AMDP Draft

To: Clarke Hansen, CEO of AMDP

From: Monica Soria, Research & Development
Subject: Possible Investment in Rare Beauty, LLC
Date: February 28, 2023

Here at Anima Mundi Development Partners it is very important that we fund and support business that align with our values. As part of the R&D team I propose we look into Rare Beauty, a cosmetics company as a possible investment.

First I will talk about the criteria and standards that we have here at AMDP when considering investments. Second I will do an overview of Rare Beauty,  looking at its background and socially responsible efforts. Lastly, I am going to be sharing some expert opinions and then going into my recommendation.

AMDP Investment Standards  

As a company it is important that we look for business that value this following criteria.

Triple Bottom Line: maintains that companies should commit to focusing as much on social and environmental concerns as they do on profits.

• Profit: This is the traditional measure of corporate profit—the profit and loss(P&L) account.

• People: This measures how socially responsible an organization has been throughout its history.

• Planet: This measures how environmentally responsible a firm has been (Kenton)

Corporate Social Responsibility: a self-regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public.To engage in CSR means that, in the ordinary course of business, a company is operating in ways that enhance society and the environment instead of contributing negatively to them (Fernando). 

Social Enterprise: a business with specific social objectives that serve its primary purpose. Social enterprises seek to maximize profits while maximizing benefits to society and the environment, and the profits are principally used to fund social programs (Barone).

Carbon Footprint:  amount of greenhouse gases, carbon dioxide and methane, we produce by our actions. The way to measure a carbon footprint is to observe direct greenhouse gas emissions and indirect emissions (e.g. caused by transportation or use of good). As a result, a country’s carbon footprint can increase even as carbon emissions within its borders decrease. Higher carbon footprints have been shown to lead to human-induced climate change, higher levels of air pollution, more ocean acidification, and rising sea levels. It is important for firms to reduce their carbon footprint so that we can sustain a clean environment for future generations (Selin, 2022).

Overview of Rare Beauty

Background

Rare Beauty is a cosmetics company founded by Selena Gomez in 2020. Although ...

Socially Responsible Efforts

• Mental Health: Rare Beauty has made it a mission to prioritize mental health and well-being by dedicating 1% of all sales to the Rare Impact Fund, which provides access to mental health services to underserved communities. (Rare Beauty)

• Inclusivity: The brand makes it a priority to be inclusive of all skin tones and types, offering a wide range of shades and colors to ensure that everyone can find products that work for them.

• Sustainability: Rare Beauty is committed to sustainability by using recycled materials for its packaging and shipping boxes, and by reducing its carbon footprint through the use of renewable energy sources. They use 100% recyclable boxes are made from responsibly sourced, FSC-certified materials, and printed with water-based ink. (Rare Beauty) Additionally, Rare Beauty has partnered with TerraCycle to create a recycling program for its products, encouraging customers to recycle their used makeup containers.

• Community Engagement: The brand has also partnered with a number of community organizations to support various causes, including the NAACP, the Trevor Project, and the Alliance for Children's Rights. (Rare Beauty)

Analysis

2 expert opinions

Recommendation

To invest or not to invest?

Overall, Rare Beauty has made social responsibility a core part of its brand identity, and it is clear that the company is committed to making a positive impact on the world.