Expert answer:Please write corporate social responsibility
Solved by verified expert:(PLEASE WRITE 17 PAGES) Report Format A) Executive Summary of one page. B) Discuss the internal (or company and employee benefits) of CSR and sustainability initiatives. Use the Dannon case as an example to illustrate the value of CSR programs, and explain why it was NOT their priority to advertise their CSR activities. Explain how a CSR strategy needs to “fit” a firm’s management culture. C) Discuss the emerging opportunities in the evolving “green market.” Cite strategies and opportunities. As part of this, summarize the Clorox case and discuss how they successfully developed green brands. Cite the benefits of these efforts on marketing, branding, and reputation enhancement. D) Briefly summarize FOR dunkin donuts CSR report . Then critique that report. Explain how the firm defined their specific “responsibility” in the report and any shortcomings. Is the company doing enough? Is it effective and fully transparent in addressing all social responsibility concerns? What would you suggest that the company needs to do? Do not forget the benefits for both people and planet –sustainability is not just about money (or solely an instrumental benefit to the firm’s shareholders alone). CSR report for dunkin donuts : http://www.dunkinbrands.com/internal_redirect/cms.ipressroom.com.s3.amazonaws.com/226/files/20177/2016%20CSR%20Report.pdfPlease find the attachment files for Dannon case & Clorox case .
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For the exclusive use of A. Awad, 2017.
9-410-121
REV: SEPTEMBER 28, 2011
CHRISTOPHER MARQUIS
POOJA SHAH
AMANDA TOLLESON
BOBBI THOMASON
The Dannon Company: Marketing and Corporate
Social Responsibility (A)
At the beginning . . . I set the challenge of putting industry to work for people, reconciling business and
society at large. I am profoundly convinced that it is possible to be at once efficient and truly human. In
leading a business, we must use our hearts as well as our minds, remembering that while the earth’s sources of
energy are limited, those of truly motivated people are not.1
— Antoine Riboud, CEO of Danone (1972)
At the end of 2009, The Dannon Company (Dannon) was at a strategic crossroads. Sixty-seven
years after first entering the U.S. market, Dannon was poised to become the leader in America’s
domestic yogurt sector. As Michael Neuwirth, senior director of public relations, considered
strategies that would take the company to the next level, he wondered how Dannon’s long-standing,
deeply ingrained corporate social responsibility (CSR) efforts could play a role.
Dannon was a U.S. subsidiary of Danone, one of the largest health-focused food companies in the
world. Danone’s global business focused on fresh dairy (e.g., Activia yogurt), bottled water (e.g.,
Evian), medical nutrition, and baby nutrition. Dannon manufactured and marketed fresh dairy
products in the U.S. and was the No. 2 player in the domestic yogurt market in 2008. Interestingly,
Danone viewed the U.S. as an emerging market for yogurt, and therefore Dannon’s marketing efforts
had focused on growing U.S. yogurt consumption and expanding the category, while also growing
its brands.
Dannon, following in the footsteps of Danone, had maintained a strong commitment to CSR. CSR
was not a stand-alone focus area, but integrated into the company’s overall mission of “bringing
health through food to as many people as possible.” To date, the company’s CSR commitment and
programs had been very internally focused. For example, through its foundation, The Dannon
Institute, the company was active in research and education on healthy eating, but few consumers
were aware of such activities.
Yoplait, a portfolio brand of the U.S. food conglomerate General Mills and Dannon’s top
competitor, was well known for its annual “Save Lids to Save Lives” breast cancer awareness
campaign. With the strong connection between Dannon’s production of health and wellness foods
________________________________________________________________________________________________________________
Professor Christopher Marquis, Pooja Shah (MBA 2010), Amanda Tolleson (MBA 2010), and Research Associate Bobbi Thomason prepared this
case. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data,
or illustrations of effective or ineffective management.
Copyright © 2010, 2011 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-5457685, write Harvard Business School Publishing, Boston, MA 02163, or go to www.hbsp.harvard.edu/educators. This publication may not be
digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School.
This document is authorized for use only by Ayah Awad in 563: Sustainability & CSR taught by MJ Kay, Montclair State University from June 2017 to December 2017.
For the exclusive use of A. Awad, 2017.
410-121
The Dannon Company: Marketing and Corporate Social Responsibility (A)
and its commitment to health and nutrition-based CSR activities, Neuwirth saw an opportunity to
communicate these synergies to consumers and potentially enhance the company’s success. He
wondered, “Should Dannon start to proactively communicate to consumers about its CSR initiatives,
and if so, what benefits and risks would Dannon face?”
Before posing this question to the executive committee, Neuwirth decided to feel out the
perspectives of various stakeholders within the organization, including members of the marketing,
human resources, and corporate affairs departments. Some of the specific questions he planned to
ask these stakeholders were:
Should we communicate Dannon’s CSR activities?
What would be the best means to do so?
Should it be a corporate-level or brand-level campaign?
What would Danone think about this decision?
What would be the implications on Dannon’s current CSR initiatives?
What, if anything, would it require in terms of additional CSR programs?
Danone
Danone traced its heritage to Barcelona, Spain, in 1919, when Isaac Carasso wanted to create
yogurt with inherent health benefits. He introduced “Danone,”a an innovative yogurt product made
with pure lactic ferments he had obtained from Institut Pasteur in Paris, which helped treat intestinal
disorders and was initially prescribed by physicians. Ten years later his son, Daniel, founded
Danone in Paris, which leveraged its unique emphasis on health to differentiate itself from other
yogurt manufacturers. Upon his father’s death in 1939, Daniel Carasso became CEO and in
subsequent years Danone embarked on a rapid expansion plan in Europe through mergers with
Gervais, a leading French fresh cheese business, in 1967, and with Boussois-Souchon-Neuvesel (BSN),
a leading glass containers and beverages company, in 1973. In the 1980s and 1990s, the conglomerate,
renamed BSN, became one of the world’s largest food manufacturers with a presence in 30 countries.
In 1994, CEO Antoine Riboud began to lead BSN through a strategic reorientation, refocusing on
the company’s products with health and well-being benefits. As a first step, the company was
renamed Danone, after the name of the company’s best-known international brand. Riboud and later
his son, Franck (who became CEO in 1996), reorganized the company around four focus areas (dairy,
bottled water, baby nutrition, and medical nutrition) and as a result divested several profitable,
though noncore, businesses and acquired others.
In 1997, Danone made its debut on the New York Stock Exchange (NYSE). “We are not listing on
Wall Street simply for the U.S. market,” explained Chairman Riboud, but “just as much to consolidate
our position as leader,” particularly in dairy products and water.2 Danone was already quoted on the
Paris, Brussels, and Swiss Bourses and on the London Stock Exchange, but said it was now turning to
the NYSE in order to raise its international profile.3 In 2008, Danone posted net revenue of $21.2
billion and employed 80,143 people worldwide. Its dairy and medical nutrition businesses ranked
No. 1 worldwide, with bottled water and baby nutrition holding No. 2 positions.
a Danone, meaning “Little Daniel,” was named after Carasso’s son, Daniel.
2
This document is authorized for use only by Ayah Awad in 563: Sustainability & CSR taught by MJ Kay, Montclair State University from June 2017 to December 2017.
For the exclusive use of A. Awad, 2017.
The Dannon Company: Marketing and Corporate Social Responsibility (A)
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A Focus on Social Responsibility4
To bring health through food to as many people as possible.
— Danone Mission Statement
Danone historically took a holistic approach to social responsibility and, as the mission statement
indicated, social values were deeply embedded in the culture of the company and the business.
Antoine Riboud communicated his vision of Danone’s dual commitment to economic performance
and social responsibility in 1972 when he stated, “Corporate responsibility does not end at the factory
gate or at office doors. The jobs a business creates are central to the lives of employees, and the
energy and raw materials we consume change the shape of our planet.”
According to senior leadership, social responsibility was as fundamental to Danone’s purpose as
its economic performance. This was referred to as the “double project” (in French, le double projet),
and stipulated an equal respect for the social impacts and financial results of business decisions.
Employees, such as Tony Cicio, the vice president of human resources at Dannon, took pride in the
authenticity of Danone’s CSR activities, explaining that it’s “not done for the ‘wrong reasons,’ it’s
really done from the heart.” He described Danone’s approach as “humble” and “internal,” further
explaining that it “is not about ticking a box or proving something to the public; it’s engrained. The
reason the business developed in the first place. [It’s] not about looking good externally; it’s a part of
our culture.”
Danone’s social responsibility focused on three areas: “Nutrition and Health,” “People,” and
“Nature” (see Exhibit 1):
Nutrition and Health: At the center of the company’s CSR activities were the Danone
Institutes, the first of which was established in 1991 in three countries in Europe and in 1997 in
the U.S. as a nonprofit organization with the mission “to develop and disseminate scientific
knowledge on diet and nutrition to benefit public health” through a collaboration with
academics and scientists focused on nutrition research and health professionals. The institutes
focused their efforts around children’s nutrition education in ways that were pertinent to each
region. For example, program areas in the United States included promoting children’s
nutrition, especially preschool nutrition education, and fostering the success of tomorrow’s
leaders in the field of nutrition. As of 2010, there were 18 institutes worldwide (established by
local Danone companies) sponsoring over 800 research projects and 60 continuing education
programs for the general public, at a value of €16 million in financial support.5 For example, in
the United States, amidst the struggling economy of 2009, the Dannon Institute produced a
webinar on “Maintaining School Wellness during Tight Budget Times,” while in Indonesia,
the institute convened a meeting of experts on “Child Growth and Micronutrient
Deficiencies.” The network was continuing to grow, with the most recent establishment in
2008 of the Southern Cone Danone Institute, representing the countries of Argentina, Chile,
and Uruguay.
People: Danone established both internal and external programs. Internally, the company
focused on the development of employees through activities such as the “Danone Way,” a
management tool designed to enable managers to assess performance along multiple
dimensions (e.g., quality, ethics, management, environment), and the integration of social
goals in the remuneration of the company’s 1,500 directors and key managers. For example, at
Dannon US, 30% of employees’ variable compensation was tied to the company’s social and
environmental performance. Externally, Danone supported its consumers, its suppliers, and
the local communities in which it operated. For consumers, the company not only created
3
This document is authorized for use only by Ayah Awad in 563: Sustainability & CSR taught by MJ Kay, Montclair State University from June 2017 to December 2017.
For the exclusive use of A. Awad, 2017.
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The Dannon Company: Marketing and Corporate Social Responsibility (A)
nutritional education initiatives, but also updated the nutritional formulas of over 600
products to be healthier. Suppliers were expected to maintain the social principles of Danone,
in addition to ensuring product safety and promoting the economic development of local
producers. The company was also actively involved in local communities, committing an
additional €5–€6 million to sponsor local events and provide product donations and
emergency aid relief. Additionally, in 2005, Danone’s Volvic brand collaborated with
UNICEF to launch the “1 litre for 10 litres” initiative, which financed the digging of wells to
increase clean water access in Africa.
Nature: Danone took a firm stance on sustainability, with a target of achieving carbon
neutrality on five of its brands by 2011. Accordingly, in 2001 it instituted the “Sensible Plants”
program to reduce water consumption by 30%, energy consumption by 20%, and packaging
weight by 10%, and increase waste recycling to 80%; by 2008, all targets, with the exception of
water consumption (93% of target), had been achieved and surpassed. Further, between 2005
and 2008, the company spent €90 million on environmental investments, including tools to
measure carbon and water footprints. Danone also expected its suppliers to promote
environmentally friendly farming practices and planned on developing tools that integrate
sustainable development indicators into supplier evaluation and monitoring.
As a testament to its commitment to social responsibility, Danone was selected for the Dow Jones
Sustainability Index from 1998 to 2008, and for the INNOVEST classification of the world’s top 100
companies with high involvement in sustainable development from 2003 to 2008.
Danone Enters the U.S.
Danone originally entered the U.S. market in 1941, when Daniel Carasso immigrated to the United
States in search of a safe haven during World War II. In 1942 Carasso founded Dannon Milk
Products, Inc., in New York, changing the name from Danone to Dannon to make it sound more
“American.” At its inception, the company faced a major challenge, because the U.S. yogurt market
was practically non-existent—most Americans had never even tried yogurt, let alone purchased it.
As a result, Carasso was forced to think innovatively in order to garner interest among the skeptical
American consumer base. In 1947, Carasso achieved a major breakthrough with the introduction of
the “Fruit on the Bottom” yogurt product; its perfect balance of tartness and sweetness suited the
American palate and made it an instant success. In 1955, Dannon proved innovative once again,
introducing a low-fat yogurt that appealed to health enthusiasts.
Although the decades after World War II brought various structural and ownership changes,
including a period when the brand was owned by Beatrice Foods, in the 1980s Dannon once again
became an “official” part of Danone. By then, the company had grown to 17 product categories
(SKUs) and was poised for additional growth. The remainder of the 1980s and the 1990s were
characterized as periods of innovation for Dannon. In 1988, the company capitalized on the new
FDA approval of aspartame and launched “Dannon Light,” the company’s most successful product
launch until that point. Moreover, it developed many novel products targeted at the children’s sector
and the desserts sector, including premium frozen yogurt. After Danone’s strategic reorientation
around health began in 1994, innovation at Dannon changed as product development became
anchored on health benefits.
In addition to the Dannon business, Danone’s U.S. subsidiaries included Danone Waters of
America (Evian bottled water) and Stonyfield (organic yogurt).
4
This document is authorized for use only by Ayah Awad in 563: Sustainability & CSR taught by MJ Kay, Montclair State University from June 2017 to December 2017.
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The Dannon Company: Marketing and Corporate Social Responsibility (A)
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Dannon’s Relationship with Danone
Dannon was a wholly owned subsidiary of Danone. At Danone, local decision making was
encouraged and trusted. Local executives were completely responsible for the profit and losses of the
country-based business units (CBUs). While the scientific formulas for many products were created at
the global headquarters, specific taste profiles were typically adapted to a local environment. Dannon
had a fiduciary responsibility to its parent and was accountable for a set of deliverables and data for
reporting purposes. For example, Dannon was obligated to meet annual targets for profitability,
operating free cash flow, manufacturing safety, and environmental sustainability.
Danone also worked to train its leaders and communicate the broader company values.
Programs, such as Danone Way, a leadership training program, ensured cultural cohesion and
outlined the practices through which Danone operated. The company values were referred to with
the acronym HOPE: humanism, openness, proximity, and enthusiasm. “Humanism” embodied being
people oriented and was linked to the mission of health through food. “Openness” addressed the
goal of an open global culture. For example, CEOs and senior management regularly transferred
among Danone subsidiaries in different countries, which created exciting opportunities and growth
platforms for individuals and the firm as a whole. “Proximity,” with its Latin root for being close,
emphasized the need for local subsidiaries to meet their financial commitments to the parent
company. As Cicio said, “Our responsibility to our parent company is to live the values and deliver
financial return.” Finally, “enthusiasm” was the result of the preceding three values that enabled
exciting opportunities for individuals and the company.
Gustavo Valle, the CEO of Dannon in 2009, exemplified the value of “openness.” He was
originally from Argentina, and before starting his position at Dannon US, he was the CEO of Danone
Brazil. However, he was not unique; of the 300 employees at the Dannon US headquarters, 50 were
born outside the United States. Marketing Vice President Marc Jove, for instance, was born in
Barcelona and before taking his current position, he was the marketing vice president at Danone
Argentina.
The U.S. Yogurt Industry
Sixty-seven years after Dannon introduced yogurt to the U.S., Danone still viewed the U.S. as an
emerging market for yogurt. In 2007, U.S. yogurt consumption per capita was only 11.8 lbs, versus
62.4 lbs in Switzerland and 42 lbs in France (see Exhibit 2). From 2003 to 2007, yogurt consumption
grew 31% in the U.S., versus only 6% in Switzerland and a downturn of 3% in France.6 These two
statistics, combined with the much larger U.S. population, marked the United States as a highpotential growth market for Danone in the next 5 to 10 years. Growth had slowed in the past 2 years,
and therefore Dannon continued to focus on growing the yogurt category and proving its relevance
to Americans.7
Yogurt was not as core to the American diet as to the European diet. As of 2008, the total U.S.
yogurt category was $3.7+ billion, growing at about 1.5% per year.b The main product categories
were Staples/Quarts (38%), Light (27%), Proactive Health (13%), Kids (12%), Indulgent (6%), and
Drinks (3%). Proactive health, the newest product segment first introduced in a test market by
Dannon’s DanActive in 2004, was defined as products with health benefits beyond basic nutrition,
such as probiotics for improved intestinal transit and immune function.8 Recent growth in yogurt
b The source of most of this sales data is IRI, a database that does not reflect some of the category’s largest retailers, most
notably Walmart, where Dannon has a strong position and is growing faster than IRI-covered retailers.
5
This document is authorized for use only by Ayah Awad in 563: Sustainability & CSR taught by MJ Kay, Montclair State University from June 2017 to December 2017.
For the exclusive use of A. Awad, 2017.
410-121
The Dannon Company: Marketing and Corporate Social Responsibility (A)
consumption was driven by the Proactive Health, Light, and Quarts segments (see Exhibit 3). Core
yogurt consumers were 45+-year-old women. They were typically from a high- or medium-income
household, although low-income household consumption was increasing. Demographics with high
potential for growth included 45+-year-old men, 0- to 11-year-old kids, and 25- to 54-year-old
women. While 85% of American households had yogur …
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