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Natura Cosmeticos

Permanent Link: http://ufdc.ufl.edu/UFE0024168/00001

Material Information

Title: Natura Cosmeticos Contrasting Views of a Brazilian Make-Up Company through Textual Analysis
Physical Description: 1 online resource (74 p.)
Language: english
Creator: Smith, S
Publisher: University of Florida
Place of Publication: Gainesville, Fla.
Publication Date: 2009

Subjects

Subjects / Keywords: natura
Latin American Studies -- Dissertations, Academic -- UF
Genre: Latin American Studies thesis, M.A.
bibliography   ( marcgt )
theses   ( marcgt )
government publication (state, provincial, terriorial, dependent)   ( marcgt )
born-digital   ( sobekcm )
Electronic Thesis or Dissertation

Notes

Abstract: In Brazil, cross-sector partnerships have become the norm over the last decade. The political and economic situation of the last decade has called for innovative approaches that address the country's social and economic needs. Once a responsibility of the government, the last 10 years has seen the private and third sectors become much more active players in the country's development. In this regard, Brazil has emerged as a global leader. So has one of its most successful companies, Natura Cosmetics. Our purpose was to document how Natura is portrayed across sectors; that is, according to the company's own identity as they express it, their identity captured by the business world and cosmetic industry as convey by mainstream and trade media, and the views of the academic sector. Understanding Natura from the various views will help determine if Natura's actions and communication are consistent with these views. Mainstream and trade media lean towards describing and praising Natura's business model while critiques come from the academic world while. The findings show that Natura does act and communicate consistently when compared to the above mentioned views.
General Note: In the series University of Florida Digital Collections.
General Note: Includes vita.
Bibliography: Includes bibliographical references.
Source of Description: Description based on online resource; title from PDF title page.
Source of Description: This bibliographic record is available under the Creative Commons CC0 public domain dedication. The University of Florida Libraries, as creator of this bibliographic record, has waived all rights to it worldwide under copyright law, including all related and neighboring rights, to the extent allowed by law.
Statement of Responsibility: by S Smith.
Thesis: Thesis (M.A.)--University of Florida, 2009.
Local: Adviser: Molleda, Juan Carlos.

Record Information

Source Institution: UFRGP
Rights Management: Applicable rights reserved.
Classification: lcc - LD1780 2009
System ID: UFE0024168:00001

Permanent Link: http://ufdc.ufl.edu/UFE0024168/00001

Material Information

Title: Natura Cosmeticos Contrasting Views of a Brazilian Make-Up Company through Textual Analysis
Physical Description: 1 online resource (74 p.)
Language: english
Creator: Smith, S
Publisher: University of Florida
Place of Publication: Gainesville, Fla.
Publication Date: 2009

Subjects

Subjects / Keywords: natura
Latin American Studies -- Dissertations, Academic -- UF
Genre: Latin American Studies thesis, M.A.
bibliography   ( marcgt )
theses   ( marcgt )
government publication (state, provincial, terriorial, dependent)   ( marcgt )
born-digital   ( sobekcm )
Electronic Thesis or Dissertation

Notes

Abstract: In Brazil, cross-sector partnerships have become the norm over the last decade. The political and economic situation of the last decade has called for innovative approaches that address the country's social and economic needs. Once a responsibility of the government, the last 10 years has seen the private and third sectors become much more active players in the country's development. In this regard, Brazil has emerged as a global leader. So has one of its most successful companies, Natura Cosmetics. Our purpose was to document how Natura is portrayed across sectors; that is, according to the company's own identity as they express it, their identity captured by the business world and cosmetic industry as convey by mainstream and trade media, and the views of the academic sector. Understanding Natura from the various views will help determine if Natura's actions and communication are consistent with these views. Mainstream and trade media lean towards describing and praising Natura's business model while critiques come from the academic world while. The findings show that Natura does act and communicate consistently when compared to the above mentioned views.
General Note: In the series University of Florida Digital Collections.
General Note: Includes vita.
Bibliography: Includes bibliographical references.
Source of Description: Description based on online resource; title from PDF title page.
Source of Description: This bibliographic record is available under the Creative Commons CC0 public domain dedication. The University of Florida Libraries, as creator of this bibliographic record, has waived all rights to it worldwide under copyright law, including all related and neighboring rights, to the extent allowed by law.
Statement of Responsibility: by S Smith.
Thesis: Thesis (M.A.)--University of Florida, 2009.
Local: Adviser: Molleda, Juan Carlos.

Record Information

Source Institution: UFRGP
Rights Management: Applicable rights reserved.
Classification: lcc - LD1780 2009
System ID: UFE0024168:00001


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1 NATURA COSM TICO S : CONTRASTING VIEW S OF A BRAZILIAN COSMETIC COMPANY THROUGH TEXTUAL ANALYSIS By S ELIZABETH SMITH A THESIS PRESENTED TO THE GRADUATE SCHOOL OF THE UNIVERSITY OF FLORIDA IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS UNIVERSITY OF FLORIDA 2009

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2 2009 S. Elizabeth Smith

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3 To my Mom who was with me when my love of Latin America began T o all of you who picked up where she left off Thank you!

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4 ACKNOWLEDGMENTS A big thank you to my committee: Dr. Juan Carlos Molleda, Dr. Terry L. McCoy and Dr. Marianne Schmink. It has been an honor to be guided by such expertise. I thank them for their guidance and support. To tropical biologist and teacher Jim Serach who first introduced me to the tropics during a high school Tropical Biology class in 1990. He changed my view of the world. If not for his love of tro pical rainforests I would not be here today. I thank Ann Blum, Assistant Professor at the University of Massachusetts, Boston. S he enthusiastically replied Go for it! the day I asked her what she thought abo ut majo ring in Latin American Studies I rea lly wonder where I would be right now. And a big t hank s to t he Center for Latin American Studies and T he C enter for International Business Education and Research (CIBER) The CIBER Program funded my participation in the Business in Brazil summer program from where t his thesis topic arose while on a company visit Special thanks go to my dear friends who accompanied me on this part of my journey I t hank them for always encouraging me to trudge on especially when I did not want to. F inally a big thank s t o my mom who I know would be so proud of me if she were here today. I miss her so much and I know she would love hearing about t he adventures that come along with studying Latin America. She has sent many angels to keep an eye on me since she passed aw ay in 1993 and I am grateful for each one

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5 TABLE OF CONTENTS page ACKNOWLEDGMENTS .................................................................................................................... 4 LIST OF TABLES ................................................................................................................................ 7 ABSTRACT .......................................................................................................................................... 8 CHAPTER 1 INTRODUCTION ......................................................................................................................... 9 Research Questions ..................................................................................................................... 10 Literature Review ........................................................................................................................ 11 Brief History of Brazils Political Economy ...................................................................... 11 Socio Economic Context ..................................................................................................... 15 Corporate Social Responsibility ......................................................................................... 16 Rio Earth Summit of 1992 .................................................................................................. 16 Business for Social Responsibility ..................................................................................... 17 The Media ............................................................................................................................ 18 Cross -Sector Partnerships ................................................................................................... 19 Cross -Sector Partnerships in Brazil .................................................................................... 20 Methodology................................................................................................................................ 22 Method.................................................................................................................................. 22 Data Gathering ..................................................................................................................... 23 Data Analysis ....................................................................................................................... 23 Summary ...................................................................................................................................... 25 2 FINDINGS: NATURA COMETICS SELF IDENTITY ......................................................... 26 Natura Cosmetics ........................................................................................................................ 26 Brief History ........................................................................................................................ 26 Reason for Being ................................................................................................................. 27 Company Values .................................................................................................................. 27 Business Philosophy ............................................................................................................ 28 Partnerships .......................................................................................................................... 29 Naturas Linha Ekos ............................................................................................................ 30 Ekos Business Model .......................................................................................................... 31 Challenges ............................................................................................................................ 32 Sustainability Reporting ...................................................................................................... 33 Linha Amor America ........................................................................................................... 33 The Brazilian Market ........................................................................................................... 34 The U.S. Market ................................................................................................................... 34 Summary ...................................................................................................................................... 35

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6 3 FINDINGS: VIEWS CAPTURED THROUGH MAINSTREAM AND TRADE MEDIA ........................................................................................................................................ 37 Mainstream Media ...................................................................................................................... 37 Growth .................................................................................................................................. 38 Consumer Attitudes and Behaviors .................................................................................... 38 Reasons for Success ............................................................................................................. 39 Cosmetic Industry ....................................................................................................................... 40 Summary ...................................................................................................................................... 42 4 FINDINGS: VIEWS OF RESEA RCH INSTITUTIONS ......................................................... 44 Parcerias Florestais ...................................................................................................................... 44 Brazilian Amazon Context .................................................................................................. 45 Overview .............................................................................................................................. 46 Case Studies ......................................................................................................................... 48 Case 1 ............................................................................................................................ 48 Case 2 ............................................................................................................................ 48 Case 3 ............................................................................................................................ 50 Business School Case Studies .................................................................................................... 51 Case 1 ................................................................................................................................... 52 Case 2 ................................................................................................................................... 54 Other Institutions ......................................................................................................................... 55 Summary ...................................................................................................................................... 56 5 CONCLUSION ........................................................................................................................... 58 Limitations and Areas for Further Research .............................................................................. 59 APPENDIX A COMMUNITIES WITH COMMERCIAL AGREEMENTS WITH NATURA .................... 64 B THE HISTORY OF NATURA COSMTICOS AND SOME PERFORMANCE RESULTS* .................................................................................................................................. 66 C MAP OF MEDIO JURUA EXTRACTIVE RESERVE ........................................................... 67 D MAP OF ROQUE AND PUPUAI ............................................................................................. 68 BIOGRAPHICAL SKETCH ............................................................................................................. 74

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7 LIST OF TABLES Table page 2 1 Source of Article or Document & its view towards Naturas business philosophy. .......... 36

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8 Abstract of Thesis Presented to the Graduate School of the University of Florida in Partial Fulfillment of the Requir ements fo r the Degree of Master of Arts NAT URA COSM TICOS: CONTRASTING VIEWS OF A BRAZILIAN COSMETIC COMPANY THROUGH TEXTUAL ANALYSIS By S. Elizabeth Smith May 2009 Chair: Juan Carlos Molleda Major: Latin American Studies In Brazil cross -sector partnerships have become the norm over the last decade T he political and economic situation of the last decade has called for innovative approaches that address the countrys social and economic needs. Once a responsibility of the governme nt the last 10 years has seen t he private and third sectors become much more active players in the countrys development. In this regard, Brazil has emerged as a global leader. So has one of its most successfu l companies, Natura Cosmetics. Our purpose wa s to document how Natura is portrayed across sectors; that is, according to the companys own i dentity as they express it, their identity captured by the business world and cosmetic industry as convey by mainstream and trade media and t he views of the aca demic sector Understanding Natura from the various views will help determine if Naturas actions and communication are consistent with these views Mainstream and trade media lean towards describing and praising Naturas business model while critiques co me from the academic world while The findings show that Natura does act and communicate consistently when compared to the above mentioned views.

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9 CHAPTER 1 INTRODUCTION In view of the limitations of the state action and the nature of the phenomenon of social exclusion, only by extensive social mobilization will it be possible to bring together sufficient resources to confront the problem. It is therefore necessary to seek partners outside the State, that is, within society or, more specifically, in private companies and the third sector. The growing mobilization of private resources for public ends represents a break with a traditional dichotomy between public and private, in which the public was synonymous w ith the state and the private, with profit. The participation of citizens and the investment of businesses in social action configures the appearance of an unprecedented non -governmental public sphere and of a nonprofit and nongovernmental Third Sector whose growth contributes to the resizing of the State as well as the Market, (Fisher 2005: 1 40). By Ruth Cardoso, Social Anthropologist and wife of former President Enrique Cardoso, then chair of Brazils Community Solidarity Council. Still a rela tively young concept in Brazil, corporate social r esponsibility (CSR) is strengthening and has been acclaimed by many to be the model of such collaboration worldwide (Fischer 2005: 141). Some say it is a legacy of Brazils smooth transition from empire to republ ic that carried into the countrys more recent transition to democracy ( Sanborn and Portocarrero 2005); others attribute it to the response of the general opinion of a well organized civil society reacting to state inefficiencies under neo liberalism (Sanborn and Portocarrero 2005). Reg ardless, the truth is that one of the 10th largest economies in the world has experienced a recent economic strengthening ; however, it has not been accompa nied by a significant increase in Brazils income distribution ( F ischer 2005; 2007/2008 UNDP Human Development Report ). The result? A societal awareness that called upon cooperation between the public and private sectors to help address Brazils problems of social inequalities .1 As a result of Brazils CSR environment, cross -sector partnerships are no stranger to Brazil. The political and economic situation of the last two decades has called for innovative approaches to address the countrys social needs. Once a responsibility of the government the 1 http://www.gife.org.br/ Retrieved September 30, 2007.

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10 last 10 years has seen t he private and third sectors become much more active players in the countrys development. In this regard, Brazil has emerged as a global leader. So has one of its most successful companies, Natur a Cosmetics. Research Question s The purpos e of this thesis is to document how Natura is portrayed across sectors ; that is, according to the companys own identity as they express it, the views of financial analysts and the cosmetic industry, and the views of the academic sector regarding Naturas business philosophy. Understanding Natura from the private and the academic worlds will provide a broader and clearer picture of the company than either sector is capable of on their own. Natura is widely covered by mainstream and trade media by capturi ng the voices of the Natura, their business philosophy and company performance. A few case studies have emerged from business schools in the last decade along with another stream of analysis provided by the academe outside of business schools. It seems t hat evaluations of the compan y vary greatly across sectors. Thus, this study aims to uncover the various views on Natura and its business philosophy. The main research question s that guided this study are : RQ1 How do es Natura self represent? RQ2 How does the private business sector view Naturas business through mainstream a nd trade media? RQ3 How do academic research institutions view and represent Natura Cosmetics? RQ4 Based on the results of the previous research questions, are Naturas a ctions and communication consistent with the views of the other sectors? It is a well known that there are many sides to every story. It is also important that consumers have access to all sides of the Natura stor y The cosmetics industry is well known for

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11 marketing -communication glamour and selling false hopes by persuading people that their products can help them look and feel younger healthy, and more beautiful (Quarter, 2000). F or consumers and various public s ( market segments) to form their own opinion there must be a public sphere where all sides of the story can safely be brought out in the open Literature Review Brief History of Brazils Political Economy Since Brazils independence from Portugal in 1822, Brazil has alternated through periods of dictatorial rule and democracy Brazils economy has fluctuated be tween periods of liberalism and state intervention. During the late nineteenth and early twentie th century Brazils role in the international economy was that of exporter of raw materials, specifically coffee and agricultural products such as rubber, sugar and cotton to the British industrial market A periphery country feeding a center countrys hunger for capital accumulation the Brazil Britain economic relationship is a model for classic dependency theory. According to Evans classic dependence is defined as e xtreme relian ce on one single export2 and equally on imports (1979 : 59). Overdependence on one export product greatly increased Brazils vulnerability to external oscil lations and booms and busts in addition to fostering slow economic development (Leff 1982). Lacking local industry, Brazil depended o n Brit ain for imports of almost any man ufactured item3. W orking in Brazils favor was the fact that coffee plantations were l ocally owned. Since the coffee industry required little surplus reinvestment to keep it going, profits were diversified 2 In the early twentieth century Brazil exported two thirds of its agricultural products (Evans 1979: 58). 3 The inability to create local industry is another characteri stic of class dependence (Evans 1979: 60).

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12 instead of being used for capital accumulation Alliances between coffee elites and the state strengthened and coffee earnings spurred d evelopment of local infrastructure (Thorp 1998) Over time this led to a development of a local manufacturing industry which ultimately changed the face of development for Brazil. Following World War I and the shift in global powers that resulted the United States replaced Britain as Brazils hegemonic power. Brazils manufacturing continued to develop and slowly manufactured goods that used to be imported from Britai n began appearing as exports to the United States. However, as the Great Depression rolled in, demand for Brazils exports came to a screeching halt. A low level of income was a major contributor to increased dependency (Leff 1988). The State s official policy of economic intervention began w hen military leader Getulio Vargas took the presidency in 1930, (Thorp 1998). In 1937, Vargas used t he threat of a communist coup to implement his f amous Estado Novo (Leff 1988) Congress was abolished and a new Co nstitution was created that gave him absolute power. As the State marched on with its nationalist economy, industrialization prospered, state financial and industrial institutions4 were born, official State interventionists were appointed and all forms of media w ere censored. By the mid twentieth century industrialization in Brazil increased the economy prospered and the face of its imports and exports began to change. In 1945, the overthrow of Vargas by the military brought a period of return to democracy and U.S. economic liberalism. The new face of foreign capital became U.S. multinational corporations. Although a small shift appeared in industrial production fr om center to a periphery country the dynamics of the dependent relationships did not change. Five years later amidst frustrations and low growth, Vargas was brought back to power and state intervention returned. 4 Under Vargas state institutions for banking, oil, public service, iron, mining, power generation and automobiles were created for the benefit of the state only.

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13 Following Vargas suicide in 1954, Kubitschek was eventually elected and pick ed up where Varg as left off. His economic plan, Programs of Goal s aimed to solidify the alliance between the state and the private sector to modernize Brazil via the acceleration of industrialization and the construct ion of infrastructure (Skidmore 1999). It was Kubits chek who embarked upon the plan to open Brazils interior by relocat ing the countrys capital from Rio de Janeiro to the state of Goias (Skid more 1999; Browder and Godfrey 1997) High growth was a success under Kubitscheks but more so in terms of upholdi ng the colonial legacy of Brazils hierarchal society. Famous for printing money as a way to subsidize the state, inflation began to skyrocket and power continued to lay in the hands the elite and exclude the masses from any opportunity (Leff 1982) Braz ils econ omy could no longer sustain. For the next twenty years Brazils fate lay in the hands of the military. I t was during these years that the Brazilian Miracle occurred due to the flow of foreign loans Institutional lending was plentiful due to t he availability of petrodollars from oil -exporting economies whic h contributed to what is often called debt led growth (Skidmore 1999: 181). By the 1970s Brazils dependence had simply been transferred from one imperial power to another5. Considered the internationalization of international capital, although Brazil was impressive in terms of industrialization, local bourgeoisie and politicians became puppets of foreign business owners This Brazilian model of dependent development car ried out under the military during the mid 60s could be considered the origins of cross -sector partnerships in Brazil: The military authoritarian regime forged a triple alliance of state, national private and foreign capital, known as the tri-p This arrangement served several useful functions: it integrated the economy under central government stewardship; it gave national 5 At the turn of the century almost all of Brazils exports were locally owned; by 1969, 40% were in the hands of foreigners (Evans 1979: 80).

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14 businesses the opportunity to gain technological and managerial skills, and it gave the MNCS (multinational corporations) politica l legitimacy and local protection from nationalist critics. Internationally, the tri-p legitimated the MNCS in the host country, and the state depended on this legitimation to raise development funds on the international market (Browde r & Godfrey 1997: 6 7) Evans analysis of this dynamic described above is striking (Evans 1979: 82 3). As Brazils sphere of influence was transferred from Britain to the U.S., and direct foreign investment in Brazil appeared in the form of MNCs, Brazil (the recipient natio n of the investments) gained the upper hand. How? When an MNC investment heavily in a foreign land meant the MNC lost hegemonic power and thus the support of its home nation. MNC s in this position now had to comply with the investment nation (Brazil) in order to keep their support. Decentralization and democracy began to appear in Brazil during the late 1980s. Followed by the ec onomic liberation of the 1990s the role of the state and the governments responsibility to the people were redefined In response to the Latin American debt crisis considered the Lost Decade of the 1980s, multilateral financial institutions such as the International Monetary Fund and the World Bank imposed structural adjustments upon individual nations in the region, often referred to as the Washington Consensus and the n eoliberal model of development. In 1985, when the military dictatorship ended and Brazil returned to civilian power, all economic development efforts of the last 20 years basically self combusted leading to the largest collapse of the state creating the opening for new players in development field in Brazil. T he state as the apex of a nations economy had failed. The only solution was to limit the role of the state by redefining it as regulator and loweri ng trade barriers to allow for the inflow of foreign capital (Fischer 2004). T he formal process of state privatization ultimately turned what used to be state enterprises over to the hands of private foreign owners. At the same time, budgets allocated f or the social agenda were drastically cut leaving the majority of Brazil without resources

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15 Government s common role of acting in the welfare capacity was replaced by its new role of acting as a market regulator of the new free -market economy Negative i mpacts were felt allover but especially in the Amazon region by government sectors, particularly indigenous affairs and environmental duties (Toni & Kaimowitz 2003). Areas that were already suffering were now worse off than ever. Socio -Economic Context Understanding the socio-economic context of cross -sector partnerships is an important element in grasping the nature of their development in Brazil. Stagnant human development has been a large factor in Brazils economic development. At the end of the ni neteenth century, literacy rates and poor communication contributed to low rates o f technological progress (Leff 1982: 140). A century later it was unfavorable conditions in Brazils socioeconomic structure that hindered not only business development but that of the state as well (Fischer 2005: 141). As stated previously, decentralization took Brazils development in a new direction A s social and economic conditions seemed not to improve, the third sector began to emerge to address these issues.6 At the time Brazil had 170 million inhabitants with 87% living in urban areas, 32% living in poverty and the GDP per capita was $7625 (Fischer 2005). Businessmen started to realize the impact that this tremendous inequality could have on the future of Brazils business and economic situation. High levels of poverty combined with l ow levels of education meant that the majority of the population w as restricted from the market due to low purchasing power. This would certainly have a negative impact on the private sector and ultimately Brazils economic 6 This new third sector is considered an organization patchwork of NGOs, private foundations, so cial aid and charity entities, religious organizations, and cultural and educational associations. (Fischer 2004).

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16 performance on the global scale. How could these businesses position themselves as international players while anticipating such low levels of profitability? Corporate Social Responsibility According to GivingUSA 2 008, Corporat ions and individual donors in the U.S. donated $306.39 billion dollars in 20077. Giving was 2.2% of the GDP, up 40% from 2006s total. In Latin America, it is not philanthropy that is new but rather the public discourse that is. Decentraliz ation of government redirected the spotlight to private firms. As the military dictatorship was coming to an end in Brazil in the mid 80s, social movements formed minus the threat of any opposition. This was not the case in other countries in Latin Amer ica. Simultaneously, business leaders grew aware of the impact that globalization was having on educating consumers and raising consciousness about their participation in the market. Business leaders also became aware of social problems in their areas. Management theories and practice began incorporating a new role into business plans that connected them with their communities. They were no longer simply businesses providing a service; they were identified as members of society. Globalization is a larg e contributor in this regard as companies began moving overseas in search of lowering their costs. Environmental standards in the new host countries presented a whole new set of criteria By moving abroad, businesses were often freed from having to abide by strict policies of home. C onsumers and the public were not afraid to voice their opinion. Rio Earth Summit of 1992 In 1992, the UN Conference on Environment and Development, coined the Rio Earth Summit of 92, took place in Rio de Janeiro. This event officially placed concerns about the environment and sustainable development on the map resulting in Agenda 21 which was the 7 http://www.philanthropy.iupui.edu (accessed Oct 20, 2008).

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17 reaffirmation of the UN Conference on the Human Environment that had been agreed to twenty years prior. It placed human beings at the center of sustainable development not to be separate from environmental conservation.8 Business for Social Responsibility Founded in 1992, the organization Business for Social Responsibility (BSR) based in San Francisco, California is a key player in the development of CSR in Latin America. In 1989 the Brazil Association of Toy Manufacturers (Abrinq) took up the cause in defense of childrens rights. This led to the 1990 founding of the Abr inq Foundation which shares the same mission as Abrinq Busi ness leaders from Abrinq and other foundations became interested in CSR and coordinated with BSR. This led to their participation in BSRs Miami conference in 1997. The following year Latin A merican businesses were not simply guests but on the agenda as conference participants. BSR has since served as a model for those interested in developing their CSR agenda (Aguero 2005). Brazil alone had sent 12 participants who then became the founding members of Ethos (Ethos Institute for Business and Social Responsibility) that same year. Guillerme Leal, Nat uras CEO, was one of those 12. Today Ethos is considered a global reference in CSR .9 They set the tone for standards and indicators, including upholding states of their responsibility to their citizenry. I n 2002 Ethos consisted of 443 member firms and today that number totals 1375.10 8 http://www.UN.org (accessed Oct 10, 2008). 9 http://www.Ethos.org (accessed Oct 13, 2008). 10 http://www.Ethos.org (accessed Nov 2, 2008).

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18 So what makes Brazil stand out among its neighbors? It is the only country in the region where companies actively report socially responsible activity and vanguard the movement with their emphasis on human rights .11 The Media Media hold the responsibility of reporting on busin ess etiquette and performance, while also playing the huge role of shaping opinions of oneself an d others (Ferguson 2008). Mainstream and trade media are oft en in support of Naturas business model and praising the company for its commitment to social responsibility. A common critique of the news media in Latin America is that they do not look critically enough at CSR and often do not associate it with c orp or ate s ocial a ction (Vivarta and Canella 2006). As a result, CSR is often falsely conveyed. This inaccurately p ortrays CSR by ignoring the problems that can arise with it. This is the recent case with Aracruz, Brazils largest producer of paper pulp. Aracruz has a history of illegal appropriations of land and still will not self admit even when ruled against by the jury (Fig 2007) In Miami on September 2002, a conference was held that addressed the increase in local a nd multinational companies with a purpose beyond making a profit. The Americas Conference on Corporate Social Responsibility focused on firms with a triple bottom line: O btaining financial results and sustainable economic growth with more and better jo bs and social equality ( Vives and Heinecke 2002). One panel, The Role of the Media in Promoting the CSR Agenda, focused on the influence the media has in shaping public opinion and attitudes. 11 ETHOS Institute of 2000 observes the Universal Declaration of Human Rights and its relevance for companies: child labor, forced labor, freedom of associat ion, discrimination (Felipe Agu ero in Sanborn and Portocarrero 2005: 114).

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19 According to panelist Ana Maria Majano, Executive Director o f the Latin American Center for Competitiveness and Sustainable Development in Costa Rica, In the majority of countries in the Americas, the most important communication media are owned by private companies ( Vives and Heinecke 2002). This serves two pur poses: First, private companies are a driving force behind what gets reported and how it is reported; that is, they have a significant media agenda building influence Secondly, these same institutions often develop programs of social responsibility on th eir own therefore marrying avenues of media with the advancement of their own specific issues. Naturally, reporting becomes clouded. Discussant Mack Quintana, President of El Paso Times stated that communication media are in fact a business, but a speci al kind of business, with unique responsibilities not only as corporate citizens but also as community watchdogs and defenders of constitutional freedoms ( Vives and Heinecke 2002). According to Michael Reid, Americas editor of The Economist the notion of CSR is relatively new in Latin America media, unlike that of British and U.S. media who have always voiced their opinions about private companies ( Vives and Heinecke 2002). Reid included an important point about media in Latin America: T hey have a huge impact when promoting the CSR agenda. As already evidenced by the Edelman Report, private companies are preferred over politicians, which evidences that the media coverage of CSR can legitimize private business in the region. The media has two roles: S c rutiny, including self -scrutiny, and reporting on and encouraging best practice s by private companies. T he ability to do just this is, even if their job is to defend constitutional freedom, is often not up to the individual reporter, but the editors and c ompanys private or public owners. Cross-Sector Partnerships A partnership i s: relationships entered into by two or more organizations from the business and civil society to achieve respective or common goals, ( Austin and Reficco et al,

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20 2004: 4). The p artnering process occurs in three stages: philanthropic transactional and integrative. Where a partnership in the -making falls along the continuum is determined by decisions made by the partners regarding how integrative the partnership will be. Some institutions and businesses are engaged in many partnerships and each may appear at varying locations along the continuum. Within these three stages exist five dimensions to the partnering process: building cross -sector bridges and building alignment; generating value for all partners; managing the relationship; and finally, growth and innovati on. Cross-Sector Partnerships in Brazil When compared to other Latin American countries, Brazil is the leader in regards to corporate social responsibility and cross -sector p artne rships (Austin, Reficco, et al. 2004; Sanborn & Portocarrero 2005). Partn erships in Brazil fall directly in line with the profound emphasis on CSR that has become so accepted. Corporations often turn to NGOs and other institutions to achieve their goals as they have found that to be the more successful route. A survey of 385 companies revealed the relevance of cross -sector partnerships: 85% had social alliances, of which 80% incorporated NGOs, 56% included government entities, and 47% othe r com panies (Austin, Reficco, et al. 2004: 6). Companies with over 1000 employees produ ced about 20% less programs than those with between 5001000 employees who produced about 45% (DamianoTeixeira and Pompermayer 2007). A look at some of Brazils largest companies reveals the magnitude of cross -sector partnerships in Brazil. In 1998, the Cardoso administrations Education Minister had school business partners hips as number one on his agenda. In a short time 50 corporate -funded foundations with endowments of hundreds of millions of dollars h ad sprung up in Brazil (Padgett 1998). As the r esult of Natura s assistance with the Matilde School, the majority of its teachers have earned board certification. And the relationship is not a one way street. Not only does

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21 Natura help local school children but under -educated factory workers from Natu ra are allowed to attend classes at Matilde. Po de Acar Supermarket, a Brazilian supermarket chain based in So Paulo, was founded by Portuguese immigrants Valentim dos Santos Diniz and his wife, Floripes Pires, in 1959. In 1992, the employees of Po de Acar created Club Po de Acar12 with the collaboration of local school system in communities wherever one of their supermarkets is located. The goal of the Club is to improve the quality of life and combat sedentary lifestyles at no cost. Time has been set aside before school, during lunch and after school that allows employees to help students with athletic training ranging from running to squash. The dos Santos family was avid runners. President of the business until 1995, Valentim organized the first company sponsored marathon in 1993 as a way to engage the community and share something that he and his family were so passionate about. Petrobras, Brazils national petroleum company joined the Global Compact Initiative (GCI) in 2003 and added the principals of human rights, labor, and ending corruption to its core business. One of the many ways Petrobras contributes to the GCI came when it launched the Petrobras Zero Hunger Program on September 1, 2003. Petrobras committed $303 million dollar s to Zero Hunger by selecting projects that give preference to education and professional training, jobs and earnings, guaranteed rights of the child and adolescent, and social and volunteer projects13. A few of Petrobras institutional partners include: E thos Institute, National Council for the Rights of Children and Adolescents, National Program for Stronger Family Farming, and UNICEF. 12 www.grupopaodeacucar.com.br (accessed Oct 20, 2008). 13 www.petrobras.com.br (accessed Oct 20, 2008)

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22 The global mining company headquartered in Brazil, Company of Vale Rio Doce, has partnered with local governments and N GOs in the State of Maranho to provide the Citizenship Train .14 Vale provides medical services and health education to local community members along the route that the train services. The train spends three months in the field returning home four times a year. The partnership includes the National Health Foundation, Acailandia, Pindare Mirim, Vitoria do Mearim and Bom Jesus das Selvas City Halls, and the General Justice Bureaus. As of 2007 Brazil had 186 million inhabitants, 84% of who were living in urban areas and 22% living in poverty.15 GDP per capita ha s increased to $8,205. Methodology Method At the onset of the project the investigator had been communicating regularly with one of Naturas Community Relations associates16 and the companys department that works specifically with university researchers. It was collectively agreed that a questionnaire and interviews would be the best instruments to gather data. This data would be used to complement other primary and second ary sources on the company. Unfortunately scheduled interviews were cancelled by the company following submission of the questionnaire to the Community Relations associate (at their request). Unable to meet this request, answering the research questions was conducted via qualitative textual analysis of available documents and media reports on Naturas business practices and philosophy. 14 http:// www.vale.com (accessed Oct 20, 2008). 15 UN Human Development Report 2007/2008. 16 F or protection of identity this associates name is omitted

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23 Data Gathering Several preliminary searches were conducted to identify the voice of the cosmetic company and the various voices of business and academia. Preliminary research involved searching for documents on Natura in Brazil and the United States using the Google Scholar search engine, Yahoo Brazil, multiple research databases, and visiting Naturas website and consulti ng colleagues. Brazils magazine equivalents of the U.S.s Time and Newsweek publications were also searched. These include Veja Epoca Negocios (owned by Globo), Globo.com, and Guia Exame Epoca Negocio s produced one article; Guia Exame five; and various U.S. and European business journals and research databases produced a total of 12 items. Colleagues recommended Parcerias Florestais based out of the University of So Paulo in Brazil and six documents are were provided from this nonpro fit academic center. Not including the company website, a total of 24 articles and documents that incorporate interviews with Natura executives, including business case studies and academic research, are included in this study. Data Analysis The text for each article or document was read for major themes or frames, tones, and perspectives. Analysis of the content of the articles and documents was constructed using emergent coding, defined by Wimmer and Dominick as a category system [that] is construct ed based on common factors or themes that emerge from the data themselves (Wimmer and Dominick 2006: 159). Constant comparison was used to create a thorough list of thematic and sub -thematic categories which assisting in preventing any bias from influenc ing the study. The main idea was then to contrast the views expressed by the three sectors captured by the study: Naturas self-identity, other voices through the media and academic institutions. The three major sources identified about Naturas performa nce and business model were the cosmetic company itself, other business/industry voices through the media, and academic

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24 institutions. The four categories of sources were then analyzed according to the following themes: CSR and sustainable development, com pany performance, Naturas role in transforming society, and community relationships (See Table 2 1). Within the sample, each article or document was first identified if it originated from Natura, the media, or an academic institution. The items were then read to isolate the subject and then textual analyzed again for whether it did or did not align with Naturas self identity as a business committed to CSR and sustainable development; the companys performance; its role in transforming society; and finall y its relationships with communities that have commercial agreements, particularly for the sake of Naturas Ekos line. The majority of the items were published after 2003. The three that were not a re also t he only articles published by U.S. news journals : Padgetts 1998 article in Time Magazine ; and Clarks 1999 article and Royals 1999 article both having appeared in Industry Week. Naturas voice was captured by means of the companys website and contributions by company executives Fourteen articles a nd documents focus on Naturas business philosophies of CSR and sustainable development ( Natura Cosmetics company website; Padgett 1998; Clark 1999; Royal 1999; Boechat 2008; Bruno 2003; Casado and Fisher 2003; Caldwell 2005; Daniel 2006; Figueiredo and M arcello 2006; Aparacida da Silva 2007; Jones and Reisen de Pinho 2007; Re belo 2007; Padua and Padua 2008). Eleven focus on the companys performance ( Natura Cosmetics company website Campolim 2004; Caldwell 2005; Jones and Reisen de Pinho 2007; Agencia Est ado 2008; Costa 2008; Herzog 2008; Herzog and Santa 2008; Lima 2008; Seale 2008.; Vaz 2008). Five highlight Naturas role in transforming the world ( Natura Cosmetics company website; Padgett 1998; Clark 1999; Royal 1999; Casado and Fisher 2003). And fina lly nine focus on community -company partnerships ( Natura Cosmetics company website; Casado

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25 and Fisher 2003; Morsello 2004; Figueiredo and Marcello 2006; Morsello 2006; Morsello and Adger 2006; Ribeiro and Morsello 2007; Boechat 2008; Rizek and Morsello 2008). Summary The purpose of this thesis is to uncover the views of Natura Cosmetics according to the company itself, other voices as captured by mainstream and trade media, and aca demic institutions. Currently no research looks comparatively at these th ree sectors. N atura has set the bar for companies that want to adopt business philosophies of CSR and sustainable development. By examining the views of the media and academic institutions in contrast to the companys self identity the hope is to provide a broader representation of just what kind of company Natura is. Revealing the views of Naturas business philosophies through the eyes of others will help contribute to a better informed general public about Natura Cosmetics.

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26 CHAPTER 2 FINDING S : NATURA COMETICS SELF IDENTITY This chapter provides an overview of Natura Cosmetics and the companys self identity. Natura Cosmetics Brief History Based in So Pa ulo, Brazil, Natura Cosmetics (Natura) is one of the most successful companies, not just in Brazil but on a global scale. Sin ce Antonio Luiz da Cunha Seabra founded the company in a So Paulo garage in 1969, Natura s drive has been cosmetics as a means for self knowledge and promoter of well being powered by human relations as a way to express life .1 Referring to a quote learned at age 16 by the great philosopher Plato, Seabra said Man is part of everything; everything is part of man. That was a revelation for me. Ever since, this notion of being part of a whole has never left me (F raser 2006). Like any business Natura struggled during its early days, especially with access to capital, the ability to produce on a large scale while providing the personal attention that Seabra knew his customers deserved. Natura l aunched the first mens line in 1970 followed two years later by the first womens line. In 1974, Natura overcame its challenge of providing personal attention through the incorporation of the direct sales business model. Sales consultants thus became the face of N atura. In 1979, Natura consultant Guilherme Leal was asked to join the company at the executive level and in 1983 was followed by Pedro Passos, a then colleague of Leals. In the closed economy of the 1989, Natura existed as five separate entities. Seab ra, Leal and Passos saw this economic situation as an advantageous moment. They decided to consolidate the five into one single company as a way to spur growth ( Fraser 2006). In 1995, 1 Natura Company Profile http://www.natura.infoinvest.com.br

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27 the se three who have been running the show from the front line decided to step back and named Alessandro Carlucci Naturas CEO. Seabra, Leal and Passos remain co -chairmen of the board of directors. Today Natura operates in Argentina, Bolivia, Chile, Peru, Mexico, Venezuela and France. It plans to enter the US market in 20 09. Reason for Being Natura exists to create products that promote Bem Estar Bem or Well Being Well Well Being is the harmonious, pleasant relationship that one has with himself and his body. Being Well is the empathetic, successful, pleasurable relationship of an individual with another and with the natural environment that makes part of and all of everything. The belief is that life is a chain of relationships. Nothing in life exists by itself. Ever ything is interdependent. For this reason Natura chooses not to produce hair dyes or nail polish because of thei r destructive nature (Dinato and Nascimento 2006). The process of dying hair damages the hair and the use of Formaldehyde and Toluene in nail polish weakens the nails. Company Values According to Yara Rezende, Information Manager of Natura Cosmetics, internal and external relations of the company are upheld by the fol lowing four values (Rezende 2003): 1. Humanism: cultivate relationships and va lue them. Human potential with respect to stimulate individualism enriches diversity and looks to contribute to the improvement of society and give quality to relations hips and the action of each. 2. Balance: inspires harmony and the natural dynamic of man. 3. Transparency: this leaves open the knowledge and processes of doing business in an open manner without ambiguity and discrimination looking for quality, recognition of imperfections, sharing questions and searching for answers. 4. Creativity: to dare and to innovate, looking for innovative relations with spirit, determination and passion, with the goal of continuous improvement, intuition, sensibility and knowledge.

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28 In 1992 Natura implanted the first virtual system of information in the countr y known today as the first virtual library. With this action Natura rocked the world in regards to centers of business documentation. The goal of the virtual library was to permit the sharing of the most modern and innovative happenings in the world in r egards to business, cosmetics, direct sales, dermatology, fashion, processes of making cosmetics, packaging, quality, protection and biodiversity of the environment, fitotherapy, psychology, consumption patterns, shared by similar businesses and among oth e rs (Rezende 2003). Natura was aware that on the footsteps of globalization, the concept of time a nd competition knew no limits. Business Philosophy Guilherme Leal, CEO of Natura Cosmetics and also Chairman of the Board of the Ethos Institute of Business a nd Social Responsibility2 (ETHOS), states A company can be a very powerful agent of social transformation. We are convinced that the continuity of a company is related to its capability of contributing for the improvement of society.3 The beliefs and values that have built the Natura brand are also the pillars of the companys mission: wellbeing with oneself, with others, with the environment, and with the world as a whole4. In 1990, Natura formalized its Principles and Beliefs: the importance of 2 The Ethos Institute: Business and Social Responsi bility is a non-governmental organization created with the mission of mobilizing, sensitizing and helping companies to manage their businesses in a socially responsible manner, making them partners in the construction of a fair sustainable society. Their vision is to promote a global conscience that engages everyone in a development process aimed at preserving the environment and our cultural heritage, promoting human rights and creating an economically prosperous and socially just society. The participati on of the business sector is crucial, for its creative capacity, resources, and leadership (http:// www.ethos.org.br ). 3 http://www.un.org/partners/business/gcevent/companies/natura.htm Last accessed Feb 23, 2008. 4 http:// www.naturabrasil.fr

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29 rela tionships; commitment to truth; continual search for perfection; diversity as an engine of vitality; the affirmation of a beauty that is free from stereotypes and manipulation; and the corporation as a promo ter of social enrichment (Seale 2008.). In 2006, Natura eliminated testing its products on animals I n 2007 Natura committed to being carbon n eutral with the launch of its Carbon Neutral Program, the direct result of a climate change project Natura was involved in on the Island of Bananan in Tocantins, Brazil Certain products are now available that are 100% carbon neutral includin g the product and its packaging. Partnerships Natura engages in partnerships for the purpose of CSR as well as a measure of business development. The companys philosophy h as always been based on the importance of personal, business, and public relationships Mauricio Bellora, Naturas Executive VP in Latin America states: If we only care about financial goals, som ething will be missing, (Seale 2008). Naturas first expe riment with social action was in 1993 when it created The Natura School. A school from the community of the companys headquarters Matilde Maria Cremm, had approached the company for some financial assistance t o repair its office equipment. This encount er was a turning point for Natura. Natura realized that they could be more than just a checkbook for the school but could act as a transforming agent in the lives of their community and maybe even elsewhere in Brazil (Clark 1999). As of 1998, Natura had donated more than $3million to help train the school s teachers (Padgett 1998). At that time, th e average length of schooling was four years and Brazil had the highest rate of elementary school repetition in all of Latin America. The students were suffering for a failed education system. Through this relationship, Fundao Abrinq (Abrinq Foundation for Childrens Rights ) has become one of Naturas core partners for soc ial action. Abrinq is a nonprofit organization in Brazil devoted to the protection and development of children in Brazil. Abrinq has over 70 programs to help the

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30 state s elementary schools. This partnership allows Natura to play a vit al role in childre ns education and thus the betterment of their country. Attitudes of social action do not only occur outside the doors of Naturas headquarters and factories. In 1995, Crer Para Ver ( See to Believe) was launched, a creation by the sales consultants them selves (www2.natura.net) Crer Para Ver is a partnership between Natura consultants and Education for Young and Adults. All the proceeds of the products sold in the Crer Para Ver program are given to the foundation and are then distributed to local publi c school system projects in the area. Since 1996, this program has raised $8 million USD and supported 148 projects in 3,638 schools and in 2006, 120,000 students over the age of 15 had returned and completed school as a result of this program ( www2. Natur a.net ; Seale 2008). In 2007, the project Reading Encounters was launched under Crer Para Ver for the nati onal program Infant Education. The program utilizes reading as a way to broaden the social and culture awareness of children between the ages of 46 As Naturas commitment to sustainable development has deepened, it has expanded its educational support by funding the Ecological Research Institutes graduate program in conservation and biodiversity and sustainable development. Naturas Linha Ekos In 2000, Natura t ook its value of relationships to a new level when it launched Linha Ekos (Ekos) ; a product line built 100% on partnerships This was a very significant moment because it meant that Natura had leveraged its bottom line on its commitment to s ustainable development Although it seems that some of these more recent partnerships have b rought ambiguous benefits to all partners involved (Morsello 2004; Figueiredo and Morsello 2006; Rizek & Mo rsello 2008), Natura believes it has become the transfor ming agent it dreamed to be (Natura 2007 Annual Report )

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31 Ekos Business M odel Brazils biodiversity and sustainability are the core values of the Ekos line. According to Seabra, For Natura Cosmticos, sustainable development is second nature (Fraser 2006 ). This product line is develop ed through sustainable reserve extraction from Brazils biodiversity Ekos allows Natura to contribut e to community and social development in Brazil. Part ners include indigenous, traditional and rural communities thr oughout Brazil that provide the raw materials for Ekos products (5% of Ekos natural ingredients come from communities) ; Cognis ( a chemical MNC that processes oils from natural resources ); and the F orest and Agriculture Managem ent and Certification Institu te (IMAFLORA), who acts as the certifier. IMAFLORA represent s the Forest Stewardship Council and Sustainable Action Network in Brazil two global institutions that monitor the certification of forest products and cultivation areas. Since 2000 participat ion has grown to include many local and international NGOs, research institutions and government entities. The sustainable development business model of Ekos allows Natura to raise awareness about the heritage of Brazils biodiversit y, making it available for future generations all while contributing to the quality of life of the supplier communities involved in the chain of production .5 As of 2007 the total number of raw materials sourced from communities was 41 (Appendix A) ( www2.natura.net ). All Ekos products are biodegradable, refills are available for all products, and packaging is made from recycled materials. Just the name alone is significant. In Tupi Guarani, one of Brazils indigenous languages, ekos means life. In Latin, echo is everything that has resonance, reverberates and soon will be heard (Leal 2004). The pillars of Ekos are Brazils biodiversity, sustainable development, and traditional ethnobotanical 5 Natura Fosters New Supplier Relations for Sustainable Raw Materials. March 28, 2006. Weatherhead School of Management case study.

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32 knowledge. Ekos first two years brought Natura 38% of increased sales volume and their net profits skyrocketed from R$ 30million to R$119 million (Casado and Fischer 2003; Rezende 2003). 2008 started off no different: Naturas first trimester net profit was R$ 79 million (Vieira 2008). Challenges A business venture with multiple st akeholders is bound to be filled with challenges. For Natura such challenges are seen as opportunities to create more partnerships. Some of those include: Lack of organized production chains, logistics constrains and difficulty accessing the communities due to their remote location. Low technical training has been overcome by turning to state entities and consulting technical teams. The passing of recent laws regarding access to biodiversity have pacified previous uncertainties. Naturas goals are to obtain certification for ingredients used in its products and support the communities in partnership with NGOs, scientists, researchers and governments. To decrease overdependence on Natura, alternative income generation is always encouraged, such as handi craf t production and ecotourism. Natura recently launched a new program called Environmental Table .6 In this program each product is accompanied by a table that includes a breakdown of the source of ingredients, % of recycled material included, % of pr oduct that can be recycled, and how much carbon the product produced. Naturas decision to report is completely voluntary but is multi purpose: it shows its commitment to transparency the environment ISO 14,000 standards for CSR and t he percentage of t he product that has certification It also raises consumer conscience. 6http://www2.natura.net/Web/Br/ForYou/HotSites/Campus/src/index.asp?url_redirec t=http://ncp. natura.net/ncp/artigos.jsp

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33 Sustainability Reporting Naturas Sustainability Report is verified by DNV, a third party, who follows the Protocol for Verification of Sustainability Reports which is based on the principles of Global Reporting Initiative 2006. The majority of the report was found to be i n compliance and satisfactory. DNV did make valuable recomme ndations and their findings are available on Naturas website .7 Points worth mentioning are those that relate specifically to this analysis. It was suggested that Natura f ormalize the process of the relationship building to create consistency with the relationship building process for stakeholders. It was also recommended that the company formalize the process for assessing socio -economic risks and impact of Natura activities on stakeholders. Lastly, it was recommended that in regards to suppliers more detailed information be provided on the sustainability risks associated with Naturas activities and ho w they are managed Linha Amor America This year the Ekos concept has been exported to Argentina, Chile, Ecuador and Peru via Natur as new line, Amor America. Just as Ekos, Amor America sources biodiversity from these respective countries and currently produces three products from each country. If concerns have already been raised with Amor Americas predecessor following only a short time in existence and clearly lacking longitudinal studies, this is rather unsettling. Has the Ekos mo del been exported too soon? 7 http://www2.natura.net/Web/Brw/ForYou/RA2007/src/default.asp

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34 The Brazilian Market The current economic crisis may have spurred Naturas recent decision to develop a product line priced for lower segment of society to its business plans for 2008 (Costa 2008 Agencia Estado 2008) but the demand exists indep endently .8 In Brazils most popular prime time television novela Natura has been incorporated as a character. This one -hour television drama is viewed by all segments of Brazils society, regardless of social class. A walk down the streets of Rio at 8p m is enough evidence of their popularity. Many restaurants, juice stands and bars have a television; at this time they are usually filled with customers and passerbys, eyes glued to the set. What does this mean? It means that a large portion of the co mpanys potential consumer market is not being captured by Natura. The prime time novela is aired on TV Globo, Brazils largest television network, and is viewed by every segment of society and not simply Naturas target market: the middle and upper class es. This excluded market segment makes up about 25% of the population.9 The U.S. Market During a chance lunch with a Natura associate responsible for the Natura magazine, a marketing piec e distributed to Sales Consultants every three weeks, t hi s individua l conveyed information regarding Naturas entry into the U.S. market. Originally planned for early 2008, it had been d elayed indefinitely and its target market included cities with the smallest Brazilian 8 Brazil is also the second largest market for Botox and Retinols, products targeted towards people because they hide wrinkles and get rid of acne (Campolim 2004). 9 2007/2008 UNDP Human Development Report.

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35 populations ( Personal communication 2008). It was al so disclosed that Natura was trying to shed its Brazilian identity and plans to use spas as its business model in the U.S. market .10 Summary Natura self identifies as a company committed to sustainable deve lopment, CSR, and the fact that life is a chain of relationships Since its early days in a So Paulo garage looking for a way to express life through human relations, Natura has been committed to improving humanity and encouraging others to do so. The motto of Well Being Well radiates through all of the companys actions. Deciding to conduct business through the direct sales model, offering refills during a time when nobody else was doing so, choosing not to produce certain products because of their destructive qualities, and engaging in partnership s as a way to turn around Brazils weak public school system are just some of the ways that Natura has carried out its business and social mission. All of these actions paved the way for the launch of the Ekos line followed recently by its international c omponent, Amor America Nowhere in company literature or publications, including the website, is there any claim to have the best products or to be the best cosmetics company. Rather their identity is constructed on the same values that many individuals often uphold themselves to in life. Natura is more than just products; its a way of life. 10 According to Euromonitor International Natura just recently announced it has decided to cancel its plans to enter the U.S. market altogether. For more information please See www.euromonitorinternational/Natura_Cosmetics_SA_, Nov 24, 2008). (ccessed December 10, 2008).

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36 Table 2 1: Source of Article or Document & i ts view towards Naturas business philosophy. Natura Media Academic CSR: N+ M+ A+ Performance: N+ M+ A+ Transforming Society: N+ M+ A+ Community Relations: N+ M+ A+/ N = Natura; M = Media; A = Academic. A (+) or ( ) sign identifies the article or document does or does not support the specific Natura business philosophy.

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37 CHAPTER 3 FINDINGS: VIEWS CAPTURED THROUGH MAINSTREAM AND TRADE MEDIA Mainstream Media Views captured by mainstream and trade media c ons ist of two major themes. First is Naturas overall success as a company its commitment to sustainability, corporate social responsibility, and good corporate cit izenship. The second foc uses on Naturas business plans and financial performance which t ends to be delivered rather directly a nd with little description as it is directed towards a target audience According to Direct Selling News, Natura: is a company whose core principles are embedded in every facet of its operations, from its stated purpose to sell products that promote the w ell being of individuals and of nature as a whole, to the listing of its stock on a segment of the Brazilian stock exchange called the New Market, an index with more stringent transparency rules and better shareholder rights than previously existed in the country (Seale 2008). In 1997, 1998, and 1999 Natura was elected Best Business of the Sector in Brazils Guia Exame s the Best and the Biggest contest. This same Brazilian magazine elected Natura the Business of the Year in 1998. In 1998, 1999, 2000 and 2001 Natura was one of the Most Admired Companies in Brazil by Brazils Carta Capital magazine, beat out only b y Microsoft in 2002. Guia Exame named Natura one of the Top 100 Best Companies to work for in 2000 and 2002. The 2003, Natura was elected as the Best Company for Women to Work for in Brazil. The Financial Times and Pricewaterhouse Coopers partnership found it to be one of The Worlds Most Respected Companies. In 2004, Natura became Brazils most admired socially responsible company. When the company went public in 2004, it was the third to go public on the So Pau los New Market Stock Exchange, known for businesses committed to transparency. According to Unibanco Bank s Basilio Romalho, From what we can see about the companys history, you really have to search hard to find anything negative (Mota 2004).

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38 Milton Fr i e dman is famous for saying that there is no soci al responsibility for corporate officials other than to make as much money a s possible for its shareholders ( Friedman 1970). Daniela Bretthauer, analyst with the firm Goldman Sachs, states I do not follow socio environmental performance (Herzog 2008). Analysts are not concerned with not how the company packages its products or where the company chooses to obtai n its prime materials but rather a businesss annual performance and profit ability, loss, dividends payout and EBITDA (Earnings Before Income, Taxes, Depreciation, and Amorti zation). Natura has proven this school of thought wrong with repetitive success at both performance and sustainable development since its first days in 1969.1 Their success seems to actually increase as the companys commitment to CS R strengthens (Si queira 2005). Growth According to Unibanco analyst Tania Sztamfater: The main growth opportunity for the company continues to lie in the still under -exploited domestic market (Fraser 2006). Brazil is the second ary largest market for Botox and Retinals (Campolim 2004) and in 2005 Brazil surpassed Germany and the U.K. to become the worlds third largest cosmetic market (Fraser 2006). Internationalization is clearly not Naturas only opportunity for success. Consu mer Attitudes and Behaviors The Quorum Brazil Institute conducted a consumer survey for Brazilian magazine Guia EXAME of Sustainability in September 2008 focusing on consumer attitudes and behaviors towards buying products that are environmentally friendly (Lima 2008). The consumer survey produced mixed findings. Seventy percent of respondents stated that products claiming to be environmentally friendly tend to cost more than th ose that do n ot. Seventy four percent claim to 1 See Appendix B

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39 be concerned about using envir onmental ly friendly products due to th eir concern for preserv ing nature and of future generations to come. Yet, 47% of respondents say that when it comes to price they are forced to purchase the non -enviro nmentally friendly product because of the price di fference. The company most mentioned by consumers as part of this survey was Natura Cosmetics. Reasons for Success Naturas overall success as a company is largely attributed to i ts commitment to sustainability and CSR. It is no secret that s ince its ear ly days, Natura has been committed to the value of what it means to be human. Since day one Naturas core motivator has been that l ife is a chain of relati onships. T his motto is probably the biggest contrib utor to this companys pioneering status in the world of sustainability and CSR According to Fraser, the company appears to practice what it preaches (2006). In 1983, Natura was the first cosmetics company in Brazil to offer refills on many of its products. In 1992, the c ompany partnered with its first NGO as a way to support the public schools in the community where its headquarters was located. Natura associates have always been held to the same standards as the company and their involvement in social action is a part o f their job description. In 1995, with the assistance of the Sales C onsultants, Crer Para Ver was launch ed, another program aimed at improving Brazils public school system .2 In 2000, Ekos was launched and the company reached its goal of being carbonneu tral a year earlier (Rosenberg and Ferraz 2007). It wa s as if Natura had been planning such a strategy all along. There is no separation between Naturas social mission and its business mission (Clark 1999). It is the first company to leverage its bottom line on its social mission which demands 2 A consultant survey recently conducted, Natura Sales Consultants recently gave Natura a 91% satisfaction rating (Seale 2008).

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40 that all sectors of society work together to improve regional problems, specifically those of educational concern (Clark 1999) Naturas then Vice President Guillherme Leal stated, I do not know if education will solve all our problems, but without it, well solve none of them (Padgett 1998). Naturas encounter with the Matilde School in 1993 was a turning point for the company. The company realized that they could be more than just a checkbook. Th rough this re lationship the company has become a transforming agent in the liv es of their community and that of other s in Brazil (Clark 1999). In 1997 alone Natura donated more than $3 million US dollars to help train the schools teachers (Padgett 1998). In 1999, Natura again em barked on a similar matter (Clark 1999; Royal 1999). Brazils landless movement of the 90s demanded large property owners give them land to live on. Shortly after the government distributed some land to these individuals although they lacked basic infrastructure .3 In an effort to as sist, Natura again partnered with Abrinq. Together they organized the Pedagogic Journeys project Four hundred teachers were chosen to be trained on subjects that would be taught in rural schools in resettlement areas. Training included local dialect s and cultural differences respective to each zone Had Natura and Abrinq not entered the picture, there is no guarantee that public education would exist in these communities. Cosmetic Industry Access to the cosmetics industry reports are very limited only available to members of the industry or those willing to purchase online industry market magazines. Literature from this industry r elay s the Natura story via means of company reports which i n clude not only giving Natura company and product information but also financials, strat egy and industry performance. 3 According to a Boston market research firm, What we see happenin g is that companies are moving away from licensing agreements to cause branding as a reflection o f their deep, integrated commitment to a cause or nonprofit over a long period of time (Royal 1999: 2).

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41 Natura is Brazils biggest domestic capital -based cosmetics company (Rebelo 2007). Avon Cosmetics is the largest cosmetics company in the world but in Brazil Natura has the best direct sales franchise (Rebelo 2007). Between 2001 and 2006, Natura experienced 26% revenue growth on an annual basis .4 (Caldwell 2005). Global markets vary and for Latin America direct sales have been Naturas av enue of expansion In 2005, Natura entered the European market by opening a flagship store in Paris called Maison Natura Ekos is the only line offered at this store. Paris was chosen due to the high consumption of cosmetics in France compared the worl d around. (Caldwell 2005). Due to the lack of familiarity with Natura products in Europe, it was decided that opening a store was the best way to enter this market Maison Natura is located on Paris famous shop -filled avenue, the Champs Elysees. Resear ch has shown that in Europe Avon, Naturas number one competitor in cosmetics and the direct sales industry, purchases are common As a result, o nce brand loyalty has been achieved and the timing is right, Natura will expand its direct sales model to Europe (Caldwell 2005). Natura is still considered a local (Brazilian) company where Avon Cosmetics has already achieved the status as a global corporation. In Brazil, Natura regularly outperforms Avon; however, more recently Avon has responded by directi ng its energies into building its sales consultant base and strengthening its marketing initiatives. Since the majority of the income generated by Naturas 600,000+ Sales Consultants supplements an already existing income, about 30 % sell Avon products as well, thus adding to the competition between the two competitors (Vaz 2008) Todays global economic crisis Naturas international growth, and Avons increased strategies have played a role in Naturas atypical weak performance thus far in 2008 (Vaz 2008 ; Agencia Estado 2008). According to Carlucci, Naturas president marketing 4 This surpasses Brazils annual growth which is 13% a year. See Caldwell 2005 for details.

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42 plans for 20082010 include investing 400 thousand R$ in marketing, Sales Consultants, and restructuring to improve efficiency without letting go of any of its 36 managers (Vaz 2008). Holding true to their word, a few months later Natura let go 200 administrative employees (Herzog and Santana 2008). One contributor even recommended a three -point plan for Naturas future growth in the face of increa sed competition by Avon (Rebel o 2007). S ummary Naturas voice is clearly captured and supported by mainstream and trade media and absent are, as Mota said From what we can see about the companys history, you really have to search hard to find anything negative (2004). The company states that one of their go als is to be an agent of change and partnerships have played a huge role in bringing this goal to fruition. Conveyed from th e above mentioned sources is the impr ession that Natura is alive, c aring and respectful, inspiring and t ruly altruistic. Natura business philosophies are never challenged. Highlighted topics are the Natura partnership s with Abrinq and with communities through the Ekos line. These relationships allow them to play a role in Brazils education and community d evelopment The increase in attention by mainstream and trade media follows the launch of the Ekos line in 2000. Financial analysts p rovide data on the companys performance, stating from the get -go that their only concern is the bottom line Numbers are their game and they do not deviate. Industry coverage focuses on Naturas shop in France and companies t hat are engaged in Direct Sales, basically Avon. It is problematic that cosmetic companies engaged in partnerships similar to Ekos and for the same reasons as Ekos are excluded as competitors. T he U.K.s The Body Shop and the U.S. s Aveda Corporation are two such co mpanies. Due to the lack of in formation available to individuals not in the cosmetic sector it is unknown why th ese compa nies are left

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43 out in market research. Including these companies may provide information that assists c o nsumers in understanding Naturas Ekos partnerships and their contribution to society.

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44 CHAPTER 4 FINDINGS: VIEWS OF RESEARCH I NSTITUTIONS The ways that NTFPs contribute to peoples livelihoods can best be understood by taking peoples livelihoods rather than NTFPs as the cen tral focus of study (Ros Tonen and Wiersum 2003). The increased interest in Natura by research institutions is a response to Natu ras new image that led to the launch of the Ekos line in 2000. Most research is directed towards this line. Recent research among environmental scientists has begun to question the sustainability of company -community partnerships regarding NTFP commercia lization specifically the impacts they have on the rural forest peoples and the indigenous and extractive communities of Brazilian Amazonia, the source of the ingredients for Natura s Ekos product line (Arnold and Perez 2001; Morsello 2004; Morsello 2005; Figueiredo and Morsello 2006; Morsello and Adger 2007; Ribeiro and Morsello 2007; Rizek and Morsello 2008; Ros Tonen and Wiersum 2003). The findings of this type of research are not available to the public as easily as articles, information and other documen ts presented in Chapter 2. Parcerias Florestais Parcerias Florestais ( Forest Partnership) is an on-going project funded by the NGO Rainforest Alliance that analyzes agreements between forest communities and corporations, governments or civil society organizations for the commercialization of NTFPs. The projects purpose is to evaluate if and how these trade deals can better serve forest conservation, while improving the livelihoods of forest communities ( www. Parceriasfl oresteis.org 2008). They are a research initiative based in So Paulo, Brazil dedicated to the research and exploration of corporate -community agreements for the commercialization of non timber forest products (NTFPs) in the Brazilian Amazon .1 This research team of Brazilian scholar s began organizing 1 http://www.parceriasflorestias.org

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45 this long term multi phase project in early 2000. Although the database for research on forest conservation is abundant, that is not the case in regards to NTFPs. Parcerias Florestais is currently the most thorough project that includ es qualita tive and quantitative data and s pecifically addresses the cosmetics industry and Natura partnerships in particular. The purpose of their initiative is to uncover the motivations of companies and communities to engage in such agreements as well a s explore the opportunities and problems associated. Brazilian Amazon Context So why are these partnerships so abundant in places like th e Brazilian Amazon? In the Brazilian Amazon region, non -timber forest product (NTFP) development has been considered a n effective alternative to modernization -driven deforestation by large scale development projects and a promising strategy to generate income for poor populations. The economic viability of NTFP development largely depends, however, on the degree to which a localized production chain can be established and this, in turn, requires partnerships between actors at various levels (Otsuki 2007). According to Parcerias Florestais, the sector most engaged in such partnerships tends to be the cosmetics sector. T his is said to be a direct result of the increase in CSR practices and the switch from animal to natural sourcing.2 Although there is still no general consensus, it is widely believed that the commercialization of NTFPs produces minor negative ecological impacts while simultaneously generating income and local development f or forest inhabitants (Rizek and Morsello 2008). Thus are the incentives for institutions like the World Bank, research institutions, civil society organizations and national and foreig n businesses to such implement partnerships. Other reasons include: globalization, changes in governance models, privatization of states, and pressure from civil society. However, the Brazilian Amazon is unique in that for the last two decades it has bee n amidst its own identity reformation. As forestry initiatives for indigenous rights and sustainability have increased, this area has become more under control of 2 http:// www.parceriasflore stais.org

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46 indigenous and extractive reserve communities thus making access to NTFPs not as easy as it used to be. The social movement of the 80s led by rubber tapper Chico Mendes is the pivotal moment in the escalation of land rights movements and the formation of Extractive Reserves (Morsello 2004) which brought remote, local communities and their inhabi tants to the foreground. The result? Community partnerships with corporations have become one of the only viable way s to bring income and opportunity to these once isolated lands. Lastly, Amazonianness sells and thus has become one of the strongest driv ers in the cosmetics industry (Downie 2007) These products are seen as somehow purer than those from other parts of the world and c ompanies tend to be motivated by the diversification of product offerings and the advantage gained through association with the Amazon through social marketing. According to Alessandro Carlucci, Naturas CEO, Through the diversity of our (Brazils) active ingredients we can offer benefits to different countries and different ethnicities (Downie 2007). Overview Parcerias Flor estais focuses specifically on three case studies from the cosmetics industry: Natura Cosmetics and Mdio Juru Extractive Reserve3 communities in the western state of Amazonas; The Body Shop4and indigenous communities in the southeastern Amazonia 3 Any reference to Mdio Juru communities throughout this paper can be assumed to be related to Natura unless otherwise specified 4 The Body Shop is a British cosmetics company founded in 1970 with product lines that use NTFPs from Brazil sour ced through partnerships. This relationship is unique in that the Ka yap initiated the relationship http://www.thebodyshop.com/_en/_ww/index.aspx (accessed Oct 15, 2008).

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47 Altamira region; and The Body Shop and Aveda5 with communities from ASSEMA, a cooperative in the municipality of Lago do Junco, Maranho, in Eastern Amazonia. Companies often start by making improvements to current infrastructure of the communities, as was the case with The Body Shop. In exchange for installing some sinks, showers, wash basins and artesian wells and building a hotel on an island of the Xingu River, the Body Shop received rights to associate their company name with the image of a generic Amerindian (Ribeiro and Morsello 2007: 8). Onc e Natura launched its Ekos line it saw an immediate spike in earnings. One main critique by this research group is that in all three cases investigated, there was no monitoring protocol in existence that would measure the impact of the agreements on the communities, unless the companies were pushed to do so. Natura appeared to have been preparing one but it excluded consultations from thirdparties and the communities themselves thus clouding its abilities (Morsello 2005). The biggest factor changing the landscape of trade and resource us e is globalization (Morsello and Adger 2007). A s globalization forces operate, the worlds needs and desires ha ve been irrevocably homogenized (McMichael 1996). At home globalization forces are met with the contrary force of localisation: a societal based response to increasingly distant decision making (Mors ello and Adger 2007: 147 148). Corporate -community agreements in the Brazilian Amazon focusing on NTFP trade are the direct result of a collision between these two schools of thought. These days lots of attention is now received by these commercial agreements as they are seen as addressing multiple issues at once: improving the well being of the local peoples 5 Aveda was founded in 1978 and has partnerships world -wide. Brazil partnerships include people from the state of Maranho and the Yawanawa peoples of Brazil. www.aveda.com (accessed Oct 15, 2008).

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48 while p racticing forest conservation. They may be addressing these issues but are they contributing to the problem or the solution? Case Studies Case 1 In 2006, Parcerias Florestais investigated the impact that Naturas Vegetable Oil Project and its commercial production was having on traditional use of natural resources in the Mdio Juru Extractive Reserve (RESEX) in the western state of Amazonas (Appendix C) (F igueiredo and Morsello 2006) The first research site included the community of Roque, a village founded in 1969 and comprised of about 53 families or 480 inhabitants, who has the agreement with Natura (Rizek and Morsello 2008). The second was the village of Pupua founded in 1980 and consisting of 180 inhabits (Appendix C) (Rizek and Morsello 2008). This community does not have a commercial agreement and is considered the control group. After conducting quantitative household surveys and conducting semi -structured interviews, their findings determined that cultural transformations were taking place in Roque only, especially in regards to traditional household and community dynamics. Conflicts seemed to increase and there was less sharing and exchanging of subsistence resources, a traditional practice among these communities. It was also clear that there had been a decrease in commitment to traditional subsistence activities such as hunting, fishing, and agriculture in Roque. Interestingly, they did not ice an increase in the collection of NTFPs. Since many NTFPs are consumed in the home, the researchers suggest that maybe community members are trading in old ways for new techniques and consuming NTFPs more as a resul t of the commercial agreement. Case 2 In 2008, Parcerias Floresais returned to these same two research sites to conduct fo llow up research (Rizek and Morsello 2008). The focus was to measur e the effect of the commercial

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49 agreements on the traditional system of exchange and sharing of goods wi th the RESEX of Mdio Juru. The purpose of these traditions is to guarantee subsistence during periods of sc arcity After implemen ting the same methodology as in 2006 (Figueiredo and Morsello 2006) they found a decrease in the sharing of goods, especia lly protein. They found that this was in direct relation to the development of an internal market in Roque, a direc t result of the partnership. It is important that this internal market is n onexistent in the control comm unity. Where before, if one man fished the whole community ate fish ,6 today the attitude is more individualistic and less communal Goods and money have much more value and now replace the traditional system of acquiring subsistence goods. In 2008, 1/3 of the goods entering households in Roque did so as the result of this internal market. In Pupua, less than 2% of goods entered households nontraditionally. The hope was that the participatory process of decision making would increase community cohesion but that did no t seem to be the case. However, these changes cannot be blamed on the new activity nor are they i rreversible. Rather the researchers purport that the community members themselves have the power to apply the same participatory techniques and use it to revive traditional practices, thus reducing the impact the commercial partnerships are having on Roque. They also go a step further by say ing that past, present, and future researchers have a responsibility to be aware of current initiatives regarding environmental and soci al implications (Figueiredo and Morsello 2006: 12). Trends can be identified and directives developed that support the planning and implementation of more effective initiatives that will improve the peoples quality of life a nd environmental conservation. 6 Interview acquired from a 66 year ol d man in Roque, the community engaged in commercial activity with Natura.

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50 Case 3 In 2007, Parcerias Florestais investigated the longest standing com mercial agreement. It is between the Kayap and the U.K.s The Body Shop for the commercialization of Brazil nut oil7 (Morsello and Adger 2007) The agreement was initiated by th e Kayapo back in 1983. Over a two year period they collected data fro m the AUkre8 village of the Kayap, interviewed The Body Shop representatives and other villagers not involved in the agreement. The findings concluded that although individuals involv ed in the commercialization of Brazil nut oil may find changes in regards to their agricultural, hunting, fishing, socializing activities, it is not all negative. In the case of the Kayap, the agreement itself had many flaws. The commercial agreement an d the rules of each party were coordinated after the agreement was made. Amazoncoop, a cooperative originally setup by FUNAI to extend commercialization benefits to other indigenous societies in the middle Xingu, did not include any indigenous people in its organizational structure, nor did indigenous societies participate in the profit sharing of the cooperative (Ribeiro and Morsello 2007: 8 9). Also, The Body Shop prepaid the Kayap with supplies and foodstuffs thus co-opting them into the old patrona ge system of aviamento .9 The cost for these items was deducted from their Brazil nut contribution decreasing their final take home payment. Part of this survey explored how these items were distribu ted. There was no real method identified which further impacted the egalitarian nature of this traditiona l community. T his commercial agreement caught the attention of many and since then there has 7 This study is included for the sake of providing a comparative to the Natura site studies. 8 AUkre is one of two of the 18 villages in the Kayapo that engaged in a partnership with The Body Shop. This is also the longest standing NT FP agreement today (Morsello and Adger 2007). 9 The aviamento system is a colonial system whereby slaves were indentured servants.

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51 been an increase in stakeholder activity. The increased activity not only assists with NTFP production but a lso with forest conservation. Trade in rainforest products, and particularly non -timber forest products, NTFPs, have been proposed for about twenty years as a strategy that may allow forest conservation while improving local well being, (Morsello 2004). NTFP production does increase income in the partner communities, although not enough to improve livelihoods ( Morsello 2004; Figueire do and Morsello 2006; Ribeiro and Morsello 2007; Rizek and Morsello 2008). Incorporation of communities into new markets has be en seen to disrupt the egalitarian nature of communities (Ribeiro and Morsello 2007). However, at the same time it is difficult to really focus on this issue because households choose to participate or not and thus must be held responsible for their decis ion. Yet, when literacy and power relations are involved, this argument faults. The biggest constraint on these partnerships is in regards to communication and ensuring that capacity building is passed along to the communities especially with literacy be ing an obstacle. In this regard, monitoring is crucial In co mmunicating with Dr. Carla Marsello Parcerias Florestais lead researcher it was revealed that Natura cancels meetings with her regularly (Personal communication January 2008) At the time of this conversation the interview to be included in this work had been set; unfortunately, the end result was the same. For one researcher, it was only one experience; for Marsello and her team who have been conducting research on Natura for years it seems to be a regular occurrence. Business School Case Studies Business School Case Studies provide well rounded analysi s of Natura. T he Social Enterprise Knowledge Network (SEKN) prepared two individual case studies on Natura in partnership with one of SEKNs partners, Harvard University Business School.

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52 Case 1 The 2003 case study Natura Ekos: Fr om the Forest to Cajamar by Casado and Fischer examines the Ekos product li ne from beginning to end. Natura is placed within the global context of the direct sales industry Ekos is a cross -sector partnerships comprised of supplier communities and supply companies like Cognis N GOs, governmental agencies r esearch centers and universities. The case includes a detailed description of the public agencies invol ved in the partnership: the Brazilian Institute for the Environment an d Renewable Natural Resources (IBAMA), the National Center of Sustainable Development o f Traditional Populations (CNPT), and the Nati onal Indian Foundation of Brazil (FUNAI) Natura beg an the transitio n from a family run business to a professional organization, focused on how it c ould improve its social action and the development of t he relationships of the Ekos Project. Ekos was Naturas first project that incorporated communities outs ide of its headquarters According to Pedro Passos, Naturas Chief Operating Officer, Ekos is the materialization of what we have been striving for, in terms of values natural active ingredients, awareness and responsibility. Our company is rea ffirming its origins (Casado and Fischer 2003: 4 ). Simultaneously, Passos a d d ressed concerns about the negative effects such an endeavor would have on operations. The first two years of life for Ekos brought increased sales to Natura of 38%. Naturas net profits increased from $30 million reais10 to $119 reais .11 Seabra, Leal, and Passos knew making Ekos would not be difficult but keeping it successful would be. Natura first contracted the Cognis Company to obtain the herbal raw materials and the oils that come from the natural resources of the Amazon. Natura purchased 85% of their products 10 Brazils local current is the real or reais for plural. The exchange rate is currently R$2.3 reais per/$1US. See www. X -rates.com for details. Rates are for Nov 2008. 11 See Table 1

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53 fr om Cognis. Natura quickly realized that the traditional communities who provided Cognis with the raw materials to produce the oils were located quite a distance from the company. Most of the local communities in addition to lacking health care, education and basic infrastructure were also completely inaccessible and lacked any means of transportation When constructing the relationship Natura came upon cultural diffe rences such as child labor and local knowledge of how things should be done to collect the NTFPs. Earning the trust of the communities was essential. T o assist with implementing the Amazon Care Chemicals project, which consisted of relocating the oil production process to the communities Cognis contracted the government agencies CNTP and IBAMA The mission of the project was socio -environmental sustainability and creating value and building capacity in the communities. Now the communities would be i n charge of processing the oils and not simply the collection of raw materials Cogniss responsibility was left to refining the oils of inferior quality. Natura voluntarily contracted IMAFLORA to certify the ingredients according to For est Stewardship C ouncil (FSC). Governmental agencies assisted in preparing the communities to meet certification requirements. IMAFLORA acted as the production chain auditor making recommendations as needed. Each partner involved benefited from this cross -sector project Cognis now had new strategies to increase its activity in the natural oil market. IMAFLORA expanded its knowledge network. Communities received home improvements, education, medical services, learned new methods of sustainable harvest and how to manag e business. This was very important because the communities did business with other companies and Natura had no control over how these other organizations conducted their business. With the help of partner organizations, Natura continued to build capacity among the communities by training them on the fundamentals of

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54 sustain able flora management. This allowed them to control how they conducted business with other companies, not the other way around. Now not only did Natura have a very successful product l ine but it was also ensuring that its commitment to environ mental sustainability reverberated throughout Brazil. Case 2 Natura: Global Beauty Made in Brazil, (Jones and Reisen de Pinho 2007), analyzes Natura in relation to the cosmetic industry and the global market. The Lost Decade of the 80s was an opportunity for Natura. According to Passos, International players left the country or halted their investments while we saw a lot of woman, the primary source of Naturas workforce, e ager to enter the market, (Jones and Reisen de Pinho 2007: 4). Natura chose to expand throughout Brazil and also saw its neighbors as perfect markets. Naturas target market has always been Brazils middle and upper -class. The cosmetic and healthy and beauty industries are based on constant innovation and continuous introduction of new products to the market. To meet this dema nd, Natura began taking actions which would allow them to constantly produce new products either at their headquarters or through a partner. One such action was the acquisition of Flora Medicinal, a phytotherapeutic product manufacturer, in 1999. This move made it easier for Natura to develop an herbal tea product line The challenge with taking Natura international lay in the fa ct that Naturas culture needed to be transferred prior to the products arrival. In 1999, Alessandro Carlucci, Naturas then sales director, was sent to Argentina. Shortly after arrival Argentina was hit with the worst financial crisis ever. In respon se to competitor s increase in prices, Natura declared a marketing strategy that during this time of crisis the price of Natura products would be fixed regardless of Argentinas economic situation. Met with success this strategy was then exported to Peru Child

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55 and Bolivia and the company has seen the same results in these locations Mexico was the one place where hiring a local executive to shadow a Brazilian executive would be vital This would help ensure transference of culture in a location where N aturas competition was high ( Avon had been in Mexico since 1956). Together the two executives targeted potential sales consultants and the training began. Internationalizing Natura contributed to the professionalization of the company. With the lack of professionally trained executives Naturas challenges were larger than anticipated. Because of Mexicos proximity to the U.S. market they knew that success in this market would have a ripple effect in others. In 2005, international sales represented 3% of total sales. Brazil is still the largest market yet in order to be competitive in the global economy it was clear Natura needed to go abroad. The company had been approached by competitors to partner but acc ording to Seabra, To preserve our values and beliefs is fundamental, and a new partner will just know to sell its own bra nd (Jones and Reisen de Pinho 2007: 17). Russia had been seen as a potential market with Avon as its prime competitor. However durin g a focus group in Russia, although Naturas products had been competitively priced and valued with Russian brands and consumerism was extremely high, it was clear that there was no regard for environmental sustainability. It was all about the bottom line Seabra commented: Data analysis and metrics will be always important tools, but the emotional touch is fundamental to making a decision, and for that reason Natura opted to leave Russia (Jones and Reisen de Pinho 2007: 17). Other Institutions Guilian a Ortega Bruno explores two other Natura partnerships, that with Grafica Laramara and COOPERSOCIAL (Bruno 2003) Association Laramara is the Brazilian Association to Assist the Visually Impaired. It was created in 1993 to habilitate, rehabilitate and

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56 pro mote the inclusion of the visually challenged, focusing specifically on children and adolescents. Grafica Laramara is a department within Laramara that produces paper inserts that accompany many of Naturas products. These inserts include a description of the product, ingredients, and other information helpful to the consumer. Natura is not their only partner as this department provides the same service to many pharmaceutical companies and other industries. The Editorial and Graphics department of Laram ara is the only department that employs individuals with vision; however, there is one staff mem ber that is visually impaired. The second partnership is with COOPERSOCIAL (A Social Cooperative of Special Professionals). This cooperative was created in 2002 as a way to organize visually impaired and disabled individuals with the objective of social and economic inclusion by means of employment (Bruno 2003: 57). COOPERSOCIAL is directly involved in the Sensory Research in Naturas R&D Department. They assi st spec ifically in perfume development and are the only provider of this service to Natura. Naturas partnerships with Grafica Laramara and COOPERSOCIAL provide many benefits. They assist their partners in achi eving their goals of social and economic inclusion; in Brazil these individuals are normally excluded from the job market. Jobs provide income and thus self sufficiency, self esteem, and ultimately social and economic inclusion. The training provided by Natura makes available the necessities for the partners to add to their business relationships. S ummary More recently Natura has become the focus of two types of academic research studies: the environmental scientists and business schools. As the literature suggests, researchers must make liveli hoods and not raw materials the center of their focus. The development of NTFP products is regularly pushed as an economic alternative to poor populations but the researchers at

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57 Parcerias Florestais have revealed that this may be easier said than done. Critiques absent from mainstream and trade media abound here as researchers have discovered that since the implementation of commercial agreements community dynamics have changed. A monetary economy is making its way into the villages, they do not produce enough income to make the changes worthwhile, subsistence food gathering is being altered and traditional barter and exchange activity is decreasing. The general assumption is that Natura partnersh ips are not beneficial for communities. However, nowhere does it say that change is bad. It is understandable that since not all villages in a community chose to participate in the business arrangement there is the possibility that differences may arise in attitudes towards the changes but there has yet to be a ny study conducted on community members regarding their level of satisfaction since the partnerships began. The business school case s tudies do support Naturas business philosophy They do not critique or make any suggestions; rather they serve as instru ctional tools to assist business students in developing their business development skills. Both Harvard case studies thoroughly explore how Natura developed its current business philosophy, its execution and its maintenance. Brunos work on Naturas part nership with Laramara and COOPERSOCIAL presents another way the company assists in transforming society.

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58 CHAPTER 5 CONCLUSION Brazils political economic history lay the foundation for cross sector collaborations which created space for new approaches to emerge regarding t he country s development Once a responsibility of the government specifically the last 10 years has seen the private and third sectors become much more active and visible players in Brazils development In this regard, both Brazil and Natura Cosmetic s have emerged as global leaders. Although Brazil experienced periods of tremendous economic growth throughout history, it h as been plagued by unequal income di stribution and economic collapses. A pproaches to develo pment have reinforced the colonial hierarchy that for a long time has formed the base of Brazilian society. A lack of opportunity for the lower echelons of soci ety may have upheld this socioeconomic structure but it also played a major role in Brazil s in ability to develop and sustain itself as an independent global economy. The elite may have gained wealth and power but their illusion of control had unanticipated negative ramifications. As a result of this structure a vast segment of the population has been unable to participat e in the market. Eventually realizing the potential negative long term impact this could have on national companies and ultimately Brazils global economic performance, t he private business sector finally responded. Attitudes to wards business changed and became less focused on supporting the societal hierarchy and more engaged in responsible social action. In this transition, Natura Cosmetics has pioneered. Since its early days, Naturas strategy has been motivated by the founders commitment to not just the bottom line but the importance of personal, business and public relationships. Beginning in 1974 with the direct sales model offering product refills in 1983, it seemed only natural for Naturas next step to be the launch of Ekos in 2000. Ekos has been a large

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59 contributor to Naturas global success. Although it seems that its number one competitor is catching up, Natura does not see this as a threat bu t rather as a challenge in which Natura can further deepen its values. According to Natura, bringing the company into partnerships in the Amazon and across the borders is more about sharing the Natura philosophy than it is about meeting fina ncial goals. Through partnerships with Abrinq and the commitment of its Sales Consultants, Natura plays a tremendous role in helping improve Brazils public education. It is not afraid to think outside of the box and continuously carves the way for others to do the sa me. In 2008, Natura received the award for Sustainable Company of the Year by Brazils executive business magazine Guia Exame Natura Cosmetics is recognized as a model for cross sector partnerships and sustainable development, not only in Brazil, but on a global scale. Consistently proving the Friedman school of thought wrong with strong financial performance while being committed to sustainable development and social responsibility, Natura regularly receives kudos from its peers. Natura is a top perfor mer in the cosmetics industry and the business sector and is also a pioneer regarding sustainable development. Limitations and Areas for Further Research As Vivarta and Canella (2006) have stated, in Latin America the press tends to shy away from holding a critical lens at companies with claims of CSR practices. As a result, problems that can arise with CSR often go overlooked. This possibly helps explain the consistent production of material via mainstream and trade media that supports Na tura and its busi ness philosophy and the absence of anything otherwise. Or as Fraser stated previously the company may just pra ctice what it preach es (2006). Further research on the relationship between Natura and media ownership will help develop this argument. The largest limitation in this research was that it was conducted outside of Brazil and therefore Naturas largest consumer market. This would have helped in a few ways. First,

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60 Natura advertising could have been included in Natura voice. In addition, a consumer survey would enhance the findings of this study. One Harvard Business School case study states the Indians still hoped that the new alliance would solve all of their survival problems (Casado and Fisch er 2003: 9). This line stirs reminders of c olonial ism and modernization vs. backwardness Implied is Indians are backward s and thus obstacles to progress and need to be changed. Closing with such a general assumption could have been better supported had it been preceded with documentation that th e Indians wanted the companys help and because they had lots of problems. Researchers concerned about the other side of Natura, the side that brings many Natura products to life, have presented an important chapter in the story that is ignored by media sources and business school case studies. The sustainability evaluation of Natura s 2007 annual report support s the findings of Parcerias Florestais T here is strong suggestion that Natura hone in their strategies in regards to building relationships with community suppliers Not doing so may soon lead to the collapse of not only the product line s supported by these relations but the livelihood s of the many traditional partner communities but also the companys reputation At the same time, it is also important that researchers not be sidetracked by areas of the company in need of improvement. Companies that thrive off innovation and R&D are bound to have many learning opportunities and these take time. Has there been any attempt by Parcerias Flores tais to publish the findings of its research in mainstream media in order that they may be more easily accessible by the public? This may pacify any concern s that may arise over their motives help clarify the purpose for their research and how it can help Natura However, an important consider ation is that the segment of the population that would be concerned with these findings is minimal and thus it is safe to say that the publication of these findings may not significantly impact or tarnish

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61 the performance or identity of the company. The same group of consumers concerned with these findings is also the same group of consumers that understands the challenges that accompany such a heft task as Natura is taking on by offering economic opportunities to com munities often ignored by government development initiatives. T ime and research are instrumental in providing clarity to what is happenin g in Natura partner communities. Research conducted on other cosmetic companies with commercial agreements with commun ities in Brazil also supports the findings in Natura communities by Parcerias Florestais What does this all mean for Natura, a company whose values include constant improvement of society and itself and self reflection? Natura states that they seek to s upport the communities with the assistance of NGOs, scientists, researchers and governments. Based on this information it seems that it may be time for Natura to reconsider cancelling interviews with the only researcher team whose work focuses specificall y on Naturas most complex partnerships. Just as the business sector tends to omit certain matters, researchers have also excluded exclude any mention of the companys success. It seems time that credit is given where credit is due. In t he health and beauty and cosmetic industries products have short lives. Natura has over 900 products and on average produces 180 new products a year (Daniel 2006) Communities with commercial agreements are responsible for five percent of the raw materials that a re used in the Ekos product line. Yes, five percent is a minimal but the Ekos product line is the face of the companys internationalization strategy. If the company continues to use the Ekos line in this fashion there is surely to be a response in term s of fluctuations in supply and demand. Natura and other partners encourage t he communities to diversify to avoid overdependence on one company for this exact reason. Unfortunately not all partners arrive at the negotiating table with

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62 the same set of ski lls and tools. When dealing with such communities an evaluation of the commercial agreement could help identify a buffer mechanism that would help soften the transition for supply communities should the agreements ever need to be terminated by the compan y Research on Naturas exit strategy and its responsibility to the communities will be helpful in learning more about Naturas commitment to the communities and ensuring sustainable development Further long term research on Natura partner communities a nd the impact of the commercial agreements over time will en hance current findings and be an asset to the company the CSR env ironment as well as be a great contribution to the knowledge database of partnership development This takes us to the final research question which asks: Based on the results of the previous research questions, are Naturas actions and communication consistent with the views of the other sectors? Overwhelmingly this question can be answered with a simple yes. A quick glance at Table 2 1 summarizes the defense. Naturas actions and communication are consistent with mainstream and trade media as well as academic institutions. Their commitment to CSR and sustainable development continue to strengthen as years g o by. Naturas continual receipt of awards for their en deavors offers further evidence. Natura achieved carbon neutral status a year ahead of schedule and as a catalyst in Brazils education they have assisted in improving the countrys socioeconomic condition. Yes, there is one area that still needs fine tuning but that is not unexpected considering the magnitude of the undertaking. Natura makes no attempt to keep this critique from its consumers by including the evaluation in the companys 2007 Annual Report available on the company website in English, Portuguese and Spanish. Even a company that consistently wins awards for top performance, commitment to sustainable development and the best work environment has room for improvement Natura sets

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63 the standard for others who wish to join the movement and continuously raises the bar. The recent launch of their new line, Amor America, sho ws there are no limits when it comes to m aking a difference in l ives The int rigue now lays hidden in what endeavor Natura will embark upon next.

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64 APPENDIX A COMMUNITIES WITH COMMERCIAL AGREEMENTS WITH NATURA

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65

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66 APPENDIX B THE HISTORY OF NATURA COSMTICOS AND SOME PERFORMANCE RESULTS The First Phase: 19691989 1969 Founded by Luiz Seabra when he was 28 years of age, in So Paulo with a capital of US $9,000, a partner that had inherited cosmetics formulas from his father, and seven employees. 1974 Seabra was in c harge of demonstrating & selling the products, the work of Natura consultants begins. 1979 A sales volume of US $5million and 1000 consultants. 198089 Sales volume multiplied 35xs; product line enlarged; number of consultants grows to 33,200. The Second Phase: Decade of the 1990s ---Management Professionalization 1990 Implementation of the Itapacerica da Serra plant, innovation and quality programs. 199397 Efforts towards expansion of production capacity made. The new plant, NEN (Naturas Ne w Space) expressed Naturas belief in human relations. 1998 Awarded the Company of the Year and became one of Brazils most valuable brands ( www.exame.com.br ). 1989Natura acquired a natural products laborator, Flora Medicinal. The company invested in frastructure & new products. Underwent significant exchange crisis, in a stagnation tendency during 98/01. The Third Phase from 2000 ---- Ekos 2000 New logo, new brand, and new slogan: Well Being Well. Integrated managerial systems with SAP technology and restructuring of the operations in some Latin American countries. Received awards in Human Resources. Identified as among the most admired companies in the cosmetics sector. Business Performance Betw een 1998 2002 Business Performance 1998 1999 2000 2001 2002 Sales Vol ($ thousands): 979,46 665,14 742,09 722,19 567,61 # of Consultants(thousands): 215 228 2 70 300 322 Productivity ($consultant/yr): 4,393 2,889 2,775 2539 1835 # of products launched: 197 150 206 165 91 *Data Source: 2002 Annual Report Natura ( So Paulo: Natura, 2003) Financial Performance Between 1998 2000 Financial Performance1 1998 1999 2000 2001 2002 Gross Operating Income: 685.6 465.6 519.6 505.5 397.3 Net Operating Income: 481.2 306.3 353.2 350.5 278.4 Operational Profit: 74.3 35.3 27.9 46.8 50.3 Net Profit: 53.5 34.7 15.2 17.8 33.7 Investments: 70.6 66.5 68.8 30.3 17.3 *Data Source: 2002 Annual Report Natura ( So Paulo: Natura, 2003) 1 All numbers are in US $ million. Adapted from Harvard University Business School Case Study #SKE016, 2003.

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67 APPENDIX C MAP OF MEDIO JURUA E XTRACTIVE RESERVE

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68 APPENDIX D MAP OF ROQUE AND PUP UAI

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69 LIST OF REFERENCES Agencia Estado. 2008. Natura vai investor para reverter resultados fracos Portal EXAME. So Paulo, Brazil: Editora Abril, S.A. http://portalexame.abril. com.br/ae/negocio/m0153209.html Aguero, Felipe. 2005. The Promotion of Corporate Social Responsibility in Latin America Pp 103134 in Philanthrophy and Social Change in Latin America, edited by Cynthia Sanborn and Felipe Portocarrero. Cambridge, MA: Harvard University. Aparacida da Silva, Giselle. 2007. "O Impacto da Utilzao de Estratgias de Marketing Social na Consolidao da Marca Natura." Post -doc paper Centro Universitar io de Belo Horizonte, Brazil. Austin, James, et al. 2004. Social Partnering in Latin America: Lessons Drawn from Collaborations of Businesses and Civil Society Organizations Cambridge MA : Harvard University Press Boecha t, Claudio Bruzzi 2008. "Ekos: Perfume essences produce sustainable development." Minas Gerais, Brazil: Federal University of Minas Gerais Browder, John O. and Brian J. Godfrey. 1997. Rainforest Cities: Urbanization, Development and Globalization of the Brazilian Amazon NY: Columbia University Press. Bruno, Guiliana Ortega. 2003. A Rela o Comercial Entre Empresas e Fornecedores Sociais: Um Estudo Multicasos. Economia, Administracao e Contabilidade S o Paulo, Universidade do S o Paulo. Caldwell, Georgina. 2005. "Natura No man is an islan d." European Cosmetics Market. London, UK: HPCi Media Limited. http://www.cosmeticsbusines s.com/story.asp?storyCode= 840 (accessed December 10, 2007) Campolim, Silvia. 2004. A Triplice coroa. Portal EXAME. So Paulo, Brazil: Editora Abril, S.A. http://portalexame.abr il.com.br/degustacao/secure/degu stacao.do?COD_SITE=35&COD _html (accessed Nov 3 2008). Casado, Tania and Rosa Maria Fischer. 2003. Natura Ekos: From the Forest to Cajamar ." Harvard Business School Case Study Cambridge, MA: Harvard University Business School Case #SKE016. Clark, T anya 1999. See ding a World of Transformation. IndustryWeek Cleveland, OH: Penton Media. http://www.industryweek.com/ReadArticle.aspx?Ar ticleID=444 (accessed Nov 2, 2008).

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70 Costa, Melina. Um ano para esquecer Portal EXAME. So Paulo, Brazil: Editora Abril, S.A. http://portalexame.abril.com.br/revista/exame/edico es/0912/negocios/m01522797.html (accessed Nov 2, 2008). Damiano Teixeira, Karla M. and Mariana M. Pompermayer. 2007. "Corporate Social Responsibility: Profile and Diagnosis of 797 Programs Developed in Brazil." Business and Society Review 112(3): 25. Daniel, Isaura. 2006. "How Door to Door Sales Made Cosmetics Firm Natura into a Giant." Brazzil Mag July 4. Los Angeles, CA: Brazzil Magazine. Downie, Andrew. 2007. "Beautifying the World with Amazon Ingredients." The New York Times August 24. Evans, Peter. 1979. Dependent Development. The Alliance of Multinational, State, and Local Capital in Brazil. Princeton, New Jersey: Pr inceton University Press. Ferguson, Mary Ann T. 2008. "Multi Sector Partnerships and Strategic Communication in the Ame ricas." (Paper presented at the annual c onference in Latin American Studies at the University of Florida, Gainesville, FL, February 7 8, 2008). Fig, David. 2007. Questioning CSR in the Brazilian Atlantic Forest: t he case of Aracruz Celulose SA. Third World Quarterly 28( 4 ), 831849. Figueiredo, Lucia and Carla Morsello 2006. Comercio e Sustentabilidade na Amazonia: Efeitos da Parceria entre Empresa e comunidades no Uso T radicional de Recursos Naturais So Paulo, Brazil: University of So Paulo h ttp://www.parcer iasflorestais.org/bibliotc.htm (accessed December 1, 2 007). Fischer, Rosa Maria. 2005. Intersectoral Alliances and the Reduction of Social Exclusion. In Philanthrophy and Social Change in Latin America, ed Cynthia Sanborn and Felipe Portocarrero, 135162. Cambridge, MA: Harvard University. Fiszbein, A riel and Pamela Lowden. 1997. Working Together for a Change: Government, Business and Civic Partnerships for Poverty Reduction in Latin America and the Caribbean Washington, DC: World Bank. Friedman, Milton. 1970. The social responsibility of business is to increase its profits. New York Times Magazine : 3233, 122126. Herzog, Ana Luiza. 2008. Uma questo de estratgi a. Portal EXAME So Paulo, Brazil: Editora Abril, S.A. http://portalexame.abril.com.br/revista/exame/edicoes/0930A/es peciais/questao estrategia.html (accessed Nov 3, 2008).

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71 Herzog, Ana Luiza and Lariss a Santana. 2008. Natura corta 200 postos. Portal EXAME. So Paulo, Brazil: Editora Abril, S.A. http://portalexame.abril.com.br/gestaoepossoas/natura -corta 200-postos 396837. html (accessed Nov 3, 2008). Human Development Report. 2008. United Nationals Development Program. New York, NY: United Nations. http://hdrstats.undp.org/countries/data_sheets/cty_ds_BRA.html (accessed Nov 10, 2008). Jones, Geoffrey and Ri cardo Reisen de Pinho. 2007. Natura: Global Beauty Made in Brazil. Harvard Business School Case Study Cambridg e, MA: Harvard University. Leff, Nathaniel H. 1982. Underdevelopment and Development in Brazil. London: George Allen & Unwin Ltd. Lima, Aline. 2008. O problema e o preco. Portal EXAME So Paulo, Brazil: Editora Abril, S.A. h ttp://portalexame.abril.com. br/ revista/exame/edicoes/0930A / especias.problema preco 396057. htm l (accessed Nov 3, 2008). Majano, Ana Maria. 2002. The Role of Me dia in Promoting the CSR Agenda. In The Americas Conference on Corporate Social Responsibility edited by Antonio Vives and Amy Heinecke. h ttp://idbdocs.iadb.org/wsdocs/ getdocument.aspx?docnum=1597325 (accessed Nov 3, 2008). McMichael, P hilip 2007. Globalization: Myths and Realities. In The Globalization and Development Reader, edited by J. Timmons Roberts and Amy Bellone Hite 216232. Ma lden, MA, Blackwell Publishing. Morsello, Carla. 2004. Trade Deals between Corporations and Amazonian Forest Communities under Common Property Regimes: Opportunities, Problems and Challenges. So Paulo, Brazil: University of So Paulo. h ttp://www.parce riasflorestais.org/bibliotc.htm (accessed December 1, 2007). -------2006. CompanyCommunity nontimber forest product deals in the Brazilian Amazon: A review of opportunities and problems. Forest Policy and Economics 8 (4): 485494. Morsello, Carla and W. Neil Adger. 2006. Do Partnerships between Large Corporations and Amazonian Indigenous Groups Help or Hinder Communities and Forests? So Paulo, Brazil: University of So Paulo. h ttp://www.parce riasflorestais.org/bibliotc.htm l (accessed December 1, 2007). Natura Cosmeticos http://www2.natura.net

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72 Padgett, Tim. 1998. T he Light of Learning. Time Magazine April 20 Padua, Suzana Machado and Claudio Vallada res Padua. 2008. Non -governm ental organizations offer capacity building in conservation and sustainability: the case of IPE Instituto de Pesquisas Ecologicas in Brazil. IUCN Commission on Education and Communication. Gland, Switzerland: International Union for Conservation of Nature and Natural Resources. www.cec.wcln.org Otsuki, K ei 2007. Partnerships for Ecological Paper Production in the State of Par, Brazil In Partnerships in Sustainable Forest Resource Management: Learning from Latin America e d. Mirjam A.F. Ros Tonen (Boston, MA: Brill Academic Publishers) 255. Quarter, Jack. 2000. Beyond the Bottom Line Socially Innovative Business Owners Westport, CT: Quorum Books. Rebelo, Sergio. 2007. Natura -Spreading its Wings. European Cosmetics Markets. London, UK: HPCi Media Limited. h ttp://www.cosmeticsbusiness.com/story.as p?storycode=1454 (accessed December 2, 2007). Ribeiro, Fabio Augusto Nogueiro and Carla Morsello. 2007. Capitalism, environmentalism and indigenous societies in Brazilian Amazonia: The case of the Asurin do Xingu. So Paulo, Brazil: University of S o Paulo. h ttp://www.parceriasflorestais.org/bibliotc.ht m l (accessed December 2, 2007). Rizek, M ayte B enicio and Carla Morsello 2008. A Comercializao de Produtos Florestais No Madeireiros afeta o sistema tradicional de troc a e compartilhamento? O caso da Reserva Extrativista do Mdio Juru, AM. So Paulo, Brazil: University of So Paulo. h ttp://www.parceriasflorestais.org/bibliotc. htm l (accessed November 2, 2008). Rosenberg, Cynthia and Eduardo Ferraz. 2007. Sua empresa e verde?" Epoca Negocios May 2. So Paulo, Brazil: Editora Globo S.A. h ttp://epocanegocios.globo.com/Revista/Epocanegocios/0,,EDG769238374 2 1,00SUA+EMPRESA+E+VERDE.html (accessed Nov 2, 2008). Royal, Weld 1999. Corporate Crusader s. IndustryWeek Cleveland, OH: Penton Media. h ttp://www.industryweek.com/PrintArticle.aspx?ArticleID=438 (accessed Oct 2, 2008). Sanborn, Cynthia and Felipe Portocarrero (Eds) 2005. Philanthropy and Social Change in Latin America Cam bridge, MA: Harvard University. Seale, Barbara. 2008. "Company Spotlight: Natura." Direct Selling News Lake Dallas, TX: Direct Selling News. h ttp://www.directsellingnews.com/article_app.php?articleid=165 (accessed March 2, 2008).

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73 Skidmore, Thomas E. 1999. Brazil: Five Centuries of Change New York, NY: Oxford University Press. Thorp, Rosemary. 1998. Progress, Poverty, and Exclusion. An Economic History of Latin America in the 20th Century. Baltimore, MD: The Johns Hopkins University Press. Vaz, Tatiana. 2008. Ajustes na for mula. Portal EXAME So Paulo, Brazil: Editora Abril, S.A. http://portalexame.abril.com.br/revista/exame/edi coes/0922/mm2008/m0163833.html (accessed Nov 2, 2008). Vieira, Lorena. 2008. Lucro da Natura f ica em R$ 70 mi no 1 trimestre Portal EXAME So Paulo, Brazil: Editora Abril,S.A. http://portalexame.abril.com.br/ae/economia/m0157783.html?printable=true (accessed Oct 10, 2008). Vivarta, Veet and Guilherme Canela. 2006. Corporate Social Responsibility in Brazil: The Role of Press as Watchdog. The Journal of Corporate Citizenship 21: 95106. Wimmer, Roger D. and Joseph R. Dominick. (2006). Mass media research: An introduction Belmont, CA: Thomson Wadsworth. Wood, Donna J. 1991. Corporat e social performance revisited. The Academy of Management Review 16(4): 28.

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74 BIOGRAPHICAL SKETCH S. Elizabeth Smith was born in 1972, the only child of her loving mother Joan E. Smith, in Ft. Lauderdale, FL. She moved to Arlington, Massachusetts shortly after her birth. H er love for Latin America began during her high school years a t Lawrence Academy in Groton, Massachusetts. H ere she had her first introduction course on Tropical Biology taught by tropical biologist Jim Serach. The seed was planted and her love for the complexities of the region only grew from there. As her education continued, interrupted by the sudden tragic loss of her mom to cancer in 1993, interests in rainforest ecology extended to include its cultural and social elements. Elizabeth has lived and worked in Costa Rica for almost three years, traveled and studied widely throughout Central and South America and speaks Spanish and Portuguese. She has worked extensively with Latin Americans new to the U.S. and cultural transitions especially regarding U.S. banking practices and home ownership. She earned her bachelors degree from the University of Massac husetts, Boston, where s he designed her own program in culture and p olitics in Latin America. Upon completion of her m aster s degree Elizabeth will return to live in Costa Rica with Alex, her fianc They are expecting a child in May 2009.