Honesty is the best policy
Chipotle Mexican Grill, Inc. (NYSE:CMG) is following in other highly evolved, customer-centric companies’ footsteps. Earlier this year, Whole Foods Market, Inc. (NASDAQ:WFM) made a huge stand by requiring its suppliers to disclose GMO ingredients by 2018. Needless to say, some of its biggest rivals would shudder at the thought of such an undertaking. Given the nature of Whole Foods Market, Inc. (NASDAQ:WFM)‘ suppliers to begin with, though, the company was already way ahead of this curve, part of why management’s vision continues to make the stock a stellar investment.
Another well-known consumer favorite, Unilever plc (ADR) (NYSE:UL)‘s Ben & Jerry’s, discloses GMO information on its website. Although most of its flavors lack GMOs, it is working to make its ice cream supply GMO-free. (Apparently, some of the chunks and swirls may have small traces.)
In my opinion, the beauty of these disclosures isn’t about the science of GMOs. Investors can argue until the cows come home about whether they’re safe or not. Many investors bring up some good points, including food scarcity and costs. The idea of more starving people in the world is not a pleasant one.
Beauty is truth; truth, beauty
The real point here is putting honesty and transparency first, in any area. The best thing corporations can do is make truth the priority, even if it’s scary, threatening, or difficult to do. We need a lot more honesty and a lot less spin these days. If consumers demand information, it’s wrong to basically say they don’t need or deserve it.
It’s time to demand the truth in all areas, not just business. I’m personally no fan of Monsanto Company (NYSE:MON), but tolerating or even encouraging outright disinformation is wrong. Some organizations and individuals clearly don’t care as long as they get what they want. A recent meme about companies “owned” by Monsanto Company (NYSE:MON) was ridiculous and irresponsible, and I simply had to debunk it. We should never put any agendas above the truth. Machiavellianism is an extremely negative trait, if we want to have conversations about evil.
Anyone who views Chipotle’s decision as a business negative is dead wrong. The burrito slinger is choosing transparency when it could have gone with too many companies’ usual response: sweeping reality under the rug and hoping nobody notices the alarming bulge beneath the Berber. It’s letting the (tortilla) chips fall as they may, but that’s actually a good business decision.
The article Why Chipotle Investors Should Be Proud Today originally appeared on Fool.com is written by Alyce Lomax.
Alyce Lomax owns shares of Chipotle Mexican Grill (NYSE:CMG) and Whole Foods Market. The Motley Fool recommends Chipotle Mexican Grill, Unilever, and Whole Foods Market. The Motley Fool owns shares of Chipotle Mexican Grill and Whole Foods Market.
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