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Stories in this section:
Direct Selling: A Future without Boundaries
DSA Launches Image Enhancement Plan
DSEF: Building Bridges of Understanding
Industry with Heart: XanGo
Young Company Focus: Sensaria

Industry with Heart: XanGo

When the Asian tsunami hit on December 26, 2004, the world was stunned by the force and power of the series of waves that tore through coastlines from Tanzania to Thailand. For XanGo, direct seller of XanGoT Juice, the devastation wrought by the tsunami struck close to the very foundation of the company's success.

"The number one ingredient for our product is the mangosteen fruit, and our predominant source is Thailand," says XanGo Executive Vice President Gordon Morton, who leads the company's worldwide philanthropic program. In fact, he says, XanGo has a special affinity for Southeast Asia and the company takes its top qualifying distributors to Thailand several times a year to see the source of their product.

Moved by the plight of those affected by the disaster, XanGo decided to help a group of villagers who might otherwise have fallen through the cracks. "We took on a project with a German foundation, Farang Jai Dee, to rebuild the village of Ko Prah Thong, several hours north of Phuket," says Morton. "The people who we helped wouldn't have been eligible for all of that aid that you saw on television-that was controlled by governments."

Essentially sea gypsies, the Ko Prah Thong villagers are mostly illegal Burmese immigrants who rely on fishing for their livelihoods. In addition to constructing 32 new homes for 112 people, the XanGo-led initiative is teaching the villagers new crafts-they are learning to construct fishing boats that can be sold to other fishermen, and they are learning to build model ships to sell to tourists in Phuket and other tourist areas.

"True rebuilding in Ko Prah Thong had to happen on several levels," said Morton, who visited the construction site three times. "In addition to laying the foundation of new homes, XanGo really wanted to help villagers regain their sense of home, their sense of empowerment through the devastation they endured. These special education programs give villagers and their families ownership in something valuable, which gives them a strong sense of pride after all they had known had been decimated by the tsunami."

Development of the area will continue through 2007, but villagers moved into their new homes in October 2005 and are expecting a visit from a member of the Thai royal family to officially bless the village. "The plan is that she will grant citizenship to some of the folks who don't have paperwork," says Morton. "If you talk to people about philanthropic work you'll discover that many times you never get the complete resolution that you want. In this case, there is a nice conclusion."

XanGo's work in Thailand represents a small part of the company's charitable efforts. Most of XanGo's efforts are directed through Operation Kids, which in turn funds a diverse group of effective children's charities. "Seven percent of XanGo's net profits go to worthy charities-that's actually on every bottle of product that we sell," says Morton. "And I've got to give props to our distributors because it's their efforts that really make it a reality."

These charities are among those supported by XanGo:

• Operation Smile. In just over 20 years, Operation Smile has made possible over 90,000 facial reconstructive surgeries in 24 countries. All have been funded completely through private donations.
• Christmas Box House, International. Set up by author Richard Paul Evans, Christmas Box House provides temporary shelter services to abused or neglected children who have been removed from hostile family environments.
• Best Buddies. Through one-to-one friendships, the group enhances the lives of people with intellectual disabilities.
• Forever Young Foundation. This foundation, created by NFL Hall-of-Famer Steve Young, is responsible for creating safe zones in local area hospitals.
• COTA. The Children's Organ Transplant Association provides children in life-threatening situations with the organs they need.
• National McGruff House Network. Started in 1982, the program got its start in Utah and has grown to include at least one program in each of 48 states. A McGruff House is a temporary haven for children who find themselves in a frightening or dangerous situation.

Through Hope Alliance, XanGo also participates in an annual medical expedition that lends medical support to indigenous populations in remote areas of the world. Medical professionals treat patients, dispense necessary supplies and educate local health care workers on valuable skills and life-saving techniques, all with the goal of setting up long-term, self-sustaining health programs that will improve the quality of life in these areas. "Our staff and distributors go on these outings to places like Peru and help build infrastructure," says Morton. "These are not comfortable vacations. We work hands-on in these villages, building schools and helping as translators for those doctors who don't speak Spanish."

The commitment to charitable giving was made by XanGo's founders at the inception of the company-before any profits were realized-and it has always been a part of the corporate culture. "In 2002, when we launched this company, I was a little disillusioned with some of the bad behavior from corporate America-the Tyco, Enron, WorldCom fiascos," says Morton. "And as an ownership group, we didn't want to build our business like those companies.

"As an international company generating tremendous growth, XanGo believes in supporting the nations and communities where the company does business," says Morton. "We want to be a central contributing part of the communities we serve."