When I started to browse my RSS feed news items this morning, the first news item I came across was that Jeffrey Hollender, the founder of Seventh Generation, has been ousted out of the company he had build into a global Sustainability / CSR leader. And I was shocked to be honest. This is the link to the source article from Marc Gunther: Seventh Generation article.
I am not going to comment on these developments within the company and about the founder because I do not really know them that well but the purpose of this post is to provide some reflection based on my business experience about the possible Sustainability / CSR implications within the company and our business sector as whole with regards to this shocking piece of news.
Some background information
Jeffrey Hollender and his company Seventh Generation was one of the first companies to embrace sustainability within their business. Whenever I am talking to clients and friends about who was and is one of the key players within this Sustainability / CSR field, Seventh Generation is on that list.
So what does this mean for the Sustainability / CSR practices at Seventh Generation?
It is very early days yet and more details are just emerging but one thing is certain. Seventh Generation will most likely not be as proactive as they are at the moment in the foreseeable future. And the reason is very clear. The leadership team will have to focus on the internal power struggles for now. Their attention on the Sustainability / CSR activities will suffer as a consequence. No doubt. The amount of uncertainty of such a drastic move will also have a negative effect on many employees. Most of them will try to protect their position first due to the high uncertainty and all Sustainability / CSR efforts will suffer as a consequence. My experience has shown me that this kind of uncertainty will most likely not produce Sustainability / CSR best practice any time soon. What Seventh Generation now needs is a strong and capable leader to guide them through this change process. I hope this current chairman will be able to do this.
What will the effect for the Sustainability / CSR sector be?
The sector will loose one of its leading companies in terms of best practice in my view. Yes, the company will still do something really good in terms of best practice in the short term but in my view the success of the companys’ Sustainability / CSR efforts was very much tied to the actions and the passion of Jeffrey Hollender. Which obviously can be interpreted in both ways, positive and negative, depending where you argue from.
In summary:
Overall, this is really bad news in my view. For all employees of Seventh Generation but also everyone within the Sustainability / CSR field. It will be interesting to see what the next few months will bring. For the company and for Jeffrey Hollender personally.
What is your view on this management change?
Additional posts I could recommend: 1) Another really worthwhile article about Jeffrey Hollenders’ ousting has been written Lynn Anne Miller: Managing and Disclosing – Where’s Jeffrey Hollender?. 2) The New York Times also now covered this news item: A Pioneer in Green Business is Fired. 3) FastCompany: Inside Seventh Generation’s Firing of Founder Jeffrey Hollender.
THE LATEST ON THIS STORY:
Here is the statement from Jeffrey Hollender on Facebook about his departure:
More than two decades ago, I founded Seventh Generation with the idea of creating a different way of doing business. Since then, the company has established new benchmarks for ethical and sustainable corporate behavior, grounded in the principles of employee ownership, pay equity, environmental responsibility and transparency. At the same time, Seventh Generation is a recognized pioneer in its category and a successful business enterprise.
Last week, the Seventh Generation Board announced to its shareholders and employees that they have “decided to end the company’s employment relationship” with me “…without cause.” I wanted my friends to hear it from me.
Over the past twenty years, I have had the privilege to work with an extraordinary group of committed, talented people — and I thank them all and wish them the best. Moving forward, I plan to remain fully engaged in the work of creating a new paradigm for justice, equity and corporate responsibility through my new book, Planet Home, that will be published by Random House in January 2011; my work on the boards of Greenpeace and Veritee; and in my role as the co-founder of the American Sustainable Business Council.