According to Natura's website, the search for beauty is a legitimate yearning of all human beings, but based on stereotypes imposed by society. Natura believes we must demystify the ideal of beauty and maintain ourselves by cultivating and conserving our bodies.
In an effort to move towards a more sustainable business model, Natura, Brazil’s leading cosmetics company, launched a new product line, Nature Ekos. Natura Ekos line of fragrances, personal care and ambience products draws from the wealth of Brazil's biodiversity and is inspired by traditional uses of plant ingredients.
In keeping with the concept of sustainability, Natura Ekos products are biodegradable and use bottles and packaging that contain recycled material. Refills are provided for each product, which both reduces their environmental impact and increases the price competitiveness of the Ekos products.
Innovation
Through its Natura Ekos line, Natura seeks to increase awareness of the richness of Brazil's environmental heritage and to obtain natural ingredients in a way that preserves that heritage for future generations and stimulates the development and quality of life of the communities that cultivate or extract those ingredients. In keeping with the concept of sustainability, Natura Ekos products are biodegradable and use bottles and packaging that contain recycled material. The company offers refills for each product, which both reduces their environmental impact and increase price competitiveness. The Natura Ekos line extends across most of the market segments in which Natura operates, including soaps, shampoos, conditioners, moisturizers and perfumes.
What is particularly innovative about the Ekos line is Natura’s approach for raw material supply. This innovative approach to supplier relations is recently featured among the World Business Council for Sustainable Development’s case study series:
“When it launched the Ekos line, in 2000, Natura started to put into effect the sustainable use of raw materials from Brazilian biodiversity. The use of raw materials from the Brazilian flora should be economically viable and, at the same time, include the proper management of the extractivist activity and sustainable development of the producing communities. Since then, the relationship with the communities that supply the raw materials from biodiversity has proven to be an important learning process. The developments seen in 2004 reflect the application of this learning on the process to create a consistent model for the supply of the raw materials."
During 2004, a multifunctional team worked on the development of a model that can, based on a pilot experience with the community of Iratapuru, in the State of Amapá, be used in other communities. The community of Iratapuru is made up of 30 families that supply copaíba, breu branco and Brazil nuts. The NGO Amigos da Terra followed up the experience and created a business management plan together with the community. One significant achievement was the Forest Stewardship Council's certification of the three community-produced raw materials.
Among the measures taken has been the creation of a reserve made up of a percentage of the net revenues obtained from the sale of products originating from the raw materials supplied by the community. These funds may be used both in immediate and future needs. Additionally, a consultancy specialized in sustainable development, Amapaz, will make a diagnosis of the community in order to prepare a plan for the future, which may include other activities in addition to the extractivist one. The diagnosis will include physical, territorial and social and economic aspects so as to help the community to prepare a sustainable development plan.
From its experiences in creating sustainable communities, Natura has learned to:
• Integrate logistical complexity into business plans;
• Limit the introduction of new active ingredients in its products;
• Limit labor and high-volume production;
• Be vigilant about community dependence on one active ingredient by helping communities widen their base and doing product line extensions from the same ingredient and getting community input for idea creation;
• Mobilize a third party in developing local capability;
• Be prepared for unpredictability;
• Prepare investments for training;
• Be prepared to face high risk and low manageability;
• Get and appreciate external political support & advice;
• Be determined and invest in negotiating;
• Trust and make sure the company is seen as trustful.
Natura also has an Active Ingredient Certification Program. Certification is a tool that ensures the sustainable exploitation and management of the forests, involving environmental, social and economic criteria. Its aim is to guarantee that all ingredients originating from Brazilian flora are obtained either through cultivation or from forests managed in an environmentally sustainable and socially just manner.
Impact
The partnerships with the suppyl community have had many positive results. The communities are better able to deal with any new partnerships that might be established in the future. These alliances help local communities create new outlets for their products in the domestic market and to develop business-oriented models of management that match local situations. Natura's actions directed to the Ekos supplier communities reflect the company’s commitment to sustainable development. As a cosmetic product's life cycle is usually short, it is important that the communities receive support in structuring themselves socially and economically to minimize the impact of an eventual decrease in volumes supplied to Natura. The communities’ new partnerships are made by their local leaders, with Natura's support whenever necessary. One community now has a Brazil nut oil extraction plant which allows it not only to supply basic raw materials, but also to participate in other stages of the production chain, thereby adding value to its product. The partnership has also generated jobs, increased incomes and provided professional qualifications for the local communities.
The sustainability concept is part of Natura’s corporate culture and is now being spread via partnerships to its suppliers. The price paid for the raw materials is calculated based on a cost structure analysis. The price of the products covers the costs incurred by the supplier and pays an average of 15% fair trade premium. Natura supports many actions to improve the productive network and to improve the local development. This is done in a participatory process and takes into account the specifics needs appointed by the community itself.
Inspiration
Life is a chain of relationships. Nothing in the Universe exists by itself, everything is interdependent. That is why Natura believes in quality and the importance of relationships. The greater the diversity of the parts, the greater the richness and vitality of the whole. This is the way of nature and in human relationships as well.
Everybody and everything in the world has the potential to be better - people, organizations, and countries. It is in the process and hope of betterment that we encourage the development of individuals, institutions and societies.
The World Inquiry editorial team edited this profile from the original submission of the interviewer or other source. The views expressed do not necessarily represent Case Western Reserve University, the Weatherhead School of Management or the Center for Business as an Agent of World Benefit. More >>
