Transcript Tom`s of Maine Powerpoint

Purity of Spirit:
Tom’s of Maine
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Power Point to accompany Opportunities and Challenges of Workplace Diversity by Kathryn A. Cañas and Harris Sondak
Prepared by Levi Baker, Kathryn A. Cañas, and Harris Sondak
“Tom’s of Maine is a living, breathing—and profiting—proof
that a business enterprise can be good for the earth, good
for society, good for its employees,
and good for its shareholders.” – Tom Chappell
Case Overview
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Introduction
History
Spirituality-Inspired Business Philosophy
Spirituality-Inspired Business In Action
Value-Centered Leadership
The Seven Intentions
Organizational Design and Diversity
Empowering Employees and the Community
Respecting the Individual and the Environment
Spirituality in the Workplace
Discussion Questions
Introduction
• Tom’s of Maine was founded
by Tom and Kate Chappell in
1970.
• All products are made from
natural ingredients.
• Company sales are strongest
on the East and West coasts.
• The flagship product is
toothpaste (60% of revenues).
Additional Products: floss, deodorant, mouthwash, soap,
shampoo, shaving cream, and other wellness products.
History
• 1970 Introduced world’s first
non-phosphate laundry
detergent
• 1973 Expanded products to
all-natural soap, shampoo, and
lotion
• 1975 Added all-natural
toothpaste
• 1981 Increased sales to 1.5
million
History
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1981 Hired more professional talent including
several young employees with MBA degrees
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1983 Increased sales to 2 million
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1988 Decreased founder Tom Chappell’s time to
3 days a week; Chappell later returned to full time
and created the company’s mission and values
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1994 Struggled with the “deodorant debacle”
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1996 Considered selling the company but
decided that potential buyers did not fit with
company ideals
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1999 Introduced a new line of wellness products
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2006 Sold 86% interest in company to ColgatePalmolive for $100 million
Spirituality-Inspired Business
Philosophy
Philosophies that influenced Tom’s of Maine’s culture
• I-It vs. I-Thou
– I-It philosophy sees others as objects to use for
selfish purposes. I-Thou sees relationships as
honorable and seeks friendship, respect, and love.
• Jonathan Edward, American Philosopher
– An individual’s identity comes not from being
separate from others but connected to others.
Spirituality-Inspired Business
In Action
Examples
1. The refusal to receive the seal of approval from
the American Dental Association (ADA) in 1990
and the lobbying effort with the FDA a year later
due to both organizations’ policies toward testing
on animals.
2. The commitment to the Kennebunk community
herb extraction.
Value-Centered Leadership
Managing Upside Down: The Seven Intentions
of Values-Centered Leadership
1. Society and ethics over maximizing financial gain
2. Increased profitability through people
3. Flat organizational hierarchy
4. The seven intentions
The Seven Intentions
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Connect
Know Thyself, Be Thyself
Envision Your Destiny
Seek Advice
Venture Out
Assess
Pass It On
www.saltwater.org
Organizational Design and Diversity
“It was not long before I realized that the more sensitive my executives
and I could become to the differences of the people we were trying to
serve, and the more perspectives we could plug into our discussions
about product design, business strategy, and customer service, the more
broadly the company could range to meet its financial objectives.”
-Tom Chappell
• Circle: the team, all are
equal
• Triangle: the management,
accountability, and
decision-making
Empowering Employees and the
Community
“Live the mission.”
• 10% of all pre-tax profits go
to charitable organizations.
• Employees are encouraged
to dedicate 5% of their paid
work time to volunteer.
• Tom’s of Maine often
organizes company-wide
volunteer projects.
• Tom’s of Maine offers
generous benefits packages
to their employees.
An Apple a Day
Dental Health For All
Rivers Awareness
Company Volunteerism
Respecting the Individual and the
Environment
• Giving Programs
• Environmental Policies
• Consumer Policies
Spirituality in the Workplace
Respectful Pluralism
reflects an organization that is not “aligned with
any explicitly religious, spiritual, or other
comprehensive worldview” and where
“organizations should allow for significant
employee expression of various aspects of their
identity on an equal basis.”
-- Dr. Douglas A. Hicks
Discussion Questions
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How should management accommodate a variety of
conflicting spiritual perspectives in the workplace?
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Tom Chappell created a spiritual framework for Tom’s of
Maine, a family-owned business. Can such a framework
be created for a publicly-traded company? What
differences might there be in its effects?
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To what extent is Tom Chappell’s spiritual perspective
responsible for the company’s organizational culture and
the company’s successes and/or failures?
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What risks might a company encounter when
encouraging the expression of spiritual values in the
workplace? What advantages does it gain?