Author Archives: Tod Arbogast

Tackling Poverty through Empowerment in South Africa

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Faltering global economies, political upheaval and violence seem to be the main headlines these days. Difficult times make life even more challenging for vulnerable populations, especially, in much of the world, women. According to UN Women, “women bear a disproportionate burden of the world’s poverty… because of the systematic discrimination they face in education, health care, employment and control of assets… According to some estimates, women represent 70 percent of the world’s poor.”

Avon, with its mission to be THE company for women, has been driving the empowerment of women for 126 years. In my nearly three years with Avon, I have seen how, from the first “Avon Lady,” Mrs. P.F.E. Albee in the U.S., to more than 6 million independent Avon Sales Representatives in more than 100 countries today, our direct selling business drives the economic empowerment and well being of women.

But does it really work? Does the Avon opportunity really make a difference? Well, yes.

Earlier this summer, results were published of the three-year research study led by Professor Linda Scott and Dr. Catherine Dolan of the Saïd Business School, University of Oxford. The study focused on South African women working as independent Avon Sales Representatives in the company’s direct selling business, Avon Justine. Funded by the Economic and Social Research Council (ESRC) in the UK, the study, called Avon in Africa: Reducing Poverty Through Global Exchange, had clear findings: Avon is making it possible for South African women to escape the cycle of poverty.

It is important to note this study was neither commissioned nor funded by Avon. Here are some of its highlights:

  • Three quarters of the Avon Sales Representatives reported they had achieved financial autonomy through Avon.
  • The income earned by the Sales Representatives working for 16 months or more covered household expenditures for food and non-alcoholic beverages, clothing, shoes and healthcare.
  • The Sales Representatives ranked in the top half of black females in their community for income and were on par with black men.

Just as meaningful, 90% of the Sales Representatives said they had learned skills from Avon that could be transferred to other opportunities as well. These included not only business skills, but increased confidence (reported by 86%), social skills, and the respect of family members and the community. These achievements were attributed in part to the supportive, women-friendly Avon network and the training, support and recognition system in place to drive, inspire and reward achievement.

In the press release on the research, the concluding assessment by co-researcher Dr. Catherine Dolan is especially resonant. “In the past, many have viewed the global marketplace as hostile to women’s interests, but the example of Avon in South Africa shows this need not be the case.”

On any given day, Avon extends $1 billion in credit to Sales Representatives to drive their Avon business. These Sales Representatives come from all walks of life and from every demographic of society — from corporate executives to first-time entrepreneurs. Avon knows, whatever her background, a woman simply needs the tools and opportunity to succeed.

Climate Change: Just the Facts, Please

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Dialogue on climate change is challenged by the gap between scientific consensus and public opinion. To help better understand why people reject climate change, in May, the Union of Concerned Scientists and the Erb Institute for Global Sustainable Enterprise at Michigan convened a meeting of social and climate scientists, business leaders, politicians, faith leaders and communicators. The group looked at the range of public opinion on climate change, including the “Six Americas” identified by Yale and George Mason University researchers, which range from the “Dismissives” to the “Alarmed.”

As noted in the May meeting referenced above, despite the range of opinions, there is scientific consensus. The U.S. National Academy of Sciences, the world’s leading scientific societies, and the overwhelming majority of climate scientists agree that manmade impact is changing the climate, mainly by burning fossil fuels and clearing forests.

Avon’s commitment to reducing greenhouse gas (GHG) emissions and reducing our role in the risk of climate change dates back almost two decades. In 1994, Avon formally partnered with the U.S. Environmental Protection Agency and evaluated the energy efficiency of our U.S. buildings as part of the Green Lights program. Many manufacturing plants and distribution centers were retrofitted with energy-efficient lighting, thereby decreasing electricity consumption and carbon emissions. But it takes more than changing light bulbs to help save the planet, so Avon has been tackling climate change on two fronts: further reducing our carbon footprint and helping restore critically endangered tropical forests.

As reported in our Corporate Responsibility Report, Avon aspires to achieve zero emission in manufacturing and distribution by using 100% clean energy. On this journey we have instituted many initiatives that significantly reduced GHG emissions from our 2005 baseline in per unit (26% reduction) and absolute levels (nearly 14%). We are especially proud that global manufacturing exceeded 2012 goals in 2008 and new targets were set. We remain focused on reducing energy usage worldwide, and have achieved 11% total energy reduction in 2011 over 2005 baseline, and 20% per unit reduction.

Helping drive these efforts is the Avon Green Building Promise, which commits to LEED certified (or equivalent) in all new construction and major renovations. Although we are a direct selling company, Avon’s real estate portfolio is vast, so the potential impact is significant. Recently, energy requirements at two of Avon’s newest and largest distribution centers were reduced approximately 30% by following LEED standards.

Avon is also helping to restore critically endangered tropical forests, which are the “lungs of the earth.” Trees absorb carbon dioxide in the environment and have a critical role in combating climate change. Since 2010 the Avon Hello Green Tomorrow project has been raising funds to help restore tropical forests in Indonesia and Brazil, and through midyear 2012 nearly $4 million has been generated and thousands of acres have been restored.

To help drive broader change in the U.S., Avon is a member of Business for Innovative Climate & Energy Policy (BICEP), an advocacy coalition of businesses working with policy makers.

There is much more to be done, and we will continue to focus on the efforts, not the arguments.

The Never Ending Journey

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Interbrand/Deloitte released the 2012 list of 50 “Best Global Green Brands,” and Avon has maintained the #37 spot, coming in just behind Starbucks. Many of the top spots are held by automotive and tech companies – both of which are industries that are innovating in green technology and communicating those efforts to consumers. The only other beauty peers to make the list are J&J (#2) and L’Oreal (#14), and Avon is the only direct seller among the 50.

 

We are proud to hold onto our ranking year over year, but also meaningful are the comments on Interbrand’s site that note Avon “remains true” to its commitments to sustainability and corporate responsibility through turbulent times.  This underscores a critical factor: commitment to stay the course.  Corporate responsibility is not a short-term exercise.

In the “Green Brands” announcement, David Pearson, Global Sustainability Leader, Deloitte Touche Tohmatsu Limited, noted “It is becoming increasingly clear that sustainability is a ‘must have’ rather than a ‘nice to have’ for a lot of companies.”  Back in mid-May, corporate responsibility was even the topic on the floor of the U.S. Senate when representatives of Eastman Chemical Company, FedEx, GE Power & Water, Intel Corporation and Procter & Gamble testified on long-term efforts to reduce environmental footprints, drive innovation and improve efficient use of water, energy and natural resources.

Starting with Avon’s founding principles in 1886, the company has a deeply imbedded culture of corporate citizenship that has driven meaningful change in emerging issues, especially related to women.  The Avon Foundation for Women was originally founded in 1955 to drive women’s economic empowerment, followed by the Avon Breast Cancer Crusade, which launched in 1992, and Speak Out Against Domestic Violence in 2004.

But most relevant to the “Green Brands” ranking are Avon’s longstanding efforts in enterprise-wide sustainability.  This includes a commitment to certified green buildings and a global paper policy, along with the Hello Green Tomorrow global mobilization and fundraising program, which launched in 2010 to help end deforestation. Pulling this all together in an accessible package is our online Corporate Responsibility Report, which was noted as the final piece to land Avon on the “Green Brands” list.

Being “green” is a journey of constant improvement — and a journey that never ends.