The first step in evaluating a sustainable investment is to determine if the company makes money. Last year, The Honest Company is reported to have $275M as per Bloomberg.
It is not just the revenues – it is the incredible growth which this company has enjoyed since it was founded in 2011.
So it is now valued at $1B – the price a larger company is prepared to pay to purchase and further develop the brand. The Honest Company is a success story. It believes in transparency and honesty. The guiding principles of this company are:
- Create a Culture of Honesty
- Make Beauty
- Service Matters
- Sustain Life
- Be Accessible
- Pay it Forward
In the challenging eCommerce world, The Honest Company has built and a brand and products that keep people coming back. The operational challenges of ecommerce, distribution, marketing, delivery, packaging and consistency have been met with creativity and integrity. The brand of The Honest Company is worth the evaluation of $1B.
Their commitment to Social Responsibility is threefold:
- Using Business as a force for good. The Honest Company is a certified B Company.
- Investing in Youth. As per their web site, over 159,000 youth received services, and $1, 006,375 donated.
- Developing the Whole Child. The Honest Company donates food and supplies to children worldwide.
And so to all the naysayers that believe there is no financial gain to making a big difference – Unilever begs to differ and rumour had it they are paying 3x earnings to prove it.
Will this success story inspire you to build your social enterprise?
Cara MacMillan MBA