virgin raw materials. Recently, the company purchased
renewable wind energy credits equal to 100% of its electricity
use in all of its stores and facilities, the only Fortune
500 company to offset its electricity consumption entirely.
Spoiled produce and biodegradable waste are
trucked to regional centers for composting. Whole Foods’
vehicles are being converted to run on biofuels. Even the
cleaning products used in its stores are environmentally
friendly. And through its philanthropy, the company has
created the Animal Compassion Foundation to develop
more natural and humane ways of raising farm animals.
In short, nearly every aspect of the company’s value chain
reinforces the social dimensions of its value proposition,
distinguishing Whole Foods from its competitors.
Not every company can build its entire value proposition
around social issues as Whole Foods does, but adding
a social dimension to the value proposition offers a new
frontier in competitive positioning. Government regulation,
exposure to criticism and liability, and consumers’attention
to social issues are all persistently increasing. As
a result, the number of industries and companies whose
competitive advantage can involve social value propositions
is constantly growing. Sysco, for example, the largest
distributor of food products to restaurants and institutions
in North America, has begun an initiative to preserve
small, family-owned farms and offer locally grown
produce to its customers as a source of competitive differentiation.
Even large global multinationals–such as General
Electric, with its “ecomagination” initiative that focuses
on developing water purification technology and
other “green”businesses, and Unilever, through its efforts
to pioneer new products, packaging, and distribution systems
to meet the needs of the poorest populations –
have decided that major business opportunities lie in
integrating business and society.