CSR
2
Transparency Advances Corporate Social Responsibility
CONTENTS2 TransparencyAdvances
CorporateSocialResponsibility
3 FoodforThought…andforFuel
4 EducatingToday’sYouth
4 SweetSustainability
6 PanelofExperts
7 APackagedDeal
7 ThisOne’sfortheKids
CORPORATESOCiAlRESPONSibiliTY
Publisher: Ondriona Monty [email protected]
Contributor: Jacqueline McDermott [email protected]
Designer: Carrie Reagh [email protected]
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a very special thanks to...
by:JoeSibilia,CeoCSRwiRe
Conagra Foods is one of North america’s leading food
makers,withbrandsin97percentofamerica’shouse-
holds.wemakethefoodyouloveandthebrandsyou
knowbest.Banquet, Chef Boyardee, Egg Beaters, Healthy Choice, Hebrew National, Hunt’s, Marie Callender’s, Orville Redenbacher’s, PAM, Peter Pan, Reddi-wipandmore.
TheHersheyCompanyisthelargestproducerofqual-
itychocolate inNorthamericaandaglobal leader in
chocolateandsugarconfectionery.Hersheyofferssuch
iconicbrandsasHershey’s,Reese’s,Hershey’sKisses,Kit
KatandHershey’sbliss.Hersheyisaleaderinthedark
andpremiumchocolatesegment,withHershey’sSpecial
DarkandHershey’sextraDark.
CSR is a form of corporate
transparencythathasevolved
from companies reacting
to activists’ complaints. it has been
called many things, from “business
for social responsibility” to ”green
business”to“triplebottomlinebusi-
ness,”butthere’sonethingitsnot—
SinglebottomlineCapitalism.
There is a profound sense in the
marketplace that it is no longer ac-
ceptabletoonlyfocusonprofits,or
thesinglebottomline.everymonth,
more and more members of the
business community are recogniz-
ing that behaving ethically in their
interactions with employees, stock-
holders, partners and the public, as
wellas intheirtreatmentoftheen-
vironment,isessentialtolong-term,
sustainablesuccess.
Food and beverage companies
have been among the leaders and
pioneersintheCSRmovement.This
makesintuitivesense,aspeoplehave
aninnateinterestinthequalityand
wholesomenessoftheproductsthey
consume. it’snatural for individuals
towanttobereassuredthattheor-
ganizationsthatnourishthemtoday
will be able to provide products of
equal caliber throughout their life-
times,andtheirchildren’slifetimes.
a strong CSR policy also attracts
talent. executives of all ages are in-
terestedinconnectingtheirpersonal
valueswiththoseoftheiremployers,
and often opt to join organizations
they respect. investors, too, have
realized the value of CSR. Certain
stock exchanges around the globe
require that companies provide in-
formation about their CSR activities
beforetheycanbelisted.inthewake
oftherecentfinancialcrisis,itseems
logicalthatinvestorsintheU.S.might
startclamoringforsimilarstandards.
Consumers, especially younger
ones who have not yet established
brand loyalties, have demonstrated
awillingnesstoswitchbrandsbased
onacompany’spoliciesandimpact
ontheenvironment.Thereisastrong
consumer demand for products
perceivedtobehealthierandsafer.
according to a report from “ethical
Food and beverage, Personal Care
andHouseholdProductsintheU.S.,”
approximately one-fourth of U.S.
adultshoppersfrequentlybuycerti-
fiedorganicfoodorbeverageprod-
ucts.andeveninthemidstofareces-
sion,one-thirdoftheseshoppersare
usuallywillingtopaymoreforthese
offerings.Theconsumerisdrivingthe
trendtobetterfoodandbeverages,
andcompaniesareresponding.
imagine this: you’re browsing
theorganicmilkinyourlocalsuper-
market’s cooler when it hits you—
everythingfromthefertilizerthatwas
used to feed the grass that fed the
cowthatprovidesyourkidswiththe
milkfortheircerealcamefromasolar-
poweredorganicfarm.it’shappening.
“Corporate Social Responsibility” (CSR) is the most popular U.S. term fortheemergingbestpracticeofcompaniesimprovingthequalityof lifeontheplanetbykeepingthegoodofthecommunityinmindwhenmakingdecisions.
A strong CSR policy also attracts talent. Executives of all ages are interested in connecting their personal values with those of their employers,
and often opt to join organizations they respect.
3
CSR
Food for Thought…and for Fuel:Today’s Corn Industry
Since most corn is produced
by family-runbusinesses, the
industry’s dedication to
sustainable agriculture stems not
onlyfromasenseofsocialresponsi-
bility,butalsofromadesiretomain-
tain the livelihoods of farmers and
theirfamilies.
“Ninety-fivepercentofcornispro-
ducedbyfamilyfarmerswholiveand
work on the land,” explains Darrin
ihnen,presidentoftheNationalCorn
Growers association (NCGa). “i my-
self am a fourth-generation farmer.
Twoofmychildrenareinterestedin
the business, so they would be the
fifthgeneration.weneedtobegood
stewards of the land because we
wanttopassitalong.”
over the last twenty years, the
industryhas reducedtheamountof
land,energyandwaterusedtopro-
duceasinglebushelofcorn.
“we are producing much more
corn with less of everything—land,
fertilizer, chemicals, fuels, etc.,” says
ihnen,particularlyimportantasfarm-
ersareharvestingmorecornthanever
before. NCGa predicts the U.S. will
produce17billionbushelsby2020.
The elevated demand for corn is
dueinparttothecounty’scommit-
ment to cleaner-burning auto fuel.
ethanolemitsabout50percentless
greenhouse gas than gasoline, ac-
cordingtoarecentstudybyresearch-
ers at the University of Nebraska-
lincoln,whoattributedthereduction
to the improved efficiency of the
ethanolproductionprocess.
“italsomakessensetouseourown
fuelratherthanpurchasingoilfrom
other countries,” adds ihnen, who
notesthattheethanolsegmenthas
been instrumental to the economic
developmentofruralareasbycreat-
ingmorejobs.
The corn industry is committed
to sustainable agriculture—for the
goodofitsfarmers,andforthegood
of farmers to come. ihnen puts it
simply: “i have a little baby grand-
daughter.whywould idoanything
tohurtherabilitytomakealivingoff
thelandlikeihavedone?”
The U.S. is the world’s largest producer of corn. while about 80 percent of thecropbecomes feed for livestock,hereandabroad,corn isalsoused in foodproducts,sweetener,starch,oilandfuel.
News in Brief
american farmers produce
about $100 billion worth of
cropseachyear,accordingtothe
U.S. environmental Protection
agency. whether your concern
lieswiththeeconomy, theenvi-
ronment or people, sustainable
agricultureaffectsyou.Foralistof
nearbystoresandrestaurantsthat
sell sustainable food, enter your
ZiPcodeateatwellGuide.org.
Sustainable Farming and Why you Care About It
The corn industry is
committed to sustainable agriculture…
CSR
4
The World Cocoa Foundation Encouraging Sustainable, Responsible Cocoa Growing
Sweet Sustainability: Improving the Lives of Cocoa Farmers
The world Cocoa Foundation
(wCF) is committed to pro-
moting economic and social
development and environmental
stewardship inall15cocoa-produc-
ing countries around the world, in-
cludingtheseregions.
The foundation, established in
2000, boasts nearly 70 member
companies from the americas,
europe, asia and africa. wCF ac-
tivelysupportsarangeoffarm-level
programs harnessing sustainable
agriculturepracticestoimprovethe
qualityoflifeforthemillionsofsmall
family farmers growing this unique
crop.TheCocoalivelihoodsProgram
isanexampleofagricultureprograms
managedbywCF.
This program was developed
through a collaborative partnership
between wCF, the bill & Melinda
Gates Foundation and 12 cocoa
companies.between2009and2014,
theprogramwillworkwithapproxi-
mately200,000cocoa-farminghouse-
holds in Cameroon, Côte d’ivoire,
Ghana, liberia and Nigeria to reach
the program’s goal of doubling the
incomeofone-thirdofafrica’scocoa
farmerswithsmallfamilyfarms.
“we know from experience that
cocoacanplayasignificant,positive
roleinincreasingthefamilyincomes
of these cocoa farmers in the de-
veloping world,” says bill Guyton,
president,worldCocoaFoundation.
“Throughfarmertrainingonsustain-
able production techniques and
quality issues, this program will
improve the lives of these farmers
andtheircommunities.”
TheCocoalivelihoodsProgramis
furthersupportedbymajorbranded
manufacturers: The Hershey
Company,KraftFoodsandMars
inc; cocoa processors: archer
Daniels Midland Company,
barry Callebaut, blommer
ChocolateCompanyand
Cargill; supply chain
managers and allied industries:
armajaro, ecom-agrocacao, Noble
Resources S.a., olam international
ltd.andStarbucksCoffeeCompany;
as well as the German Ministry for
economicCooperationandDevelop-
ment(bMZ).additionally,representa-
tivesfromeachnationalgovernment
arepartnersandadvisors.
approximately 70 percent of the world’s cocoacomes from west and Central africa. improvingthelivelihoodsofthecocoa-farmingfamiliesintheregionisessentialtothelong-termsustainabilityofthecocoasector.
Educating Today’s Youth: Here and Abroad
Providing our nation’s youth
with the skill sets and
knowledge they’ll need later
in life,regardlessofsocio-economic
backgrounds,shouldbetherespon-
sibility of citizens, politicians and
businesses alike; but additionally,
many companies are also taking
greatstridestoimproveeducational
facilitiesabroad.
Dole,theworld’slargestproducer
of fresh fruits and vegetables, sup-
ports the Philippines through its
partnership in an adopt-a-School
programwhichallowsbusinessesto
adoptschoolsinneed.TheStarbucks
Foundationfunds literacyprograms
intheU.S.,Canadaandothercommu-
nitieswhereStarbuckshasstores.The
companyalsocreatedtheStarbucks
China education Program, which
includesaninitiativetotrainteachers
inruralareasinChina.
Hereinthestates,PepsiCo,which
hasalonghistoryofcommitmentto
educational programs, donated $1
millionlastyeartotheUnitedNegro
CollegeFund(UNCF)tohelpprovide
scholarships tostudentsatcolleges
alloverthecountry.
The Hershey Company’s largest
shareholder is actually a school for
underprivileged children. Founded
by Milton Hershey, the company’s
creator, it is now in its 100th year
and has touched the lives of thou-
sands of children who otherwise
wouldnothavebeenabletoafford
privateeducation.
“Theschooliscompletelyfree,and
everychildadmittedcomesfromdire
poverty,fromtruesocialandfinancial
need,” says Jody Cook, Hershey’s
directorofproductpublicity.
Milton and his wife established a
trusttofundtheschoolandlefttheir
entirefortunetothecause.“For100
years, without consumers knowing
it, every time they have enjoyed a
Hersheychocolate,they’vebeensup-
portingthisschool,”explainsCook.
educational initiatives at home
andabroadareameansforcompa-
nies to help better the lives of un-
derprivilegedchildrenand improve
the communities they serve… so
goaheadandindulgeinasodapop
or chocolate bar—it could be for a
goodcause.
a child’s home life and income level affect his orher chance of receiving the education necessaryforsuccessinthe“realworld.”
Thank you for opening
doors for children in need.
Once upon a time...a boy from a childhood of hardships and struggle persevered and became a man with a selfless heart, driven by his values and
principles. He started the successful Hershey Chocolate Company, fell in love with a wonderful woman and married. Together, he and his wife built a town for his workers and their children… but sadly, they could not have children of their own. To fill the void
in their hearts, they established a home and school for children in need… and it grew… and the children flourished.
The man cared so passionately for the school that he devoted virtually his entire fortune to its future… and the future of the children it served.
That man is Milton Hershey and the school is Milton Hershey School.
Every person who loves chocolate makes a difference in the lives of the children, too. You see, every time you enjoy Hershey’s®, you help Milton Hershey School give generations of children a safe, nurturing environment and an excellent education.
Thank you for giving opportunity to children in need.
CSR
6
Q: why is it important for companies to use
sustainablepackaging?
A: asdefinedbytheSustainablePackaging
Coalition,sustainablepackaging isaclosed-
loop system of packaging that is “sourced
responsibly,designedtobesafeandeffective
throughoutitslifecycle,meetsmarketcriteria
for performance and cost, is made entirely
using renewable energy and, once used, is
recycled efficiently to provide a valuable
resourceforsubsequentgenerations.”
asagoodcorporatecitizenandasteward
of our natural and community resources,
Snyder’s feels that conducting business in a
fashion that can create long-term economic
value by meeting consumers’ needs while
taking steps to minimize the impact of our
activitiesontheenvironmentjustmakessense.
butsustainabilitycannotbeastand-alone
objective; rather it has to be an integral
elementoftheoverallcorporateculture.itis
notapoint-in-timemeasurebutanon-going
processthatofteninvolvesmanyincremental
stepsalongthewayratherthansinglegiant
leaps.ForSnyder’sofHanover,pursuingsus-
tainabilityispartofour cultureandheritage
and,inmanyways,alwayshasbeen.
Q: whatcancornbeusedfor,besidesfood,
ofcourse?
A: ourtraditionalmarketshavebeenexport
and livestock,butournewdemandandour
newgrowthis inethanol.anythingthatcan
bemadeoutofpetroleumcanbemadeout
ofethanol.wecanmakeplastic,clothingand
otherfuelsbesidesethanol.wearealsoalways
looking for other areas to use our corn. The
reasonwecandothisisbecausewearepro-
ducingabiggerandbiggercropeveryyear,so
weareabletoallotmoreforethanolandother
industrialuses.ourstrategicplanistoabout
doubleourcorncropbytheyear2030.
we talk about alternative energy today,
buttheonlyalternativetogasolineisethanol.
The opponents have used the food-versus-
fuelargument—thatweareraisingtheprice
offoodbecauseweareusingcornforethanol.
butwhatreallyraisedfoodpricesisthecostof
energy,whichaffectsalltheotherexpenses—
labor,packaging,transportation…thewhole
process.Thenewgenerationofethanolplants,
whichmostoftheethanolindustryuses,emit
lessgreenhousegasesthangasoline.
Q. why isCorporateSocialResponsibilityso
importanttoTheHersheyCompany?
A. CSRhasreallybeenapartofourDNaever
sinceMiltonHersheyfoundedthecompany.
our founder wasn’t just an extraordinary
entrepreneur, but also an extraordinary
philanthropist.
whenhestartedinHershey,Pa,thedairy
land was obviously very important to him.
That’s why he put his factory here. when
you’re making milk chocolate, you need
dairyland.Hebasicallybuiltthistownforthe
business. He built homes for his employees,
evenafirehouse.DuringtheGreatDepression,
heemployedpeoplefromallaroundthearea
tobuildahotel.Therearewonderfulstories
aboutpeopleapproachinghimtosay,“ican
sell you a machine that will do the work of
manymen,”buthe’dtellthemhewantedto
employpeople.
oneofhisbiggestlegacies,andthelegacy
that will go into perpetuity along with his
iconicchocolate,isTheMiltonHersheySchool,
whichiscelebratingits100thanniversary.it’s
completely free, and every kid who attends
comesfromdirepoverty.
Hershey is committed to CSR initiatives,
andkids inneedtopthat listbecause itwas
ourfounder’svisionandmission.
Q: what efforts has your company made to
reduceitsimpactontheenvironment?
A: Conagra Foods has had a Sustainable
Development award program and confer-
ence in place since 1992. This program was
initiatedtorecognizeandsharebestpractices
internally,andhasgottentremendouslymore
important over the years, considering the
heightenedfocusonCSRintheworldaround
us.werecognizeeffortsinwaterconservation,
energyefficiency,thereductionofsolidwaste
and recycling, packaging innovation and
lastly,howthosethingsaremarketed.
we were the first food company in North
america to use post-consumer recycled
plasticforourfrozenmealtrays.Thisnotonly
wonourSustainablePackaging,Product,and
Process innovation award, it also received
awardsfromseveralleadingexternalsources
inthepackagingindustry.
on the energy side, the project that won
was in a cannery in Milton, Pa. They imple-
mented a ceramic coating on their cooker
shells,savingenergyandmoneyandmaking
forasaferworkingenvironment,reallynailing
the“triplebottomline.”
a lot of these sustainability efforts were
started way before my position existed.
They’vealwaysbeenpartofourculture,which
is thanks to our supportive leadership…it’s
justnowwearestartingtotalkaboutthem.
Panel of Experts
MiKebRooKHaRTDirectorofMarketingSnyder’sofHanover
DaRRiNiHNeNPresidentNationalCornGrowersassociation
JoDyCooKDirectorProductPublicityTheHersheyCompany
GailTavillvicePresidentSustainableDevelopmentConagraFoods
7
CSR
Sharing theResponsibility.
©20
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Our new Pretzel Variety Sacks are the fi rst 100% COMPOSTABLE outer sack package in the salted snack aisle made from 100% RENEWABLE corn starch based plastic.
Great Taste, Better for You, Good for the Environment. Snyder’s of Hanover.
©20
09 S
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Our new Pretzel Variety Sacks COMPOSTABLE
outer sack package in the salted
corn starch based plastic.
Share the Best.
A Packaged Deal: Our Role in Sustainable Packaging
Sustainable packaging is an inte-
gralcomponentofbusinesses’earth-
friendlyundertakings.
“Corporate responsibility means
conductingourbusinessinafashion
that creates long-term economic
value while taking responsibility
for the impact of our activities…it
includesourcommitmenttosustain-
ability,whereourgoalistomaximize
theutilizationofproductsandprac-
ticeswhichhaveareducednegative
effectontheenvironment,”explains
Mikebrookhart,Snyder’sofHanover’s
directorofmarketing.
byitsbroadestdefinition,sustain-
able packaging “can be put back
into another useful life once it has
reachedtheendofitsfirstintended
use,” says Kevin Cronin, Ceo, Nicos
PolymersGroup,whichspecializesin
post-industrialplasticrecycling.The
term often also refers to packaging
thatwasmanufacturedusingenergy-
efficientprocesses.
“we hate to see anything go
to waste, down to the last grain
of salt,” explains brookhart; but
consumers also have a role to play.
Start by considering how much
packagingaproductuses;ifitseems
excessive, opt for a competitor’s.
lookforrecyclinglogos,suchasthe
threegreenarrowsarrangedtriangu-
larly; but remember, even materials
lackingthesymbolmayberecyclable.
“when we talk about packaging
itself, it is inherently sustainable in
that it can be reused,” says Cronin.
“The challenge is for companies to
look at their packaging and deter-
minewhetherornottherewouldbe
aworkablewaytogetthoseproducts
backfromtheirconsumersandhave
themrecycled.”
if you expect businesses to do
theirpart,youhavetodoyours.all
ofacompany’seffortsarefornaught
ifyouthrowitsrecyclablewrapperin
thetrash.
in a recent study of large retail and manufacturing companies released byTompkins’ Supply Chain Consortium, 65 percent of companies polled hada sustainable packaging policy in place, and 28 percent were working todevelopone—astheyshouldbe!
This One’s for the Kids: CSR and America’s Children
a few years ago, Hidden valley
funded research showing kids ate
more vegetables when they were
garnishedwithamoderateamount
ofranchdressing.aroundthesame
time,thegovernmentaskedschools
to improve the nutritional value of
theirlunchofferingsbutprovidedno
additionalfundingtodoso.
“armed with that knowledge, we
created a grant program to offer
financialsupporttohelpelementary
schools provide kids more access
to fresh fruits and vegetables” says
Priscilla Tuan, marketing manager,
Hiddenvalley.
Cookies for Kids’ Cancer, which
raises funds for pediatric cancer
research through local bake sales,
wasstartedbyamomwhosesonwas
diagnosed with the disease. “Glad
consumers love to share food they
make with others because it’s their
way of sharing their love. when
we learned about Cookies for Kids’
Cancer, we had to help,” explains
betsy Cantlin, brand manager
at Glad, which is matching funds
raisedupto$100,000thisNovember
andDecember.
Feedingamerica’sKidsCaféspro-
videchildreninneedwithsnacksand
mealsthroughcommunitylocations.
in2007,Uncleben’spartneredwith
theorganizationtoestablishUncle
ben’s-sponsored Kids Cafes. “in
addition to our $1 million dona-
tion, we’re providing more than
$2 million in associate and mar-
keting support and more than 22
million servings of food to date,”
saysvincentHowell,president,Mars
Food North america. This holiday
season,whynottakeacuefromcor-
porateamericaanddosomethingto
supportchildreninneed?
“Thekidsaretheheartof the family,”pointsoutaileenZerrudo,directorofcommunications for CSR at The Clorox Company. Small wonder, then, thattheCSRagendas ofsomanyfamily-focusedbrandsemphasizethewelfareofamerica’schildren.
© ConAgra Foods, Inc. All rights reserved.
SO, DID YOU FIND EVERYTHING YOU WERE LOOKING FOR?
At ConAgra Foods, we know that it takes a lot to make it onto your shopping list — that every item you place in your grocery cart refl ects
your trust and confi dence in that brand. And we want to earn that confi dence.That’s why we pay so much attention to quality, in our
ingredients and in our preparation. It’s why we use environmentally friendly packaging and sustainable practices. And why we give back to the communities where our employees live and work. For us, it’s not
enough to make good food. We want to make food you can feel good about.
conagrafoods.com
TOTALLY
ConAgra092245 USATodayResponsibilityAd_9.indd 1 11/25/09 11:31:44 AM