{"id":8961,"date":"2020-02-26T15:14:27","date_gmt":"2020-02-26T14:14:27","guid":{"rendered":"https:\/\/avs-advisors.com\/?p=8961"},"modified":"2021-09-28T17:53:00","modified_gmt":"2021-09-28T15:53:00","slug":"benefitting-society-as-well-as-shareholders","status":"publish","type":"post","link":"https:\/\/avs-advisors.com\/fr\/benefitting-society-as-well-as-shareholders\/","title":{"rendered":"Benefitting society as well as shareholders"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-8vgb1o-6917258f33da21f07e60183664e54de0\">\n.flex_column.av-8vgb1o-6917258f33da21f07e60183664e54de0{\n-webkit-border-radius:0px 0px 0px 0px;\n-moz-border-radius:0px 0px 0px 0px;\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div class='flex_column av-8vgb1o-6917258f33da21f07e60183664e54de0 av_one_fifth  avia-builder-el-0  el_before_av_three_fifth  avia-builder-el-first  first flex_column_div av-zero-column-padding '     ><style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-k61yn6kg-26817296548a1d0cd4d05be2270ae0d5\">\n.avia-image-container.av-k61yn6kg-26817296548a1d0cd4d05be2270ae0d5 img.avia_image{\nbox-shadow:none;\n}\n.avia-image-container.av-k61yn6kg-26817296548a1d0cd4d05be2270ae0d5 .av-image-caption-overlay-center{\ncolor:#ffffff;\n}\n<\/style>\n<div  class='avia-image-container av-k61yn6kg-26817296548a1d0cd4d05be2270ae0d5 av-styling-circle avia-align-center  avia-builder-el-1  avia-builder-el-no-sibling '   itemprop=\"image\" itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/ImageObject\" ><div class=\"avia-image-container-inner\"><div class=\"avia-image-overlay-wrap\"><img decoding=\"async\" class='wp-image-5621 avia-img-lazy-loading-not-5621 avia_image ' src=\"https:\/\/avs-advisors.com\/wp-content\/uploads\/2016\/03\/Article_2_Benefitting-Society_150x150.png\" alt='' title=''  height=\"150\" width=\"150\"  itemprop=\"thumbnailUrl\" srcset=\"https:\/\/avs-advisors.com\/wp-content\/uploads\/2016\/03\/Article_2_Benefitting-Society_150x150.png 150w, https:\/\/avs-advisors.com\/wp-content\/uploads\/2016\/03\/Article_2_Benefitting-Society_150x150-80x80.png 80w, https:\/\/avs-advisors.com\/wp-content\/uploads\/2016\/03\/Article_2_Benefitting-Society_150x150-36x36.png 36w, https:\/\/avs-advisors.com\/wp-content\/uploads\/2016\/03\/Article_2_Benefitting-Society_150x150-120x120.png 120w\" sizes=\"(max-width: 150px) 100vw, 150px\" \/><\/div><\/div><\/div><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-7ldcto-9f1016c7c66bb4ad71a854dcaae0ea63\">\n.flex_column.av-7ldcto-9f1016c7c66bb4ad71a854dcaae0ea63{\n-webkit-border-radius:0px 0px 0px 0px;\n-moz-border-radius:0px 0px 0px 0px;\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div class='flex_column av-7ldcto-9f1016c7c66bb4ad71a854dcaae0ea63 av_three_fifth  avia-builder-el-2  el_after_av_one_fifth  el_before_av_one_fifth  flex_column_div av-zero-column-padding '     ><p>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_heading-3b7a87e7208554e85539756461924102\">\n#top .av-special-heading.av-av_heading-3b7a87e7208554e85539756461924102{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-av_heading-3b7a87e7208554e85539756461924102 .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-av_heading-3b7a87e7208554e85539756461924102 .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-av_heading-3b7a87e7208554e85539756461924102 av-special-heading-h1 blockquote modern-quote  avia-builder-el-3  el_before_av_heading  avia-builder-el-first '><h1 class='av-special-heading-tag'  itemprop=\"headline\"  >Benefitting society as well as shareholders<\/h1><div class='av-subheading av-subheading_below'><p>An interview with Lorna Davis, Chief Manifesto Catalyst at Danone<\/p>\n<\/div><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div><br \/>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_heading-c3a801278d759fa0ecf57ba05d92ef20\">\n#top .av-special-heading.av-av_heading-c3a801278d759fa0ecf57ba05d92ef20{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-av_heading-c3a801278d759fa0ecf57ba05d92ef20 .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-av_heading-c3a801278d759fa0ecf57ba05d92ef20 .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-av_heading-c3a801278d759fa0ecf57ba05d92ef20 av-special-heading-h5 blockquote modern-quote  avia-builder-el-4  el_after_av_heading  el_before_av_font_icon '><h5 class='av-special-heading-tag'  itemprop=\"headline\"  >by Andreas von Specht and Nick Harris<\/h5><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div><br \/>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-k61yt6pc-4b3d0b31c33d1ba5940ad0ea1382b06a\">\n.av_font_icon.av-k61yt6pc-4b3d0b31c33d1ba5940ad0ea1382b06a .av-icon-char{\nfont-size:40px;\nline-height:40px;\n}\n<\/style>\n<span  class='av_font_icon av-k61yt6pc-4b3d0b31c33d1ba5940ad0ea1382b06a avia_animate_when_visible av-icon-style- avia-icon-pos-left av-no-color avia-icon-animate'><span class='av-icon-char' aria-hidden='true' data-av_icon='\ue819' data-av_iconfont='entypo-fontello' ><\/span><\/span><br \/>\n<section  class='av_textblock_section av-k61ywyoh-aa80164a0bbcfe1a68ac25d8daf20471'  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock'  itemprop=\"text\" ><p><strong>AvS: Danone has entered into an agreement with B Lab, the organisation that accredits B Corporations, or Benefit Corporations. What does the concept of the \u2018Benefit Corporation\u2019 mean for Danone as a global FMCG company?<\/strong><\/p>\n<p>Lorna Davis: It\u2019s about finding a credible mechanism for transforming a global business that is a marriage of purpose and profit. So B Corporation status would be \u2013 if you like my simple language \u2013 the \u2018Fair Trade of Business\u2019; somebody could look at a company and with a relatively easy grasp say that is a \u2018good business\u2019. It needs to be externally motivated and externally credited, with both a legal and a community purpose.<\/p>\n<p><strong>AvS: Why is this so important?<\/strong><\/p>\n<p>Lorna Davis: B Lab, the non-profit organisation who initiated this idea in 2006, started off from the \u201ctry-to-change-the-world\u201d perspective. And if you look at the 220 questions in the \u2018B Impact\u2019 questionnaire that gets you accredited, they tend to be very small company focused. So, for example, you get a lot of points for local sourcing. However, when you are a big company, often you are globally sourcing and that has all sorts of benefits. Take Evian water. The carbon footprint of a bottle getting from Evian to Shanghai on a train and a ship is smaller than the carbon footprint of driving it in a truck to Brussels. We don\u2019t think that global vs. local is necessarily the only question. So what became clear to us is that B Corporation thinking is very interesting but to get this movement to build scale you are going to need big companies to get on board. And ultimately, consumers will say: \u201cI want to buy from companies that are doing good as well as making money.\u201d<\/p>\n<p><strong>AvS: For Danone, this is the continuation of a long journey?<\/strong><\/p>\n<p>Lorna Davis: Indeed, yes. We have always been purpose driven in some ways. In 1917, when Daniel Carasso started this business, yoghurt was seen as very good for your stomach and was sold in pharmacies. Then Antoine Riboud took that on, saying publicly in 1972 that the responsibility of a company does not end at the factory gate, and launching what he called the \u2018Double Project\u2019. Frank Riboud took it to another level again in the 90\u2019s, by creating the mission \u201cto bring health through food to as many people as possible\u201d. The organisation then sold off bits of the business that were not consistent with that and bought into more healthy products, like Numico infant nutrition. In the early 2000\u00b4s we started a system, a mechanism in the company called the \u201cDanone Way\u201d: a training, accreditation and auditing system inside the company to ensure our people around the world are doing their job in an ethical way. In 2006, we launched \u2018Danone Communities\u2019, creating a partnership with Muhammad Yunus in Bangladesh, to launch nine social businesses designed to change the world, each in its own little way. Its only purpose is to make social change, not to make money. Then in 2009, we created an \u2018Ecosysteme\u2019 Fund which received a hundred million dollars from the shareholders, and we said to all of the people in the Danone business, we want you to create meaningful projects that are good for the world in your local environment.<\/p>\n<p><strong>AvS: If you look into the future, transforming the core of the Danone business \u2013 what\u2019s your sense of how costly this will be, how difficult, and how long it might take?<\/strong><\/p>\n<p>Lorna Davis: The answer to the question is: I don\u2019t know. The question implies that this is an either-or-game, which it in fact has been in the past.<\/p>\n<p><strong>AvS: Is it still an either-or game today or is it possible to do both?<\/strong><\/p>\n<p>Lorna Davis: We think ultimately that there is no trade-off. But the question is time. How does that work in a week, a quarter, a month, a year, a cycle? And that\u2019s where you need maturity, you need an understanding of nuances, and where we think you see a magical combination happening. For example, in Romania, our country GM partnered together with a local NGO and with the Red Cross, to promote natural birth and breast feeding. The Romanian founder of the NGO learned a huge amount from our business people about how to get things done, and our GM learned about how to make a real difference in the community. There are many people in communities who are trying to do real good, and then there are people in business who are really good at achieving results. And so if you put together the desire to do good and add that to the ability to really get stuff done, you get this magical combination. 15 or 20 years ago, people would speak about it but then they wouldn\u2019t deliver it. But as the issues of the world get bigger and bigger, as people realise that the system is not sustainable, as people realise that there is a better way, they say: \u201cactually, I am going to put my money on what I believe in.\u201d<\/p>\n<p><strong>AvS: Does this resonate more with young audiences only, or is it not that clear cut?<\/strong><\/p>\n<p>Lorna Davis: Good question! It is complicated. For young people it is, in a way, not even news. Like that\u2019s the way the world is. But what I notice is that we are all complicated. People have this interesting internal dynamic around their desire for money, power, and success. Particularly people who have young families and are early on in their careers. They have this internal tension around making a difference versus climbing the ladder, irrespective of whether the ladder is against the right wall. We haven\u2019t really seen a pattern yet except to say there is a bunch of younger people that are very clear, they are in. There is a bunch of people on the sides, for example the people who work in Ecosystemes or Danone Communities, who are clearly in and who are willing to trade off more material ambitions. And then it gets more complex.<\/p>\n<p><strong>AvS: What kind of resistance do you encounter and how do you deal with that?<\/strong><\/p>\n<p>Lorna Davis: I love the concept that there are only two realities in life, either love or fear. And by definition, if somebody is coming at you with anything that isn\u2019t love, it is fear. So the question is: what are they afraid of? And so resistance is just fear. And it\u2019s understandable \u2013 we are all terrified; if we weren\u2019t terrified we wouldn\u2019t be awake! Life can be scary. So empathy is really important. I never met anyone who was purely nasty; people are just frightened. Empathy is therefore important to overcome initial resistance. Credibility is also important; if you don\u2019t know what you are talking about, then why should anybody listen to you? And then you have to have logic. If you think that someone\u2019s rationale doesn\u2019t make any sense, no matter how much empathy they show or how much structural power they have, people aren\u2019t going to listen. So a combination of empathy, credibility and logic is needed. But the biggest chunk of it, in terrifying times like these, is empathy, because people are afraid.<\/p>\n<p><strong>AvS: If you think about the challenges you are facing, what keeps you awake at night?<\/strong><\/p>\n<p>Lorna Davis: It\u2019s the balance between disruption and stability. Big corporations are generally structured around a manufacturing process; they are designed to organise, to create discipline in activities, to allocate tasks in a chain. Effectively what we are trying to do now is move from this \u2018mechanical\u2019 system to an \u2018organic\u2019 system where we operate more intuitively and are much more porous to the outside world, much more connected with NGO\u2019s, governments and communities. As you are moving from one system to another, you need to disrupt the first system enough so that people understand the old rules don\u2019t exist anymore. But at the same time replace that mechanism with another system, one that is more fluid, more natural, and more organic. That is not easy to do in real time.<\/p>\n<p><strong>AvS: Are employees getting actively involved?<\/strong><\/p>\n<p>Lorna Davis: When we launched the Danone B Corp manifesto, we asked employees: \u201cif we would live this manifesto, what would that look like?\u201d And we offered a prize for the top 21 ideas. Unbelievable ideas came in, mostly from the younger people in the company. One recent idea was to run a \u2018Manifestival\u2019, an open air festival where you combine a mixture of music, messages from inspiring young people who are trying to change the world, and demonstrations of socially valuable projects. The idea is brilliant. But then the question is: \u201chow are we going to find a way to bring that idea to reality?\u201d We will need to take resources from somewhere in the organisation, find the money, put a team together. And that is just one example. There are hundreds of ideas being generated and each one is an opportunity to learn a new way of communicating, to live a passion.<\/p>\n<p><strong>AvS: How do you try to prioritise from all the ideas coming in \u2013 do you have a matrix or do you go on intuition?<\/strong><\/p>\n<p>Lorna Davis: It\u2019s a combination. First of all, it is good crowd sourcing technology, so if a lot of people think it\u2019s a good idea, than probably it is a good idea. For example, one of the biggest ideas is that every \u2018Danoner\u2019 should be an ambassador for every division of the company. At the moment, we might have someone in the Water division whose sister is pregnant but he doesn\u2019t know anything about babies, even though Danone has a whole Infant Nutrition division. So the question is how do employees access the available knowledge? How do we get every single one of the 104,000 Danoners into a position where they know what they need to know about the rest of the company, and are able to access expertise and resources to make meaningful contributions outside the group? It is a big idea; it is complicated but the prize is significant. We are going after those ideas because there you\u2019ve got leverage. It is like a matrix: size-of-prize \/ degree-of-difficulty. There are some ideas out there which are big and difficult. Equally, there are some ideas that are smaller scale but still important which I\u2019m encouraging at a local level. One young employee came up with the fantastic idea for a recycled container that uses solar energy to clean water, for example in Africa. His idea is being funded by his boss directly. He is working on prototypes, and then hopefully we can scale it up.<\/p>\n<p><strong>AvS: If a general manager were to come up with a brilliant business idea in the sense of being commercially profitable, but which ran contrary to where the company is trying to go in terms of ethics, what would happen then?<\/strong><\/p>\n<p>Lorna Davis: It is a great question; it is one of the reasons we are so interested in the external community. We are not a very authoritarian company and we are much more interested in raising the internal awareness of our people. But when one makes a commitment to the outside world you then have to think very carefully before you break it. So I think that the external connections are coming now full circle to B Corp. When you are part of a community that wants to make a difference in the world and you have decided that you are going to do something for the greater good \u2013 let us assume that you are going to change to a new kind of ethically sourced packaging. But the costs of that packaging goes up and you could easily go back to a non-ethically sourced packaging that is cheaper, and maybe nobody would notice. But if you are part of the community, you are going to think about these questions differently.<\/p>\n<p><strong>AvS: Lorna Davis, thank you very much for your insights!<\/strong><\/p>\n<\/div><\/section><br \/>\n<div  class='avia-buttonrow-wrap av-k61ze9w6-f76018f3fb98b17a0aff0b6ac95eb808 avia-buttonrow-right  avia-builder-el-7  el_after_av_textblock  avia-builder-el-last '>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_buttonrow_item-c34955ef1ccc827aa69cf05a0f31dfe6\">\n#top #wrap_all .avia-button.av-av_buttonrow_item-c34955ef1ccc827aa69cf05a0f31dfe6{\nmargin-bottom:10px;\nmargin-left:10px;\n}\n<\/style>\n<a href='https:\/\/avs-advisors.com\/fr\/trustedadvisor'  class='avia-button av-av_buttonrow_item-c34955ef1ccc827aa69cf05a0f31dfe6 avia-icon_select-yes-left-icon avia-size-small avia-color-theme-color'  ><span class='avia_button_icon avia_button_icon_left ' aria-hidden='true' data-av_icon='\ue830' data-av_iconfont='entypo-fontello'><\/span><span class='avia_iconbox_title' >back<\/span><\/a>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_buttonrow_item-9a695073084f03f17b831cb5fbbb005e\">\n#top #wrap_all .avia-button.av-av_buttonrow_item-9a695073084f03f17b831cb5fbbb005e{\nmargin-bottom:10px;\nmargin-left:10px;\n}\n<\/style>\n<a href='https:\/\/avs-advisors.com\/wp-content\/uploads\/2020\/03\/TTA_2016_01_Benefitting-society_EN.pdf' class='avia-button av-av_buttonrow_item-9a695073084f03f17b831cb5fbbb005e avia-icon_select-yes-left-icon avia-size-small avia-color-theme-color' target=\"_blank\" rel=\"noopener noreferrer\"><span class='avia_button_icon avia_button_icon_left ' aria-hidden='true' data-av_icon='\ue82d' data-av_iconfont='entypo-fontello'><\/span><span class='avia_iconbox_title' >Download PDF<\/span><\/a>\n<\/div><\/p><\/div>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-2a6n1o-6aeba8d515cc66995d2ad0cbef497f1c\">\n.flex_column.av-2a6n1o-6aeba8d515cc66995d2ad0cbef497f1c{\n-webkit-border-radius:0px 0px 0px 0px;\n-moz-border-radius:0px 0px 0px 0px;\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div class='flex_column av-2a6n1o-6aeba8d515cc66995d2ad0cbef497f1c av_one_fifth  avia-builder-el-8  el_after_av_three_fifth  avia-builder-el-last  flex_column_div av-zero-column-padding '     ><\/div><\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":5,"featured_media":5622,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[53],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.6 - 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