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P.H.: Do you think that this
kind of business model could
spread to other companies?
Thum: I think that there are more and more examples of
businesses like Ethos, maybe not necessarily exactly like
Ethos in the way that they are constructed. Ethos is a specific example to the extent that we created a business with a
very specific social purpose in mind.
I think you'll find that in not only individual private startups,
but also in public corporations, companies are being
held to account, and even more, rewarded for socially minded
behavior. Companies are trying to think carefully about
how they carry out their business and how that impacts the
society in which they operate.
And I think people, increasingly, are making decisions about
the products and services that they want to buy based on the
way that they view the corporations that they are interacting
with.
P.H.: This is a chicken-or-egg question, but do you think
that's because people are becoming more aware or because
these types of products are more available?
Thum: You're right, that is a chicken or egg question. I
don't think it's a trend. It is something that's here to stay.
It's an evolutionary process, something that has started. As
companies that practice sound social behavior are rewarded,
other companies observe that and copy them. In a way, it's
competition, which is good. If it becomes integrated into
competition and people see that it's beneficial to their shareholders,
then it becomes incorporated into the economic
model, and it becomes sustainable.
P.H.: Where do you see Ethos going, and what does the deal
with Pepsi, signed in June 2006, mean for the company?
Thum: I'd like Ethos to be a global brand that carries out
its mission and affects the lives of millions of people in the
developing world and the thinking of millions of consumers
and people in the public in the developed world, in Europe
and in Asia, so that the connectivity between those people
who are consuming and those people who are benefiting increases.
We signed an agreement with Pepsi for the production, distribution
and marketing of Ethos Water in North America including
the United States and Canada. That agreement basically
includes Ethos Water as a brand in the North American
Coffee Partnership, which is the joint venture between [Starbucks
and Pepsi] to market ready-to-drink beverages. What
this means is that Ethos Water will be a significantly larger
brand than it would have been had we just sold through Starbucks
stores.
P.H.: What projects have been the most successful, and what
future projects are you most excited about?
Thum: It's hard for me to compare projects on terms of their
success, one to the other. We've done projects in India, Honduras,
Ethiopia, Bangladesh, the Democratic Republic of
Congo, and Kenya.
We've also given support to victims of the tsunami by
sending water. We had an extra supply of water, there
was a plane going, and we just gave them a truckload to
help them fill the plane. Starbucks supplied ten thousand
cases of water after Hurricane Katrina, which is a domestic
activity, but we had the water available and felt it was
something that was necessary for us to do to be helpful to
people.
I'm proud of all those things. They're great outputs of the
brand. I wouldn't compare a woman or child or man who
gets water in India to someone getting it in Kenya, to the
extent that I think both of those are successes. Overall, with
the money that we've been able to raise and push through
the foundation out to nongovernmental organizations, we'll
be able to help more than 300,000 people. That is a great
testament to the fact that if the customers buy the brand,
the brand is doing what it promises.
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