Alba: giving back is embedded into our business model

Steven Loeb · October 2, 2014 · Short URL: https://vator.tv/n/3983

The Honest Company gives 1% of its net revenue to charity and chemical research

At our fourth annual Vator Splash LA on Wednesday, Vator founder and CEO Bambi Francisco took the stage to interview two of our special guests: Brian Lee and Jessica Alba, the co-founders of The Honest Company, a subscription service for eco-friendly baby and family products.

The Honest Company has a very worthwhile, and socially conscious, mission: it was created to allow families choose chemical free products in order for them to help keep their children both safe and healthy. So it's no surprise that the company would have a philanthropic streak as well. 

In fact, it gives away a full 1% of its net revenue to both families in need and to chemical research, Lee told Francisco. And that is just the  beginning.

"We just launched the Honest Company Ultra-Clean Lab at Mount Sinai in the city of New York, where Dr. Phil Landagran, who's one of the most foremost experts in research in chemicals, is leading the charge to try to define which chemicals we should be avoiding," said Lee. "Which chemicals cause which diseases? Because today, I'll tell you, you can't say if you're pregnant and you ingest these chemicals, you've got a five times higher likelihood of having a kid with autism. Just not enough research has been done and we're here to solve that."

So how would Lee and Alba advise other companies on how to give back in this way? For Alba, it meant making it a priority from the very beginning of the company's inception, even though not everyone was always on board with the idea.

"We embedded it into our business model. I remember my first, very exciting, board meeting, I pitched them this idea of, like, yes, we're going to be making safe, healthy, beautifully designed, affordable, products, that are modern. But we're also going to give back. And they're like, 'Ok, you can do all that other stuff, I don't know about affordable and we're not really sure about the giving back thing.' And I said, 'Well how about we try it, and if it's not working, then we can always adjust.' Cause we were a startup," said Alba.

"And, luckily, we never had to adjust, and, frankly, we go into our board meetings and we talk about, you know, changing people's lives, and saving infants lives with this crib, or giving children clean diapers that normally would have to wear a soiled one and reuse it all day, and they’re excited and they're passionate and they're happy to be able to provide this to families from the jump. So I think that if you just embed it in your model from the beginning, then it's hopefully no turning back."

As Francisco pointed out, all this philanthropy means that The Honest Company now has a double bottom line, plus is giving away 1% of its revenue. So would Lee invest in such a company himself? His answer: "absolutely." Because giving back is just that important  

"I think it's good for your own company, and its good for your souls, I think it's good for your employees. And I think the millennial buyer wants to make a difference. They truly do care about what your company does and how you're going to affect change,” he said.

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The Honest Company

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The Honest Company (www.Honest.com), founded by Jessica Alba, Christopher Gavigan, Brian Lee and Sean Kane, was created to ensure that parents have access to non-toxic, eco-friendly, effective and beautiful family products that don't break the bank. Honest.com offers essentials for every family member including diapers, wipes, bath, skin care, home cleaning and health & wellness products conveniently door-delivered through a monthly subscription service of customized product bundles or single item purchase. As a certified B Corporation, The Honest Company strives to promote sustainability, engage employees and community, and support non-profit initiatives working to solve critical health and social issues affecting children and families. Available in the U.S. and Canada.

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Brian Lee

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Bambi Francisco Roizen

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Founder Vator, Managing Partner - Vator Investment Club; Former Columnist/correspondent Dow Jones MarketWatch; Business anchor CBS affiliate KPIX