The standard news from the business world is not always encouraging. Scandals seem to be more common than not and the current climate of Madoff’s and Exxon Mobil’s isn’t helping. But as we all know, honest businesses do exist, especially in the green sector and many of them are great examples of how to grow your business while staying true to social responsibility and environmental values.
One of these companies is Seventh Generation. The company describes themselves as “the world’s most trusted brand of authentic, safe, and environmentally-responsible products for a healthy home.” When you learn more about the company, it’s hard to argue with this claim. The company’s name and philosophy is derived from the Great Law of the Iroquois that states, “In our every deliberation, we must consider the impact of our decisions on the next seven generations.”
Transparency is the first sign that a company is genuinely invested in and concerned about their social responsibility and environmental impacts. If a company produces an annual social responsibility report (SRR) and sustainable report (SR) then you know they have at least taken the time to think about the issues. It does not guarantee they genuinely care about environmental issues, but it is generally a sign they are headed in the right direction.
Seventh Generation writes a yearly “Corporate Consciousness Report,” an in-depth and honest look into all of the activities of the company. The report outlines sales, giving, employees, carbon footprint, transportation-related GHG emissions, packaging, manufacturing partners, sourcing, product design, and green workplace. The report also provides a section at the beginning outlining the achievements (environmental or not) of the previous year. One of 2008’s biggest successes was Seventh Generation’s purchase of sustainable palm oil credits and participation in the Roundtable on Sustainable Palm Oil. Palm oil is a major component in many of their most popular cleaning products.
So you are probably wondering, what is so great about Seventh Generation’s products?
According to their website, Seventh Generation name-brand products include non-chlorine bleached, 100% recycled paper towels, bathroom and facial tissues, and napkins; non-toxic, phosphate-free cleaning, dish and laundry products; plastic trash bags made from recycled plastic; chlorine-free baby diapers, training pants, and baby wipes; and chlorine-free feminine care products, including organic cotton tampons.
Unlike nearly all other companies in the cleaning products business, Seventh Generation discloses all of their ingredients and explains what each does on all the products they sell. There are no laws requiring them to do so, but they are working hard to turn those laws into reality by lobbying.
In the last couple of years, Seventh Generation has not only made their own business more sustainable, but assisted manufacturers in their supply chain. In 2008 they held Manufacturing Partner Sustainability Summit, one of the first of its kind, which helps businesses in their supply chain become more socially responsible and environmentally-friendly.
They also donate 10% of their pre-tax profits to non-profit community, environmental, health, and responsible business organizations working for positive change. This is a huge percentage compared to most other companies, even those in the green sector.
On top of all that, Seventh Generation also has a climate action plan, which the company says will reduce their GHG emissions by 80% by 2050 (normalized to sales). They adopted this before many countries had even considered it.
I have really only scratched the service of Seventh Generation’s commitment to sustainability and social responsibility, but it is clear that they are a model for businesses of all sizes. They are not perfect, but they are making progress and are genuinely concerned about their environmental and social impact. In 30 years, if I had to bet, Seventh Generation will be one of largest household products companies, beating out Clorox by a long shot.
