Natura Cosmeticos, S.A.

Case Solution

Robert G. Eccles, George Serafeim, James Heffernan
Harvard Business School ()

Rodolfo Guttilla, Director of Corporate Affairs of Natura Cosméticos S.A. (Natura), was preparing to meet with key stakeholders to discuss the future of integrated reporting in Natura. As a cosmetics company with a strong brand, solid growth in national and international markets, and world-class prices and margins, Natura has consistently been ranked as one of the preferred employers in Brazil. His focus on social and environmental responsibility has been a source of innovation; Strong employee motivation contributed to the company’s notable increase in productivity and market share in the Brazilian cosmetics, fragrances and toiletries (CF&T) industry. By 2009, Natura’s direct selling business model generated revenue for more than 1 million people in Brazil and Latin America. Natura was the first organization in Brazil to produce an integrated report. Management believed that Natura’s success over the years was supported by its corporate responsibility and its strategy of continually seeking improvements in both financial and non-financial (eg environmental, social and governance) performance. While preparing for the meeting, Guttilla reflected on the future of integrated reporting for Natura. What should the future of the information integrated in Natura look like? How could the organization increase the participation of society in the collective effort to find new solutions to today’s most difficult problems? How could the report more clearly present the company’s strategy and its ability to create and maintain long-term value? Finally, how could web-based technologies be used to promote integrated reporting and the organization’s sustainable development goals?

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