Sustainability Case Studies: Who's Doing it Right

Bob's Red Mill

Bob’s Red Mill is seen as an ideal place to work because the company is employee owned. Consumers know the story of Bob Moore setting up an Employee Stock Ownership Plan when he retired, demonstrating that Bob is a benevolent boss who truly cares about his employees, “They’re not just numbers.”

Bob’s Red Mill represents a big company with small company values: A real, informal, face-to-face organization vs. an abstract, formal, faceless organization. This compelling story, coupled with perceived quality in an authentic and unprocessed product, draws consumer trust and following. While not all companies can pull this off, stories of employee satisfaction can put a face on otherwise large, faceless corporations.

Geico

Consumers perceive Geico to have a healthy working environment because the frontline call center workers appear to (a) be really nice people and (b) are empowered to take action on behalf of the consumer. This suggests that Geico is an organization that cares enough to create a great workplace that benefits its workers:

If I think that Geico workers care about what they do from my customer service interactions, then I have to assume the rest of the company [brand], as well as products, is cool… If I get an anonymous call center outside the US, I assume even the domestic workers must suffer under the same dysfunction that would outsource labor to save money.

A challenging proposition, but mission critical—“so easy a caveman can do it.”

Burt's Bees

Burt’s Bees is often mentioned by consumers as a great example of a company that “cares” about the local community where consumers live, the environment, and its employees.

Burt’s Bees has a strong commitment to participating with consumers in local community initiatives such as sponsoring Planet Earth Celebration 2010 in Raleigh, NC, and a Habitat for Humanity project in Durham, NC. Consumers are invited to join “the Hive” to receive newsletters about Burt’s Bees’ sustainability initiatives.

Chipotle

Consumers identify Chipotle as an example of getting it right at the community level by employing activities that are easily understood as having a direct impact where consumers live.

Chipotle contributes to an overall positive image of the neighborhoods it’s in, “Chipotle helped revitalize the area where I live by opening a store in the neighborhood.”

Chipotle uses a lot of locally grown organic food. Chipotle began its locally grown produce program in 2008, committing to serve 25% of at least one produce item in each of its markets when seasonally available. For 2010, the company raised its local produce goal to 50%. Additionally, they support local schools through the distribution of discount cards that contribute “where my kids go.”

They also provide examples of treating their employees well by providing ESL classes.

Tom's of Maine

Tom’s has made the astute move of activating Core consumers via animal welfare groups like PETA and vegan seals to evangelize for them. “Cruelty Free” certification of PETA not only signifies the absence of animal testing, but also the absence of animal ingredients altogether, while the “Leaping Bunny” certification of the Coalition for Consumer Information on Cosmetics appeals to Mid-level and Periphery consumers. Together, these seals assure that consumer awareness of Tom’s' commitment to “responsible” business practices has traction across consumer segments.

Consumers applaud Tom’s of Maine for setting a precedent for other manufacturers, by refusing to conduct experiments on lab rats. Instead, Tom’s developed safe human fluoride tests, which the American Dental Association eventually accepted and instituted; as one consumer said: “It takes integrity to do that. They held out for years to get the approval without testing. Big companies don’t do that.”

Niman Ranch

Consumers view Niman Ranch to be exemplary of a brand that cares for the animals that make it to America’s dinner table—at home and in the restaurant. The Niman Ranch mission is “to raise livestock traditionally, humanely and sustainably to deliver the finest tasting meat in the world.”

In agreement with the company’s core values, many consumers believe that an animal’s quality of life is reflected in the quality of the meat. Consumers are impressed by the fact that animals are raised in the pastures of independent farmers rather than factory farms. The underlying belief is that small farmers care more than industrial farmers. The Animal Welfare Approved seal is understood and trusted by brand loyalists. Consumers believe that product quality is also derived from the fact that Niman farmers do not use antibiotics or hormones.

Green & Black's

Green and Black’s sustainability halo began in 1995 as the first fair trade chocolate in the UK: “Green” standing for the environment, and “Black” for the high level cocoa.

Consumers applaud the fact that Green and Black’s has pledged that all chocolate bars will be Fair Trade certified by the end of 2011. Because food giant Kraft is committed to continuing this pledge after acquiring Green & Black’s as part of their Cadbury purchase, consumers will be increasingly exposed to fair trade as the brand finds greater distribution in mainstream retail. In addition to specialty retailers like Whole Foods, the brand is now available in retailers like Target.

Stumptown Coffee

Stumptown leverages its “good guy” image to enhance its message of quality of the highest distinction.

Different from “fair trade,” many core consumers prefer “direct trade” because they believe it avoids the extra costs associated with third-party certification, providing buyers with greater control over the quality of the coffee, to social issues and environmental concerns. Although the drawback is that the consumer must trust the company’s standards, these consumers are reassured that Stumptown has a face-to-face relationship with farmers, supporting them monetarily for making the highest quality product.

Stumptown extends its sustainability halo from the social zone through fair [direct] trade to the environmental zone by the use of plain brown paper sacks with SKU-specific insertable product tags, which also cue artisanal production methods and freshness.