MASHINIi

The Honest Company, Inc..

HNST.US | Retail sale of pharmaceutical and medical goods, cosmetic and toilet articles in specialized stores

The Honest Company, Inc. is a consumer goods company that develops and sells a wide range of products across various categories, including baby care, personal care, household and wellness. Their product portfolio includes diapers, wipes, bath and body products, cleaning solutions, vitamins, and othe...Show More

Ethical Profile

Mixed.

The Honest Company presents a mixed ethical profile. It settled a securities class action lawsuit for $20 million and $7.5 million, alleging misleading IPO statements. Product safety has also drawn scrutiny, with recalls of baby wipes due to mold contamination and organic baby powder for potential contamination. A 2015 lawsuit also alleged 'unnatural' ingredients and ineffective sunscreen. Furthermore, a credential stuffing attack compromised thousands of accounts, with multi-factor authentication reportedly on backlog for three years. Positively, the company is PETA-certified cruelty-free, stating it does not test products or ingredients on animals.

Value Scores

Better Health for All-40
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect-30
-100100
Fair Trade & Ethical Sourcing0
-100100
Honest & Fair Business-20
-100100
Kind to Animals60
-100100
No War, No Weapons0
-100100
Planet-Friendly Business0
-100100
Respect for Cultures & Communities0
-100100
Safe & Smart Tech-50
-100100
Zero Waste & Sustainable Products0
-100100

Better Health for All

-40

The Honest Company has faced multiple product safety issues, including a $5 million lawsuit in 2015 alleging ineffective sunscreen that led to sunburns.

1
The company also voluntarily recalled baby wipes in 2017 due to mold contamination, which, while not likely to harm healthy individuals, posed a risk to those with weakened immune systems.
2
Additionally, organic baby powder was recalled in 2017 due to possible contamination linked to skin or eye infections.
3
Despite these issues, the company has demonstrated transparency by initiating voluntary recalls. In terms of health innovation, The Honest Company provided a $100,000 grant to Mount Sinai for children's environmental health research in 2014, but no information is available on this representing a percentage of the company's R&D budget.
4

Fair Money & Economic Opportunity

0

The Honest Company is a consumer goods company that sells baby care, personal care, household, and wellness products.

1
It does not offer lending, deposit, or other financial services to consumers.
2
Therefore, KPIs related to financial products, lending practices, customer financial data, or financial literacy initiatives are not applicable. The provided articles do not contain any information regarding the company's involvement in financial services or metrics such as APRs, fee structures, loan books, or customer credit outcomes.
3
While the company engages in product donations and employee giving,
4
these are not considered 'community finance' or 'profit-sharing with underserved communities' in the context of financial services as defined by the rubric.

Fair Pay & Worker Respect

-30

The company's employee rating is 3.5 out of 5 stars based on 252 Glassdoor reviews, and 47% of employees would recommend the company to a friend.

1
Voluntary employee turnover is high, with negative reviews citing high turnover.
2
There are no specific regulatory actions, violations, fines, or compliance issues mentioned across the provided articles.

Fair Trade & Ethical Sourcing

0

No quantitative evidence was found across the provided articles to score any of the Fair Trade & Ethical Sourcing KPIs for The Honest Company, Inc. While one article mentioned that Honest Tea bottled teas would be Fair Trade Certified,

1
this information pertains to a specific product line/subsidiary and does not provide a percentage of overall company spend, which is required by the 'fair_trade_cert_share' KPI. Other articles offered general statements about ethical sourcing commitments and supply chain transparency efforts, but lacked the specific numbers, frequencies, or percentages necessary to assign a score for any of the defined metrics.

Honest & Fair Business

-20

The company settled a securities class action lawsuit for $20 million for claims against Honest Defendants on January 14, 2025.

1
The lawsuit alleged false and misleading statements in its IPO offering materials regarding declining pre-IPO sales, retailer destocking, and negative impacts from customer acquisition/retention and economic conditions.
2
A judge previously ruled that plaintiffs could demonstrate the company omitted material facts affecting its business outlook.
3

Kind to Animals

60

The Honest Company is PETA-certified cruelty-free, indicating that all its products are covered by this certification.

1
The company maintains an absolute global ban on animal testing, explicitly stating that they do not test their products or ingredients on animals, nor do they ask others to do so.
2
This policy extends to their ingredient suppliers, who are also confirmed not to test on animals.
3
Furthermore, the company avoids selling its products in any country or under conditions that would legally require animal testing.
4
They also state that non-animal testing methods are used for their products.
5

No War, No Weapons

0

No specific, quantitative data or concrete facts were found in the provided articles to assess HNST.US against any of the KPIs for the 'No War, No Weapons' ethical value.

1
The articles explicitly state that no relevant data, regulatory actions, violations, certifications, or comparisons are present.
2

Planet-Friendly Business

0

No evidence available to assess The Honest Company, Inc. on Planet-Friendly Business.

Respect for Cultures & Communities

0

No evidence available to assess The Honest Company, Inc. on Respect for Cultures & Communities.

Safe & Smart Tech

-50

The company experienced a credential stuffing attack that compromised thousands of accounts.

1
Multi-factor authentication (MFA) for the web application was on the backlog for three years and was not implemented, indicating a significant security weakness.
2

Zero Waste & Sustainable Products

0

No evidence available to assess The Honest Company, Inc. on Zero Waste & Sustainable Products.

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.