1999 SEAR report

This is our 12th social performance assessment. The following report is divided into two parts. First, a report on our progress in achieving our 1999 social mission objectives and in addressing issues raised in last year’s audit; and second, a report by function on our practices as a socially responsible business.

Our primary social mission objectives for 1999 were:

• To move forward on achieving a compostable pint or Eco-Pint.


• To achieve significant gains in solid waste reduction through innovation in ingredient packaging.


• To partner with the farmers who provide our milk and cream in the design of a Sustainable Agriculture Initiative with the goal of reducing adverse impacts on water.
• To expand the PartnerShop franchise program.


• To link our franchise development strategies with community economic development efforts.


• To partner with Greenpeace in educating customers about dioxins and about the work of Greenpeace.


• To make gains in our understanding and practice of diversity across our business.


• To improve our workplace safety performance.


• To develop a transition plan for tamper-evident packaging.


• To establish an interdepartmental Values Council to oversee our social mission activities within and across functions.


• To establish a strategy for integration of the social mission into our international business activities.

Overall, these objectives relate to two primary areas of concern that are the pillars of our social mission: Environmental Sustainability and Social & Economic Justice. In recent years we have recognized that simply charting progress in environmental efficiency-measuring and monitoring energy use and waste reduction-is not enough to meet our environmental responsibility. We have shifted our focus to how we become a more sustainable business throughout our entire product cycle. We have learned from Interface, an innovator in sustainable carpet and other textile products, to look at what we take, what we make and what we waste. In 1999 the results were three promising initiatives: our Eco-Pint, our Totes Program and our Sustainable Agriculture Demonstration Project.

We have also recognized that the best response to our concerns about economic and social justice is to develop models in our own business that create economic opportunities where they have not existed. In 1999 we focused on our PartnerShop program and our franchising strategies.

We met our objective of converting one-third of our product line into the Eco-Pint. Cherry Garcia®, Chocolate Chip Cookie Dough, Chocolate Fudge Brownie™, New York Super Fudge Chunk® and World’s Best® Vanilla are now packaged in unbleached paperboard containers, the first such on the market. Our Eco-Pint also has a nontoxic clay coating. The container, which remains brown inside, has been well received by our customers. Our next challenge in this effort is to identify other potential commercial users of this kind of paperboard in order to make production of unbleached paperboard more financially viable for the manufacturer.

We initiated this project two years ago. Following an environmental analysis of our packaging, we concluded that the best choice was to stay with paper instead of switching to a recyclable plastic and to improve on the environmental aspect of the paper. Our main environmental concern about paperboard was that the chlorine bleaching of paper produces dioxins, which the Federal Environmental Protection Agency (EPA) has determined to be among the most toxic substances ever created.

Dioxins are a global atmospheric problem and are present in the environment from many sources, including the paper bleaching process. There are dioxins in milk and in all dairy products. They make their way into the food chain, including milk and meat, when farm animals graze in pastures. While we cannot address the problem at the atmospheric level, we can and are addressing it with our packaging and paper sourcing.

In addition to the Eco-Pint, all office paper and marketing materials are chlorine-free and we use unbleached paper products in our scoop shops. These include unbleached bags, napkins and cake boxes.

In 1999 we tested and implemented an initiative developed by an interdepartmental Packaging Innovation Group. PIG was formed in 1998 to develop ways to reduce waste created by incoming ingredient packaging. We have started to use specially designed totes-reusable bulk containers-for caramel, marshmallow and yogurt. Once used, the totes are returned instead of recycled or thrown away. We expect a minimum 50% reduction in marshmallow and caramel packaging waste from the change. In addition to gains in our solid waste reduction, totes have been welcomed by our production staff as they are far easier to handle. This resulted in less product loss than with the previous packaging. We are working with suppliers to extend this program to other ingredient packaging.

Our business depends on dairy farming. Excess nutrients, such as nitrogen and phosphorus, accumulate regularly on dairy farms through feed and fertilizer and potentially leave the farm with adverse impacts on ground and surface water. One of our three manufacturing facilities and our dairy supplier, the St. Albans Cooperative Creamery, are located in St. Albans, Vermont, on Lake Champlain. Nitrogen and phosphorus run-off is a problem in the lake. Agricultural run-off is but one of the causes.

Inspired by a Whole Farm Nutrient Management Program developed at Cornell University by Professor Danny Fox, we have launched a unique project involving Ben & Jerry’s, the St. Albans Co-op, the University of Vermont Center for Sustainable Agriculture, Cornell University School of Agriculture and the Poulin Grain Company. This three-year effort starts with a two farm pilot project to develop the tools to demonstrate that practical management practices can reduce the risk of nitrogen and phosphorus losses from dairy farms, improve environmental performance at the farm level and preserve the economic viability of the dairy farm. A steering committee has been formed and is in the process of hiring a coordinator. We believe this project will have significant implications for both dairy farming and environmental preservation in Vermont.

In addition to reducing environmental impacts on water from dairy farming, we also worked to reduce water use in our manufacturing processes. We use and waste great amounts of water in the manufacturing of our products. In 1999 we designed an environmental reporting system based on resources such as water and energy used in the production of one pallet of ice cream. A pallet consists of 2,032 pints and weighs one ton. During 2000, we will implement this “resources per pallet” reporting system, which we believe will also be an effective teaching tool to raise staff awareness about the importance of reducing resource use. Our focus will be on water reduction.

In 1999 we achieved our goal of an overall 10% reduction in solid waste, an 11% reduction in dairy waste and a 2% reduction in energy use. The Company earned roughly $68,000 from recycling efforts. A new initiative in 1999 was the sale of the plastic stretch wrap for conversion to a wood-like product used for constructing decks.

In February 1999 we added a PartnerShop Program Coordinator position in our Retail Operations department. We did not meet our goal of having five additional PartnerShops under contract; at year’s end we had four. Lawson House in Chicago, operated by the YMCA, opened in June. Common Ground, the New York City housing nonprofit that operates a Ben & Jerry’s store in Times Square, will soon open the doors to a second store at Rockefeller Center. A satellite store in Siesta Key, Florida, was transferred as a gift from the franchise owner to the Suncoast Regional Youth Consortium of Sarasota, a nonprofit with a School-to-Work, Tech Prep and Youth Council program. And, we signed a contract with Metro Community Investment, a consortium of four Community Action Agencies in the greater Minneapolis-St. Paul area. We are working with MCI to find a suitable location for their store.

Opening a PartnerShop and operating a business is usually a new undertaking for a nonprofit and the decision-making involves a number of stakeholders, often resulting in a lengthy process. We feel we could do a better job developing this successful program by having more projects in the pipeline.

Our PartnerShop operators tell us that through their stores they are able to give a job to someone, often a young person, who another employer is not likely to hire. Albeit an entry-level job, working as a scooper can be a bridge to a better job opportunity. Scoopers develop skills in customer relations and in having a positive attitude that, in conjunction with the program support they receive from the nonprofit, serve them well in the job market. The PartnerShop program also provides visibility in the community for the nonprofit and its programs and can enhance fundraising.

In July 1999 we announced a plan with the Prince George’s County Economic Development Corporation to open a franchise store in Prince George’s County, Maryland. A Ben & Jerry’s store is part of the economic development strategy for the community. This is the second time we have partnered with a local economic development organization to open a franchise store. We are in the process of reviewing applicants brought to us by the agency.

Over the year our staff had contact with a number of community development agencies, nonprofits and foundations to explore how our franchise store program could partner with community economic development efforts in disadvantaged areas. We have not yet determined the best way to do that.

Greenpeace inspired our efforts to address the problem of dioxins through our packaging. In January 1999 we featured representatives of Greenpeace at our annual franchise meeting. In addition to a Company presentation on the Eco-Pint and dioxins, Greenpeace presented an overview of their work. Every store received a Greenpeace display that included a poster and the Ben & Jerry’s position paper on dioxins. Greenpeace is featured in that publication. We also included an 800-telephone number for Greenpeace on the new Eco-Pint. We encouraged franchise owners in areas where Greenpeace was active to partner with them on Free Cone Day as we did at our company-owned store in Burlington, Vermont. We featured Greenpeace at the One World One Heart® Festival that was held in conjunction with our annual June shareholders meeting, which drew 35,000 people. They were also featured at the Newport Folk Festival in Newport, Rhode Island, in August which drew 15,000 people. In addition, we linked our popular web page with Greenpeace and on Halloween did a special promotion, “Dioxins are Scary.” We had hoped that creating this partnership would result in many new contacts for Greenpeace and new opportunities for them to enlist members.

Although we were able to provide new forums for Greenpeace, we both agreed that the results were disappointing. Greenpeace’s membership strategy was to sign up members for a $120 annual fee. Greenpeace does not have numbers on new contacts made, but few new members were enlisted through these activities.

By the end of 1999, virtually everyone who works at Ben & Jerry’s had participated in two, four-hour training modules on understanding differences. In addition, 65 staff members from leadership positions across manufacturing participated in a three-day Diversity/Inclusion Workshop. This training will continue in 2000. Also, 30 staff members participated in a two-day workshop on Effective Communication. These training modules are intended to create a workplace environment that is inclusive and welcoming of diversity.

In 1999 our number of non-white staff rose by only one from 23 to 24. Non-white employees constituted 3% of our workforce. Based on the 1990 census, this is slightly better than the 1.8% non-white population in Vermont.

In our franchise operations we added 37 new owners. One is a woman, one is a non-white woman and one is a non-white male.

We implemented the first year of our Minority Supplier Recruitment Program and exceeded our goals. Actual minority supplier spending reached $1,012,668 compared to $838,291 in 1998. Our goal for 1999 was $880,000. Our total spending for minority suppliers constituted 3% of our non-ingredient supplier base (up from .73% in 1998). We also increased our use of women and people-of-color consultants with expenditures of $315,000 or 25% of our total consulting expense, compared to $215,000 or 19% in 1998.

We conducted market research to better understand Ben & Jerry’s brand awareness within the New York Hispanic markets. We developed a Spanish sales kit and advertising campaign as part of this effort. We also hired a bilingual Regional Marketing Coordinator to develop programs and undertake scooping events in Hispanic neighborhoods.

In 1999 we created a new management structure for safety. We filled the open position of Corporate Safety Manager. We organized a Safety Council that includes the Chief Operating Officer, the Director of Manufacturing, the Corporate Safety Manager, the Senior HR Manager, the Manufacturing OD and Training Manager, the Manufacturing Safety Specialists, the Site/Plant Managers and the Corporate Treasurer. In 1999 the Safety Council met eight times.

In 1999 we experienced a 7% decline in the number of lost time cases from 43 to 40, and a 77% reduction in the number of Lost Time Days from 1706 to 386, indicating that the severity of injuries has been greatly reduced. We believe these gains are the result of improved workplace conditions, including capital improvements that are outlined in the second part of this report. We used the National Safety Council average injury rate for the ice cream and frozen dessert industry as a measuring gauge. At 18.33 our rate remains above the industry average of 13.1. Our policies and practices encouraged accident reporting.

For several years the Company has investigated various options for tamper-evident packaging, but has not found a workable technology. In previous social performance reports, we have spoken of ongoing efforts to address this issue, yet we have not effectively done so. Our highest packaging priority in 1999 was the continued development and introduction of the unbleached paperboard container. We have not found a tamper-evident technology that works with this type of paper. When the issues that affect our conversion to unbleached paperboard are resolved, we will continue to pursue the goal of tamper-evident packaging.

The Values Council was established in September and includes senior level staff who have positions that may influence social mission initiatives or programs in their departments. Members of the council are from Marketing, Public Relations, Purchasing, Research & Development, Information Systems, Finance, Human Resources, Retail Operations, Sales, International, Environmental and the Foundation. The Council is chaired by the Director of Social Mission Development and will meet quarterly. There was one meeting in Q4, 1999. The Council’s role is to review progress in meeting social mission goals established in the annual planning process, to identify and to work on cross-functional issues and to generate new ideas.

In 1999 we drafted and approved Global Operating Guidelines that deal both with how we assess foreign markets and how we choose business partners. The country assessment process is guided by considering how our brand image and our three-part mission would be expressed; by assessing human rights issues and how we might address them; and by looking at how we would express our social and environmental activism in a culturally respectful way. The business partner assessment requires a willingness to include a concern for the community in the operation of the business, a commitment to good environmental performance and workplace practices that include safe conditions, paying a livable wage and providing an inclusive and nondiscriminatory environment.

We did not enter into any new international arrangements in 1999. In November we retained a Social Mission Coordinator, based in Europe, for our international operations. Overall our social mission efforts remain largely in the area of sponsorship and philanthropy. The exception is in England where we launched our PartnerBus, a renovated school bus named “The Flying Friesian,” to benefit ChildLine, a 24-hour confidential helpline for children in immediate need as a result of abuse or neglect. Our PartnerBus traveled to various events such as music festivals. It is painted to advertise ChildLine’s services. Through the bus and other promotions, we raised $32,000 for ChildLine and generated a number of media stories for the organization and its work.

In addition to these matters, the independent commentary in our 1998 Social Performance Report by our social auditor, James Heard, raised a number of other concerns. These included gender and pay equity; “linked prosperity” and the unionization of a small number of employees at our St. Albans facility. These and other issues are addressed in the following section, which is organized by business functions: Workplace, Manufacturing Operations, Environment, Franchise Operations, Marketing & Sales, International Operations, Social Mission & Philanthropy and Finance & Shareholders.