Arbonne

37 Years of Sustainable Tradition

C991 31A3

Author

Kelsey Knutty

Kelsey Knutty

School

Case Western Reserve University - Weatherhead School of Management

Case Western Reserve University - Weatherhead School of Management

Professor

Chris Laszlo

Chris Laszlo

Global Goals

3. Good Health and Well-Being 12. Responsible Consumption and Production

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Summary

  • Arbonne International is a 37-year-old skincare and wellness company that has sustainability at its core.

  • The Arbonne business model is centered around sustainability and innovation, making the world a healthier place to live.

  • Arbonne maintains their mission of sustainability and innovation by continuing to utilize botanical ingredients to produce their products and by focusing every business decision on their sustainability goals.

Innovation

Arbonne’s business model is what makes the company so innovative. The rich history they have of committing to sustainability efforts is truly exceptional. They are able to offer customers exceptional makeup products that are far superior to department stores and are also beneficial to our world. All of the products are made from botanical ingredients, packaged in recyclable materials, and shipped in a fashion that emits the smallest amount of carbon as possible. Arbonne also offers an exceptional experience for the independent consultants that sell their products. The employees are given the opportunity to take charge of their own business and make money while selling products that they are confident help their customer and the environment. When asking Jill Todd why she was so proud to work for Arbonne she responded with, "I am most proud of the fact that our work helps people live healthier, happier lives. It’s very gratifying. We truly care about our customers and our Independent Consultants and I think it’s not only key to our company’s growing success, it makes it a great place to work."

From this forward-thinking business model came many innovations that progressed Arbonne in their sustainability efforts. Their products are made with botanical ingredients, renewable resource soy inks, are vegan-certified, and are cruelty-free formulas. In 2017, they don’t have many competitors that can also claim these high standards, but their other innovations are what make Arbonne stand out to the environmentally and socially conscious consumers. Arbonne ensures that their product packaging, as well as their shipping boxes, are made from recyclable materials, but their new “Green Will Call” initiative is something brand new to the beauty space. With this innovation, customers can opt to pick up their orders for free at a local Arbonne facility. The products will not be in their packaging or shipping materials, but instead in a reusable bag with the Arbonne logo on it. This eliminates the use of waste materials and also gives the customer a bag to use for other reuse purposes. The amount of waste associated solely with packaging in the world could be reduced significantly if other beauty and wellness companies started following this model. It’s possible for other industries that use an increased amount of packaging to follow this model as well.

This innovation can be disruptive at a time when consumption is increasingly taking place online. With a trend towards sustainability in today's society, giving consumers the option to forgo packaging is practical. Having the brand new Amazon storefronts popping up in major cities, we could see this become an option for consumers who would prefer to pick up their products with a reusable bag that could also be used for other activities such as grocery shopping. This innovation also has the ability to transform further by offering no packaging at all and providing consumers with links to product information online instead of directly on the packaging. This innovation is so simple but has the ability to make a great impact.

37 Years of Sustainable Tradition

Inspiration

Arbonne was developed in 1975 in Switzerland by a man named Petter Morck. Petter wanted to be able to provide skin care products that were of such superiority and usefulness, no other company would be able to measure up and compete. He worked with renowned biochemists, biologists, and herbalists to develop the original Arbonne product line and establish the company in Europe. In 1980, the company was established in the United States. It has grown to become a brand that is known and sold around the world because of quality, safety, value, benefits, and results.

Their most creative innovation, Green Will Call, came about when executives began discussing additional ways they could create sustainable value for their customers. They already knew their products were hitting the mark, but they wanted to figure out how they could get the supply chain up to the same standards. After throwing around a couple of different ideas, they realized the solution was simple. Jill Todd summarized it best when she said, “Our clients are environmentally conscious consumers who would prefer to pick up their products from one of our locations instead of creating more waste from packaging materials.” The decision to implement Green Will Call was easy because Arbonne is in tune with their customers.

Overall impact

Arbonne’s business model is centered around pure, safe, and beneficial products that are good for people and not harmful to the environment or to animals. The company’s products benefit the health of all of its customers, whether that be through their nutritional offerings or their skincare products that are all natural. All of the products that Arbonne produces go through a process of inspection to ensure they follow the company’s sustainable mission and philosophy: pure safe beneficial. Each creative innovation and business decision moves the company one step closer to stated sustainability goals by staying carbon neutral, avoiding animal cruelty, focusing on people, plants, and products, and by functioning on zero waste.

Business benefit

The economic benefit that comes from Arbonne’s business is one that has been able to sustain the company before sustainability was well known. The company was founded 37 years ago on the principle of creating products that don’t harm the environment or the consumers. With the current trend towards personal wellness and the utilization of natural products, Arbonne continues to see the boost in sales and a demand for an increased offering of products. In today’s world, it isn’t difficult for consumers to invest in premium priced, quality products that are useful but are also healthy for their body and the environment they live in. Arbonne’s reputation in the beauty and wellness market has also influenced many young women to become consultants for the company in addition to being students or having full-time jobs. This is a relatively cheap way for the company to reach their consumer, while also having personal stories come alive through the consultant, increasing consumer loyalty.

Social and environmental benefit

Arbonne focuses on the UN Global Goal 3 regarding Good Health and Well-Being by seeking to reduce hazardous chemicals in our environment. They also support the UN Global Goal 12 concerning Responsible Consumption by utilizing sustainable management and by efficiently using natural resources, reducing waste generation through prevention, reduction, recycling, and reuse. Arbonne achieves these goals by utilizing Science-Based Targets (SBTs), raw material selection, and various customer shipping options.

Arbonne continues to be the leading force in the health and beauty market when it comes to caring for the environment and their stakeholders. To further their dedication to sustainable procurement, they joined the Roundtable on Sustainable Palm Oil in 2016 and continue to search for more sustainable ingredients. To offset their carbon emissions from transportation, Arbonne works to protect ingredients in Peru they use in their product formulas. To go one step further and achieve a net positive impact, they educate the regional natives on deforestation and garnering sustainable ingredients.

Interview

Jill Todd, PR & Sustainability Corporate Manager

Arbonne

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