The accepted wisdom is that supply chains with values alignment are more productive. Clearly achieving that alignment calls for transparency in both processes and behaviour.
The values articulated and evidenced so compellingly by Body Shop founder, Anita Roddick, are now being emulated by organisations across a variety of sectors. When Body Shop was taken over by L'Oreal, many waited for the values to be watered down by commerical imperatives and stories exist to support and counter this expectation.
More recently, the sale of 200 year old British firm Cadbury to US Multinational Kraft for £11bn has excited much discussion about compromised values. Cadbury's ex CEO, American Todd Stitzer, was a firm advocate of leading through shared values, coining the phrase 'Performance Driven, Values Led.' The deal with Kraft was welcomed by hedge fund shareholders and has been followed by pre deal promises broken, the relocation of the head office from UK to Switzerland, a fine on Kraft levied by the City Takeover Panel for their conduct, a knighthood for former Cadbury Chairman, Sir Roger Carr for brokering the deal and on Friday the report that the Dairy Milk bar is going to be reduced in size so that customers do not have to pay more.
Perhaps it is not surprising that the operating environment is becoming increasingly uncomfortable for the entrepreneurial team who lead organic chocolate maker Green and Black's. Having been part of the Cadbury family for six years and experienced one style of parent, media stories point to their spirit being crushed by their new parents at Kraft. Since late in 2010, there has been talk of Green and Black's leadership team lobbying Kraft to entertain an MBO. It must seem a far cry from the ethical and organic origins of the business founded in 1991 by husband and wife team Craig Sams and Josephine Fairley of Whole Earth Foods.
Once again we are reminded that one of the main reasons for failing to realise value post acquisition is values misalignment.
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