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

    1. 1. Protecting Your ReputationHow the Rules Have Changed<br />Re-defining Agriculture to Build Consumer Trust<br />Charlie Arnot<br />
    2. 2. Freedom to Operate<br />Earning and Maintaining the Social License (Sapp/CMA)<br />Freedom to Operate<br />
    3. 3. Social License<br />
    4. 4. Social License<br />Definition: The privilege of operating with minimal formalized restrictions (legislation, regulation, or market requirements) based on maintaining public trust by doing what’s right.<br />Public Trust: A belief that activities are consistent with social expectations and the values of the community and other stakeholders.<br />
    5. 5. The Social License To Operate<br />Flexible Responsive Lower Cost<br />Rigid Bureaucratic Higher Cost<br />Social License<br /><ul><li>Ethics
    6. 6. Values
    7. 7. Expectations
    8. 8. Self regulation</li></ul>Social Control<br /><ul><li> Regulation
    9. 9. Legislation
    10. 10. Litigation
    11. 11. Compliance</li></ul>Tipping <br />Point<br />Single triggering event Cumulative impact<br />
    12. 12. Earning and Maintaining the Social License (Sapp/CMA)<br />Social License<br />Freedom to Operate<br />
    13. 13. Trust<br />Earning and Maintaining the Social License (Sapp/CMA)<br />Trust<br />Social License<br />Freedom to Operate<br />
    14. 14. Earning and Maintaining the Social License (Sapp/CMA)<br />Confidence<br />Trust<br />Value Similarity<br />Social License<br />Competence<br />Freedom to Operate<br />Influential Others<br />Trust research was published in December, 2009 – Journal of Rural Sociology<br />
    15. 15. What drives Consumer Trust?<br />Skills<br />Shared Values<br />Shared values are 3-5X more important in building trust than demonstrating competence<br />Trust research was published in December, 2009 – Journal of Rural Sociology<br />
    16. 16. What Does It Mean?<br />“They don’t care how much you know until they know how much you care!”<br />- Theodore Roosevelt<br />
    17. 17. Questions of Values and Ethics Kohlberg’s Moral Hierarchy<br />Three Levels – Six Stages<br />Pre- Conventional<br /><ul><li>Direct impact on me</li></ul>Conventional<br /><ul><li>Societal expectations</li></ul>Post-Conventional<br /><ul><li>Principle driven</li></ul>Lawrence Kohlberg, 1927 - 1987<br />
    18. 18. Questions of Values and Ethics Kohlberg’s Moral Hierarchy<br />Universal ethical principle orientation<br />We have an ethical obligation to our employees, our animals, the environment, our customers and our communities<br />Post Conventional Principle driven<br />Social contract orientation<br />The “law & order” orientation<br />We comply with all environmental and employment laws and regulations<br />Conventional Societal expectations<br />The “good boy / nice girl” orientation<br />Personal rewards orientation<br />We take care of our land and animals because that’s when we get the best ROI<br />Pre-Conventional Direct impact on me<br />Punishment-Obedience<br />
    19. 19. Questions of Values and Ethics Kohlberg’s Moral Hierarchy<br />Universal ethical principle orientation<br />NGO’s<br />Post Conventional Principle driven<br />Social contract orientation<br />The “law & order” orientation<br />Conventional Societal expectations<br />The “good boy / nice girl” orientation<br />Personal rewards orientation<br />Business<br />Pre-Conventional Direct impact on me<br />Punishment-Obedience<br />
    20. 20. Sustainable Balance<br />Economically Viable<br /><ul><li> ROI
    21. 21. Demand
    22. 22. Cost Control
    23. 23. Productivity
    24. 24. Efficiency</li></ul>Profitability<br />Scientifically Verified<br /><ul><li> Data Driven
    25. 25. Repeatable
    26. 26. Measurable
    27. 27. Specific</li></ul>Objectivity<br />Scientifically Verified<br />Economically Viable<br />Sustainable Systems<br />Knowledge<br />Knowledge<br />Ethically Grounded<br />Ethically Grounded<br /><ul><li> Compassion
    28. 28. Responsibility
    29. 29. Respect
    30. 30. Fairness
    31. 31. Truth</li></ul>Value Similarity<br />Feelings<br />Belief<br />
    32. 32. Consumer Perception<br />The public senses change in the way food is produced but does not understand<br />Lack of understanding creates opportunity for activists and detractors<br />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<br />
    33. 33. Animal Welfare<br /><ul><li>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.
    34. 34. 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.
    35. 35. 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.</li></li></ul><li>Environment<br /><ul><li>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.
    36. 36. 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.
    37. 37. 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.</li></li></ul><li>2009 Consumer Trust Qualitative Research<br />Summary Slides<br />This information is wholly owned by CMA and licensed to CFI; Study was conducted by Gestalt Inc.<br />
    38. 38. Thank You to the 2009 Consumer Trust Research Sponsors<br />
    39. 39. CFI Annual Consumer Trust Survey<br />Qualitative research in 2009 study<br />“What will cause consumers to grant more social license?”<br />Eight consumer focus groups<br />April 2: Des Moines, IA<br />April 7: Syracuse, NY<br />April 8: Nashville, TN<br />April 13: Fresno, CA<br />
    40. 40. Two Observations<br /><ul><li>Uninterested and uninformed.
    41. 41. "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
    42. 42. “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
    43. 43. Trust farmers but aren’t sure contemporary production is still farming.
    44. 44. "Large producers are about the money and rushing production with antibiotics… Small farmers are concerned about their name…“ – Consuela, Nashville focus group
    45. 45. "There is a difference: a farmer grows and sells locally with ethics, whereas commercial producers are all about the paycheck.“ – Maria, Nashville focus group</li></li></ul><li>The Challenge<br /><ul><li>Building trust and confidence in the contemporary food system among a public that is largely uninterested and uninformed.
    46. 46. 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.
    47. 47. Voices questioning current food system practices are increasing in number, volume and impact.</li></li></ul><li>
    48. 48. Animal Rights Groups<br />Leveraging the gap between public perception and today’s farms<br />
    49. 49. Humane Society of United States – Channeling Passion<br /><ul><li>Well Funded – 2010 budget ~$130 million
    50. 50. Main stream messages – Not PETA
    51. 51. Confused with local animal shelters
    52. 52. New structure allows for more lobbying, more litigation
    53. 53. Pacelle’s goal – create a “National Rifle Association of the animal rights movement.”</li></ul>Wayne Pacelle, CEO HSUS<br />
    54. 54. Animal Rights Groups Pick Up Momentum<br />Post-hurricane New Orleans<br />forced to leave pets behind<br />Pet food recall after cats <br />and dogs were poisoned<br />Michael Vick’s dog fighting conviction<br />Hallmark-Westland video and record breaking re-call<br />
    55. 55. Mainstream Appeal<br /> “Having witnessed the suffering of factory-farmed animals, first-hand, has increased my resolve to make my life a living struggle for animal liberation.”<br /> “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?”<br />“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.”<br />Paul Shapiro, COK, 2002<br />Paul Shapiro, HSUS, 2007<br />
    56. 56. Mainstream Appeal<br /> “We're not telling people to become vegetarians – we're urging them to exhibit greater decency.”<br />Wayne Pacelle<br /> 11-28-08, Sacramento Bee<br />
    57. 57. Driving a Wedge<br />You are<br />here<br />Antagonists<br />are there<br />Antagonists<br />Reasonable<br />majority<br />is here<br />
    58. 58. Lawyers targeting pig, dairy farmsAttorneys seek justice for neighbors allegedly injured by large operations<br />BY SETH SLABAUGH • MUNCIE STAR PRESS • DECEMBER 26, 2009<br />Blogger Cirera57<br />“You do know what a CAFO is right? They are not farmers.”<br />
    59. 59. The Power of the Hidden Camera<br /><ul><li>Raises Profile of Welfare Issues
    60. 60. Treatment is Inconsistent with Values or Expectations of Consumers
    61. 61. Undermines Trust in Contemporary Animal Agriculture</li></li></ul><li>Undercover Video Investigations<br />Nov. 2007, Tyson Chicken Plant, Alabama<br />Nov. 2009, Bushway Veal Packing, Vermont<br />Nov. 2006, Wiles Hog Farm, Ohio<br />Feb. 2008, Hallmark/Westland Beef, Calif.<br />Sept. 2008, MowMar Hog Farm, Iowa<br />Nov. 2008, Aviagen Turkey Farm, West Va.<br />Nov. 2009, Hatfield Hog Farm, Pennsylvania<br />Jan. 2010, Willet Dairy, New York<br />Sept. 2009, Dietz Dairy Farm, Pennsylvania<br />May 2010, Conklin Dairy, Ohio<br />Sept. 2009, Hy-Line Hatchery, Iowa<br />
    62. 62. Undercover Video Investigations<br /><ul><li>Nov. 06 – Wiles Hog Farm, Ohio (HBO documentary)
    63. 63. Nov. 07 – Tyson Chicken Plant, Alabama
    64. 64. Feb. 08 – Hallmark/Westland Beef Packing
    65. 65. Sept. 08 – MowMar Hog Farm, Iowa (Hormel supplier)
    66. 66. Nov. 08 – Aviagen-owned turkey farm, West Virginia
    67. 67. Sept. 09 – Dietz Dairy Farm, Pennsylvania (Land O’ Lakes contractor)
    68. 68. Sept. 09 – Hy-Line International Hatchery in Iowa
    69. 69. Nov. 09 – Hatfield hog farm, Pennsylvania
    70. 70. Nov. 09 – Bushway Veal Packing Plant, Vermont
    71. 71. Jan. 10 – Willet Dairy, New York (ABC’s Nightline)
    72. 72. May. 10 – Conklin Dairy, Ohio</li></li></ul><li>Brands as Agents of Social Change<br />NGO’s have discovered that global brands can do what government cannot<br />
    73. 73. Regulation vs. Market Pressure<br /> “We attack the weakest link in the company’s value chain,” Kert Davies, Director of Research, Greenpeace<br />“We can dance with you or dance on you”<br />“Discovering brands was like discovering gunpowder.” -<br />
    74. 74. NGO’s Can Accomplish What Government Cannot<br />
    75. 75. NGO’s Can Accomplish What Government Cannot<br />
    76. 76. NGO’s Can Accomplish What Government Cannot<br />
    77. 77. NGO’s Can Accomplish What Government Cannot<br />
    78. 78. NGO’s Can Accomplish What Government Cannot<br />
    79. 79. Top Five US Retailers Now Sell More Than Half of All Food and the Top Ten Companies Sell More Than 75%<br />Number Corporate/ Franchise Stores<br />Sales In$Billions<br />Company<br />Ranking<br />Source: Super Market<br />
    80. 80. Global Brands<br />McDonald’s has 30,000 local restaurants serving 50 million people each day in 119 countries.<br />Wal-Mart has 1.8 million associates in 6,500 stores in 15 countries serving 176 million customers each week.<br />
    81. 81. Brands as Agents of Change<br />“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.”<br />Lee Scott, January 23, 2008<br />Source: Kansas City Star, January 23, 2008<br />
    82. 82. Brands as Agents of Change<br /> “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.”<br />Lee Scott, January 23, 2008<br />Source: Kansas City Star, January 23, 2008<br />
    83. 83. 2009 Goals<br />Business/NGO Partnerships<br />“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.”<br />
    84. 84. The Future of Food Issues Management<br />“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.” <br />- Goldberg at IAMA Conference June, 2010<br />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.<br />
    85. 85. Times Have Changed<br /> “It is not the strongest species that survive, nor the most intelligent, but the ones who are most responsive to change.”<br /> - Charles Darwin<br />
    86. 86. Summary<br /><ul><li>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.
    87. 87. Failure will result in revocation of our social license and freedom to operate.
    88. 88. Environment
    89. 89. Animal health
    90. 90. Production/processing practices
    91. 91. 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.</li></li></ul><li>Protecting Your ReputationHow the Rules Have Changed<br />Re-defining Agriculture to Build Consumer Trust<br />Charlie Arnot<br /><br />