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Whole foods csr plan 2013


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Whole foods csr plan 2013

  1. 1. Whole Foods Corporate Social Responsibility Plan August 2013 Tobey Strauch SNHU MBA Program
  2. 2. Executive Summary Whole Foods industries current corporate social responsibility (CSR) program relates to the way Whole Foods does business. The three most important areas that Whole Foods focus's on is:  Supplier relations  Stakeholder involvement  Community impact This embodies the three spheres of society: economic, political, and civil. Because Whole Foods cares about their stake holders and wants to continue to excel in their CSR program, they have decided to analyze how to enhance their current program and reevaluate goals for the future. Introduction: Whole Foods has a broad mission statement and many corporate values. To start, their motto is: Whole Food, Whole People, Whole Planet. They believe in quality products and in valuing their people and the environment. From there, the vision gets complicated: they claim interdependence and then they have the following vision goals: 1. We sell the highest quality natural and organic products available. 2. We satisfy, delight and nourish our customers. 3. We support our team members excellence and happiness. 4. We create wealth through profits and growth. 5. We serve and support our local and global communities. 6. We practice and advance environmental stewardship. 7. We create ongoing win-win partnerships with our suppliers. 8. We promote the health of our stakeholders through healthy eating education. Current Programs: Supply Chain Programs:  Whole Trade Programs  Fair Trade agreements  Fair wages
  3. 3.  Quality produce  Animal welfare  Global Animal Partnership  Refusal to sell cloned meat  Only sell palm oil products produced in environments that do not destroy rain forests.  Member of Marine Stewardship Counsel  Whole Foods will not sell products that destroy the sea Environmental Welfare:  Recyclable/reusable bags  Wind energy credits for every unit of energy used  Solar energy supporting stores in some regions  Public compost programs  Building new stoors with recycled MDF wood products  Certifying Green buildings based on LEED standards  Conserve water by using flush less urinals  Use green cleaning supplies  Set up printing standards to decrease paper waste  Use bio diesel  Initiated 5% day donations by allowing 5% of people and resources to go and clean up rivers or landfills, etc.  Only sell palm oil products produced in environments that do not destroy rain forests.  Member of Marine Stewardship Counsel  Whole Foods will not sell products that destroy the sea Food Education:  Whole Foods educates there customers on food while they are in the store.  Whole Kids Foundation gives money to schools for salad bars and food education.  6000 salad bars will be in place across the nation as of 2013. Local Giving:  Whole Foods has small business loans for new farmers.  Whole Foods gives to small food banks.  Whole Foods encourages local involvement in community service.  Whole Planet Foundation contributes to environmental needs.  Whole Kids Foundation contributes to children needs. Current Stakeholder Relations:  John Mackey is the CEO of Wholefoods and has written a book about "conscious capitalism" which is a new way of doing business.  Whole Foods is currently traded at $52.88.  It started at $1.32 in 1992. CSR Score: Whole Foods does not have a high CSR rating according to They are only 6 points above average for their overall score. In contrast, Publix has a 50. Thus, Whole Foods rates higher than other grocery stores or similar stores to Whole Foods. Se the tables below.
  4. 4. Historical ratings for Whole Foods since 2008. Whole Foods has continued to improve in their CSR rating but there is a long way to go.
  5. 5. Economic Status: Economically, Whole Foods is very stable and has a bright future. They have good ratings from Morning Star and other investment companies.  Employee relations  Anti-union  Poor working conditions  Typical low retail wages  CEO makes 82 times lowest salary with stock options  Corporate culture  Profit is the bottom line  Investor relations  Shareholders are not encouraged to speak at the annual meeting  The Mackey way is it or the highway.  Suppliers  Suppliers have to meet standards but like Walmart and other companies, inspections are posted and sometimes meat is shipped else where and still labeled local (§) Future plans on the economic side for Whole Foods will be planned at an executive level, outside of the CSR responsibility. However, the CSR director will push to increase the Whole Foods reputation in the media by following through with nutrition education values, and encouraging better wages for employees showing loyalty to Whole Foods. Wages will be supplemented with a quarterly bonus based on regional performance. This will be distributed in percentages down to the floor workers. Supply chain inspections will be changed to unannounced and suppliers will have to follow through to show that they are meeting standards. It is not Whole Foods intent to have a reputation like Walmart or McDonald s in the way that it treats its employees. Implementing a living wage policy will be difficult but it should offset the cost of covering for the turn over. Political Status: Whole Foods has a reputation of not adhering to the vison values that they profess.  Regulatory structures
  6. 6.  Whole Foods meets most regulatory structures or exceeds them. However, they are known for observing the competition and then buying them out quite aggressively. An example is Wild Oats.  Adherence to government regulations  Whole Foods has been weak in mandating that the label of the food is accurately portraying the origination and ingredients of their food products.  Relations to government entities  Whole Foods has been caught selling non organics labeled as organics and has had to reestablish relations with the USDA via suppliers. Whole Foods has to maintain the public relationship that they are selling what they say they are. This means adhering to USDA regulations and maintaining ingredients labeling and organic stickers so that they are accurate and that the US consumer is not misled. Putting food on the shelf without proper labeling will not be tolerated. Whole Foods will also make its purchasing procedures more transparent. Hostile take overs of competitors will no longer occur. If a competitor does not want to be bought out, Whole Foods will build in other areas and let the consumers decide. Civil Society Status: Whole Foods currently claims to support small farmers but they buy the majority of their products from conglomerate farmers. They also do not support boycotts of the United Farm Worker activists when they speak out against contaminated, or genetically altered food. Whole Foods has also spoken out against universal health care via CEO Mackey. Whole Foods has little political affiliation. Whole Foods also does not associate with non- governmental organizations (NGOs) with the exception of some fair trade agreement organizations, and the Global Animal Partnership. Their contributions are in the communities that the stores are in which are more higher income communities. Customers come from a higher pay bracket. They also do not always adhere to purchasing sea safe fish policies or to purchasing fish that are harvested on turtle safe boats all of the time. Their website sites that they strive to achieve their goals, but do not guarantee it.
  7. 7. If Whole Foods wishes to maintain their social presence, then they need to make direct affiliations to Fair Trade Organizations and they need to get involved in Food Safety NGOs. Whole Foods will make a commitment to the "New Alliance for Food Security and Nutrition". Whole Foods will also reevaluate its Fairtrade affiliation and become more active in the organization. Whole Foods will prioritize buying locally and if a local producer cannot produce enough for demand, then Whole Foods will approach that producer and consider investments for expansion to support the local markets. Whole Foods will get involved in the White House initiative to provide children with more nutritional choices and they will figure out ways to market and provide services for lower income groups and work with programs like at Columbia University to fight against inner city hunger. Whole Foods is also interested in challenging people not to waste food in the US. Whole Foods is looking at teaming with the Society of St Andrew to fight food waste in America. Statistics show that 40 to 50 percent of the food harvested in America is wasted, or never sees the table. If Whole Foods can work with NGOs to find better solutions to get quality food to market, then perhaps there is ways to get better nutrition to inner city environments, with out undue costs to the consumer. Environmental Status: Whole Foods will continue to do what they can to alleviate adding power to the US grid and work with companies to maintain sustainable energy. They also will continue to reward consumers that choose to use recyclable bags for getting groceries by giving a percent off the bill for using recyclable bags. Whole Foods will also work with local suppliers to create reusable energy from store wastes. Whole Foods will continue to implement LEED standards including finding ways to cool and store food that is less expensive. Whole Foods will purchase hybrid tractors to pull supply trailers locally through cities for their store distributions. Long haul tractors will drop off at distribution centers centralized to regional store locations. This will decrease emissions and power use on a local scale. Conclusions: Whole Foods has a social responsibility to do what they say and say what they do. Currently there are some holes in the program that are unacceptable. As 2014 is upon us, the rest of 2013 will be used to stream line the corporate visions and to expand on the areas that are important. Instead of having eight, the
  8. 8. eight visions will be put into smaller categories. Simply put, Whole Foods will work to adhere more to the Whole Food, Whole People, Whole Planet ideas. Whole Food: 1. Encompass the quality products. 2. Sell natural products. 3. Accept only suppliers that are encompassing our fair trade, and food security policies. Whole People: 1. Be involved with fair trade agreements and become an international supporter of fair trade markets. 2. Truly support our local farmers and our local economies. 3. Strive to provide fair working wages for our people that serve our customers. 4. Reward innovation and efficiency because that increases our profits. 5. Reach to decrease turn over so that we can stay profitable. 6. Open stores in lower income neighborhoods to expand our mission of good nutrition. 7. Create wealth through profits and growth. Whole Planet: 1. Practice and advance environmental stewardship. 2. Reduce Whole Foods emissions foot print. 3. Reward shoppers and workers for being environmentally conscious. 4. Create store environments that are sustainable. If Whole Foods can streamline their mission and vision, then it will be clearer on how the actions can be maintained and people can be held accountable. Corporate wise, streamlining the CSR goals will allow the corporation to track successes and will increase the Whole Foods positive public image. When we are successful with streamlining our vision and tracking our successes, then profits will follow. Actually being involved in local needs will give us more long term support. Supporting the nutritional education of all people will also broaden the Whole Foods market. Admitting to our mistakes and making amends will increase our marketability and in the end, make us a better company. References: Ashoka, Forbes Magazine, "Conscious Capitalism: Q and A with Whole Foods CEO John Mackey", (2013) Retrieved from mackey-about-conscious-capitalism/ Corporate Social Responsibility Rating, (2013) retrieved from§
  9. 9. Declaration of interdependence. (2013). Retrieved from interdependence We create ongoing win-win partnerships with our suppliers. (2013). Retrieved from win-partnerships-our-suppliers Michael BlueJay, The Real Whole Foods, (2013) retrieved from§ Skousen, D. M. (2006). Interview with John Mackey: A whole foods "stakeholder" model for better business and bigger profits. InvestmentU, (608), Retrieved from Society of St Andrew (2013) retrieved from§
  10. 10. Declaration of interdependence. (2013). Retrieved from interdependence We create ongoing win-win partnerships with our suppliers. (2013). Retrieved from win-partnerships-our-suppliers Michael BlueJay, The Real Whole Foods, (2013) retrieved from§ Skousen, D. M. (2006). Interview with John Mackey: A whole foods "stakeholder" model for better business and bigger profits. InvestmentU, (608), Retrieved from Society of St Andrew (2013) retrieved from§