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
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
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
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
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.
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
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.”
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.” -
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