AMDP Investment Proposal

TO:                 Clark Hansen, CEO, AMDP 
FROM:         Paula Nguyen, Research & Development, AMDP 
DATE:         July 11, 2018 
SUBJECT: Investment Opportunity: SoapBox Soaps

As a member of the Research and Development Department of AMDP, my duty is to identify potential companies for AMDP to invest in. At AMDP, we look for companies that are committed to doing business in a socially responsible, environmentally sustainable, and profitable manner. After extensive research, I recommend investing in SoapBox Soaps. As a mission-based personal care company, I believe that SoapBox Soaps aligns with our core values. This won’t just be an investment in another company, but rather an investment in a movement. 

AMDP Standards

Before I discuss any further about SoapBox Soaps, I want to briefly go over our standards here at AMDP:

Triple Bottom Line

Triple bottom line consists of the three P’s:

• People: Ensuring that all the activities and operations within a company benefits the employees as well as the community.
• Planet: Avoiding any activities that could potentially harm the environment, along with finding ways to further reduce any negative impact on the ecosystem. 
• Profit: Having a clear, long-term strategy focused on sustainable growth and maximizing a company’s profitability. 

Corporate Social Responsibility

Proactive behavior by a company for the benefit of society. Corporate social responsibility allow companies to take responsibility for the social and environmental impacts of their business operations. 

Social Enterprise

Companies that are involved in selling goods and services, but with underlying social objectives that serve as its primary purpose. Essentially, social enterprises aim to balance activities that will provide financial benefit with goals that will benefit society. 

Carbon Footprint

Carbon footprint is a total of all the greenhouse gas emissions you produce through your everyday activities. The reason it’s called a carbon footprint is because the main greenhouse gas involved is carbon dioxide or CO2. To measure carbon footprint, we look at the tons of CO2 equivalent, since there are other gases in addition to CO2 that play a role in global warming. It’s important to take note of our carbon footprint, since it shows how much we contribute to global warming and can help us in figuring out ways to reduce our impact on the climate. Additionally, monitoring and reducing our carbon footprint can help us to become greener. 

SoapBox Soaps

Background

David Simnick first founded SoapBox Soaps in 2010 with the simple mission of wanting to encourage people to change the world through every day, quality purchases. After working for a USAID subcontractor on water aid projects, Simnick was inspired to use the power of business to drive social good. That was when the idea of SoapBox was born. Simnick made his first ever batch of soap in his college apartment kitchen during his time at American University. SoapBox quickly grew into a team of motivated individuals, all of whom are dedicated to providing their customers with quality products that place giving into their daily routine. For each SoapBox product purchased, a bar of soap is donated to someone in need either within the U.S. or abroad, along with proper hygiene education. According to SoapBox Soaps, “Access to soap can change a life, which is why we believe that Soap = Hope”.  

People

SoapBox Soaps goal is to only help, never hurt. As mentioned before, for every SoapBox Soaps product purchased, a bar of soap is donated to a person in need through their partner, the Global Soap Project. To create more of a connection, the Hope Code was created and started appearing on their products in 2015. The Hope Code is an alphanumeric code that’s printed on each label. When consumers enter the code on the SoapBox website, they can see the project the donation is going towards, along with photos. 

While SoapBox Soaps isn’t the first company to have a “buy-one-give-one” mission, it has implemented many ways to improve sustainable giving. For instance, it has collaborated with local organizations in the countries where they give to and provide funds to start soap-making businesses. This helps support the local economy and provide a culturally familiar personal care product. SoapBox also gives soap bars to food banks and homeless shelter. About 50% of soap bar donations are within the U.S., where it goes towards providing health and hygiene to people from all kinds of communities. In addition, SoapBox Soaps also funds research that The Carter Center and the F.I. Proctor Foundation at UCSF are conducting on how water sanitation and hygiene education can help reduce trachoma infections. 

SoapBox Soaps also takes care of their employees. They don’t require 60-80 hour work weeks from their employees. All that they expect is that each employee does the amount of work that needs to be done while having fun and loving what they do, since that is how they have been able to make such a tremendous impact. 

Planet

For SoapBox Soaps, the ingredients that goes towards producing the soaps are very important. With the use of naturally derived ingredients, all soaps are free of gluten, parabens, and other chemical preservatives often used in the cosmetic and pharmaceutical industries. On top of that, all soaps are made ethically, so palm oil is not used in an effort to limit the destruction of natural habitats in Southeast Asia. As for the soap bars being donated, these are made from recycled soap bars from hotels that have been shaved down, sanitized, and reformed to make a brand new bar.
Donations of soap bars are also paired with hygiene lessons. By working together with nonprofits that not only make and distribute the bars, but also teach hand-washing etiquette through their hygiene ambassador programs. According to Matt Vasilogambros from The Atlantic, “This soap could save the world…The results have been impressive…The humanitarian relief has affected countries from Thailand and Kenya to Ecuador and Haiti.” To date, 6,000 hygiene lessons have been taught, and over 3 million lives have been impacted. SoapBox Soaps works hard to help reduce deaths from diarrheal diseases and respiratory infections that can be prevented by the simple act of washing hands at necessary times. 

Profit

SoapBox Soaps hit $1 million in sales at the end of 2014, and has tripled in growth every year since 2010. It currently has distribution in Target, CVS, Whole Foods, and other various retail stores across the country, as well as online. As stated by Linda Casey from BXP Magazine, “SoapBox Soaps wants to be the change”. Moreover, as a socially minded brand, SoapBox has evolve its marketing and branding strategy, which will help with sustainability.  

Recommendation

SoapBox Soaps has demonstrated rapid growth for being a startup, and shows signs of even further growth in the future. With its present business model of supporting local economies while providing soap and hygiene education, SoapBox Soaps can be seen to be different from other “buy-one-give-one” companies. What it needs now is AMDP’s support to continue its commitment of spreading hope. I highly recommend investing in SoapBox Soaps and joining the movement towards making a positive difference around the world. 
 

References

"Brand Spotlight: Soapbox Soaps." Influenster.com. N. p., 2017. Web. 2 July 2018, https://www.influenster.com/article/brand-spotlight-soapbox-soaps

Commerce, SoapBox. "Soapbox Soaps: Clean Strategy Making A Global Difference." U.S. Chamber of Commerce. N. p., 2018. Web. 2 July 2018, https://www.uschamber.com/above-the-fold/soapbox-soaps-clean-strategy-making-global-difference

"Hope Code Helps Soapbox Connect Customers To Its Mission - Technical.Ly DC." Technical.ly DC. N. p., 2018. Web. 2 July 2018, https://technical.ly/dc/2018/03/29/hope-code-helps-soapbox-connect-customers-mission/

"How We Give." Soapbox. N. p., 2018. Web. 2 July 2018, https://www.soapboxsoaps.com/pages/how-we-give

Promotions, Bank et al. "What Is Your Carbon Footprint - How To Calculate & Reduce It." Moneycrashers.com. N. p., 2018. Web. 2 July 2018, https://www.moneycrashers.com/carbon-footprint-definition-calculate-reduce/

Radcliffe, Brent. "Social Enterprise." Investopedia. N. p., 2014. Web. 2 July 2018, https://www.investopedia.com/terms/s/social-enterprise.asp

Responsibility?, What. "What Is Corporate Social Responsibility?." Business News Daily. N. p., 2018. Web. 2 July 2018, https://www.businessnewsdaily.com/4679-corporate-social-responsibility.html

"Soapbox Soaps | B Corporation." Bcorporation.net. N. p., 2018. Web. 2 July 2018, https://www.bcorporation.net/community/soapbox-soaps

"Soapbox Soaps Hits $1M In Sales And Expands Product Reach." Elevation DC. N. p., 2015. Web. 2 July 2018, http://www.elevationdcmedia.com/innovationnews/soapboxsoaps_05012015.aspx

"Soapbox Soaps Wants To Be The Change." BXP Magazine. N. p., 2018. Web. 2 July 2018, http://www.bxpmagazine.com/article/soapbox-soaps-wants-be-change

Vasilogambros, Matt. “This Soap Could Save the World.” The Atlantic, Atlantic Media Company, 2 Dec. 2013, www.theatlantic.com/politics/archive/2013/12/this-soap-could-save-the-world/437697/.

"What Is A 3P Triple Bottom Line Company?." Smallbusiness.chron.com. N. p., 2018. Web. 2 July 2018, http://smallbusiness.chron.com/3p-triple-bottom-line-company-4141.html