Natura

bem estar bem

Saturday 6 June 2009, by Diana Presas, Joana Chorao

1 inspired

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Natura is a Brazilian cosmetic company, founded in 1969 by Luiz Seabra, and it is one of the biggest companies in cosmetic direct selling, that is, using consultants, individual people who sells Natura products at home and gives a special attention to their costumers, creating an experience of more than a simple purchase.
The company develops cosmetic products in different lines according to differing targets, but all according to two main bases: ethical relationship with shareholders and costumers, and business goals compatible with sustainable development.
In 2004, Natura was listed on the São Paulo Stock Exchange ( BOVESPA), opening its capital to new investors.

Why is Natura ethical?

All products are developed respecting the environment and Brazilian traditions and culture. From the packaging to post-selling services, everything is designed to respect the environment, from developing biodegradable products to creating recycling programs, for example.
This company was the first one to introduce the “Refilling” concept, which is based on reusing the package in order to minimize the environmental costs ( such as pollution, for example): the customer could reuse its original product package, filling it with the product, that can be bought for a smaller price.
Additionally, a very interesting program is the collection of empty packages of Natura products, which is mainly done by consultants: they collect it in costumers’ houses, taking it to the entity responsible for its recycling.
It is important to mention that this company was recognized by being one of the most sustainable companies in Latin America, receiving many awards in this area.

Natura is a good example of an ethical company, joining sustainability with profitability.

Bibliography

1. Natura. Retrieved May 30, 2009 from Wikipedia: http://en.wikipedia.org/wiki/Natura
2. Natura bem estar bem. Retrieved May 30, 2009 from Natura official site. Website: http://scf.natura.net/

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2 Discussions / 2 Messages

# Natura - business model 22 February 2013 at 10:26 , by Felipe.Canhavate

Natura is well-known in Brazil not just for its high-quality cosmetic products made of natural materials, but also due to its ethics related to preserving the environment and respecting local communities living in the region where raw materials are extracted or produced. Besides utilizing the refilling concept and promoting recycling programs, Natura is engaged in several other activities that demonstrate its ethics towards environment and local communities:
- When developing its products, Natura does not test cosmetics on animals;
- Natura is the Latin American company that invests the highest amount in R&D (app. 60 million dollars in 2007);
- Natura offers its customers “Carbon Neutral Products”, with the aim to offset carbon emission during the production process;
- Its products’ packages bring useful information for the customers concerning the environment (eg: recommended number of refills; percentage of the product made with renewable vegetal resources);
- According to the company, the main issues it is concerned with are: the Amazon Forest, Biodiversity, Education, Greenhouse Gases, Product Impact and Relationship Management;
- The company developed a policy towards the sustainable use of biodiversity and local communities’ knowledge, bringing up issues such as the discovery of new species and the split of benefits with local communities;
- Natura works with NGOs to diminish its activities’ impact in local communities;
- The company displays on its website data about its impact on the environment, being some of the variables: amount of greenhouse gas emitted by the company, its suppliers and during transportation; water consumption; amount of disposable materials generated; percentage of products distributed using the refill system;
- The company also displays online its goals towards environment and local communities, and how much has been done. In cases when these goals have not been reached, Natura offers explanations to its stakeholders, as well as a new action plan;
- While pursuing these goals, Natura is also well managed and offered its shareholders a high return since its IPO (795% until February, 20th, 2013). Its stock has been one of the most valued by analysts in Brazil during the past 5 years and it is listed in the Sao Paulo Stock Exchange in the group of companies with the highest level of governance (Novo Mercado and IGC, an Index).
(Source: www.natura.infoinvest.com.br, in Portuguese)

The company’s ability to develop a complex and sophisticated model towards environmental issues and local communities, is definitely inspiring. Natura uses a differentiation strategy, offering its customers an extremely diversified line of products, which are appealing to clients for their high level of natural raw materials, as well as the awareness that the development, production and distribution processes respected biodiversity and Brazilian culture. Those elements are combined in its strategy, demonstrating that respecting the environment and local communities are not only means to an end, but also one of the company’s main goals.
Natura can teach business leaders that sustainability can be integrated to profit-oriented companies’ business models. Firstly, by pursuing its stakeholders’ interests, the company obtains support and engagement, creating long-term relationships, important to its long-term performance. Secondly, its business model aligns economic growth and social and environmental needs, solidifying the basis in which the company acts. Thirdly, Natura tracks its performance and inform its stakeholders about its impacts and actions, by utilizing robust processes and information disclosure.

(Felipe Canhavate)

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# Natura has the right business philosophy for the future. 13 May 2013 at 00:44 , by fjismmn

Natura seeks to create and share values to the society, generating economic, social and environmental results. The company’s belief is that people who understand the challenges of their time and help society to become happier will make all the difference in the future.

This understanding of business activity as part of a whole articulated and connected network and the continuous search for products with less environmental impact, both in the formulations as the packaging is what inspires me in the benign role of Natura in the world.

Besides all this, the experience of Natura shows more. The company is among the world’s most profitable in the industry, proving that putting sustainability at the core of the business strategy not only looks good in front of its consumers, but also generates income.

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