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2012 Corporate Responsibility Report

See Nurturing Nature for a discussion of our newest product lines. 3.12 GRI table GOVERNANCE, COMMITMENTS, ENGAGEMENT 4.1, 4.3, 4.4 Governance structure, Independent members, employee input to board Seventh Generation is a privately held corporation, governed by a board of elected directors, all of whom share a strong commitment to the health and well-being of our planet and the people on it. The board supports our B Corp principles and aspiration to be a profitable, independent, and well-managed business that stays true to our founding mission. Our directors bring a broad range of experience in entrepreneurship, sustainability, finance, building businesses, consumer packaged goods, and leadership of innovative growth companies. Board members serve as representatives of our entire shareholder base and are elected annually based on a few core values: • Deeply held belief in the company’s mission, vision and values; • Demonstrated commitment to the development of the company and the people within it; • Broad and complementary experience relevant to our business; and • A willingness to accept fiduciary, sustainability, and strategic responsibilities. Board Responsibilities Our board ensures that Seventh Generation is managed professionally and operates in a manner that is consistent with our B Corp charter serving all stakeholders. The board’s responsibilities include: • Hiring the CEO and top management; • Providing adequate equity capital for growth; • Exercising control over the company’s assets and ensuring that they are used effectively in a manner consistent with the company’s values; • Furthering the Mission and providing strategic advice that supports the long-term vision; • Representing the larger shareholder base; and • Meeting quarterly with the executive leadership team and the company and communicating regularly with shareholders The board invites management from all levels of the organization to participate and meet with them and tries to stay visible and engaged with the Seventh Generation community. We have three standing committees: • Compensation Committee • Audit and Finance Committee • Nominating and Governance Committee Board Membership and Decisions At the close of 2012, our board of directors included eight elected directors, two females and six males, including our CEO John Replogle. Of the eight directors, six are independent. In 2012, the Board reviewed the company strategy, led a deep dive into our sustainability principles and mapped a course to a more robust financial footing. The Board also reviewed the audit and company valuation to ensure that appropriate financial controls and metrics safeguarding shareholder value were in place. A new compensation plan that supported our triple bottom line focus in which employee performance was rewarded based on growth, profits and our sustainability goals was established. Finally, the Board continued to review its own performance by undertaking a self-evaluation as well as seeking feedback from the Executive Leadership Team and engaging in small group meetings with employees from across the business. 4.2 Governance chair Peter Graham is the Chairman of the Board. 4.14 and 4.15 Stakeholders See Reporting ECONOMIC PERFORMANCE INDICATORS EC1 Direct economic value Data on direct economic value, revenue, operating costs, retained earnings, and payments to capital providers and governments are proprietary information. EC3 Coverage of the organization’s defined benefit plan obligations Seventh Generation firmly believes in creating wealth and financial prosperity throughout all levels of the organization. All full-time employees receive a variety of benefits including company supported, paid medical premiums, an employee stock incentive seventhgeneration.com/2012report   51 Reporting


2012 Corporate Responsibility Report
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