A review of Ben & Jerry’s social responsibility performance for 2001 begins with the observation that 2001 was Ben & Jerry’s first full year as a Unilever company. If 2000 was a year of dramatic change, following the Unilever acquisition, 2001 was in many ways a transition year. A new management team joined the company, and for everyone involved, it was a year of becoming familiar not only with new faces but new routines. For Unilever executives used to a more buttoned- down environment, Ben & Jerry’s undoubtedly was an introduction to a more unconventional business culture than many had experienced before. And for longtime employees, many uneasy that they might become just another Unilever brand, the more structured approach to business was new.

Just as 2001 was a year for transition for the business, so it was in the company’s approach to its social mission. The company’s CEO has taken the role as chief social mission officer of the company, affirming Ben & Jerry’s continued commitment to its three-part mission. Company wide social mission objectives for 2002 are fewer but more comprehensive, individuals’ social mission objectives are clearer, new social measurement metrics are evident, and many employees appear to have a stronger sense of ownership of social mission objectives.

The results of this more disciplined approach to the social mission had little impact in 2001-the impact can best be measured in 2002 and in years to come. But a review of 2001 provides no basis for concerns expressed at the time of Unilever’s acquisition that Ben & Jerry’s might abandon its social mission. While there were few dramatic developments, the Ben & Jerry’s record in 2001 was marked by maintenance of the status quo on a number of fronts and measurable progress on others.

Ben & Jerry’s maintained its generous benefit programs for employees in 2001, actually increasing per capita spending by 6 percent, and it continued to adhere to its established livable wage policy. The top-bottom compensation ratio remained virtually unchanged from the previous two years. The company decided to discontinue its profit-sharing plan following payments in 2001 but will establish new incentive plans in lieu of profit sharing in 2002.

Relations with the union representing a small number of employees at the St. Alban’s facility were stable. There was a slight downshift movement in gender equity regarding pay. The percentage of minorities in the workforce dropped slightly from the previous year. Given Vermont’s overwhelmingly white population, recruiting and keeping minority employees remains a challenge. There may be more impactful ways-including supplier relationships, franchise and Partnershop relationships-for Ben & Jerry’s to pursue its commitment to diversity in regard to people of color.

The dollar amount the company spent with diverse suppliers increased by 20 percent in 2001, compared to 2000. This represented 6.8 percent of total spending, compared with 4.5 percent the previous year. Spending on socially aligned vendors in 2001 totaled $61.2 million, an 11 percent increase from the previous year.

A significant part of the increase was the result of full rollout of unbleached, dioxin-free paper now used on all pint containers. Ben & Jerry’s pioneered the development of these containers, and it remains today the only frozen desert company in the United States to use dioxin-free containers.

Relationships with longtime socially aligned vendors, most especially the St. Albans Coop and Greyston Bakery, remained stable and intact in 2001.

Ben & Jerry’s safety record continued to improve in 2001. The number of lost-time cases and lost-time days fell for the fourth consecutive year, and the company’s overall accident rate is now below the industry average for the first time. This impressive performance is the result of a highly professional safety program, visible executive commitment to safety, and a strong emphasis on safety at the plant level.

The company also turned in a good year on the environment. It continued to make progress in reducing use of water, in the discharge of wastewater and in conserving energy. The major negative involved an increase in solid waste as a result of having to purchase packaged ingredients in 2001 that previously were delivered in reusable totes. Ben & Jerry’s is working with the manufacturer of the totes to solve quality problems that forced the switch; if the quality problems are solved, tote usage may be resumed in 2002.

Ben & Jerry’s continued to support the Vermont Dairy Farm Sustainability Project in 2001. The project seeks to measure dairy farming’s impact on water quality and to identify cost-effective ways to reduce adverse impacts on water quality associated with dairy farming’s use of nitrogen and other nutrients.

The number of Partnershops remained unchanged, at 12, in 2001, with two new shops opening and two closing. The company may have developed some new insights into Partnershop management in 2001. After many years of frustration, for Ben & Jerry’s and among nonprofit partners, the Partnershop focus shifted in 2001 to working with more established nonprofits that specialize in job training for young adults.

Despite the addition of more staff resources to support PartnerShop initiatives, it remains unclear whether the model of working with nonprofits to provide entry-level job training can be replicated on a large enough scale to make PartnerShops more than a symbolic undertaking.

Ben & Jerry’s continued its commitment to rBGH-free products, and, as mentioned previously, it remains the only U.S. frozen desert company to pack its products in dioxin-free, unbleached containers, known as Eco-Pints. And after years of on-again, off-again efforts, Ben & Jerry’s decided in 2001 that it would include tamper-evident seals on all pint products. At this writing, tamper-evident packaging is in production. Finally!

Most tamper-evident seals are made of PVC-polyvhynilchloride-which contains dioxins. Ben & Jerry’s uses PETG- polyethylene terephthalate glycol--a dioxin-free, recyclable product.

Also in 2001, Ben & Jerry’s developed its new global warming campaign. Introduced publicly in 2002, the campaign is designed to educate consumers, change personal habits, and alter public policy in support of the goal of reducing carbon dioxide emissions and slowing the impacts of global warming. Featuring a nationwide concert tour by the Dave Matthews Band, the campaign is being supported by major environmental organizations, including the National Audubon Society, the National Wildlife Federation, Greenpeace, the Union of Concerned Scientists and the World Wildlife Fund.

There was little or no change in social mission initiatives outside North America in 2001, as Ben & Jerry’s worked to improve the performance of its businesses in Europe and Asia. (In early 2002, the company decided to exit Japan altogether.) The one bright spot abroad remains the United Kingdom, where the company has successfully marketed its products and also supported its social mission.

The Ben & Jerry’s Foundation continues to lead the company’s philanthropic actions. Under the terms of Unilever’s acquisition of the company the Foundation will receive a minimum $1.1 million annual contribution over a ten-year period. The annual contribution is adjusted upward each year based on sales growth--the 2001 contribution was $1.2 million. The Foundation also received a special one-time $5 million Unilever contribution under the terms of the acquisition agreement. The Foundation is completely independent and is chaired by company co-founder Jerry Greenfield.

As in the past, in 2001 the Foundation made grants to numerous grassroots community organizations. It also made grants to several organizations that have been highly critical of global business practices of large multinational corporations.

Also, as in years past, locally based community action teams provided a focal point for employees community action in 2001.

       
Conclusion

One important conclusion to draw from a review of social mission activities for 2001 is that the company remains committed to its social mission. To be sure, Unilever has brought more structure, more reporting and more internal compliance procedures to the company’s operations. This has created some frustration for employees used to a more unstructured work environment. But Unilever has also introduced a more disciplined approach to business that potentially can have a very positive impact not only on company operations but on achievement of social mission objectives.

One example of this approach involves the establishment of company wide goals that include two very broad social mission programs for 2002: combating global warming and publicizing abuses of West African children who are conscripted into production of cocoa. The company’s senior management, including the CEO, is visibly involved in these initiatives. Their importance has been communicated throughout the company, and specific timelines and objectives against which Ben & Jerry’s will measure its progress have been established. Another example: each employee is now required to develop a personal development program, or PDP. As part of developing a PDP, each individual is being asked to consider how he or she can contribute to the social mission and to develop a personal goal regarding the social mission.

There is definitely an irony to a counterculture company such as Ben & Jerry’s being acquired by a global behemoth such as Unilever, and many members of the Ben & Jerry’s family are acutely aware of the irony. But fears that Ben & Jerry’s would abandon its commitment to caring capitalism have so far proved unfounded.

James E. Heard

May 2002