Protecting your reputation - Charlie Arnot - 5-4-11
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Protecting your reputation - Charlie Arnot - 5-4-11

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  • For his doctoral research Kohlberg studied differences in children's reasoning about moral dilemmas. He hypothesized that moral difficulties motivated their development through a fixed sequence of increasingly flexible kinds of moral reasoning. He also helped to clarify the general cognitive-developmental view of age-related changes. Thereafter, Kohlberg became a leader in moral education. Kohlberg was a psychologist who applied the developmental approach of Jean Piaget, who he studied under, to the analysis of changes in moral reasoning. Kohlberg was a professor and did most of his research at Harvard University.
  • Plenty of sources are raising concerns about the modern food production system.
  • Paul Shapiro, an avowed animal activist during his time with the group Compassion Over Killing is now delivering mainstream messages in his role as Senior Director of HSUS’ Factory Farming Campaign.

Protecting your reputation - Charlie Arnot - 5-4-11 Protecting your reputation - Charlie Arnot - 5-4-11 Presentation Transcript

  • Protecting Your ReputationHow the Rules Have Changed
    Re-defining Agriculture to Build Consumer Trust
    Charlie Arnot Charlie.Arnot@CMABuildsTrust.com
  • Freedom to Operate
    Earning and Maintaining the Social License (Sapp/CMA)
    Freedom to Operate
  • Social License
  • Social License
    Definition: The privilege of operating with minimal formalized restrictions (legislation, regulation, or market requirements) based on maintaining public trust by doing what’s right.
    Public Trust: A belief that activities are consistent with social expectations and the values of the community and other stakeholders.
  • The Social License To Operate
    Flexible Responsive Lower Cost
    Rigid Bureaucratic Higher Cost
    Social License
    • Ethics
    • Values
    • Expectations
    • Self regulation
    Social Control
    • Regulation
    • Legislation
    • Litigation
    • Compliance
    Tipping
    Point
    Single triggering event Cumulative impact
  • Earning and Maintaining the Social License (Sapp/CMA)
    Social License
    Freedom to Operate
  • Trust
    Earning and Maintaining the Social License (Sapp/CMA)
    Trust
    Social License
    Freedom to Operate
  • Earning and Maintaining the Social License (Sapp/CMA)
    Confidence
    Trust
    Value Similarity
    Social License
    Competence
    Freedom to Operate
    Influential Others
    Trust research was published in December, 2009 – Journal of Rural Sociology
  • What drives Consumer Trust?
    Skills
    Shared Values
    Shared values are 3-5X more important in building trust than demonstrating competence
    Trust research was published in December, 2009 – Journal of Rural Sociology
  • What Does It Mean?
    “They don’t care how much you know until they know how much you care!”
    - Theodore Roosevelt
  • Questions of Values and Ethics Kohlberg’s Moral Hierarchy
    Three Levels – Six Stages
    Pre- Conventional
    • Direct impact on me
    Conventional
    • Societal expectations
    Post-Conventional
    • Principle driven
    Lawrence Kohlberg, 1927 - 1987
  • Questions of Values and Ethics Kohlberg’s Moral Hierarchy
    Universal ethical principle orientation
    We have an ethical obligation to our employees, our animals, the environment, our customers and our communities
    Post Conventional Principle driven
    Social contract orientation
    The “law & order” orientation
    We comply with all environmental and employment laws and regulations
    Conventional Societal expectations
    The “good boy / nice girl” orientation
    Personal rewards orientation
    We take care of our land and animals because that’s when we get the best ROI
    Pre-Conventional Direct impact on me
    Punishment-Obedience
  • Questions of Values and Ethics Kohlberg’s Moral Hierarchy
    Universal ethical principle orientation
    NGO’s
    Post Conventional Principle driven
    Social contract orientation
    The “law & order” orientation
    Conventional Societal expectations
    The “good boy / nice girl” orientation
    Personal rewards orientation
    Business
    Pre-Conventional Direct impact on me
    Punishment-Obedience
  • Sustainable Balance
    Economically Viable
    • ROI
    • Demand
    • Cost Control
    • Productivity
    • Efficiency
    Profitability
    Scientifically Verified
    • Data Driven
    • Repeatable
    • Measurable
    • Specific
    Objectivity
    Scientifically Verified
    Economically Viable
    Sustainable Systems
    Knowledge
    Knowledge
    Ethically Grounded
    Ethically Grounded
    • Compassion
    • Responsibility
    • Respect
    • Fairness
    • Truth
    Value Similarity
    Feelings
    Belief
  • Consumer Perception
    The public senses change in the way food is produced but does not understand
    Lack of understanding creates opportunity for activists and detractors
    The food system must engage in value based communication that is ethically grounded, scientifically verified and economically viable to build trust in today’s systems
  • Animal Welfare
    • Values: The proper care of animals is very important to me. My family and I have an ethical obligation to make sure the animals on our farm are well cared for.
    • Science: That’s why we use the latest technology on the farm to keep our animals comfortable, protected from disease, predators and the elements, and fed a well-balanced diet for optimal health.
    • Economics: Treating my animals with the best care allows my family and me to help provide consumers with abundant, safe and affordable food, and allows me to make a living so I can provide for my family.
  • Environment
    • Values: We drink the same water and breathe the same air as our neighbors. I want to protect and sustain the environment for my family, my community and for future generations so they have it as good, or better, than I do.
    • Science: The environmental systems we use on our farm are based on research conducted at land grant universities across the country and I make sure I’m up to date by taking advantage of the latest training and certification programs.
    • Economics: Because the market prices farmers receive have not kept up with inflation, farms are bigger than they were just a few decades ago. Like most farmers, I’ve changed my operation in order to keep my farm profitable and provide for my family.
  • 2009 Consumer Trust Qualitative Research
    Summary Slides
    This information is wholly owned by CMA and licensed to CFI; Study was conducted by Gestalt Inc.
  • Thank You to the 2009 Consumer Trust Research Sponsors
  • CFI Annual Consumer Trust Survey
    Qualitative research in 2009 study
    “What will cause consumers to grant more social license?”
    Eight consumer focus groups
    April 2: Des Moines, IA
    April 7: Syracuse, NY
    April 8: Nashville, TN
    April 13: Fresno, CA
  • Two Observations
    • Uninterested and uninformed.
    • "Give me safe food, and I will trust you to give me safe food. I will trust you (farmers) until you do something to break that trust.“ – Connie, Nashville focus group
    • “They could let us know more about what they do… I’ve never been on a farm, I don’t know what they do.” – Judy, Des Moines group
    • Trust farmers but aren’t sure contemporary production is still farming.
    • "Large producers are about the money and rushing production with antibiotics… Small farmers are concerned about their name…“ – Consuela, Nashville focus group
    • "There is a difference: a farmer grows and sells locally with ethics, whereas commercial producers are all about the paycheck.“ – Maria, Nashville focus group
  • The Challenge
    • Building trust and confidence in the contemporary food system among a public that is largely uninterested and uninformed.
    • The contemporary food system is not perceived as being consistent with the understanding or values of consumers or with the positive attributes historically assigned to farmers.
    • Voices questioning current food system practices are increasing in number, volume and impact.
  • Animal Rights Groups
    Leveraging the gap between public perception and today’s farms
  • Humane Society of United States – Channeling Passion
    • Well Funded – 2010 budget ~$130 million
    • Main stream messages – Not PETA
    • Confused with local animal shelters
    • New structure allows for more lobbying, more litigation
    • Pacelle’s goal – create a “National Rifle Association of the animal rights movement.”
    Wayne Pacelle, CEO HSUS
  • Animal Rights Groups Pick Up Momentum
    Post-hurricane New Orleans
    forced to leave pets behind
    Pet food recall after cats
    and dogs were poisoned
    Michael Vick’s dog fighting conviction
    Hallmark-Westland video and record breaking re-call
  • Mainstream Appeal
    “Having witnessed the suffering of factory-farmed animals, first-hand, has increased my resolve to make my life a living struggle for animal liberation.”
    “Do we want to support killing and misery by buying a meal that was produced from animal exploitation; or do we want to choose a vegan meal?”
    “We intend to build bridges. We need to reach out to try to gain support for animal protection wherever we can, no matter from which side of the political spectrum.”
    Paul Shapiro, COK, 2002
    Paul Shapiro, HSUS, 2007
  • Mainstream Appeal
    “We're not telling people to become vegetarians – we're urging them to exhibit greater decency.”
    Wayne Pacelle
    11-28-08, Sacramento Bee
  • Driving a Wedge
    You are
    here
    Antagonists
    are there
    Antagonists
    Reasonable
    majority
    is here
  • Lawyers targeting pig, dairy farmsAttorneys seek justice for neighbors allegedly injured by large operations
    BY SETH SLABAUGH • MUNCIE STAR PRESS • DECEMBER 26, 2009
    Blogger Cirera57
    “You do know what a CAFO is right? They are not farmers.”
  • The Power of the Hidden Camera
    • Raises Profile of Welfare Issues
    • Treatment is Inconsistent with Values or Expectations of Consumers
    • Undermines Trust in Contemporary Animal Agriculture
  • Undercover Video Investigations
    Nov. 2007, Tyson Chicken Plant, Alabama
    Nov. 2009, Bushway Veal Packing, Vermont
    Nov. 2006, Wiles Hog Farm, Ohio
    Feb. 2008, Hallmark/Westland Beef, Calif.
    Sept. 2008, MowMar Hog Farm, Iowa
    Nov. 2008, Aviagen Turkey Farm, West Va.
    Nov. 2009, Hatfield Hog Farm, Pennsylvania
    Jan. 2010, Willet Dairy, New York
    Sept. 2009, Dietz Dairy Farm, Pennsylvania
    May 2010, Conklin Dairy, Ohio
    Sept. 2009, Hy-Line Hatchery, Iowa
  • Undercover Video Investigations
    • Nov. 06 – Wiles Hog Farm, Ohio (HBO documentary)
    • Nov. 07 – Tyson Chicken Plant, Alabama
    • Feb. 08 – Hallmark/Westland Beef Packing
    • Sept. 08 – MowMar Hog Farm, Iowa (Hormel supplier)
    • Nov. 08 – Aviagen-owned turkey farm, West Virginia
    • Sept. 09 – Dietz Dairy Farm, Pennsylvania (Land O’ Lakes contractor)
    • Sept. 09 – Hy-Line International Hatchery in Iowa
    • Nov. 09 – Hatfield hog farm, Pennsylvania
    • Nov. 09 – Bushway Veal Packing Plant, Vermont
    • Jan. 10 – Willet Dairy, New York (ABC’s Nightline)
    • May. 10 – Conklin Dairy, Ohio
  • Brands as Agents of Social Change
    NGO’s have discovered that global brands can do what government cannot
  • Regulation vs. Market Pressure
    “We attack the weakest link in the company’s value chain,” Kert Davies, Director of Research, Greenpeace
    “We can dance with you or dance on you”
    “Discovering brands was like discovering gunpowder.” -
  • NGO’s Can Accomplish What Government Cannot
  • NGO’s Can Accomplish What Government Cannot
  • NGO’s Can Accomplish What Government Cannot
  • NGO’s Can Accomplish What Government Cannot
  • NGO’s Can Accomplish What Government Cannot
  • Top Five US Retailers Now Sell More Than Half of All Food and the Top Ten Companies Sell More Than 75%
    Number Corporate/ Franchise Stores
    Sales In$Billions
    Company
    Ranking
    Source: Super Market News.com
  • Global Brands
    McDonald’s has 30,000 local restaurants serving 50 million people each day in 119 countries.
    Wal-Mart has 1.8 million associates in 6,500 stores in 15 countries serving 176 million customers each week.
  • Brands as Agents of Change
    “We live in a time when people are losing confidence in the ability of government to solve problems,” said Lee Scott. “But at Wal-Mart, we don’t see the sidelines that politicians see, and we do not wait for someone else to solve problems that might hurt our business or affect our customers in a negative way.”
    Lee Scott, January 23, 2008
    Source: Kansas City Star, January 23, 2008
  • Brands as Agents of Change
    “Our customers want products that make them feel good about their purchases,” he said. “They want to walk into our stores and be confident that the products on our shelves are safe and they are durable. They also want products that are made in a way that is consistent with their own personal values.”
    Lee Scott, January 23, 2008
    Source: Kansas City Star, January 23, 2008
  • 2009 Goals
    Business/NGO Partnerships
    “We thought we could sit in Bentonville, take care of customers, take care of associates – and the world would leave us alone. It doesn’t work that way anymore.”
  • The Future of Food Issues Management
    “There is a thin line between public, private and NGO management of the food system. Consolidation creates huge opportunity but also huge responsibility. We need to create managers where and how the public, private and NGO communities work together to manage the food system.”
    - Goldberg at IAMA Conference June, 2010
    Ray Goldberg – Founded the agribusiness program at Harvard, authored, co-authored and or edited 23 books and over 110 articles on positioning firms and institutions in the global value added food system, has served on over 40 Boards of Directors of major agribusiness firms, farm cooperatives, and technology firms.
  • Times Have Changed
    “It is not the strongest species that survive, nor the most intelligent, but the ones who are most responsive to change.”
    - Charles Darwin
  • Summary
    • We have to give customers, policy makers, community leaders and consumers “permission to believe” that today’s agriculture is consistent with their values and expectations.
    • Failure will result in revocation of our social license and freedom to operate.
    • Environment
    • Animal health
    • Production/processing practices
    • We have to build and communicate an ethical foundation for our activity and engage in value based communication if we want to build the trust that protects our freedom to operate.
  • Protecting Your ReputationHow the Rules Have Changed
    Re-defining Agriculture to Build Consumer Trust
    Charlie Arnot
    Charlie.Arnot@CMABuildsTrust.com