Protecting our Freedom to Operate How do we earn and maintain the - - PowerPoint PPT Presentation

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Protecting our Freedom to Operate How do we earn and maintain the - - PowerPoint PPT Presentation

Protecting our Freedom to Operate How do we earn and maintain the social license we need to protect our freedom to operate? Charlie Arnot, CEO Center for Food Integrity Charlie.Arnot@Foodintegrity.org Washington Post - Mensa Invitational


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Protecting our Freedom to Operate

How do we earn and maintain the social license we need to protect our freedom to operate?

Charlie Arnot, CEO Center for Food Integrity Charlie.Arnot@Foodintegrity.org

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Washington Post - Mensa Invitational

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I ntaxication Washington Post - Mensa Invitational

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I ntaxication

Euphoria at getting a tax refund, which lasts until you realize it was your money to start with.

Washington Post - Mensa Invitational

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Bozone ( n.) Washington Post - Mensa Invitational

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Bozone ( n.)

The substance surrounding stupid people that stops bright ideas from

  • penetrating. The Bozone layer,

unfortunately, shows little sign of breaking down in the near future.

Washington Post - Mensa Invitational

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Reintarnation Washington Post - Mensa Invitational

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Reintarnation

Coming back to life as a hillbilly.

Washington Post - Mensa Invitational

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Decafalon ( n.) Washington Post - Mensa Invitational

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Decafalon ( n.)

The grueling event of getting through the day consuming only things that are good for you.

Washington Post - Mensa Invitational

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Caterpallor ( n.) Washington Post - Mensa Invitational

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Caterpallor ( n.)

The color you turn after finding half a worm in the fruit you're eating.

Washington Post - Mensa Invitational

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The Challenge Ahead

Producing food for the 99% of

Americans who count on us for one of the necessities of life is a noble pursuit.

How do we earn and maintain the social

license we need to feed 400 million Americans and 2.7 billion more people around the world in 20 years?

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Earning and Maintaining the Social License

(Sapp/CMA)

Freedom to Operate

Freedom to Operate

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Earning and maintaining the social license

(Sapp/CMA)

Social License

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Social License

Definition: Operating with minimal formalized restrictions (legislation, regulation) based on maintaining public trust and the belief that activities are consistent with social expectations and the values of the community and other stakeholders.

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Earning and Maintaining the Social License

(Sapp/CMA)

Social License Freedom to Operate

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Earning and Maintaining the Social License

(Sapp/CMA)

Social License Trust Freedom to Operate

Trust

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Earning and Maintaining the Social License

(Sapp/CMA)

Influential Others Social License Trust Freedom to Operate

Influential Others

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Earning and Maintaining the Social License

(Sapp/CMA)

Influential Others Competence Social License Trust Freedom to Operate

Competence

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Earning and Maintaining the Social License

(Sapp/CMA)

Confidence Influential Others Competence

Value Similarity

Social License Trust Freedom to Operate

Confidence

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An Inconvenient Tooth: Food Is Major Contributor to Climate Change The Green Machine The Green Machine

“We didn’t change to conform to the world. The world came in

  • ur direction.”
  • John Mackey, CEO

Whole Foods

Dean Foods says no more cloned cow’s milk

Nation’s biggest milk company: Customers, consumers do not want it

, Feb 23, 2007

New “Low Carbon Diet” aims to take bite out of global warming

April 17, 2007

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Times Have Changed

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Times Have Changed

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Times Have Changed

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Times Have Changed

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Agrarian Model

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Times have changed

In the U.S.Today…

The top ten food retailers sell more than 75% of food. The top ten chicken companies produce 79% of

chicken.

The top 50 dairy cooperatives produce 79% of the

milk.

The top 60 egg companies produce 85% of eggs. The top 20 pork producers produce more than 50% of

  • pork. (Two percent of pork producers produce 80% )
  • The top 10 pork packers process 87% of pork.

The top four beef packers process more than 80% of

beef.

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Industrial Model

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The Center for Food Integrity

A New Model for Building Trust and Securing our Social License to Operate

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CFI Mission

To build consumer trust and confidence in the contemporary U.S. food system by sharing accurate, balanced information, correcting misinformation, modeling best practices and engaging stakeholders to address issues that are important to consumers

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CFI Model

Protecting Freedom to Operate by Building Trust

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CFI Model

Protecting Freedom to Operate by Building Trust

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Tipping Point Flexible Responsive Low er Cost Rigid Bureaucratic Higher Cost Social License

  • Ethics
  • Values
  • Expectations
  • Self regulation

Social Control

  • Regulation
  • Legislation
  • Litigation
  • Compliance

Single triggering event Cumulative impact

The Social License To Operate

High Trust

Complete Autonomy

Low Trust

Prohibition

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Professions Have Sustained Their Social License Over Time

All key elements of establishing trust

Professional Attribute Related Element of Trust Model

  • 1. Ethical Standards

Confidence – Value Similarity

  • 2. Code of Conduct

Confidence – Value Similarity

  • 3. Accountability to Stakeholders

Confidence, Influential Others

  • 4. Best Practices

Competence

  • 5. Certification

Competence

  • 6. Continuing Education

Competence

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CFI Model

Protecting Freedom to Operate by Building Trust

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Consumer Trust Improvement Cycle

Annual Consumer Trust Survey Industry Outreach and Response Stakeholder Engagement Annual Summit Best Practices Recognition and Communication

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3 8

CMA, Consumer Trust in the Food System Study, October 2007

Concern About Food System Issues

7% 37% 56% 6% 29% 66% 4% 29% 68% 2% 24% 74% 4% 22% 74% 0% 50% 100%

0 to 3 4 to 7 8 to 10

Food Safety Good Nutrition Treatment of Workers in Food System Environmental Protection Humane Treatment of Farm Animals

(mean=8.46) (mean=8.32) (mean=7.43) (mean=8.03) (mean=7.97)

(n=2008)

  • Consumers indicated the highest level of concern for Food Safety and Good Nutrition, based on the percent of 8-10

ratings on the 0 to 10 scale and on mean scores.

  • The food system issue with the least concern was Treatment of Workers in the Food System, based on the percent of 8-

10 ratings and mean scores.

  • Consumers indicated the highest level of concern for Food Safety and Good Nutrition, based on the percent of 8-10

ratings on the 0 to 10 scale and on mean scores.

  • The food system issue with the least concern was Treatment of Workers in the Food System, based on the percent of 8-

10 ratings and mean scores.

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  • Consumers hold Farmers

and Food companies most responsible for food safety

  • Consumers have

significantly higher trust in themselves than they do in Producers and Food companies.

Segments Responsibility Trust You or other persons who prepare your food at home 16.3 8.98 Farmers/producers 20.4 7.00 Grocery stores 10.7 6.23 Advocacy groups 4.9 5.56 Restaurants 10.5 5.96 Food companies/ processors 20.2 5.55 Federal regulatory agencies 17.0 5.31

Consumer Trust in Food Safety

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  • Consumers primarily

hold themselves responsible for ensuring good nutrition

  • After themselves,

Doctors / dieticians receive the highest levels

  • f trust when it comes to

good nutrition.

Segments Responsibility Trust You or other persons who prepare your food at home 25.1 8.80 Doctors/dieticians 7.6 7.11 Farmers/producers 14.4 6.86 Grocery stores 7.2 5.90 Advocacy groups 3.8 5.52 Federal regulatory agencies 11.8 5.48 Food companies/ processors 13.9 5.41 Restaurants 7.3 5.59 The K-12 school system 9.3 5.56

Consumer Trust in Good Nutrition

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  • Consumers hold “people

like themselves”, federal regulatory agencies and Farmers most responsible for ensuring environmental protection

  • They trust themselves

significantly greater than any other group when it comes to protecting the environment

Segments Responsibility Trust People like yourself 18.5 7.56 Farmers/producers 16.1 6.47 Advocacy groups 6.2 5.87 State regulatory agencies 14.4 5.58 Federal regulatory agencies 17.1 5.51 Grocery stores 7.1 5.56 Restaurants 6.9 5.38 Food companies/ processors 13.7 5.02

Consumer Trust in Environmental Protection

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Segments Responsibility Trust People like yourself 10.5 7.49 Advocacy groups 24.7 6.71 Farmers/producers 28.9 6.14 Federal regulatory agencies 15.3 5.76 Grocery stores 4.0 5.19 Restaurants 3.8 5.07 Food companies/ processors 12.8 4.66

  • Consumers assign

Farmers and Advocacy groups with significantly more responsibility for the humane treatment of farm animals than any

  • ther groups
  • Consumers trust

“people like themselves” significantly more than any other group

Consumer Trust in the Humane Treatment of Farm Animals

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Segments Responsibility Trust Farmers/producers 12.5 6.39 Grocery stores 9.4 6.03 Employees 15.9 6.15 Restaurants 9.6 5.78 Labor Unions 14.3 5.85 Federal regulatory agencies 17.2 5.55 Food companies/ processors 15.0 5.47 Advocacy groups 6.2 5.68

  • Consumers assign the

highest level of responsibility to Employees, Federal regulatory agencies, employees and Food companies for ensuring worker care

  • They have a relatively

moderate level of trust in all groups ability to ensure worker care

Consumer Trust in Worker Care

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CFI Model

Protecting Freedom to Operate by Building Trust

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0.50 0.50 0.2 0.4 0.6 0.8 1

Confidence Competence

Consumer Trust Modeling

Trust

R2 = 1.0

Willingness to Comply

R2 = 1.0

  • R2 represents the percentage of explained variance in the model
  • Values greater than .30 are considered significant by sociologists
  • Numbers in blocks represent the percentage of R2 variance

explained

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0.12 1 Competence

Drivers of Consumer Trust in Groups Ensuring Food Safety (Across All Groups)

Trust

R2 = .75

Willingness to Comply

R2 = .48

.40

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0.12 0.67 1 Confidence Competence

Drivers of Consumer Trust in Groups Ensuring Food Safety (Across All Groups)

Trust

R2 = .75

Willingness to Comply

R2 = .48

.40

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0.20 1 Competence Trust

R2 = .84

Willingness to Comply

R2 = .64

Drivers of Consumer Trust in Groups Ensuring Nutrition (Across All Groups)

.48

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0.20 0.70 1 Confidence Competence Trust

R2 = .84

Willingness to Comply

R2 = .64

Drivers of Consumer Trust in Groups Ensuring Nutrition (Across All Groups)

.48

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0.18 1 Competence Trust

R2 = .83

Willingness to Comply

R2 = .59

Drivers of Consumer Trust in Farmers/ Producers to Protect the Environment

.31

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0.18 0.72 1 Confidence Competence Trust

R2 = .83

Willingness to Comply

R2 = .59

Drivers of Consumer Trust in Farmers/ Producers to Protect the Environment

.31

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0.15 1 Competence Trust

R2 = .82

Willingness to Comply

R2 = .52

Drivers of Consumer Trust in Farmers/ Producers to Ensure the Humane Treatment of Farm Animals

.37

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0.15 0.75 1 Confidence Competence Trust

R2 = .82

Willingness to Comply

R2 = .52

Drivers of Consumer Trust in Farmers/ Producers to Ensure the Humane Treatment of Farm Animals

.37

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Attitudes Toward Food Supply

7% 30% 63% 0% 50% 100% 0 to 3 4 to 7 8 to 10

If farm animals are treated decently and humanely, I have no problem consuming meat, milk and eggs

CMA, Consumer Trust in the Food System Study, October 2007

(mean = 7.68)

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Attitudes Toward Food Supply

26% 44% 30% 0% 50% 100% 0 to 3 4 to 7 8 to 10

Farm animals that are raised for food should be treated the same way household pet owners treat their pets

CMA, Consumer Trust in the Food System Study, October 2007

(mean = 5.51)

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Attitudes Toward Food Supply

27% 55% 18% 0% 50% 100% 0 to 3 4 to 7 8 to 10

U.S. meat is derived from humanely treated animals

CMA, Consumer Trust in the Food System Study, October 2007

(mean = 5.02)

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Attitudes Toward Food Supply

16% 49% 35% 0% 50% 100% 0 to 3 4 to 7 8 to 10

Food grown organically is more healthful than conventionally grown food

CMA, Consumer Trust in the Food System Study, October 2007

(mean = 6.13)

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Attitudes Toward Food Supply

16% 52% 33% 0% 50% 100% 0 to 3 4 to 7 8 to 10

U.S. food is amongst the safest in the world today

CMA, Consumer Trust in the Food System Study, October 2007

(mean = 6.03)

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Attitudes Toward Food Supply

20% 54% 26% 0% 50% 100% 0 to 3 4 to 7 8 to 10

I am confident in the safety of food I eat

CMA, Consumer Trust in the Food System Study, October 2007

(mean = 5.64)

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Attitudes Toward Food Supply

28% 48% 25% 0% 50% 100% 0 to 3 4 to 7 8 to 10

I am as confident in the safety of the food I eat as I was a year ago

CMA, Consumer Trust in the Food System Study, October 2007

(mean = 5.17)

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Attitudes Toward Food Supply

37% 46% 18% 0% 50% 100% 0 to 3 4 to 7 8 to 10

I have access to all of the information I want about where my food comes from, how it was produced and its safety

CMA, Consumer Trust in the Food System Study, October 2007

(mean = 4.6)

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Attitudes Toward Food Supply

37% 47% 16% 0% 50% 100% 0 to 3 4 to 7 8 to 10

Today’s food supply is safer than it was when I was growing up

CMA, Consumer Trust in the Food System Study, October 2007

(mean = 4.44)

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  • Self-policing
  • Third party
  • versight
  • Customers
  • Opinion leaders
  • Policy makers
  • NGOs
  • Compassion
  • Responsibility
  • Respect
  • Fairness
  • Truth

CFI Model

Protecting Freedom to Operate by Building Trust

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“We cannot solve problems using the same thinking we used when we created them.”

  • Albert Einstein

Times Have Changed

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What can you do?

Encourage your State Department of

Agriculture and commodity groups to join the Center for Food Integrity –

State specific research

Missouri, Indiana, Iowa, Minnesota, South

Carolina

Encourage ag and food entities in your

state to earn and maintain the social license we need to protect our freedom to operate

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Current Members

American Farm Bureau

Federation

Countrymark Cooperative Dairy Management, Inc. Elanco Animal Health Fair Oaks Dairy Farm Indiana Farm Bureau Indiana Packers Company Indiana Soybean Alliance Indiana State Department

  • f Agriculture

Iowa Farm Bureau Maple Leaf Farms Michigan State University Missouri Department of

Agriculture

Monsanto National Pork Board Novus International Oregon Dairy Farmers

Association

Professional Dairy Producers

  • f Wisconsin

Purdue University South Carolina Farm Bureau United Egg Producers United Soybean Board

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Protecting our Freedom to Operate

How do we earn and maintain the social license we need to protect our freedom to operate?

Charlie Arnot, CEO Center for Food Integrity Charlie.Arnot@Foodintegrity.org