Symbols of Trust Within an Organization

Jeffrey Hollender started Seventh Generation more than 20 years ago but last year his relationship with the company was severed by the board of directors. First however, Hollender was put on a leave of absence that caused a lot of speculation and swirl across the Internet. A few weeks later the official termination came. Hollender blogged his reaction to being removed “without cause” and posted the company’s statement. The last paragraph of the company’s response makes an attempt to restore trust:

“Change is always difficult, and this particular evolutionary moment has certainly been more challenging than most. What matters, however, is not what has happened but what will happen. On this count, the Board is confident that it has taken the steps necessary to ensure that Seventh Generation’s untapped growth potential is fully realized in the years ahead. As we move into that promising future, we continue to express our thanks for everything Jeffrey has done for us and for the company he has built. That company has a rewarding road ahead of it indeed, but this success cannot and does not depend on any one individual. Instead it springs from the unique synergy that comes when many act together to realize a singular ideal. That’s the task before us now, and with your continued help and support, I’m certain we’ll achieve it.”

Hollender took the company to $150 Million in sales and was arguably an icon of organizational trust. What could the board of directors have done differently to facilitate a smoother leadership transition?

Seventh Generation recently hired a new CEO, John Replogle, who is the former CEO of Burt’s Bees. What recommendations would you suggest for John to rebuild short-term and long-term trust within the organization?
Another question to consider: Seventh Generation is currently a private, employee owned company. Could Seventh Generation’s choice of new CEO signal that they are looking to sell the company to a larger organization, just as Burt’s Bees was sold to Clorox? If this does happen, what steps should Seventh Generation take to maintain market trust of the brand?

Who Cares About CSR Reports?

Today I encountered the question: "Does it take more time, energy and money to report and track CSR initiatives then the impact they make?" I think the answer is no. CSR reports, if nothing else, bring some level of awareness to stakeholder groups. 

It's difficult to quantify total impact in the short-term but seeds are being planted that will bear fruit over the long-term. Who cares that CSR reports are sometimes a marketing ploy. What matters is that businesses around the world are having these conversations. That's progress. 

Companies can still currently enjoy hiding behind the static cloak of a CSR report. I think innovations in technology especially as it relates to hyper connectivity and communication will shatter old ideologies of business. Fast Company had an article today about creating shared value.

Say goodbye to yesterday's capitalists. Einstein's theory of special relativity suggests that "the perceived speed of objects depends on the observer's own motion. People ordinarily believe they aren't moving when they stand still, but astrophysicists know that they are moving-very fast, in fact." (p. 15). 

It sometimes feels as if we are at a stand still because the entire system is being overhauled. But the good news is that we're moving faster than we think.

Sources:
Blascovich, J., & Bailenson, J. (2011). Infinite Reality. New York: W. Morrow.