social mission overview june 5, 2017 rob michalak · values led sourcing values led manufacturing...

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Social Mission Overview June 5, 2017 Rob Michalak Galactic Director of Social Mission

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Page 1: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

Social Mission OverviewJune 5, 2017

Rob MichalakGalactic Director of Social Mission

Page 2: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

“… INITIATING INNOVATIVE WAYS TO IMPROVE THE QUALITY OF LIFE…”

“LINKED PROSPERITY"

Page 3: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

What we believe in!• economic justice

• protecting the environment

• safe & sustainable food

• peace & justice

• respect for people & communities

Page 4: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

Governance Structure

The B&J Board holds "primary

responsibility" for preserving and

enhancing the Social Mission of B&J and

for safeguarding the integrity of the B&J

brand.

Unilever holds "primary responsibility" for financial and operational aspects of B&J. 

Page 5: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

Values Led Sourcing Values Led Manufacturing

“Social Metrics” must grow faster than turnover

Activism Authentic Brand Experience

Raw Materials Ingredients Manufacturing

Scoop ShopsCustomer

“Zero Imp act” C

old Chain

Peop

le P

ower

Logistics

Customer Experience Consumer

Community Activities

Livi

ng In

com

e

Social &

Economic

Justice

Linked Prosperity Network

Page 6: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

Change-making capacities internal

Page 7: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

Change-making capacities external

Page 8: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

An Activist Company• We STAND for something • We ACT on our values• We INVITE our fans and customers to join us in

taking action

Page 9: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

Progressive Social

Change

What do our consumers care about?

How do I emotionally

connect with them?

How do I align my brand with their

cause?

What we believe

The change we seek to make

Inspiring our fans to take action

Consumer’s Interests

Our Values

Build Brand Equity

Where it Starts

vs.

Goal of Campaign

Campaign Development

Cause Related

Marketing

Issue Advocacy

Cause Related Marketing vs. Values Led Activism

Page 10: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

Strategy through 2020

Fairtrade enterprise model

Low carbon & climate resilient

value chain

Social & Economic Equity

Climate Justice

Programs

Equitable & Inclusivevalue chain

Regenerative Dairy model

Platforms Platforms

Page 11: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

Internal Programs

Fairtrade Enterprise Model

Low Carbon & Climate Resilient

Value Chain

Equitable & InclusiveValue Chain

Regenerative Dairy Model

Page 12: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience
Page 13: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

GHG Reduction Investments(external)

Scope 1&2 + Natural Reductions

Strategic Options

GHG Reduction Estimates: 2015-2030

Future Innovation(strategy investments)

20% Intensity Reduction by 2020

Page 14: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

Internal Programs

Fairtrade Enterprise Model

Low Carbon & Climate Resilient

Value Chain

Equitable & InclusiveValue Chain

Regenerative Dairy Model

Page 15: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

Helping farmers improve:

Animal Husbandry

Biodiversity

Energy

Farm Economics

Nutrients

Water

Pest Management

Farm Worker

Soil Fertility & Health

Soil Loss

Community

Farmer & Family Livelihood

Page 16: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

Regenerative Dairy Model

•Ca

ring

Dairy

2.0

laun

ched

in 2

016

•Ti

ered

app

roac

h to

driv

e fo

r im

prov

ed p

erfo

rman

ce:

–In

cent

ives

bas

ed o

n as

cend

ing

tiere

d sy

stem

–Ba

sic/S

ilver

/Gol

d in

cent

ive

pric

ing

stru

ctur

e.•

Map

ping

the

Farm

of t

he F

utur

e (b

eyon

d CD

2.0

)

BASIC

SILVER

GOLD

Page 17: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

Internal Programs

Fairtrade Enterprise Model

Low Carbon & Climate Resilient

Value Chain

Equitable & InclusiveValue Chain

Regenerative Dairy Model

Page 18: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

Social EnterpriseGreyston Bakery Brownies

Page 19: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience
Page 20: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

Case Study: Greyston Impact

1989• B&J begins to purchase

Greyston brownies• Greyston hires 11 new bakers• Fills one full shift• Using a small outdated bakery• limited support services

2017• B&J uses Greyston brownies for several U.S.

and global flavors

• Greyston employs 65 bakers annually

– 3,000 + jobs created since 1989

– $65-million in payroll since 1989

• two shifts

• new bakery constructed

• support services: health care, housing, childcare touching 2,000 people / yr.

– 19,000 families supported since 1989

Greyston employs people making the move out of poverty, homelessness, addiction, or hardship in Yonkers, NY.

Page 21: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

Internal Programs

Fairtrade Enterprise Model

Low Carbon & Climate Resilient

Value Chain

Equitable & InclusiveValue Chain

Regenerative Dairy Model

Page 22: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

Fairtrade Alignment Fairtrade criteria most closely aligns with our Mission & Progressive Values Statements.

Page 23: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

Fairtrade Producer Development Initiative (PDI)

Page 24: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

El SalvadorSugar

(~6500 MT)

MexicoCoffee

(~140 MT)

Cote d’IvoireCocoa

~1000 MT

PalestineAlmonds

~25 MT

MadagascarVanilla~20 MT

UgandaVanilla

~4 MT

PDI Project Map

Page 25: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

Climate Justice

Page 26: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience
Page 27: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

Supported Global Day of Actionon Climate in 14 Cities on Nov 29, 2015

Page 28: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience
Page 29: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

Social Equity

Page 30: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience
Page 31: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

Racial equityPolitical equityEconomic equity

Social equity

Internal practices

External Advocacy

Inclusive cultureDiverse Workplace

Culture focus Movement focus

Page 32: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

LEARNING JOURNEY

Page 33: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

Measure & Report

Page 34: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

2014 vs. 2015 Quality of Results Scores 2014 2015

QoR Category QoR Component Value

QoR Component Score QoR Component Score % Change

Dairy 30 24.9 26.8 7.7%Sugar 12 11.8 12.0 1.2%Eggs 5 4.9 5.0 1.1%Chunks & Swirls 35 16.9 20.1 19.2%Banana 5 2.0 2.0 1.9%Cocoa Powder 8 4.9 5.0 3.0%Vanilla 5 1.9 2.0 3.6%Coffee 5 2.0 2.0 0.0%Non-GMO 10 7.3 9.5 29.2%Materials 10 5.0 5.0 0.4%Supplier Diversity 10 0.0 0.0 0.0%

Community Engagement & Activism

Community/Activism 25 19.0 21.1 11.2%

Environment &Climate

Environment & Climate 25 14.8 14.9 0.8%

FranchiseeRelationship

Franchisees 15 13.0 12.5 -3.6%

TOTAL QoR score 200 128.4 137.9 7.4%

~ 13%

Values-Led Sourcing Practices

2015 Global Sales Growth:

Page 35: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

Annual SEAR Report

Page 36: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

B Corp Certification Update• 2012 score: 89• 2014 score: 101• Global B&J’s certification path:

o Unilever Legal & B Lab are engaged in path-building

Page 37: Social Mission Overview June 5, 2017 Rob Michalak · Values Led Sourcing Values Led Manufacturing “Social Metrics” must grow faster than turnover Activism Authentic Brand Experience

Thanks!