The Corporate Dilemma
It’s a hot topic at the moment – the Ecologist, the New York Times and online eco news-site Treehugger.com are all talking about it and it’s something we’ve been looking at very seriously over the past few months.
Just like any other business, when a green company becomes successful, it usually attracts interest from larger corporations wishing to invest. On the one hand, success is a good thing – it shows that a company excels at what it does and there is a market for the service or product. Growth brings with it the freedom to innovate, influence as well as explore further markets. Economies of scale and greater ease in recruiting a skilled workforce can prove invaluable.
On the other hand, and the ‘problem’ we see at the moment, is that mainstream companies who would previously have rejected the concepts on which many eco businesses are based, such as organic foods or skincare, are now looking to expand into these areas. An easy solution for them is acquisition. But how does being bought out by a company with very different ideals, fit with the original company's ethos?
Perhaps the most criticised buy-out in recent years was the purchase of The Body Shop by L’Oréal. The principles The Body Shop were founded on were an integral part of its identity and a major reason for customer loyalty. However, it is now part of a company who routinely use animal testing for new ingredients which is in direct contradiction of those ethics.
Other examples of similar ownership changes include Green and Black’s chocolate by Cadbury-Schweppes, Tom’s of Maine toothpaste by Colgate-Palmolive, Seeds of Change wholefood brand by Mars and the one currently in question for us at How on Earth, the purchase of Burt’s Bees by The Clorox Company in the US.
According to the chief executive John Replogle, Burt’s Bees is determined to maintain its founders’ green philosophies.1 Some of its environmental targets include the implementation of 100% renewable energy, zero waste to landfill and the construction of an ISO14001 certified green building by 2020. The company is also leading the way in implementing a ‘natural standard’ for body care products which could help bring some clarity to a very confused area. Animal rights and responsible trade are also high on their agenda.
The Clorox Company, who had a $4.58 billion turnover in 2006, is best known for its bleach product, Clorox. It also manufactures a variety of other chemicals and foods. The culture and principles of a behemoth like this are clearly far removed from those of Burt’s Bees. The question is, are Burt’s Bees products still as reliable and ethically sound as they were before the acquisition, and should we applaud that they will soon be available to a far wider audience as a result of the purchase? Or, would we be happier if they stayed small and independent and less readily available?
We’re really interested to hear your views on the subject, so please send us any comments to info@howonearth.co.uk. They could play a part in future decisions about products we should and shouldn’t stock.