In 2020, Mars, Incorporated helped launch the Economics of Mutuality (EoM), a management innovation aimed at helping to restore relationships between business, society, and the environment and to deliver a fairer, more responsible form of capitalism. It was developed within Mars, one of the world’s largest privately owned businesses, in collaboration with Oxford University and other top academic institutions and was redeployed in 2020 as an independent organization headquartered in Geneva, Switzerland.

In an exclusive interaction with Brand Equity, Andy Pharoah, vice president – corporate affairs and sustainability, Mars Inc., points out that the launch of EoM comes at a time of heightened public debate around the role of business in society, as well as the 50th anniversary of the publication of economist Milton Freidman’s doctrine for business to solely focus on “increasing profits.” That discussion has undoubtedly been further amplified in 2020 by the Covid-19 pandemic.

The modern consumer wants brands to get off the sidelines and get their hands dirty, so to speak, getting involved in issues from racial inequality to the plastic menace. As consumers become more conscious and more demanding of brands in terms of their impact on people, communities, society and the planet, global companies like Mars are well-poised to help shape inclusive and sustainable business models and brands of the future.

Here Pharoah sheds light on the impact of the current health crisis on the food and petcare major’s sustainability targets and the primacy of purpose in driving strategy.

Edited excerpts.

How has the onslaught of the coronavirus and disruptions in business due to restrictions affected the company’s sustainability goals and roadmap?

The global Covid-19 pandemic has immersed us in a situation unlike anything we’ve ever seen before. While our utmost priority has been to ensure the safety of our Associates and communities, the global response to tackling Covid-19 has demonstrated that we do have the capacity to act urgently and radically to address the world’s biggest societal and environmental threats.

The pandemic has stalled, and even reversed, progress in some areas, particularly around gender equality and food security. And even some of the temporary environmental gains will do nothing to stem the climate emergency – bold, systemic action is therefore needed.

What are the major challenges in meeting sustainability commitments and how are you addressing these?

There is no playbook for a global pandemic. But we have our Five Principles — which have guided us for generations, and a commitment to taking the decisions today that will help us create the tomorrow we want to see.
We’ve moved fast to take actions required to manage through this crisis on a day to day basis, but while also not losing sight of the future. We’re taking strategic decisions that reflect the current reality and continuing to pursue our long-term goals and strategies.

Recognizing that prudence requires we have to plan for contingencies, and we may have to phase some of our investments and actions differently than originally planned.

The benefit of being a family business is that we are able to manage our business for the long-term.

In your view, how have global corporations’ views on the connection between profit and purpose changed over the years?

The idea that purpose and sustainability are of critical importance to business has moved into the mainstream. It is increasingly expected by consumers, communities, employees, governments, and business partners. But it needs to be real and true to who you are and what you can achieve. It can’t be an afterthought or marketing gimmick. It needs to be built into how you do business, what you measure and what you reward and celebrate.

The common thread, no matter what part of our business you’re looking at, is our purpose – The world we want tomorrow starts with how we do business today. It’s that clear. And although that articulation of purpose is relatively recent, Mars has always been Principles-led. Our challenge wasn’t to invent a Purpose, but to articulate one that’s existed through 100 years. To communicate the benefit not the feature.

How do you go about making sustainability a business KPI?

Our answer to that is the Mars Compass. It sets out what the Mars family, who are our owners, believe are the objectives for the business. These include: strong financial performance, being well positioned for future growth, having a positive impact on the world, and being a trusted partner in society. And the Board and management team are required to deliver against that. It’s really a 360-degree approach.

When it comes to communicating a company’s purpose and sustainability programs, what’s the key to doing it right?

In the few years before the pandemic, we started to make our voice heard on issues like climate change, human rights and nourishing wellbeing. One of our most important beliefs when it comes to communicating our efforts is in “Acts not Ads”. We want our brands to have a deeper purpose, where they not only connect with consumers but can make a measurable and meaningful impact. We’ll only do that where we have an authentic role to play and can make a measurable difference.

A major recommendation to others looking to weigh in on current world events and issues – Prove it with what you do, not just what you say.

In an increasingly polarized and fractured world, do you think marketers and brands can make a real difference and change the world for the better?

If 2020 has taught us anything, it is that communication plays a vital role in building meaningful relationships and that’s especially important in times of crisis. With this year being dominated by uncertainty, hyperbole and misinformation, both consumers and employees have turned in ever greater numbers to companies as trusted news sources. Business has a role to play in society, and we can choose to make a difference.

Looking to the future, we as communicators have the opportunity to be more curious than ever and ask questions even when they’re uncomfortable. We’ll need to be honest advisors that can help our organizations be their true authentic selves. This is really the beginning of an era of change, and as a profession we not only need to make our own changes, but be a voice for change in the world, too. I’m very optimistic that we can do that together, but it will require continual focus like we’ve never seen before and honest, open conversations. In doing so we’ll ensure that those important changes—societal, sustainable or otherwise—really happen, and in doing so we’ll be providing future generations with a real chance to thrive.