The CSR reckoning: How authenticity has become a bottom-line issue
'Consumers are looking for alignment between what a brand says and what it does across the board, particularly through the tangible touchpoints that they can see and observe, such as products, packaging, service and the environment,' Sansome says.
Community minded
Since its inception in 1946, Ferrero Group, one of the largest sweet-packaged food companies in the world, has always strived to give back, with Michele Ferrero coining the motto 'Work, create, donate'.
'You can really feel the family values at Ferrero — it is something that is in the DNA of the company and it goes right from the top all the way through the organisation,' says Massimo D'Ambrosio, managing director at Ferrero Australia.
'Part of that family dynamic is also a focus on the long-term, with a strong emphasis on making a positive impact for our employees, our partners and the community.'
With more than 35 iconic brands sold in more than 170 countries, Ferrero, which began as a small pastry shop in Italy, has grown into a truly global company — but it still views the wider community as an extension of its own family.
Indeed, the company's commitment to social empowerment can be seen in initiatives such as the Ferrero Foundation, which supports the wellbeing of retired staff and their families from three main production sites across Italy, France and Germany, as well as the global Kinder Joy of Moving program, which has inspired more than 60 million children to adopt an active lifestyle.
Here in Australia, the Joy of Moving program, conducted in partnership with Monash University, has reached 3586 students across 24 schools. In addition, Ferrero supports local tourism efforts in Lithgow, NSW, the home of the company's factory, and partnerships with Foodbank and OzHarvest see sweet treats regularly delivered across the country to families in need.
A matter of integrity
As consumers grow more concerned about sustainability, ethical certifications and traceability hold considerable influence over purchasing decisions. According to a report by IBM, almost 80 per cent of consumers look for guaranteed markers of authenticity in their products, with the majority opting to pay more for increased transparency.
However, notes Sansome, 'If a consumer has to dig through jargon or navigate complex websites, it creates scepticism towards a brand's ethical and sustainable claims.'
From day one, Ferrero has focused on the quality and origins of its ingredients, abiding by the philosophy of sacco conosciuto, or 'knowing what's in the bag'. Today, more than 90 per cent of the Group's main ingredients are traceable to their point of origin, and most are sourced through independently managed sustainability standards, such as the Roundtable on Sustainable Palm Oil, Rainforest Alliance and Fairtrade Foundation for cocoa, and Bonsucro for cane sugar.
'For Ferrero, sustainability is a long-term journey of commitment and dedication,' says Mario Abreu, head of corporate social responsibility and sustainability at Ferrero.
'It is about assessing, preventing or attempting to minimise our impacts across the full value chain, establishing practices for nature protection and social justice. We believe that in doing so we are strengthening the resilience of our business and enhancing the value of our brands while offering value for society.'
Responsible ingredient sourcing is a non-negotiable for the Group, which invests heavily in the welfare of its cocoa- and hazelnut-growing communities. 'Our focus is on building long-term partnerships with farmer groups,' says Olivier Zwolsman, responsible sourcing manager of cocoa at Ferrero.
'We work together on sustainability projects that secure sustainable livelihoods by increasing cocoa productivity and diversifying farmers' incomes year-round. We also strive to empower women, improve the wellbeing of children within the community and help to protect the environment,' he adds.
An eye to the future
For brands hoping to improve their overall CSR strategy, Sansome says honesty is the best policy. 'Presenting as a work-in-progress is important for establishing trust and authenticity,' she explains.
'Invite feedback, be honest about where you're still growing and be transparent about the progress you're making.'
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