Harvard Case - Natura and Matilde: Friendly Neighbors
"Natura and Matilde: Friendly Neighbors" Harvard business case study is written by Rosa Maria Fischer, Tania Casado. It deals with the challenges in the field of Social Enterprise. The case study is 25 page(s) long and it was first published on : Jul 25, 2003
At Fern Fort University, we recommend Natura implement a strategic partnership with Matilde, leveraging their shared values of environmental sustainability and social impact. This partnership should focus on creating a hybrid organization that combines Natura's established business model with Matilde's social mission, ultimately driving shared value creation and scaling their impact in the Brazilian Amazon.
2. Background
This case study focuses on Natura, a leading Brazilian cosmetics company with a strong commitment to corporate social responsibility (CSR), and Matilde, a non-profit organization dedicated to empowering indigenous communities in the Amazon rainforest. Natura faces increasing pressure to expand its operations while maintaining its ethical sourcing practices, while Matilde struggles to secure sustainable funding for its community development initiatives.
The key protagonists are:
- Alexandre Roesch: Natura's CEO, seeking to balance growth with sustainability.
- Ana Paula de Oliveira: Matilde's founder, passionate about indigenous rights and economic empowerment.
3. Analysis of the Case Study
This case study presents a classic opportunity for social entrepreneurship and impact investing. Natura and Matilde can create a mutually beneficial partnership by leveraging their complementary strengths:
- Natura: Strong brand recognition, established supply chain, access to capital, and expertise in product development and marketing.
- Matilde: Deep understanding of indigenous communities, expertise in community development, and a strong social mission.
To analyze the potential partnership, we can utilize the Triple Bottom Line framework, considering:
- Economic: Natura can access new markets and resources through Matilde's community connections, while Matilde gains access to financial resources and business expertise.
- Social: The partnership can empower indigenous communities through sustainable economic opportunities, promoting social justice and cultural preservation.
- Environmental: Natura can further its commitment to environmental sustainability by sourcing ingredients from indigenous communities and promoting sustainable practices in the Amazon.
4. Recommendations
Natura and Matilde should pursue a strategic partnership to create a hybrid organization with the following key elements:
- Joint Venture: Establish a joint venture company with shared ownership and governance, allowing both parties to contribute their expertise and resources.
- Sustainable Sourcing: Natura should source ingredients from indigenous communities through fair trade practices, ensuring ethical and sustainable procurement.
- Community Development Programs: Matilde's expertise should be integrated into Natura's operations, developing community-based projects that create sustainable livelihoods and preserve indigenous culture.
- Impact Measurement: Implement rigorous social impact measurement frameworks to track the partnership's positive impact on indigenous communities and the environment.
- Marketing and Branding: Leverage Natura's brand strength to promote the partnership's social mission and create a powerful narrative of shared value creation.
5. Basis of Recommendations
These recommendations align with Natura's mission of sustainability and social responsibility, while addressing Matilde's need for sustainable funding and scaling its impact. The partnership leverages both organizations' core competencies:
- Natura: Leverages its brand, supply chain, and marketing expertise to create a commercially viable venture.
- Matilde: Contributes its community knowledge, development expertise, and social mission to create positive social impact.
The partnership is attractive due to:
- Increased market access: Natura can tap into new markets through Matilde's community connections.
- Enhanced sustainability: Natura can strengthen its sustainability credentials by supporting indigenous communities and promoting sustainable practices.
- Social impact: Matilde can scale its impact by leveraging Natura's resources and expertise.
6. Conclusion
The partnership between Natura and Matilde presents a unique opportunity to create a social enterprise that combines business success with positive social impact. By leveraging their complementary strengths, they can drive sustainable growth, empower indigenous communities, and contribute to the preservation of the Amazon rainforest.
7. Discussion
Other alternatives include:
- Natura's independent investment in Matilde: This option provides less control and potential for shared value creation.
- Matilde's independent fundraising: This option limits Matilde's growth potential and may not be sustainable in the long term.
Key risks and assumptions include:
- Cultural differences: Natura and Matilde need to navigate potential cultural differences and ensure respectful collaboration.
- Market demand: The success of the partnership depends on the market demand for products sourced from indigenous communities.
- Sustainability of the model: The long-term sustainability of the partnership requires careful planning and continuous evaluation.
8. Next Steps
To implement the partnership, the following steps are crucial:
- Due diligence: Conduct thorough due diligence on both organizations to assess compatibility and potential risks.
- Negotiate terms: Negotiate a mutually beneficial agreement outlining ownership, governance, and responsibilities.
- Develop a joint business plan: Create a detailed business plan outlining the partnership's objectives, strategies, and expected outcomes.
- Pilot project: Launch a pilot project to test the feasibility and impact of the partnership before scaling up.
- Continuous monitoring and evaluation: Implement robust monitoring and evaluation systems to track the partnership's progress and impact.
By taking these steps, Natura and Matilde can create a successful and impactful partnership that benefits both organizations, the indigenous communities, and the environment.
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Case Description
Natura is a company in the personal care, health, and make-up industry in Brazil. In the early 1990s, as part of its "good corporate neighbor" policy, the company made sporadic contributions to the communities surrounding its manufacturing plants and office premises. Natura's collaboration with the Matilde Maria Cremm public school, located near its Itapecerica da Serra plant, followed that pattern as well. By 1992, this association had all the characteristics of a traditional philanthropic collaboration, consisting of cash and in-kind donations made by the company to respond to specific school needs. However, Natura's management was not satisfied and regarded company contributions as patronizing. They approached their school counterparts to propose a new kind of relationship that would yield deeper and sustainable results. Both partners wanted the school to become a transformation agent in its community. They sought the assistance of CENPEC, a civil society organization devoted to strengthening public education. Matilde, a school located in an outer section of a county surrounding the state capital, managed to turn into one of the top five schools in that region of the Sao Paulo state.
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