Developments in business and the common good

2014/2015Life Food GmbH / Taifun-Tofuprodukte

… strength in tofu

2.000.000

90%

100 organic farms

under contract

31 million euros in

annual sales

packages of tofu leave our facility in Freiburg i. Br.

every month

Our products can be found in some

10.000 health-food stores and organic groceries

in 14 countries throughout Europe

of our soybeans come from Europe

200tonnes

of seeds per year

We are Life Food GmbH. Our products are

marketed under the names Taifun and Tukan

bio & vegan.

Preface

The Economy for the Common Good is a topic that has been on our minds for quite some time. This alternative approaches to doing business is not only something that corresponds to our corporate standards: it also aligns with our personal values. We reached a major milestone in 2016: A year after we took up the project, Life Food issued a detailed report describing its first Common Good Balance Sheets. We are proud of the results!

Our Common Good Balance Sheets were created by a very diverse group of some 20 Taifun employees from different departments. The prerequisites for us to produce these

Approximately

240employees

12 apprentices

balance sheets were openness and wide-scale employee commitment. The energy our staff demonstrated here truly impressed us.

We decided to pursue the path of the Common Good Balance Sheet, since the topic of the common good is one we take to heart, and we want to know where our strengths and weaknesses in this area are. At this point in time, the Common Good Report is the most compre-hensive tool for analysing and depicting sustainability in corporate activity.

Alfons Graf and Elisabeth Huber, CEOs

30 years of tofu specialties from Freiburg

Our company is born in a kitchen in Freiburg with a sack of soybeans and a small group of tofu lovers.

Taifun and Life Food GmbH merge.

90 employees and, for the first time, 600 tonnes of soybeans from our contract farmers in Europe – our first “record-break-ing crop”.

With the soybean experi-ment “1000 Gardens”, we want to make soybeans a domestic plant. Life Food is nominated for the German sustainability prize and the environmental award for companies in Baden-Würt-temberg.

A new era dawns: Wolfgang Heck establishes the corporate foundation heck-unternehmens-stiftung and donates all of his company shares to it. The foundation focuses on the common good and works to preserve and develop the company whilst promoting ethical co-existence and plant-based sources of protein.

Life Food becomes the first company in Freiburg to be eco-certified.

Named the organic brand of the year.

Begin a research pro-ject on developing new kinds of soybeans. 160 employees.

1985 1990 1997 2005 2009 2011 2016201412 tonnes of tofu per week.

100 tonnes of tofu per week.

500 kilograms of tofu per week.

The Tukan brand is born and will now service conventional grocery retailers.

2004

Why we are committed to the common good

The Economy for the Common Good looks at the business world from a more comprehensive perspective in which the focus is on people.

This movement led to the creation of a tool known as the Common Good Balance Sheet. Taking “inventory” in this fashion allows companies to analyse and visualise the extent of their own orientation towards the common good. In addition to reviewing the economic and finan-cial aspects of corporate life, this also includes social and environmental issues related to doing business.

The Common Good Balance Sheet is reviewed just like a financial balance sheet. Like financial auditors, common good auditors are used to assess a company, highlight the need for improvement, and issue a Common Good Certif-icate which is valid for two years.

What is “the Economy for the Common Good”?

FreedomFreedom stands for

blooming in creativity as well as openness in our thoughts

and actions. Freedom is mindfulness towards

all life and activity.

QualityAchieving quality is some-thing we regard as a con-

stant process of optimisation that applies to every depart-

ment of our company.

AccountabilityOur thoughts and actions create effects and have an impact. We are mindful of

this and show accountability for it.

AdaptabilityLife is change, and being

dynamic means being flexible.We continue to develop on an

ongoing basis with this thought in mind.

The environmentWe consistently treat the environment with respect and dedicate ourselves to

environmental conditions worth living for. In our eyes, this includes sustainability and diversity. By contributing to a plant-based diet featuring organic foods, we help com-bat problems with the world’s food supply.

What guides usand matters to us

People and the environment

Our managers are per-sonalities who pursue

dialogue and keep an eye on the big picture. They

approach their tasks with commitment and actively take care of their personal devel-

opment process.

Environment protection and sustain-ability are issues that are dear to our

heart. We carefully monitor our raw-mate-rial use, emissions output, and consumption of

energy and water in terms of their environmen-tal impact.

MANAGEMENT

ENVIRONMENTAL PROTECTION

CUSTOMERS

EMPLOYEESSUPPLIERS

PRODUCTS

We engage in an ongoing

dialogue with our customers

and offer them added value with

premium-quality products and services.

Life Food customers are convinced custom-

ers. We are fair partners to them.

Our suppliers provide quality products and actively support us in our goal of making quality foods that are convincing. This

partnership is defined by reliability, fair prices, openness and

transparency.

Our employees are extremely honest, tolerant and promote mutual good faith. Our employees do what they

say they will!

Our products are 100% plant- based. We use premium-qual-

ity raw materials from organic sources to make them. The

nutritional aspects of our products are just as

compelling as the enjoyment they

offer.

Our tofu products are created as part of a dedicated process of engaging with the people who come in contact with what we make.

We believe that the sustainable orientation of our actions can be pursued in greater depth.

Within the company, there is a tangible growing desire for sustainable relations defined by a profound sense of trust. This trust is promoted by a high degree of transparency. Our Common Good Report is another part of the path towards more transparency.

Life Food is a company that makes a dedicated point of living up to its corporate vision. In many areas, this over-laps with the goals of the Economy for the Common Good.

The idea that our business should serve the common good is not a new one by any means. The Economy for the Common Good emphasizes the ongoing increase of the common good and the power of cooperation. Human dignity, solidarity, ecological sustainability, social justice, and democratic co-determination and transparency are the five pillars with which corporate success can be deter-mined.

Life Food and the common good

Strengthening the region and organic farming(Indicator A1.1: Consideration of regional, social and ecological aspects)

• Life Food uses certified organic raw materials exclusively.

• The company is strongly committed to raising soybeans domestically.

• This is why, since 2011, we have been contributing to a re-search project entitled “expanding soybean cultivation in Germany” in conjunction with the State Plant Breeding In-stitute of the University of Hohenheim and other partners.

• We maintain long-term and fair partnerships with the soy farmers: extensive consultation takes place, and particular-ly innovative farmers are encouraged.

Common good indicatorsThis is our forte!

LEVEL:

Exemplary

… fair prices and having our own seeds make it possible

• We put great effort into fair price structures – fair for the farmers and customers alike.

• The prices are jointly negotiated with the contract farm-ers in the spring before planting. This helps both parties make their plans with confidence. After the autumn har-vest, a “soybean panel” is held so we can review the season together.

An emphasis on occupational safety and workplace health(Indicator C1.3: Occupational safety and workplace health promo-tion including work-life balance / flexible working hours)

• We focus on ensuring that our workspaces are suitably ergonomic in design.

• A physiotherapist supports our employees in improving their posture and stance during their work. Regular courses are offered about keeping your back healthy.

• Occupational safety is monitored by a safety specialist with the help of four safety delegates.

• Life Food offers all of its employees a freshly cooked 100% organic vegetarian (and partially vegan) lunch every day. The costs of these meals are subsidised by the company.

Fair reimbursement at all salary levels(Indicator C4.1: Income divergence in the company)

The divergence between the lowest and highest income in the company is 1:4.

LEVEL:

Exemplary

LEVEL:

Experienced

Space for all employees to develop and grow

Fair dialogue with customers(Indicator D1.1: Total extent of ethical customer relations measures)

• It is important for employees in the sales department to engage in a dialogue with our customers and listen to them with an open mind and interest. The dialogue needs to be conducted as a conversation amongst peers and to be defined by respect. We make our pres-ence felt – through annual reviews, trade fairs, tastings and sales visits.

• Our sales employees’ salaries are not tied to company performance, nor are the salaries of other employees.

• Input from customers and complaints are taken very seriously. Complaints are handled by the quality man-agement department.

Cooperation instead of competition(Indicator D5.1: Cooperation with competitors and partners of the value chain)

• In conjunction with the University of Hohenheim, we are working on developing a kind of soybean for tofu production that also flourishes in the cooler regions of Germany.

• No other tofu manufacturer creates their own kind of soy. In doing so, the company creates benchmarks, and selling these products has an influence on soy-bean quality in the future.

• Our commitment has been acknowledged in national government initiatives: The German Federal Ministry of Food and Agriculture supports the project we con-tribute to, the “Soy Network”.

We are committed to securing the future of the food we eat in cooperation with others.

LEVEL:

Exemplary

LEVEL: Exemplary

We want to communicate as peers.

Ensuring that basic nutritional needs can be met with high-quality food(Indicator E1.1: Products / services meet a basic need or serve the development of human beings / the community / the earth)

• To supply the world’s rapidly increasing population with healthy food, it is vitally important that we have an efficient food supply, i.e. direct use of protein-rich plants.

• With nearly 30 years of experience in acquiring and manufacturing premium-quality organic products, our company is paving the way in the growing organic movement.

• Using organic-quality raw materials makes a significant contribution to environmental protection, and it low-ers the use of fossil fuels as well as the CO2 emissions which result.

We work towards a balanced diet and do far more than simply manufacturing a product.

≈ 12 –16 kg

≈ 1kgfeeds feed

7 –10 kg

7 –10 kg

LEVEL:

Exemplary

Internal results of the balance-sheet processWorking together on the balance sheet contributed to a sense of mutual appreciation among co-workers at our company. People exchanged thoughts on very different points of view, and there was mutual tolerance. We realized that everyone involved wants to help shape our future. And it expanded people’s horizons as they came to understand what other people thought.

The spirit underlying the economy of the common good is what fascinates me. As a result, we were also able to approach conflicting goals more effectively, such as in deal-ing with clients in sales. One thing became clear to us: we are more than just a company!

How does Life Food measure up?In their audit for the CG report in 2014/2015, independ-ent auditors stated that Life Food was a very experienced company, even in this first review. In nearly all of the cri-teria and indicators, we achieved extremely high rankings which exceeded our own projections in many points.

The balance sheet as a control elementWhat mattered to us more than receiving especially good marks from the auditors was the role of the balance sheet as a kind of control element. Going through this process made us more aware of where we stand with regard to the topic of the common good, and it will help us keep making progress in the future. We very much appreciate the fact that whilst generating the report, we discovered which areas require our attention in the near future.

Life Food has a salary structure that is not transparent for its employees; remuneration is not disclosed. We are now prioritising the task of creating more transparency in clas-sifying employees. The first steps towards establishing a transparent salary structure have been taken, but the pro-cess is more complex than anticipated. We are staying the course, however! The works council at Life Food is actively involved in establishing this structure.

Furthermore, we want to place greater priority on giv-ing employees more options in terms of self-determi-nation. The objective is to involve employees more and more in decision-making processes, hear their concerns and implement them whenever possible. This makes the decision process somewhat slower, but ultimately it leads to greater acceptance. Fundamental and framework deci-sions are closely coordinated with the process owners at the very least. Here the task is to clarify responsibilities and decision-making competences with greater precision; our goal is to integrate the relevant groups into decisions more than before.

We want to link the principles of the common-good economy more and more to our corpo-rate philosophy.

A look at the future

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The idea of this kind of resource management was totally fascinating to me. There was no question –

I wanted to be part of developing the Common- Good Report. In retrospect, I can say that despite

having been at Life Food for 15 years already, I learned a lot about the company. Questioning things and receiving answers about why we do

certain things in certain ways brought me closer to the values of Life Food.

Regine Schrögendorfer, head of sales

The way the business world merges with environmental and social factors is something I have always found exciting. And in preparing the balance sheet with my colleagues and supervisors, it was great to talk about topics which don’t other-wise come up much in everyday office life.

Jonas Groh, sales department

I have been working in the production kitchen for many years. This is where we manufacture tofu products out of a variety of ingredients. I got involved in creating the balance sheet, because I wanted to know where all of the large amounts of raw materials come from that we process every day – what’s happening behind the scenes.

Franz Faller, production department

The Common Good Balance Sheet gives Life Food an entirely new perspective about the effects of corporate

performance.This allows us to develop areas of focus where we can optimize and improve.

Alfons Graf, CEO and project manager

Comments from the common good team

This certificate confirms the audit of the Common Good Report. The certificate is based on the Common Good Matrix 4.1.

Further information about this matrix, the indicators and the audit system is available at balance.ecogood.org/matrix-4-1-en/

ecg-matrix-en.pdf.

Life Food GmbH / Taifun-Tofuprodukte

Bebelstraße 8 / 79108 Freiburg, Germany +49 (0)761 152 10 0 info@taifun-tofu.de

The report is also available online at: www.taifun-tofu.de/en/commongood

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