Purity of Spirit: Tom’s of Maine __________________________________________________ Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall Case Overview Introduction History Spirituality-Inspired Business Philosophy Spirituality-Inspired Business In Action Value-Centered Leadership The Seven Intentions Organizational Design and Diversity Empowering Employees and the Community Respecting the Individual and the Environment Spirituality in the Workplace Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall             Introduction Tom’s of Maine was founded by Tom and Kate Chappell in 1970 All products are made from natural ingredients Company sales are strongest on the East and West coasts The flagship product is toothpaste (60% of revenues) Additional Products: floss, deodorant, mouthwash, soap, shampoo, shaving cream, and other wellness products. Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall History 1970 Introduced world’s first non-phosphate laundry detergent 1973 Expanded products to all-natural soap, shampoo, and lotion 1975 Added all-natural toothpaste 1981 Increased sales to 1.5 million Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall History 1981 Hired more professional talent including several young employees with MBA degrees 1983 Increased sales to 2 million 1988 Decreased founder Tom Chappell’s time to 3 days a week; Chappell later returned to full time and created the company’s mission and values Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall History 1994 Struggled with the “deodorant debacle” 1996 Considered selling the company but decided that potential buyers did not fit with company ideals 1999 Introduced a new line of wellness products 2006 Sold 86% interest in company to Colgate-Palmolive for $100 million Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Spirituality-Inspired Business Philosophy Philosophies that influenced Tom’s of Maine’s culture I-It vs. I-Thou I-It philosophy sees others as objects to use for selfish purposes. I-Thou sees relationships as honorable and seeks friendship, respect, and love. Jonathan Edward, American Philosopher An individual’s identity comes not from being separate from others but connected to others. Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Value-Centered Leadership Managing Upside Down: The Seven Intentions of Values-Centered Leadership 1. Society and ethics over maximizing financial gain 2. Increased profitability through people 3. Flat organizational hierarchy 4. The seven intentions

Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall The Seven Intentions Connect Know Thyself, Be Thyself Envision Your Destiny Seek Advice Venture Out Assess Pass It On www.saltwater.org Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Organizational Design and Diversity “It was not long before I realized that the more sensitive my executives and I could become to the differences of the people we were trying to serve, and the more perspectives we could plug into our discussions about product design, business strategy, and customer service, the more broadly the company could range to meet its financial objectives.” -Tom Chappell Circle: the team, all are equal Triangle: the management, accountability, and decision-making Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Empowering Employees and the Community “Live the mission.” 10% of all pre-tax profits go to charitable organizations Employees are encouraged to dedicate 5% of their paid work time to volunteerism Tom’s of Maine organizes company-wide volunteer projects Tom’s of Maine offers generous benefits packages An Apple a Day Dental Health For All Company Volunteerism Rivers Awareness Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Respecting the Individual and the Environment Giving Programs Environmental Policies Consumer Policies Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Spirituality in the Workplace Respectful Pluralism reflects an organization that is not “aligned with any explicitly religious, spiritual, or other comprehensive worldview” and where “organizations should allow for significant employee expression of various aspects of their identity on an equal basis.” -- Dr. Douglas A. Hicks Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall “Tom’s of Maine is a living, breathing—and profiting—proof that a business enterprise can be good for the earth, good for society, good for its employees, and good for its shareholders.” – Tom Chappell Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall Discussion Questions How should management accommodate a variety of conflicting spiritual perspectives in the workplace? Tom Chappell created a spiritual framework for Tom’s of Maine, a family-owned business. Can such a framework be created for a publicly-traded company? What differences might there be in its effects? To what extent is Tom Chappell’s spiritual perspective responsible for the company’s organizational culture and the company’s successes and/or failures? What risks might a company encounter when encouraging the expression of spiritual values in the workplace? What advantages does it gain? Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

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Credits Power Point to accompany Opportunities and Challenges of Workplace Diversity: Theory, Cases, and Exercises 2nd Edition by Kathryn A. Cañas and Harris Sondak. Prepared by Kathryn A. Cañas and Ellen M. Donovan. Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall