Marianne Kemps – Domino’s Benelux

Corporate Social Responsibility has emerged as a pivotal aspect of modern businesses. In an era where consumers demand ethical practices and sustainability, companies must tread the path of responsible and conscientious operations. Domino’s, renowned for its delicious pizzas and speedy delivery, is a prime example of a company that has integrated ESG into its core business strategy. In this Brand Growth interview, Marianne Kemps, Head of Corporate Communications, will delve into Domino’s approach to purpose, ESG, and innovation, shedding light on their efforts to make the world a better ”slice” for everyone.

DEFINING PURPOSE AND PURPOSE MARKETING

To understand Domino’s commitment to ESG, it’s crucial to differentiate between an organization’s purpose and purpose marketing. Marianne Kemps describes it like this: ”The purpose is the ‘why’ of your organization, the reason for your existence. Purpose marketing, on the other hand, is about communicating your purpose. Important to highlight is that when using marketing to convey your purpose, it must align with actions. Mere words without action lead to ’greenwashing,’ a practice likely to be avoided. At Domino’s, we define our purpose as more than just profit-making; it’s about ’doing well by doing good.’. This entails making a positive impact on the world, leaving it better than we found it,” Marianne states.

Marianne shares how ESG has taken their commitment to a higher level. ”ESG encompasses the responsibilities a company takes toward the environment and its people. Expanding on the traditional CSR framework, Domino’s incorporates ESG principles, adding the ‘E’ of economic health has made the premise very clear: a company must be financially robust to operate responsibly.”

”The purpose is the ‘why’ of your organization, the reason for your existence.”

THE FIVE PILLARS OF ESG

Marianne explains that within their ESG strategies, they have established five fundamental dimensions, all of which are encapsulated in their policy.

Our People: At Domino’s, we start our ESG journey internally, ensuring the well-being of our workforce. This includes workplace safety and a strong focus on work-life balance. Additionally, we foster growth and development within our ranks, with many franchise owners having risen from entry-level positions.

Our Food: We prioritize food quality, using pure ingredients, and locally sourced vegetables, and minimizing additives. We also take animal welfare into account in our sourcing practices.

Our Environment: Recognizing our environmental impact, we are transitioning from gas ovens to electric alternatives, reducing energy consumption.

Our Communities: At Domino’s, we believe in being a good neighbour, and supporting local communities through sponsorships of sports clubs and food banks.

Our Customers: We ensure a safe environment for our customers, offering a diverse and affordable menu to cater to various tastes and dietary preferences.

INNOVATIVE ESG INITIATIVES

Domino’s has undertaken pilot projects and innovative initiatives to align its operations with its ESG goals. ”For instance, we are exploring the use of e-bikes and considering the elimination of energy-consuming heat racks, as well as testing reusable pizza boxes to reduce packaging waste. However, I must say that some initiatives face challenges, particularly in the realm of legislation. For example, the use of drones for delivery, while technologically feasible, requires navigating complex legal and safety issues. Collaboration with other companies and government bodies becomes essential to overcome such hurdles,” she shares.

Although transparency is a cornerstone of the ESG efforts at Domino’s, they openly communicate their initiatives, successes, and, importantly, their failures to the market and customers. ”Acknowledging failures is a step closer to finding solutions and preventing greenwashing — a practice that I believe we are keen to avoid because, at Domino’s, we view ESG as an opportunity rather than an obligation. For us, it’s not just a way to do the right thing but also it is our ’license to operate.’ In a changing business landscape, where stakeholders’ interests encompass more than just shareholders, we are making strides in aligning our purpose, ESG, and innovation to build a better world for everyone involved,” Marianne explains.

”Acknowledging failures is a step closer to finding solutions and preventing greenwashing — a practice that I believe we are keen to avoid because, at Domino’s, we view CSR as an opportunity rather than an obligation.”

CONSUMPTION CONSCIOUSNESS AND COST EFFICIENCY

The Netherlands has witnessed a growing consciousness among its citizens regarding consumption patterns. This shift has not only saved money for consumers but also urged companies to rethink their strategies. Marianne shares how Domino’s is no exception to this. ”We have felt the winds of change and the need for a more sustainable approach. However, advancing in CSR is not without its challenges. While striving for a better life for animals, such as chickens, pigs, and cows, comes with higher costs, Domino’s believes these investments are essential. The key dilemma lies in balancing the costs and maintaining customer affordability. Therefore, we truly believe that sustainability should not be sacrificed due to budget constraints.”

THE ROLE OF MARKETING IN CSR INCORPORATING

”I believe that incorporating CSR into business operations requires a collective effort across all departments, including marketing. It’s essential to communicate the company’s efforts honestly and avoid greenwashing, where the CSR claims are not substantiated by actions. Marketing, too, must evolve in its approach. While promoting indulgent products like loaded fries and extra-large pizzas is a part of business, it’s equally vital to highlight the responsible side of the company. We are committed to using fresh and locally produced ingredients, facts that I believe should be more prominently conveyed through our marketing efforts,” Marianne states.

Domino’s takes CSR seriously, as evidenced by the presence of a Chief ESG Officer and a dedicated budget. ”However, we also emphasize the importance of individual departments budgeting for CSR initiatives. This approach ensures that CSR becomes a part of the organization’s DNA and is not treated as a separate entity with a distinct budget,” she declares.

”It’s essential to communicate the company’s efforts honestly where the CSR claims are not substantiated by actions. Marketing, too, must evolve in its approach.”

INSPIRATION FROM PIONEERING COMPANIES

”I find companies like Interface Floors and DSM inspirational in terms of their CSR efforts. They transformed their businesses to embrace sustainability despite starting with products that had significant environmental impact. Such transformations require courage, persistence, and a belief in a better future. Companies founded with sustainability as their core mission are commendable, but those that change course mid-journey showcase a different kind of dedication.”

”My view is that the journey towards CSR excellence is personal for those involved. It’s not just about business; it’s about a personal belief in making a difference and Domino’s acknowledgement that intrinsic motivation is vital in steering a company through the challenges of CSR integration and inspiring the entire organization is what will make our work worth it,” Marianne concludes.