on what environmental trends did hain celestial base its business-level strategy? what environmental trends could have a negative effect on this firm's strategy in the future? why?

Answer 1

Hi Thara,

To understand Hain Celestial, I took a look at their 2018 Sustainability Report, a comprehensive document which described their environmental strategies and assessments related to their company. They define their motto early on in the document as, "The Hain Healthier Way™". This translates into their three core pillars: Healthier Products, Healthier People, and Healthier Planet.

Since they had a core pillar of a "Healthier Planet", they declared that they would:

1. Protecting the health of our planet by stewarding our water resources, addressing climate change, wasting nothing, and growing crops the way nature intended
2. Supporting responsible sourcing
3. Supporting organic farming and GMO-labeling

Part of the responsible sourcing goal is to focus on "Suppliers of Ingredients and Packaging". In relation to this, they state:

"Our Hain Celestial Supplier Code of Conduct embodies our minimum guidelines

for all Hain Celestial suppliers in the areas of Labor Standards, Environment

and Health, and Safety. Hain Celestial also implemented an updated supplier

assessment form, which clearly and directly requires suppliers to certify that all

materials incorporated into a product comply with applicable slavery and human

trafficking laws in addition to our other stringent standards."

Because they require their product suppliers to comply with these labor standards (i.e. farmers are paid a livable wage), this will most likely translate in to a higher price for the company, meaning that there will be a higher price paid for the product by the customer. Although customers may be swayed to buy their products for their sustainable (environmental, social, cultural) elements, customers also could be swayed to not purchase these items due to this overall higher cost, as explained earlier. Depending on how much consumers are willing to spend for "luxury" (higher-end, more sustainable goods) items, they may not have the same large customer base later on in the future.

*Although it may be a trend right now to pay suppliers an equitable amount for their labor/goods, it should transition to a norm, so that environmental justice is achieved.

Please let me know if you need any more help. I would be happy to set up a lesson with you, as well. Thanks!

Here is the link to their 2018 Sustainability Report: http://www.hain.com/wp-content/uploads/2016/08/2018-Sustainability-Report-FINAL.pdf