Balancing Pragmatism And Idealism
Companies That “Can Make Dreams Happen”
Launched on a shoestring budget, a Seattle bakery creates economic opportunities that balance needs of business, individuals, communities and environment.

Heather Nordell

AN EMPLOYEE of Essential Baking Company in Seattle recalls a quote in her original job application eight years ago. As Anne Marie Phillips remembers, it stated that she wanted to work for a company where the human spirit is encouraged to thrive. Today, after those eight years, she believes that her career goal is being fulfilled.

“We always are acutely aware of our role in our community. We know that business is about relationships. Therefore, we maintain goodwill,” says Phillips. “We are committed to the folks who work here — offer them a living wage, good benefits, a fun place to work, opportunity to learn and grow, and make dreams happen. Employees are able to buy homes, raise families, make a difference in the community, and have fun.” Anne Marie believes their low employee turnover is testament to creating a strong, healthy culture.

This sentiment is shared by many in the company including Jeff Fairhall, founder of the Essential Baking Company. After several years in business, Jeff realized that one of his greatest learnings was understanding the importance and benefits that arise from treating employees and customers with respect and kindness. He finds the most rewarding aspect of running a socially responsible business is the culture it creates. In addition, Essential Baking Company contributes to their community by offering educational tours of their facility and financially supporting various grassroots causes including AIDS research, children’s welfare, anticorporate globalization, and peace.

GREAT AROMAS AND FUNKY VIBES

A bakery café at the corner of 34th Street and Woodlawn in Seattle surrounds patrons with aromas of pastries, candies, coffee, tea, and fresh bread emerging from the on-site baking kitchen. Just a short distance from the café, one can walk to Gasworks Park and a number of local, independent businesses. The funky vibe of the Fremont neighborhood fills the air. A “No Iraq War” sign greets you at the café entrance. With local charm of high ceilings, exposed brick walls, cool tunes, and an open view into the kitchen, the café offers a vibrant spirit of warmth and community. The peace sign on the door broadcasts a public message; however, most of the company’s core values are practiced with a quiet, subtle integrity. Welcome to Essential Baking Company.

The Seattle-based bakery distributes to more than 100 retailers around the Puget Sound region. Retailers, who make up 70 percent of their business, buy and sell their products due to the level of quality and marketability of the baked goods. It isn’t obvious that Essential Baking Company is also committed to social, economic and environmental sustainability and use organic and locally farmed ingredients whenever possible. The bread’s growing popularity generates a continuing rise in sales from their modest beginning 14 years ago.

In 1988, Seattle-native Jeff Fairhall started Essential Foods on a shoestring budget. With food industry experience and an interest in promoting natural foods, he created Essential Foods out of his home where he produced and marketed the products himself. By 1992, after much growth and several site moves, the company settled into its current Fremont home.

Two years after moving to the new production site, Jeff saw further opportunity to offer new fare and launched Essential Baking Company. One of Jeff’s business philosophies and successes stems from a continued commitment to reinvest in the company. At first, Jeff was primarily interested in the health benefits of natural foods. Since then, he discovered that food is an important change agent for environmental sustainability and social and economic fairness. By providing organically farmed products, Jeff saw an opportunity to avoid agricultural exploitation of land, workers and consumers. While Jeff contends that there is still much confusion about organic standards, practices and benefits, he is encouraged by the recent rise in popularity of organic foods that enable small organic farmers to make a better living with smaller scale production. When buying Essential Baking Company bread, notice the recycled brown bag packaging mentions organic only on the small print ingredients list. “We use organic ingredients because it’s the right thing to do, not because we think it will help sell products,” Jeff states. When asked about why he felt having socially responsible business is important, he responded, “Who wants to have a socially irresponsible business? What happiness comes from that?” He firmly believes that each of us has a choice to participate in creating economic opportunities that offer a better balance to the needs of businesses, individuals, communities and our environment.

The principles and practices of Essential Baking Company are strong building blocks for creating a local, living economy. The company is associated with Business Alliance for Local Living Economies (BALLE).

BALANCING IDEALS AND PRAGMATISM

The company admits to challenges when balancing ideals and pragmatism. For example, Essential Baking requires a high-volume, year-round supply of organic white flour. Since there is no white flour mill in the state of Washington, they buy the flour directly from out-of-state mills, distancing them from the growers. “Flour milling is a highly consolidated industry due to the cost demand to be operated 24/7 in order to be profitable,” Jeff states. “Wheat is not grown or milled locally. The infrastructure for local production just isn’t there.”

However, other local living economy practices have been implemented successfully at Essential Baking. Central to creating a living economy in Seattle, the bakery stresses the importance of its employees. They demonstrate values of fairness, justice, respect, and support for individuals, community and environment. They celebrate the diversity of 110 employees from ten countries. The egalitarian culture emphasizes a participatory leadership model. When hiring, the company seeks not only skilled artisan bakers, but also people who share its core values.

When asked about the future, Jeff has a range of ideas for Essential Baking Company and local living economies. Over the next year, Essential Baking Company plans to continue to invest in their core business while expanding the company’s product mix yet again. Keep your eyes open for a new line of premium quality gourmet chocolates! They plan to buy Fair Trade beans directly from suppliers and make their own chocolate. Like the bakery, the plan is to offer tasty, educational tours of the new chocolate factory. Jeff doesn’t want the company to grow very large, but he does want to grow opportunities to be creative and make a difference.

Jeff recognizes many of the imbalances in our current economic system. In order to create a living economy, he believes we must reform and transform the transaction system that supports justice, fairness and the life sustaining capabilities of our planet. The renewed system would enhance the vitality of our natural system, work cooperatively and balance mutual benefits. Essential Baking Company is taking important steps within one community to bring alternatives that help support the emergence of a living economy. Jeff concludes, “We do this by putting our values before profits.” And, for more than a decade, Essential Baking Company remains a beacon at achieving both.

For more information on the Business Alliance for Local Living Economies, go to www.livingeconomies.org, and also turn to the BALLE BEAT column by Michelle Long in this issue.

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