essential contributing to charities or supporting efforts component of all business models. For 12 to conserve global natural resources. A clear majority of consumers care about years, the Natural Marketing Institute (NMI) socially responsible business. And while has published an annual report on the state of this position has softened slightly a bit over the sustainability market. The current report, the past 10 years, it has stabilized post- U.S. Consumer Trends and Perspectives in recession, suggesting potential evidence of Sustainability, is based on a nationally projectable growth to come. online survey of more than 4,000 U.S. adults. This study can help better understand what Consumers Demand Action consumers want to see from companies with To that end, more than three-quarters of respect to CSR efforts and how incorporating consumers say it is important for companies

% Consumers who agree completely/ somewhat with the following statements: I prefer to shop at stores that are 59% consistent with my values

I prefer to purchase products made in a 57% sustainable manner

I usually buy products from companies 50% whose values are like my own

Given a choice I will choose products from 42% sustainable sources over conventional ones NMI’s 2013 LOHAS Consumer Trends Database®

22 INSIDER CSR December 2014 to not just be profitable, but also mindful of their impact on the environment. Among the top environmental issues, consumers are interested in learning about what companies are doing; are they Top Ways Consumers Want to recycling, reducing waste, treating animals humanely, using less packaging/using more recycled content in products and packaging, Learn About CSR Activities: reducing energy consumption, using materials from renewable resources and increasing use of renewable energy? On the product package 55% But despite notable and broad CSR campaigns, consumers still demand more progress from corporations. Currently, only 11 percent of American adults think corporations are a leader in protecting From a news story on TV, radio, 54% the environment, but 62 percent think they should be doing more. newspaper or magazine This wide gap suggests not only the need for continued efforts, but also for clear communication of those programs that are currently Checking the company website 39% in place. While consumers want to learn about CSR activities in a variety of ways, the top methods of communication include the product package and from a news story. From an advertisement 33% Transparency and validation are also important to consumers. More than half want to see someone else endorse what a company says it does for the environment or society, and nearly half look for At a store (posters, etc.) 31% proof when a company makes a claim about being environmentally or socially responsible.

In an email 30% Values, Purchasing Behaviors and ROI In addition to environmental matters, many CSR programs incorporate social and economic concerns and consumers are also From an independent, 29% interested in the efforts made by companies in this regard. Most third-party group notably, they want to see jobs kept in the United States, programs that support the community and undertakings to reduce reliance From friends and family 25% on foreign energy. All these CSR efforts make a statement about a company’s values and culture, and this has a significant impact on consumers’ Through a social network 22% purchasing behavior. Consumers want more than just quality and (such as Facebook) good prices; they are looking for companies that do the “right thing” and are willing to support them for those actions. Basically, Shelf tags 21% they have choices and they want to feel good about where they spend their dollars. CSR campaigns can have a positive effect on the bottom line. From a flier in the mail 19% The programs themselves can be effective in spreading goodwill, which can result in increased purchasing behavior. Additionally, Source: NMI’s 2013 LOHAS Consumer Trends Database® companies can save money by operating more efficiently by repurposing waste, lowering energy costs, recycling, etc. As consumers move to put their wallets where their values are, CSR is no longer an optional or “nice to have” paradigm; it is now an essential cost of doing business.

Steve French is the managing partner of the Natural Marketing Institute (NMI), a strategic consulting, market research and business development firm specializing in the health, wellness and sustainability marketplace. For more information on NMI’s services or proprietary research tools, contact Steve French at [email protected].

23 INSIDER CSR December 2014 An Inside Peek at Three Companies’ CSR Stories

24 INSIDER CSR December 2014 How Ice Cream Can Change the World One Scoop at a Time: The Ben & Jerry’s Story BY LINDSAY BUMPS

he story starts in 1978, with a gas station and the hope of starting an our fans love us for our creative flavors and ice cream business. Ben Cohen and Jerry Greenfield, our founders, that we create good in the world,” said Rob started the business with two founding principles: Michalak, director of social mission. Linked prosperity defines our success by “If it’s not fun, why do it.” – Jerry Greenfield T connecting suppliers, employees, farmers, “Business has the responsibility to give back to the community.” – Ben Cohen franchisees, customers and communities. At From these two founding principles came the end of the day, Ben & Jerry’s uses the the backbone of our business and our three- influence of our mission statement and linked part mission statement. prosperity to make the best possible ice cream In 1988, we wrote it down. Our three-part in the best possible way. mission statement is product, economic and Product: To make, distribute and sell social based. Each of the three efforts sits side the finest quality ice cream and euphoric by side, signifying each is equally important. concoctions with a continued commitment to incorporating wholesome ingredients and It has been set in ink for 26 years and we’ve promoting business practices that respect the been living by it ever since. It’s a simple idea, earth and the environment. but it takes a lot of work by a lot of people to Economic Mission: To operate the At Ben & Jerry’s, make it happen. We continue to explore what company on a sustainable financial basis of a sustainable corporate concept of linked profitable growth, increasing value for our our model is to prosperity means today; finding practical stakeholders and expanding opportunities ways to implement business decisions is a for development and career growth for our have our mission daily occurrence in our work. We do things employees. different here at Ben & Jerry’s. Traditional Social Mission: To operate the company and values drive corporate social responsibility (CSR) flow is in a way that actively recognizes the central driven internally by check-the-box policies programs and create role that business plays in society by initiating and externally by the market or consumer innovated ways to improve the quality of life influences. At Ben & Jerry’s, our model is to activist elements locally, nationally and internationally. have our mission and values drive programs that engage our and create activist elements that engage our Energy-Efficient Waste Management consumers. In a sense, we do things from By definition, the manufacturing of consumers. In a the inside out, not outside in, and it works. products creates waste. We strive to minimize Our goals are to walk the walk first, then talk our negative impact on the environment sense, we do things the talk. We want to educate, motivate and by consciously being aware of how our activate our fans. We aim to design external production process negatively affects the from the inside out, campaigns and actions to reach fans through climate. In general, the ice cream industry carefully integrated channels on the issues is at the center of pressing climate issues of not outside in, and we’ve chosen to activate with compelling our time. Ice cream is made from agricultural stories, facts, figures and understandable ingredients. It must be made, frozen and it works. concepts that frame our issues in a way that shipped, which can complicate the process motivates fans to want to take action. when it comes to being as environmentally “Our value-based, go-beyond-the-norm friendly as possible. We have aggressively CSR approach is a proven indicator that invested in energy-efficient technology,

25 INSIDER CSR December 2014 constantly pursue innovative plans to reduce live in. Ben & Jerry’s employees can join backyard. The world needs more businesses emissions associated with the ice-cream internal-based community supportive teams like Greyston and we’ll continue to support making (and shipping) processes and like our Community Action Team (CAT) team. them and their amazing business model. determine the most eco-friendly ways to This grant program, funded by The Ben & manage and decrease our waste. In 2013, Jerry’s Foundation, allows our employees to Ingredient Conversions we started sending our dairy waste from both support their communities. Each year, several While brownies are particularly important factories in Vermont back to two of our Caring community service projects take place in to Ben & Jerry’s, it doesn’t stop there. Dairy Farms that supply us with fresh dairy. addition to each of three Vermont sites giving We believe all foods should be grown and The waste is put into a methane digester, away $75,000 in grant money. The goal is to produced in the best possible way. Growing which generates power for the farm. Dairy fix, build and refresh things that will improve food is reliant on the use of chemicals and farms represent one of the largest sources of the quality of our communities. Past events other unsustainable methods. We support greenhouse gas emissions. By implementing and organizations have included: Green Up sustainable food-production methods by the manure separation equipment and Day, Relay for Life, Kamp Ta Kum Ta (a camp using Fairtrade certified and non-GMO process, we aim to reduce 10,550 metric established for children coping with cancer), (genetically modified organisms) ingredients tons of carbon dioxide over the first 10 years Habitat for Humanity, Vermont Food Bank and whenever possible. In 2010, we committed of the project’s operations. Franklin County Humane Society. to fully convert our global product line to In 2014, we have been further increasing A perfect example of respecting human source Fairtrade-certified ingredients, a our climate-change efforts in a year-long beings outside of our direct company is complex process to take on knowing we campaign where we have been directing our Greyston Bakery. Like Ben & Jerry’s, Greyston had around 200 ingredients to convert. We focus to carbon insetting versus offsetting. Bakery operates with a unique business first converted our five key commodities: Carbon insetting means we are working to model, which made it a perfect partner to coffee, vanilla, bananas, sugar and cocoa, reduce the emissions produced within our produce the brownies we use in our ice followed by all of the chunks and swirls. supply chain. Our goal is to decrease the cream. Greyston Bakery was established in We now operate under a global agreement amount of our carbon footprint from the get- Yonkers, New York with the mission to support with Fairtrade International that supports go versus offsetting the carbon footprint that low-income families and also supports an our suppliers by ensuring them a fair price we do produce. But our progressive efforts open-hiring model. They’ll provide a job to for all products while delivering the best don’t end with the manufacturing process. anyone, regardless of background. What ingredients to make our ice cream. Overall, does this mean for the business? It means the conversion has been complicated, but Community Engagement they have pioneered the hiring system with it has been a challenge we fully embrace, At Ben & Jerry’s, we believe in supporting a conscience and have fostered a sense as we know it makes an impact to fulfill the our people. Our actions demonstrate respect of family within their walls. Being based in farmers’ needs and best achieves the social, for human beings both inside and outside of Yonkers has encouraged the same community economic and environmental promise Ben & the company and for the communities they involvement and economic renewal in their Jerry’s has made.

26 INSIDER CSR December 2014 Equality for All At the end of every day, our goal is to Ben & Jerry's is a big advocate of equality. make the best possible ice cream in the best At the end of every We seek and support nonviolent ways to possible way. While we haven’t mastered the day, our goal is achieve peace and justice. Supporting science yet completely, we are constantly marriage equality on a global level is one way tweaking and revising our efforts to continue to make the best we express those values. Marriage equality to improve the process. Our employees go has been a part of our long standing efforts home with their free three pints knowing possible ice cream in to make the world a better place. Since 1989, they’ve made a difference in the world and we’ve been providing benefits to same-sex have worked tirelessly for a company that the best possible way. couples and since then, have been active in believes in giving back to its employees, supporting marriage equality. Most recently, communities, fans and future. While we haven’t in 2013, Ben & Jerry’s supported marriage equality when the issue heated up in Australia. mastered the science We launched a campaign titled “I DOugh” to Lindsay Bumps is the public relations media maven at create awareness calling for politicians to take Ben & Jerry’s. yet completely, a stance on the issue of gay marriage. During the campaign, we renamed one of our most we are constantly popular flavors, Cookie Dough, to I DOugh, I DOugh. In turn, we saw an active social tweaking and media response that resulted in an organized demonstration in a busy shopping area where revising our efforts to members of the public were invited to stand on the top of a giant wedding cake to show continue to improve their support for marriage equality. A similar activation occurred in 2012 in Ireland, where the process. Our we renamed our mint flavor to EngageMint and partnered with local advocacy group employees go home MarriageEquality to host an EngageMint party with their free three to celebrate marriage equality rights. With 79 percent of Ireland’s Constitutional Convention pints knowing they’ve in support of gay marriage, we hope Ireland will soon join the movement in legally made a difference in supporting marriage equality. the world and have Economic Justice Economic issues are another thing we worked tirelessly strongly believe in. We strive to create economic opportunities for those who have for a company been denied and to advance new models of economic justice. Fair trade is one that believes in example of that; another is that one of our co-founders, Ben Cohen, has been active giving back to since 2012 with our own occupy-inspired movement titled “Get the Dough Out of its employees, Politics.” The purpose of the movement is to do just that: increase awareness for reforms communities, fans to reduce or eliminate undue corporate influence. We remain firm in our stance to and future. keep corporate money out of our elections.

27 INSIDER CSR December 2014 Tetra Pak— Protecting Food, People and Futures BY DENNIS JÖNSSON

etra Pak’s business is built on its ability to provide safe, secure and past two years, we have put considerable sustainable food to consumers worldwide. Success requires continuous effort into developing robust systems and innovation, and finding new ways to meet the ever-shifting expectations of methods to reliably collect this data; and our 2013 results, which have been audited and the market and the increasingly diverse needs of our customers in ways T validated by independent external consultants, that fully address our social and environmental responsibilities. show we are making steady progress toward The Tetra Pak brand is founded on a the targets we have set for 2020. It will not be promise: PROTECT WHAT’S GOOD. At its core, an easy journey, but we are confident we will that’s about protecting food, which has long reach our destination. been at the very heart of our business agenda. Technological Innovation But it goes further; it is also about protecting We have introduced a number of projects people: our employees, the communities in and initiatives in recent years that are which we operate and society as a whole. And now helping our customers enhance their it is about protecting futures by developing The rapid development environmental performance. As a recent the products and services that will support and urbanization of introduction, Tetra Alcross® RO Lite is a the future business growth of our customers, compact reverse osmosis filtration unit that’s emerging economies, and by acting and operating in ways that best very popular with small- and medium-sized protect the future of our planet. dairies. The unit enables the cost-efficient global population growth processing of whey, which is otherwise often Creating Value Starts with traditionally discarded as a waste product. and an expanding Meeting Needs The unit thereby enables value to be created The rapid development and urbanization of middle class present from waste, creating potentially new revenue emerging economies, global population growth streams and reducing waste at the same and an expanding middle class present both both challenges and time. Tetra Alcross RO Lite is an example of challenges and opportunities for Tetra Pak. The technological innovation that helps customers opportunities. The challenge: the impact of diverse and shifting to reduce their environmental impact and consumer needs and rising expectations challenge: the impact potentially improve profits at the same time. around health, nutrition and food security. of diverse and shifting The opportunity: developing products and Resource Efficiency consumer needs and technologies that will allow our customers to But it is not only on the machine technology succeed in this environment. front that we are looking for innovative rising expectations around And the same is true of the world’s solutions. We strongly believe the most sharpening focus on climate change, on effective way to ensure a sustainable future health, nutrition and food conservation and on the finite availability of for the packaging industry is to increase our security. The opportunity: natural resources. Society expects the food use of renewable resources. Our ambition and drink sector to do more with less, which is to develop a package made entirely from developing products means developing the technologies and renewable materials in contrast to today, materials that will drive efficiency, reduce our where renewable material accounts for around and technologies that consumption of finite resources, cut waste and 70 percent of a carton, averaged across our will allow our customers lower environmental footprints. entire portfolio. Our 2020 climate goal is helping to make We are making visible progress toward to succeed in this that happen, looking not only at Tetra Pak’s that goal. In 2011, we introduced bio-based own operations, but covering the entire value caps made of plastic derived from sugar environment. chain—from the production of base materials cane, and last year these were featured to the recycling of used cartons. During the on more than one billion of the Tetra Pak

28 INSIDER CSR December 2014 During 2013, some 64 million school children received milk or other nutritional drinks in Tetra Pak cartons, providing them with better nutrition, spurring higher levels of school attendance and creating the catalyst for social advancement.

cartons sold worldwide. And earlier this governments, customer businesses and other and we are committed to ensuring that its year, we took another step forward when we organizations to increase the availability of 10 principles on environment, labor, anti- announced all of the packages we produce food around the world. corruption and human rights are embedded in Brazil will shortly be using bio-based Our Food for Development Office (FfDO) across all of our operations. In this regard, plastic film as the coating on the paperboard, was established in 2000 to gather Tetra we have a well-defined corporate governance a total of more than 13 billion packs a Pak’s extensive experience in helping framework that guides how we go about year. Other markets will follow. Alongside governments in developing countries to our business, including a Code of Business this, we continued our efforts to ensure implement school milk programs based on Conduct that sets out the rules of business responsible forest management, expanding public-private partnerships. During 2013, behavior and ethical standards we require as our use of paperboard certified by the Forest some 64 million school children received a company. Stewardship Council from 38 percent in 2012 milk or other nutritional drinks in Tetra We believe this is important, as are strong, to 41 percent in 2013. Last year, a total of 32 Pak cartons, providing them with better shared core values to steer our decisions and billion Tetra Pak packages bearing the Forest nutrition, spurring higher levels of school actions, providing the foundation for unity, Stewardship Council (FSC) label reached attendance and creating the catalyst for responsibility and integrity among all parts of consumers, five billion more than in 2012, social advancement. our organization. raising further awareness of a scheme that The FfDO is also responsible for the we believe is helping to address a critical introduction of our Dairy Hub concept to help Engaging Employees environmental need in ways that are also improve milk quality, dairy yield and farmers’ Guided by our core values, we strive to socially and economically viable. We are also livelihoods. The Dairy Hub model helps strengthen our culture of inclusiveness and working to increase the availability of FSC- customers in developing countries create individual responsibility and to communicate certified paperboard, and joined forces with strong links with smallholder dairy farmers our sustainability approach in an engaging IKEA and Kingfisher in September to work on terms that are favorable for both parties way to all of our 23,000 employees. together to demonstrate the value of FSC and secure access to locally produced To do this, we invest in employee training certification to businesses and the world’s quality milk. and career development opportunities forests alike. including the Tetra Pak Academy, our new Good Governance and Strong learning infrastructure that helps to ensure Increasing Food Availability Core Values that we provide the right learning to the right We also take great pride in our approach Since 2004, we have been a signatory target group and at the right time, in a cost- to sharing innovation with partners in to the United Nations Global Compact, efficient way.

29 INSIDER CSR December 2014 Last year, a total of 32 billion Tetra Pak packages bearing the Forest Stewardship Council label reached consumers, five billion more than in 2012, raising further awareness of a scheme that we believe is helping to address a critical environmental need in ways that are also socially and economically viable.

And the results are apparent in the level of engagement we have achieved among our employees with regards to sustainability. The proportion of positive responses on feeling engaged with sustainability—83 percent— means that we are a category leader and performing at the level of world-class companies. Furthermore, an extraordinary 94 percent of our employees believe Tetra Pak is an environmentally responsible company— 10 percent more than the global high- performance norm. It is the innovation, determination and professionalism of the 23,000 Tetra Pak employees who are helping to make food safe and available, everywhere. At Tetra Pak, delivering on our promise to PROTECT WHAT’S GOOD is at the heart of our success and the sustainability of our business into the future.

Dennis Jönsson is the president and CEO of the Tetra Pak Group.

30 INSIDER CSR December 2014 DO WHAT’S RIGHT: How NOW Foods Built CSR into its DNA BY SHARON WONG

s a child, did you have any friends who wanted to play with you only support advocacy for the natural food and if you played by their rules? Maybe their rules changed every day supplement market. We do this because we depending on what was best for them. Maybe it meant they always believe consumers have a right to purchase and use supplements to improve their health. won and you didn’t have much fun. After a while, you wouldn’t play A One non-profit that NOW supports is the with them anymore. NOW Foods has a goal to play nice so that its customers, Natural Health Research Institute (NHRI), which employees, health food store owners and the local community want to keep was founded by our founder, Elwood Richard. playing with them. What do we mean by “play nice?” We believe a robust Its website (naturalhealthresearch.org) lists corporate responsibility program means to operate with integrity, a long-term studies on most common health concerns that sustainable view and a commitment to mutually beneficial relationships. We show how supplements are effective and safe. Other independent natural health advocacy are a friendly, privately owned business still run by the founding family and are organizations that NOW Foods supports planning to stay that way for generations. For NOW Foods, corporate social through membership, financial contributions, responsibility (CSR) is built into the very DNA of our business. board of directors’ membership, committee work and/or the personal efforts of NOW’s Ensuring Business Sustainability employees vary, from the Alliance for Natural We want to keep our employees and Health – USA and Europe to the American customers happy today, next year and in 10 Herbal Products Association (AHPA). CSR years. We think of far more than just how There are also several scientific much profit we can make. The Richard family organizations supported by NOW Foods that cares about what is put inside the packages develop information for use by the natural We want to keep we produce. We want to have a product health industry, including the American that we ourselves take and that we can Botanical Council (ABC), the American Herbal our employees and recommend to our friends. The NOW family Pharmacopeia (AHP) and others. wants every consumer to have access to customers happy products that have quality and value. In fact, Environmental Care one reason why NOW Foods was started was What began as environmental initiatives today, next year and to sell products at a reasonable price. Our has often resulted in business decisions founder Elwood Richard had a health food that both preserve the environment in 10 years. We think store first and when a customer called him and save money at the same time. For a “dirty rotten cheat” because he could not example, installing solar panels, buying of far more than just compete with the grocery store prices, he efficient light bulbs, recycling packaging started NOW Foods with a business model of materials, installing low flow water fixtures, how much profit making products to sell directly to stores so disconnecting vending machine lights and that he could compete. That original business other green initiatives. We also donate to we can make. The model helped shape NOW’s mission: to several environmental charities and have provide value in products and services that green employee activities such as recycling Richard family cares empower people to lead healthier lives. But drives and biannual clean up days in the our belief in corporate responsibility goes forest preserve near our Bloomingdale, about what is put beyond a sustainable, ethical business Illinois manufacturing facility. Being out with model. We believe we have to give back and NOW’s CEO Jim Emme and your co-workers inside the packages support organizations making a difference in picking up garbage and planting around the we produce. people’s lives. lake in long rubber boots can be a great way Some of the charities that NOW supports to hang out together and do something good are related to the business that we are in; we for the community!

31 INSIDER CSR December 2014 Plan for the future. Support Advocacy Groups. Do Conservation can save money. Support charities and engage your employees. Do what’s right. Be thankful.

Doing What’s Right money out of their paycheck and match it 100 Some of what we do is just because it’s percent. There are four or more employee the right thing to do. We have a business that drives every year for things like Christmas makes a profit in a way that is ethical and we gifts, food drives, recycled shoes, etc. We are very thankful for that. So, it’s right to use also have an employee match for local and some of the profits to help others. Al Powers, worldwide disasters. In the last year, we sent NOW’s former CEO and current ambassador, money to the Balkans for flood relief, to the helped found NOW’s charitable efforts. He still Philippines for hurricane relief and to a town is active on our Charity Committee and with in Illinois for tornado relief. Some employees Vitamin Angels, which NOW has supported have had relatives in the disaster areas and since its inception because of the significant it was heartwarming how much the relief difference it makes in people’s lives. NOW effort meant to them. Some of the Charity has engaged our employees in our mission groups that we support include Compassion by helping those who can’t help themselves International, Meal-A-Day of the Americas, achieve healthier lives using our products via India Leprosy and Child Nutrition Program and Vitamin Angels. This is a very unique dietary many more. supplement-based industry charity. Dietary supplements are the most efficient way to Be Socially Responsible deliver nutrition to people affected by war, In conclusion, play nice. Plan for the future. poverty and disease since they are low cost, Support Advocacy Groups. Conservation can easy to ship and have a very pronounced save money. Support charities and engage impact on improving the health of those who your employees. Do what’s right. Be thankful. are malnourished. The Charity Committee has developed into a group that oversees more than 15 Sharon Wong is the director and Family Owner of NOW charities that are key in the values of our Health Group. family and business. We donate in three areas: local needs, world needs/disaster relief and environmental/conservation. The Richard family and our employees don’t all value the exact same things, but most of us are passionate about one or more of the charity efforts NOW supports. We have an Employee Matching Program for the charities so if an employee wants to donate, we can take the

32 INSIDER CSR December 2014 Contacts

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33 INSIDER CSR December 2014