Del Monte ClassPrezo vFinal

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Del Monte ClassPrezo vFinal Powered By Docstoc
					Abbreviated Recommendations

  Sustainability Project
     Strategic Corporate Social Responsibility Class

                      May 2, 2007

 Student Consultants: Sarah Anderson and Daniel Mandel
     Primary Liaison at Del Monte: Bonnie McFarland

                          Slide 1
 Table of Contents

Project Background

Project Scope

Resources Used

Deliverables and Recommendations
Project Background
     Wal-Mart is Del Monte’s largest customer and
     has come in with its new expectations for its
     suppliers, including very stringent requirements.

     Del Monte does not have a sustainability policy.
     It engages in some sustainability efforts, but has
     not collected information or set goals.

     When the project started, the company was at
     the beginning stages of a sustainability initiative.

     We were contracted to deliver the following…

            Slide 3
                                         Project Scope

      1. Sustainability vision and policy

      2. Internal strategy to manage sustainability efforts

      3. Process for communicating sustainability efforts
                                     23-Feb   2-Mar   9-Mar   16-Mar   23-Mar   30-Mar   6-Apr   13-Apr   20-Apr   27-Apr   4-May   18-May

Phase 1: Research

Phase 2: Sustainability vision and

Phase 3: Strategy to manage
sustainability efforts

Phase 4: Communication strategy

Phase 5: Final Deliverables

                                                                Slide 4

             External                                Internal
–   Company Benchmarking                  – Team Meetings and Individual Interviews
–   In-Class Resources and Slides             – Matt Materazo – Sales Strategy
–   CSR Readings                              – Bonnie McFarland – Graphic Design &
–   Internet Research                         – Scott Butler – Operations and Services
                                              – Steve Balling – Agricultural Services
                                              – Jarod Cook – Environmental Services
                                              – Jeff Ratcliff – Business Development (Wal-
                                                Mart Relationship)

                                          – Internal Survey
                                              – 32 Senior Level Managers

                                    Slide 5
               Project Overview
           Benchmarking Companies
Company         Industry                    Revenues   Employees Headquarters

Del Monte       Consumer Goods (foods)      ~3B        7,500     San Francisco, CA

Dole            Agriculture / packaged
                                            ~6B        45,000    West Lake Village, California

Starbucks       Restaurants                 ~6.5B      145,800   Seattle, Washington

Clorox          Household/Personal
                                            ~4.5B      7,600     Oakland, California

Sysco           Wholesale – Food and
                                            ~30B       47,500    Houston, Texas

DuPont          Chemicals                   ~28.5B     60,000    Wilmington, Delaware

General Mills   Consumer Goods (foods)      ~12B       28,100    Minneapolis, MN

Whole Foods     Natural and organic foods
                                            ~5.8B      36,200    Austin, TX

ConAgra         Consumer Goods (foods)      ~11.7B     33,000    Omaha, NE

Unilever        Consumer Goods (foods)      ~52.8B     206,000   Rotterdam, Netherlands
                                                                 London, UK

Nestle          Consumer Goods (foods)      ~81.5B     265,000   Vevey, Switzerland
                Project Overview
              Benchmarking Outline

                            Overall CSR Vision

                            Sustainability Policy/Vision
                             • Business Case
                             • Current Practices
                             • Examples of Programs

        Internal Strategy                                  Communications

Organization                                     Stakeholders
Resources                                        CSR Report
External Validation                              Web
Partners                                         Internal Communications
Deliverables and Recommendations

   • Business Case

   • Sustainability Vision and Policy

   • Sustainability Management and Communications Strategy

   • Implementation Action Plan
                           Business Case
                                          WAL – MART

 Not adopting a sustainable strategy can be viewed as not supporting its initiatives

 Companies that do not follow its initiatives are the ones that do not receive long-term support


 Ability to address the requirements of most customers in the future

 Stay ahead of changing environmental requirements (both business and regulatory driven)

 Increase employee satisfaction and motivation leading to higher retention and lower costs
 Attract strong employees as many graduates are evaluating companies on sustainability

 Direct cost savings: Less and more efficient use of resources (e.g. energy, water, packaging)
 Over the long term, secure sustainable supplies of fish, fruit, vegetables and water

 Strengthen relationship with consumers and retailers and protect against potential deterioration
 Remain competitive – many competitors are ahead of Del Monte already
  Sustainability Vision and Policy
Think of the sustainability policy as Del Monte’s formal signal, both internally and
externally, that the company is serious about sustainability

  General Recommendations:

       • Communications
          – Very high level vision to show commitment to sustainability
          – Deeper policy to be used as a guide for planning and setting main initiatives
          – Communicate strategically to most relevant stakeholders

       • Constant Evaluation
          – The policy should always be directly linked to business principles and strategy
          – The policy should be adapted to changing environments and priorities

       • Future Actions
          – Use vision and policy as the basis for your sustainability reporting
          – Link vision and policy to an overall CSR vision and leverage in all areas of the
           Sustainability Vision
At Del Monte, our corporate vision is to nourish families and
enrich lives. Our vision touches all aspects of our operations,
and in pursuing it, we strive to provide high quality and
healthy products while preserving the earth’s limited
resources for current and future generations.

We are committed to our consumers, employees, shareholders
and the communities in which we operate. We recognize we
are part of a larger community and we strive to protect the
environment and the natural resources on which we all rely,
and are dedicated to the environment and to exploring ways
to be more efficient and innovative in the use of resources and
in our operations.
Sustainability Policy Components

 1. Overall Policy

 2. Goals and Objectives

 3. Main Initiatives
             Policy - Overall Policy
Del Monte’s policy has always been to comply with all applicable laws and regulations of
the United States of America and of all other countries where we do business. We have
a dedicated team of experienced professionals responsible for guaranteeing that our
business activities comply with the law, and we continuously seek innovative ways to
reduce environmental impacts and resource intensity of our operations, while supporting
our ongoing business objectives and generating new business opportunities.

We view environmental protection not only as our obligation, but also as an area of
opportunity. As a result of this belief, we have begun a substantial effort to go beyond
compliance in a number of key environmental areas.

As a primary processor of agricultural and fisheries products we are intimately
connected to and constrained by the ongoing health of the environment. From our
suppliers to our plants to our final products, we are passionate about doing the right
thing to meet the needs and improve the quality of life of the present generation while
protecting Earth’s resources for future generations.

Del Monte will work and share information with employees, suppliers, business partners
and other stakeholders to understand better our environmental impact. We will
encourage all of our partners to share our vision.
  Policy – Goals and Objectives
We will seek to accomplish these objectives without compromising product quality and
while maintaining safety operations and cost reduction as our priorities:

      Our goal is to produce the highest quality and most efficient crops possible while
                            following responsible agriculture practices.
     We are consistently seeking new ways to protect the soil, use water efficiently, conserve and
  enhance biological diversity and minimize our use of fertilizers and pesticides. We will also strive to
              work with our current family farms and support their sustainability efforts

    Our goals are to protect marine life (dolphins, whales, and other marine life) and not
                   lead to over-fishing or depletion of the exploited populations
    We will not purchase any tuna caught in association with dolphins and refuse to purchase tuna
    caught with gill or drift net. We condemn the use of these indiscriminate fishing methods to trap
       dolphins, whales, and other marine life along with the intended catch of fish. We require
                            certification that all tuna we purchase is dolphin-safe.

                Our goal is to use environmentally friendly packaging solutions
   We will enhance recycled content, recycle-ability and reusability, reduce chemical inputs, remove
                       and reduce packaging and use more effective materials.
Policy – Goals and Objectives                                                                   (cont)

  Our goal is to find sustainable, environmentally friendly, and economically feasible ways
                                 to improve production methods.
  We are constantly seeking ways to reduce and manage waste, reduce greenhouse gas emission and
                               reduce water and energy consumption.

  Our goal is to find sustainable, environmentally friendly, and economically feasible ways
                              to improve transportation methods.
  We are constantly seeking ways to reduce emissions, reduce freight distance, and increase payload
                                            per truck.

  Our goal is to align ourselves with suppliers that also strive to protect the environment.
  We have similar expectations for our suppliers as we have for ourselves. We expect them to comply
             with all the regulations and laws as well as pursue sustainable alternatives.

                                  BUILDINGS AND OFFICE SPACE
    Our goal is to operate efficiently using the necessary resources in a responsible way
  We will strive to implement recycling practices in all of our locations, be less dependent on and use
  less paper, use more recycled content products, be more energy efficient, use more “green” office
                        supplies, and implement LEED standards when possible.
            Completing the Policy –
               Main Initiatives
First, pick the initiatives to include:
   • Use decision matrix (next slide) to help selecting initiatives
   • Start by using the current cost reduction initiatives related to
     sustainability (e.g. packaging reduction)

Then, talk about those initiatives:
   •   Explain why you have chosen these initiatives
   •   Describe main programs and plans associated with each initiative
   •   Describe how the initiative is contributing to impact reduction
   •   Measure, monitor and report progress to relevant stakeholders
Main Initiatives: Evaluation Matrix

                          Business Case

                               Cost                        Ease of           Sustaina-
              Wal-Mart       Reduction    Long term    implementation          bility
              relevance      (ROI Short    impact       (risks, resources,               Total
 Initiative                    Term)                   suppliers support…)
                35%            20%           5%              20%               20%




                                            Slide 17
Deliverables and Recommendations

   • Business Case

   • Sustainability Vision and Policy

   • Sustainability Management and Communications Strategy

   • Implementation Action Plan
          Structure Recommendation
 Regardless of whether you have a highly integrated and centralized department with primary
 sustainability responsibilities or a more decentralized structure, it is essential that there be accountability
 throughout the organization as well as cross-functional interaction and staff support

 BOARD OF DIRECTORS              No board changes are suggested at this time

   EXECUTIVE LEVEL               Assign task members of executive committee to have sustainability overview

                                 Implement Hybrid Approach: Senior leader (hire / internal promotion) responsible for
SUSTAINABILITY LEADER            strategy and coordination with individual department leaders responsible for
                                 implementation efforts.

                                 With oversight of sustainability leader, manage efforts within business units

                                 1. Sustainability team comprised of senior staff with sustainability responsibilities
                                 2. Sustainability charter added to existing cross-functional committee
                                 3. Team formed to focus on specific topic or task

                  Adapted from Designing a CSR Structure - Business for Social Responsibility
Sustainability Team Responsibilities
 The environment should become part of Del Monte’s regular decision-making process

 1. Identify Issues

 2. Define Programs

 3. Evaluate Progress

 4. Document and Report

 5. Engage Internally

 6. Engage Externally
        Del Monte Action Plan
                  • Hire (or promote from within) individual to manage
                    sustainability efforts
                  • Determine point people in all departments
                  • Create definitive job requirements and time commitments
                  • Develop clear reporting responsibilities

  Immediate       Engagement and Communications
  Term Goals      • Document all current sustainability projects and collect
                    “stories” about sustainability
(May-Dec. 2007)   • Develop plan to effectively communicate to Wal-Mart
                  • Educate upper management
                       – Business case, benchmarking, best practices, survey results
                  • Engage employees
                       –Create online education tool for employees
                       –Develop monthly sustainability newsletter
    Del Monte Action Plan                                        (cont)

                 • Continue with all “sustainability team responsibilities”
                 • Develop goals and metrics for measuring efforts
                 • Develop performance appraisal for employees
                 • Explore innovation products
                 • Explore new partnerships

Medium Term
    Goals        Engagement and Communications
                 • Incorporate sustainability initiatives into retail “sales pitch”
(by Dec. 2008)   • Integrate sustainability vision/policy into financial reporting
                 • Research external reporting alternatives
                 • Further map relationships with other stakeholders to
                   determine longer-term communications plan
                 • Engage suppliers
                 • Engage new hires
    Del Monte Action Plan                                       (cont)

                 • Consider alternative sustainability projects given changing
                   stakeholder attitudes
                 • Increase internal resources
                 • Integrate sustainability into all relevant decision making

  Long Term
    Goals        Engagement and Communications
(by Dec. 2010)   • Integrate sustainability into packaging (social labeling)
                 • Implement long-term sustainability reporting initiative
                 • Align with sustainable suppliers
                 • Integrate sustainability policy into broader CSR policy

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