Crisis Tested Core Values

In the midst of the Coronavirus (COVID-19), my husband and I attended a family business conference in Tampa. The virus hadn’t reached Florida until shortly after our arrival which generated alternate greetings, singing while washing hands and hand-sanitizer on every table. Not coincidentally Purell, a family business, was the sanitizer of choice. It isn’t uncommon to have an item from a fellow company adorn the table. In years past “Peeps” acted as the centerpiece the year it turned 50. But this year a utilitarian table favor seemed well suited for the event. While sitting in the main conference ballroom performing a Family Value’s exercise, I became curious about Purell’s story. What was their history, mission statement, core values and how are they managing through this crisis?

GoJo makes Purell which was founded by Goldie and Jerry Lippman in Akron, OH. Goldie worked in a rubber factory during World War II where graphite and carbon blackened the workers hands. Soap didn’t remove the stains so after their shift, workers would dip their hands in harsh chemicals such as kerosene or benzene. Long before environmentally safe cleaners or “green cleaning” came on the horizon, Jerry knew he had to solve this important human problem. Along with the help of a Kent State chemistry professor, Jerry collaborated the invention of the first ever one step rinse off hand cleaner. It was Goldie, however, who had the business acumen to work with her husband on founding their company in 1946. GoJo is derived from combining both of their names, Goldie with Jerry.

Sustainability is how the company began and continues to be an important value today. Sustainable products, however, are only a piece of their commitment. Their mission is to make the world a better, healthier and safer place by improving their manufacturing process, selectively choosing business partnerships and being good stewards in the community. Specifically their purpose is, “Saving Lives and Making Lives Better through Well-Being Solutions.” Having a definitive concise statement brings a heightened focus on bringing innovations to solve human problems.

Other noted core values include collaboration, humility, wisdom and family which began with the founder. Teamwork for leadership although an aspiration of the founder is still nurtured in their current culture. Working together with Professor Cook from Kent state, Jerry was able to develop the original concoction. He once said, “Everything I know, I learned from someone else.” Humility and wisdom would be some strong values that emerge from his statement. Collaboration, however, was the primary focus when Joe Kanfer, their nephew, was named Chairman and CEO. He was charged with building a strong team of advisors while also building the next generation of leaders, family leadership. The company grew to its current status of prominence through a strong mission statement and solid core values.

Fast forward to 2020 and the current pandemic emergency. I was curious to see how GoJo’s mission and core values might be tested. I entered the local grocery store where shelves of strategically placed items of supposed necessities were located: bleach, paper towels, toilet paper and water. The hand sanitizers were peculiarly missing. There was a note from the store stating, “Due to the high demand and to support all customers, we will be limiting the number of cold & flu, liquid hand soap, vitamins, hand sanitizers, household cleaning, water and bath tissue products to 5 each customer.” Since all of those items weren’t presented on the shelves, I ventured off to other areas of the store for my quest. Where is the hand sanitizer? To my disappointment there were none. In the time of need, where was GoJo’s coveted product? Something the company obviously didn’t plan for, panic buying.

The company put out a statement, through a spokesperson, that there should not be a shortage since they have been running at capacity to compensate for the uptick in demand. They have been through other virus scares such as SARS where they were able to keep the supply on track in the past. They claim they have seen this demand before and have a team, “demand surge preparedness team.” which helps to maneuver through emergencies. But out in the marketplace, their product has vanished.

In a search online, a one ounce Purell is selling for $320 with only 5 left seemingly to put fear in a potential buyer for a quick purchase. Amazon has taken down similar price gouging solicitations, but the frantic quest for Purell continues by the general population. Some are looking for an alternative which had me discover an equally scarce product, EO (Essential Oil) Hand Sanitizer. Their mission and core values are even more in relevant in today’s world. When asked what is in their bottle, their response is DEVOTION,

“Inspired to share our passion for nature’s pure essential oils. To mend their evocative scents with safe, natural, effective ingredients. And to live and work wholeheartedly, in a way that honors the well-being of all people and the planet we all share.”

Although their values seem to be idealistic, they are walking the talk through these hectic times. To accommodate the demand, they are temporarily outsourcing their manufacturing to increase capacity. They required their supplier to perform in a week rather in the month they originally estimated. Although their price is twice of Purell’s, they aren’t increasing the price due to the situation. “Raising prices at this time would not be in alignment with our core values,” said their spokesman, “All the business rules about profitability are off the table.”

Basic economic principle, supply and demand. If demand increases, prices increase, however, these two family businesses are not following those rules because of their core values. Their workers are tirelessly laboring because they are “contributing to something.” Purell, I discovered, limits the amount of distribution to stores because they want to make sure hospitals have enough to meet their needs thus living up to their mission, saving lives. EO is ramping up their production of a “loss leader” product to continue to honor the well being of people. At a time of crisis, both companies have the integrity to live up to what they preach. How is your business and/or family maintaining core values during the pandemic of 2020?

Madeline S. Hoge

Madeline Hoge is a Family Business Consultant, an author, and a Family Historian. She lives on the beautiful Hoge family farm, Belle-Hampton, situated in Southwest Virginia. Madeline is a captivating speaker who is known for her engaging talks on various subjects. She shares her expertise in family business consulting, delves into the fascinating journey of her own family, and imparts insights from her published books. Moreover, she brings alive the rich history of the region's founding families through her engaging presentations.

https://www.linkedin.com/in/mhoge/
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