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1. A Letter from our CEO Keeping Our Balance It’s a distinct privilege for me to have this opportunity to reflect on Ben & Jerry’s social and environmental performance in 2005, my first full year as Chief Euphoria Officer. The chance to be a part of a front-running, values-led company is what drew me to Ben & Jerry’s in the first place, and it’s what keeps me energized about the work on my desk today and the work that lies ahead of us. 
At Ben & Jerry’s, being a ‘values-led’ company is much more than a vague set of ideals — it’s a part of our mission. Since 1989, we’ve been guided by a written Mission Statement that seeks to balance economic, product, and social goals on the way to a sustainable business. Our Social Mission, which this report directly addresses, calls us to use our business to “improve the quality of life of a broad community — local, national, and international.” How are we doing? This seventeenth annual Social and Environmental Assessment report is our answer. From my perspective, 2005 was a year of success across all three parts of our Mission Statement, with a particularly strong economic performance. Our overall domestic sales increased by nearly 13% over 2004; Ben & Jerry’s Scoop Shop franchise network opened 96 new stores and grew sales volume by 29%; and our international sales achieved a truly impressive 22% growth rate. We are growing for good reasons. Most importantly, we were able to deliver on our Product Mission in 2005, producing and delivering outstanding ice cream to our customers almost every time. Once again, we heard fewer complaints about product quality from our customers over the previous year. We did experience some supply and quality challenges in the ice cream produced in bulk tubs for our franchised Scoop Shop network in 2005, but we’re confident that we’ve solved the problems and made amends with our franchisees. We also had a strong year with respect to our Social Mission in 2005. Here’s a quick sampling. We bought more than half of our ingredients and raw materials from suppliers aligned with our company’s values — such as family farmers and Fair Trade certified coffee producers. We used the power of our brand to draw national attention to important causes: preserving the Arctic National Wildlife Refuge, fighting global warming and supporting family farms. In the environmental arena, we met every one of the goals at our manufacturing plants to improve efficiency and reduce waste, and we offset 100% of our greenhouse gas emissions. In global markets, as well as the U.S., we built dozens of relationships with groups who are working for sustainable communities, environmental health, and economic and social justice. I firmly believe the growth of our company is directly connected to our Social Mission. I am reminded of something company co-founder Ben Cohen once said to me: “Some people believe that Ben & Jerry’s has been successful in spite of its strong stand on social and environmental issues. The truth is that it has stood out precisely because it stands for something different in the world!” I know that when we make our business decisions based on our values — from opposing the use of rBGH to engaging our employees in community action projects — we build loyalty in our employees, our suppliers, our franchisees, and, of course, our customers. That loyalty keeps us energized, carries us through the tough stretches and produces a real economic payoff, too. But it’s the motivation of doing what’s right that forms the underpinnings of our Social Mission. Sometimes the priorities captured by our three-part Mission Statement do get out of balance. In 2005, I saw this in two areas of the company. First, restructuring within the company over the past few years had frayed our employee community. Second, rapid growth in our network of Scoop Shops got ahead of our ability to deliver the ice cream — and the support — that our franchisees deserve and expect. We moved decisively in 2005 to address both of these issues. I hope you’ll read the details in this report. On the other hand, we made good strides in 2005 in carving out a permanent niche — and a healthy respect — for Ben & Jerry’s Social Mission in the larger, more complex organization of Unilever’s North American Ice Cream. In large part, that’s because our model works: we have been able to deliver strong business results while honoring our three-part mission. But we’ve also learned how to be more effective advocates for our company values, and to engage Unilever in a broader dialogue about activating them. While sometimes this process slows us down, sometimes it opens up new possibilities. In the end, we all understand that we are in business together but we must all find success in our own ways. For me, participating in this conversation within Unilever reinforces the fact that Ben & Jerry’s Social Mission is not a destination, but a journey. We’ll never be able to say we’ve arrived as a perfect company. Rather, we must keep examining our own practices, assessing our impacts, and pursuing honest dialogue to find new ways to make Ben & Jerry’s a better company — and the world a better place. This report is our commitment to that dialogue. Thanks for taking the time to read it. Walt Freese |
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