A company is not just made up of numbers, results and productivity. The moral and ethical values and the internal and external posture of a company, the so-called organizational culture, can make all the difference in business success (Carvalho, 2010). In this context, Natura is an example of a successful business culture focused on “well-being”. It is the largest multinational Brazilian cosmetic and beauty products, and also present in Argentina, Chile, Colombia, France, Mexico, Peru, and United States. The company was founded in 1969 by Luiz Seabra, but it was only after a year that he opened his first store, where he himself served the customers. After a few years direct sale was adopted as their main business model and the store was closed. In this business model, without any physical store, anyone could be one of their “beauty consultants”, who were in charge of the direct sales, which led the brand to expand rapidly across the country. “In the Brazilian market, they are the leading direct selling player with more than 1.8 million Natura consultants, and they are currently expanding their retail sector through own stores and partnerships with drugstores chains” (Certified B Corporation). Recently, Natura, Aesop and The Body Shop came together and gave rise to the Natura & Co group.
In order to gather information and diagnose Natura’s organizational culture, I used five main sources. The first one was Natura’s website, used to assess the way it introduces itself to the public and the way it communicates with consumers. On the website it is also possible to look at the products they offer, the history of the brand, and the social and environmental causes they are involved with. In addition, I found it relevant to start researching there, because through it we can analyze Natura’s perspective on itself, which influences its organizational culture. The second source I based my research on was Natura’s Annual Report of 2017. In this document it is possible to analyze the brand positioning, as well as its mission and values. Moreover, the annual report provides information on the company management, staff training, strategies to reduce environmental impacts, and the most significant activities of the year within the company. After reviewing these sources, I interviewed Alessandra Liuchy, member of Natura’s human resources team. The interview was informal and took place through WhatsApp, where I sent her a series of questions and she answered me in voice message format. Among the questions, I asked what her impressions of the company were, what she thinks about working there, how the relationship between employees and their relationship with the managers is. In the questionnaire, I also included questions about the company’s values, how these are perceived in their day-to-day life, and the benefits of working there. However, after researching Natura’s organizational culture through internal sources, I decided to look at an external perspective on the subject as well. For that, I relied on an article published by Exame magazine in 2010. In this article, the British consultant Carolyn Taylor, author of the book Walking the Talk, discusses methods for developing a healthy business culture by mentioning Natura as an example. Lastly, to support the theoretical assumptions behind this study, I used Miller’s book, 2015, Organizational communication: Approaches and processes. (7th Ed.).
Natura’s mission is to create and market products and services that promote what they call well being well (“bem estar bem”). In this context, “well-being” is the harmonious, pleasant relationship of the individual with him or herself, and with his or her body. And “being well” is the empathic, successful, pleasurable relationship of the individual with the other, and with the nature which he or she is a part of. Their mission (“well being well”) is what keeps their essence in its internal and external dynamics. In addition to the brand emphasizing the motto in all its platforms of communication, such as the website, its products are the greatest expression of their essence (Natura, n.d.). The company was born with the premise of a business concerned with the social, economic and environmental impact it causes, as well as the use of vegetal inputs from the Brazilian biodiversity for the creation of its products. Natura researches in nature ingredients that bring cosmetic benefits to the body and hair, and for more than 10 years the company does not do tests on animals (Vaz, 2016).
Carolyn Taylor attributed to their mission one of the main reasons why Natura has a healthy organizational culture: “they invest a lot of attention in their staff and, therefore, help employees and their dealers represent their products well.” (Exame, 2010). According to Liuchy, Natura believes that results are achieved through good relationships generated by the motivation of its employees through benefits. These benefits include salary, transportation, food, health insurance, dentist, health and education programs, nursery, access to a certain amount of products per month, and others. According to a survey by LinkedIn, Natura ranked in 14th place in the “Top Companies 2018” (Odri, 2018), which shows which companies are most sought after by Brazilian professionals. Therefore, this organization has the team management style in Blake and Mouton’s Managerial Grid (9,9). This style is “characterized by high concern for both production and people, maximizing both productivity goals and employee needs” (Miller, 2015, p. 50).
During the interview with Liuchy, she said that in order to maintain Natura’s organizational culture in everyday life, all employees must behave and are evaluated according to four principles: to follow the result of the whole; celebrate and recognize the achievements; manifest and resolve conflicts constructively; and put the “consultant” at the center of decisions (since direct sales still guide the business). In analyzing these principles, one can conclude that Natura follows the concepts of McGregor’s Theory Y. In this, “the manager assumes that workers are highly motivated to satisfy achievement and self-actualization needs and that the manager’s job is to bring out the natural tendencies of these intelligent and motivated workers” (Miller, 2015, p. 43). The fact that Natura encourages its employees to celebrate and recognize their achievements shows that they believe that “commitment to objectives is a function of rewards associated with their achievement.” (McGregor, 1960, pp. 47-48). Moreover, Natura’s position on organizational conflict resolution also refers to McGregor’s Theory Y, that argues that everyone is capable of resolving internal conflicts creatively (McGregor, 1960, pp. 47-48).
After consulting this study’s various sources of research, it can also be concluded that Natura fits into System III of Likert’s System IV. In a consultative organization, or system III, “decisions are still made at the top and control still rests primarily at the upper levels of the hierarchy. However, before decisions are made, employees are consulted, and their views are taken into consideration” (Miller, 2015, pp. 50-51). Natura’s management is based on more traditional models of business, with a vertical hierarchy, where three co-chairs, one CEO, and six advisers compose the board of administration (Natura’s Annual Report, 2017). However, when making decisions, “consultants” are placed as a priority, and everybody’s voice is heard. Therefore, even if the final word comes from the management, all employees influence the decisions made in the organization.
Natura’s values are what make it such a remarkable organization. One of their main values is the relationship between individuals, not just consumers, but all those involved with the organization. This can be noted in their actions, communication platforms and the relevance that the established link between consultants and consumers represents for the business. Sustainability is also one of their main, and perhaps most visible, values. Natura has vegetable-based formulas for its products, sustainable packages, they are concerned with the origin of the raw materials, and they are against animal tests. “For Natura, sustainability is a priority that crosses all areas of the company and is part of its dynamics. It is not a program or an initiative but a way to define strategies and make decisions.” (World’s Best Workplaces, 2017). Natura is involved with various social causes. Among them, they invest all the profit of one of their lines (“Crer para Ver”) in the improvement of Brazilian public education. In the area of health, the company has built a program that offers its consultants personalized health information through a dedicated call center and an exclusive app, as well as discounts at agreed pharmacies and clinics for consultations and examinations (ABEVD, 2016). In addition, the company has also focused on values of inclusion and valorization of women in the workplace. According to Liuchy, its main causes today are: women in leadership, and inclusion of minorities in the workplace, such as black people and people with disabilities. Finally, it is also clear that Natura values creativity and innovation. In relation to its technologies, products, attitudes and ideologies, throughout its trajectory, it has always been considered a disruptive company in the market.
Natura has an extremely strong organizational culture that is recognized both internally and externally. In analyzing the various sources used for this study, I observed a great degree of consistency in relation to how the market and Natura itself see the organization. “Natura was able to link its image to the expression” well being well “and, from that, created an internal environment that reflects the same expression” (Taylor, 2010). According to Carolyn Taylor’s archetype-based approach to developing a healthy business culture, Natura mainly follows the “people first” (cares about employees) archetype. Its culture can be observed in all aspects of the company. In their products, their business model, their values, and through the fact that all employees share them (the company’s values) and apply them on a day-to-day basis.