Penny Newman believes her social streak was always ticking away, even when she worked for very traditional multi-national toiletries companies in her twenties and thirties.

In the early nineties she landed a job managing Body Shop’s haircare and toiletries range and has never looked back.

‘When I was young I didn’t know what I wanted to be,’ she says. ‘My main interests were maths and art. As I got older, I think I realised I was interested in buying and selling.

‘I chose business studies at university and started on the finance option, but within the first term I changed to marketing. My education had shown I was good at figures, but then they don’t teach marketing at school, do they?

Lightbulb moment

‘The social element is certainly something that was a bit restless in me when I worked for very traditional FMCG (fast moving consumer goods) companies. I wanted to be constantly creative and innovative with ideas and I thought, why can’t I do that for reasons other than just financial?’ Penny says the ‘energy and light’ inside her was properly awakened when she started at the Body Shop.

‘I saw it very finely demonstrated that the social aspect could work alongside the financial. It helped to see the dynamics of the two and how to balance those dimensions. I think that was the time that the lightbulb went on,’ she confirms.

 
Trust your instincts

Penny cites Body Shop founder Anita Roddick as one of her heroes. ‘The advice I give to aspiring entrepreneurs now, is that which Anita gave me. She would say, “If you believe in something, just do it.”

She was right, if your instincts and knowledge are geared towards something, you should go for it. Others will put all sorts of things on the table to say this isn’t what you should be doing. But if you think it’s the right thing to be doing from a social as well as a financial perspective, then get on and do it.’

 
Staying grounded

While she may be sitting in the top of the tree at Cafédirect these days, this chief executive is still very much in tune with what’s happening on the ground. She believes that starting at the company when it was small, has given her an understanding of the whole business.

‘When I joined Cafédirect there were only four of us. In some respects I’m glad I started then because I had to get on and learn the fundamentals at the heart of an organisation. I saw how it could develop.’

At 50, Newman is now a woman with ample experience in the business and social enterprise worlds. Since starting at the fairtrade coffee company as financial controller in 1998, she has spearheaded unprecedented growth, market diversification and overseas launches including in Slovakia and Hong Kong.

The brand is now incredibly strong and has been leading the way on fairtrade for more than sixteen years. Last year, sales stood at £21.6 million. 

Picture: Penny on a visit to Tanzania

Business needs good candidates

Penny loves new challenges and says that in her new ambassador role she wants to help small social enterprises grow and would also like to help shape government thinking in areas such as education.

‘I think that’s needed, particularly if we want a wider variety of business people and models in the future. There is a lack of good candidates for jobs in business,’ she says. 

In recent years a number of young people have benefited from her expertise: ‘I’ve talked to students, in particular when I’ve been invited to the School for Social Entrepreneurs. I’ve been fascinated by the range of people who go to the school and the work they do. I mentored one of their students as well.

 
A great model

‘I’ve also been active at the London Business School when students have been looking at alternative businesses for their MBAs or degrees,’ she says. ‘I think I’ve been inclined to because I always wished there had been some alternative models offered to me other than shareholder set-ups when I was a student,’ she explains.

‘I believe Cafédirect is a good example of social business, particularly with our successful share issue in 2004. I want people to see that our model can be adapted to other businesses,” says Penny. 

This interview happened in September 2007.