Caring companies, positive growth – Horizon CEO speaks on how businesses can help society

To Chuck Marcy, CEO of Horizon Organic Holding Corp., a happy cow not only makes a positive brand, but also makes a solid social statement.

By Alicia Wallace, Camera Business Writer

At a luncheon discussion on corporate social responsibility, Marcy said his company’s smiling mascot generates both grins and growth for an industry where businesses such as his can supply consumers with healthy food and supply communities and nonprofits with donations.

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"What we’re doing is bringing a very fun, upbeat, positive product to consumers and yet we’re bringing a serious product," said Marcy to a crowd of about 200 people at the Association for Corporate Growth’s luncheon held at the Pinnacle Club Tuesday.

Marcy and Diane Keefe, portfolio manager of New York’s Pax World High Yield Fund, spoke on the topic of how social responsibility can ensure business success and a healthy and stable society.

"We’ve made organic food, which is a serious product, fun and approachable," Marcy said. "The character (of Happy Cow) supports our concerns for the environment and, as I said, it stands for high-quality, organic food."

He said research on consumers’ feelings toward Happy Cow supported that statement. Horizon’s growth and profits, he said, also backed up the brand. For 2002, the company netted $187.5 million in sales.

And with Horizon’s recent acquisition by Dallas-based Dean Foods Co., Marcy said he expects that number to get even larger.

"This will enable us to get more organic products out to people and allow us to give more back to the community," said Marcy after the luncheon.

Horizon Organic has donated to the Boulder County Safehouse, Community Food Share and Cultiva! Organic Gardens Youth Project.

Keefe said companies that are positive social citizens and have fair employment policies and practices have the biggest opportunities for success.

The Pax mutual fund screens its investments, seeking out companies that improve the quality of life with their products. By having these standards, Keefe said her company is reducing investment risks.

Keefe also stressed the need for greater ethical standards within those businesses and their respective boards of directors. She said failing to look outside the company for qualified auditors, advisers and board members increases the risk of fraud and theft. And not widening the diversity of people serving in those positions, she said, only perpetuates the glass ceiling.

"If you don’t just have a token minority on the board, it will be more reflective of the American public," she said after the luncheon. "Ultimately, as an investor, I would want to invest more in a company that has high hiring standards than one who does not seek a qualified and diverse board."

Contact Alicia Wallace at [email protected] or (303) 473-1332.