Case 1: Whole Foods

Question 1

Social Mission: Whole Foods, Whole People, Whole Planet “Declaration of Interdependence”:

Answer 1

• Sell highest quality natural and organic food
• satisfy and educate customers
• provide a supportive workspace
• create wealth through profits
• and support local communities by giving back

Question 2

How did WF create value for society/follow its mission? (Externally)

Answer 2

o Made organic food popular in US
o WF contributes to a healthier society providing access to and education about organic food
o They established a fun, friendly and accepting workspace
o Employees were paid for up to 20 hours per year of local community service
o 5%-days where 5% of profits are donated to local charity
o Plus 5% of yearly profit donated as well
o Whole Foods supports local farmers (loans, markets) and sustainable agriculture

Question 3

How did WF create value for society/follow its mission? (Interrnally)

Answer 3

o They established a fun, friendly and accepting workspace (employees as team members; employees benefits such as health insurance)
o leadership at WF is decentralized to support individual entrepreneurship
o open-book policy and management to secure transparency and commitment
o logistics and distribution are centralized

Question 4

What is Conscious Capitalism?

Answer 4

• way of thinking about business that is more conscious of its higher purpose and the impact it has on all stakeholders and the planet
• is about being conscious why a company exists and how they can create more social value beyond making profits

=> business strategy in which the company seeks to create value for all their major stakeholders and (!) the environment/planet
=> „no harm to environment or human“ + consider all stakeholders interests

Question 5

Link to CSR theory: How does WF fit into Caroll’s 4-part pyramid of CSR?

Answer 5

• Philanthropic Responsibilities: Yes, as they create value for society by various activities such as 5% days for local charity and the support for local farmers. Furthermore, they increased the quality of life since they provide access to and education about organic and healthy food. It’s part of their mission to give back to communities.
• Ethical Responsibilities: Yes, because Mackey sets an example as ethical leader by raising awareness and educating everyone about natural and organic food
• Legal Responsibilities: Yes, because Whole Foods fulfill regulatory requirements i.e. certification for organic food
• Economic Responsibility: Yes, because Whole Foods business aims to be profitable for the shareholders and employees

=> WF fits into all stages of CSR. They want to be profitable, they obey the law, they are ethical, and they want to be a good corporate citizen.

Question 6

Link to CSR theory: What vision(s) of CSR (Benabou + Tirol) fit to WF?

Answer 6

Doing good:

• 5% days plus 5% of yearly profit where percentage of profits is donated to local charity
• Support local farmers (markets, loans)
• Provided access to and education about healthy organic food -> healthier society
• Earth-friendly initiatives -> won awards
• Top company to work for (for 10 consecutive years), employees can get paid 20h per year to work in local community service

Doing well:

• 5% days, awards for earth friendly initiatives etc. attract customers (e.g. from chosen charity), many of whom become regular customers => 5%-days as marketing strategy
• Attract employees since they are a fun, friendly and supportive workplace (as indicated by being a top company to work for)

=> Doing well by doing good (win-win)
=> CSR makes firm more profitable
=> Especially here: Strategic CSR = socially responsible actions which also increase the corporate value, e.g. things that improve the image of a company and increase the demand for its products

Question 7

Link to CSR theory: What vision(s) of CSR (Benabou + Tirol) fit to WF? Written text.

Answer 7

First of all, they have 5%-days where they donate 5% of the profits to local charity (doing good). In addition, they donate 5% of their yearly profits. Furthermore, they contributed to a healthier society by providing access to and education about healthy organic food and started earth friendly initiatives that’ve won many awards (doing good). Also, they helped local farmers, for example, with markets and loans (doing good). WF established a fun, friendly and supportive workspace that has made it to the “Top Companies to Work For” list for 10 consecutive years and workers are able get paid to work 20 hours per year in local community (doing good). These activities result in an improved image and increased their attractiveness for both employees and customers (=doing well). For example, the 5%-days attract many new customers, e.g. from the chosen charity, many of whom become regular customers. Many activities represent an good marketing strategy for WF. Thus, CSR makes WF more profitable. In this case, one can speak of strategic CSR since the socially responsible actions of WF also increased the corporate value as they improved the image of WF and increase the demand for its products.