CHAPTER 1.

Introduction
In late 2009, John Replogle, CEO of Burts Bees, felt his company stood at an important
crossroads. Since taking the helm of the natural care products company in 2006, Replogle had
instituted a series of changes to align the companys culture and practices around a business
model called The Greater Good. The model, which included a strong focus on corporate social
responsibility, sought to balance the needs of all constituents with the companys core values of
creating natural products and protecting the environment.
In 2008, Burts issued its first corporate social responsibility (CSR) report, noting that
sustainable thinking (is) imprinted in our DNA. The company articulated a set of ambitious
goals for 2020, including being a zero waste, zero carbon company, operating on 100%
renewable energy in LEED certified buildings. Meeting the goals would require creativity and
effort from every single employee. As such, one of the 2020 goals was 100% employee
engagement in Burts sustainability activities.
VIDEO: "I think we were all surprised."
Replogle reflected on Burts legacy as a prominent example of how business could operate in a
responsible and sustainable fashion. He was proud that Burts had made tremendous progress in
a short time toward its aggressive sustainability agenda. But he also acknowledged they had only
plucked the low hanging fruit. The hardest part of reaching their goals still lay in the future.
In 2007, Burts was acquired by Clorox and became a stand-alone unit of the publicly traded
consumer products company and, so, was now responsible to a corporate parent that had to meet
quarterly forecasts. Replogle knew that pursuing the companys vision to address societys longterm challenges would no doubt require significant tradeoffs. Could Burts Bees continue to be a
social and environmental innovator, while also sharpening its focus on growth and profitability?
VIDEO: "My typical role here is the skeptic."
Next Chapter >

CHAPTER 2. History & Overview

Mission and Vision
Headquartered in Durham, North Carolina, Burts Bees manufactures and distributes more than
150 personal care products and employs more than 400 people. Burt's Bees describes itself as an
"earth-friendly, natural personal care company." Its mission is to make peoples lives better
everyday naturally, and the companys vision is to be the #1 natural personal care business in
the worldworking in harmony with (the) environment.

History
Burts Bees was incorporated in 1991, though the company traces its roots to 1984, when
Roxanne Quimby and Burt Shavitz teamed up selling beeswax candles at craft fairs.
VIDEO: "And that's how Burt's Bees got started."
By 1991, Burts Bees was making 500,000 candles a year along with its popular lip balm and a
few other personal care products. In 1993, with an ever-expanding product line, Burts relocated
from Maine to North Carolina, because the area was home to several other internationally known
personal care products companies and was considered business-friendly. At the time Roxanne
and Burt made a difficult decision to stop producing candles and focus the entire product line on
personal care. This eliminated $1.5 million in annual revenues and cut the product line by half.
By 1998, annual sales exceeded $8 million. Burts line included more than 100 products
natural skin and hair care, body lotions, and bath products sold in 4,000 retail outlets ranging
from small shops to natural chain stores like Whole Foods. The following year, Burts moved
into a 136,000 square foot factory, and the company began selling products over the internet.
In 2003, Roxanne, who had bought out Burts ownership share in 1993, sold an 80% share of
Burts Bees to AEA Investors, a private equity firm, for $179 million, relinquishing her day-today role in the operation and taking a seat on the board. Shortly thereafter, Burts hired John
Replogle, who at the time was running the skin care division at Unilever, to serve as CEO.
VIDEO: "We went back to core purpose."
In 2007, sales topped $250 million, and the Clorox Company purchased Burts Bees for $913
million.

Exhibit 1

5 Year Revenue Graph

Exhibit 2

Burt's Bees Timeline

Next Chapter >

CHAPTER 3. The Natural Standard

Kitchen Chemistry
As a natural personal care business, Burts Bees is committed to offering products that use
natural ingredients and minimal processing, which involves what company officials call a
kitchen chemistry approach to manufacturing.
VIDEO: "It's the same process you use in your kitchen."
Natural vs. Organic
Burts Bees leaders agree theyd rather their products be natural than partially organic. They
believe organic is a meaningful direction to move toward, although being fully organic would
pose challenges because certifying whether certain ingredients are organic can be difficult.
VIDEO: "You can't prove a mineral is ever organic."
The Natural Bar
Burts is committed to increasing its all-natural average from 99% to 100%. In the meantime,
the company pledges 100% transparency about the true natural content of each and every
product.
VIDEO: "Well, at least you're honest."
The Natural Standard
When Burts began rolling out into mass-market retailers, the company realized there was
considerable consumer confusion over the definition of natural, which unlike organic was not a
term that was regulated by the government. In 2007, Burts conducted a survey that found an
overwhelming percentage of women thought the use of the term natural was regulated.
VIDEO: "Any brand can write 'natural' on it."
Exhibit 3

The Natural Standard

Next Chapter >

CHAPTER 4. Sustainability Practices

ECOBEES
(Environmentally Conscious Organization Bringing Ecologically Empowered Solutions)
Burts Bees has set lofty goals for sustainability, pledging to be a zero waste, zero carbon
company, operating on 100% renewable energy in LEED certified buildings by 2020. These
formalized, ambitious goals can be traced to an early employee movement that was rooted in the
companys eco-centered values.
VIDEO: "Burt's was a good match."
Defining and Implementing a 2020 Vision
In 2006, Burts Bees drafted its first quantifiable sustainability goals and began to standardize the
process of collecting data on energy consumption, water use, and waste. By 2007, Burts Bees
recognized that ECOBEES alone was not enough to keep pace with the companys growth and
expanding environmental objectives.
VIDEO: "It inspired people to find solutions."
Exhibit 4

Sustainability Goals
In 2007, Burts Bees increased its business by 26% while cutting energy consumption by 3%.
VIDEO: "What gets measured gets done."

Exhibit 5

Packaging

Exhibit 6

Sustainability Performance Indicators

Social Performance
Beyond operational efficiencies, Burts Bees wanted 100% employee engagement in the
companys sustainability mission by 2020. This goal was particularly challenging, given the
companys rapid growth and expanding workforce.
VIDEO: "...which is a nicer word for mandatory."
Next Chapter >

CHAPTER 5. The Greater Good

The Greater Good Business Model
Burts Bees operates on a set of principles that CEO John Replogle calls The Greater Good
Business Model.
VIDEO: "It's the connection between the three..."
Exhibit 7

The Greater Good Business Model

Social and Environmental Progress Report
In 2008, Burts Bees published its first corporate social responsibility report, a 55-page document
titled "The Greater Good Social and Environmental Progress Report." The report chronicles
the process of setting sustainability goals, collecting baseline metrics, and measuring progress as
the movement built momentum across the company.
VIDEO: "It helps to avoid mission drift"
Next Chapter >

CHAPTER 6. The Clorox Acquisition

In November 2007, The Clorox Company acquired Burts Bees. The acquisition followed a
process involving the board, led by AEA Investors, and company leaders, including founder
Roxanne Quimby and CEO John Replogle. When the team set out to explore a sale, they met
with and evaluated a limited number of companies, with fit a key criteria.
VIDEO: "We did not want to sell the brand"

Burts Bees was to remain an independent subsidiary of The Clorox Company. Still, internal and
external response to news of the acquisition suggested it was difficult to grasp how the two
companies could be strategically aligned.
VIDEO: "Time will continue to tell."
Next Chapter

CHAPTER 7. Final Thoughts

Burts Bees May 2008 CSR report acknowledges that the company still has a long way to go
toward meeting its 2020 sustainability goals. For example, while celebrating a 78% improvement
in overall equipment efficiency, the report adds it was a battle won, yet a far cry from victory.
Some goals are harder to meet than others, say company leaders. The next improvement will
be more challenging and more rewarding.
VIDEO: "Like anything, you hit a lull."
CEO John Replogle suggests the greatest challenge of the early 21st century is the need for new
leadership on a global level.
VIDEO: "What keeps me up at night"