“The beauty of Smiling Tree’s focus on sustainability is our natural alignment with so many organizations across various industries. It’s proof that doing good and being profitable can coexist.”
– Kathleen Batalden Smith
TWB: How did the concept of Smiling Tree Gifts and Toys originate, and what motivated you to build your business around sustainability?
KBS: As new parents back in 2010, my husband Justin and I founded Smiling Tree Toys with the vision of helping families make childhood memories through sustainably made, all-natural, keepsake wooden toys. But that vision was about so much more than just toys; it was fueled by our personal passions for protecting the planet and doing our small part to ensure it remained healthy and green for the next generation.
It was our hope that owning a business hyper-focused on environmental sustainability would give us the means to protect and even improve upon the health of our planet. The business and our family both grew (a lot!) over the next decade. We moved the woodshop from our unfinished farmhouse basement to a little white garage alongside our farmhouse, into what is now our beautifully renovated historic red dairy barn turned modern woodshop.
As we established a name for ourselves in the high-end, keepsake wooden toy space, businesses looking for gifts started to take notice. Soon we were filling larger corporate orders for our toys to be used as employee and client gifts. Many of the requests were for custom engraving on our classic wooden alphabet blocks. No longer were we engraving just the letters of the alphabet and adorable animals to go along with them; now we were turning out blocks upon blocks custom engraved with companies’ core values, employee milestones, and special events artwork.
Not only were our corporate customers loving the high-end, handmade nature of their custom engraved blocks, but their feedback was overwhelmingly centered on their appreciation for the “sustainability factor” inherent in all aspects of our production and finished product. It was unexpected – and exhilarating! – to establish this new platform for getting our sustainable products into the hands of the people and organizations seeking them out.
TWB: As a 7-figure business owner, what specific challenges did you face while scaling your operations without compromising your eco-friendly values?
KBS: “Scale sustainably.” These two words started brewing in the back of my mind from day one. I didn’t know where our little toy startup would take us, but I knew if we had the privilege of seeing it grow and scale, we were going to do it sustainably and in a way we could be truly proud of.
As sales grew and put a strain on our ability to keep up with our original handmade methods, we had no choice but to get creative and rethink our ways. We faced questions like, “How do we get this trailer load of raw wood to a smoother, finished state before we cut it into thousands of individual blocks?” and “How can we go from cutting toy trucks one-at-a-time to machine batching hundreds at once?”
We spent hours researching and testing different production methods, networking with other woodworkers, and assessing the quality of our finished products. Every change and improvement was only made if it met our sustainability criteria: “Are we sourcing this as sustainably as we can? Are we minimizing our inputs and reducing our waste? Have we clearly communicated to our customers how this is made from beginning to end?”
I haven’t always been 100% confident in every decision we’ve made along our journey of growth, but I have found direction and clarity in viewing the decisions before me through the lens of our exceptionally high sustainability standards.
TWB: Can you describe some of the key sustainability practices your business follows, from sourcing materials to production and shipping?
KBS: We source sustainable hardwoods grown only in the USA, which allows us to maintain close and transparent relationships with our lumber suppliers. This also ensures our supply chain is as short as possible. We’ve created workspaces that are small yet efficient, and we utilize every square inch of space available to us. This minimizes our energy consumption and keeps our small team in close communication with one another through every step of production. Our packaging is plastic-free, biodegradable, and intentionally minimal. And we partner with Trees For The Future to fund tree planting for low-income families.
TWB: How do you ensure that your handcrafted products maintain quality as you scale your business to accommodate high-volume orders?
KBS: We’ve spent years fine-tuning our production methods and establishing quality control points along the way. It’s led to a physical workspace and standard operating procedures that have served us well in maintaining quality as we scale.
But beyond this, we employ a small, tight-knit team of makers and designers who are not only highly skilled but passionate about and believe in our “why.” We ensure our team members’ jobs fit into their lives (and not the other way around), and prioritize flexibility, fair pay, and paid and unpaid time off as needed. “Fun” and “family-oriented” describe our workplace, and “work hard to play harder” is a mantra we believe in.
We strive to foster a sense of ownership among all team members and include them in much of our decision-making. The passion, the ownership, and the team culture at Smiling Tree have proven just as impactful as our operations when it comes to maintaining product quality as we’ve scaled. When people are doing work they enjoy, are heard and respected, and feel part of something bigger than themselves when they arrive at work each day, high-level performance and high-quality products naturally follow.
TWB: Sustainability is often seen as costly. How have you managed to remain profitable while prioritizing eco-friendly practices?
KBS: Sustainability is a non-negotiable, placed before profit in our business model. This has often forced us to get creative with ways in which we can cut costs and be more efficient, all the while supporting and improving upon the sustainable practices we have in place. We routinely re-evaluate our raw materials and production methods.
Producing at higher volumes has allowed us to purchase raw materials in larger lots at negotiated prices. Our minimal, intentional approach to product packaging also contributes to a healthier net profit margin. When you’re growing a product-based business hyper-focused on environmental sustainability, there will always be cheaper (but usually less sustainable) ways to produce and materials to purchase: cheaper raw materials, quicker methods that produce more waste, and cheaper packaging options. It’s simply a matter of sticking to our core purpose: offering customers truly sustainable products and minimizing our ecological footprint while doing so. This brings clarity and direction to our decision-making as we continue to grow.
TWB: What role does customer service play in your sustainability journey, especially in building long-term relationships with customers who value eco-friendly products?
KBS: Unparalleled customer service is at the heart of our team culture. Our customer service team is small (four employees), personable, and nimble. We very intentionally establish friendly, informal, and genuine relationships with our customers at every touchpoint.
From personalized videos to one-on-one video calls to quick chat and email responses, our aim is to connect with our customers beyond just the product. We want them to feel connected to the people and place their gifts are coming from, feel accomplished in finding a quality gift that’s both meaningful and sustainable, and feel supported along every step of the way.
TWB: Could you share some milestones or achievements that you feel best represent your commitment to sustainability and business growth?
KBS: Transitioning to sustainable hardwoods grown only in the USA, our organic wood finish (100% organic oil with locally sourced beeswax), and our plastic-free product packaging and shipping materials are all eco-friendly inputs we’re incredibly proud of. We also continue to strengthen our partnership with Trees For the Future by planting trees for every product we sell.
TWB: How do you identify and reach your ideal customers who align with your sustainability values, especially in the corporate gifting space?
KBS: First and foremost, our brand voice is carefully crafted across all customer touchpoints to be clear and concise about what we offer and who we’re for. With concise, consistent messaging in place, we’ve laid the foundation for our ideal customers to find us.
The beauty of Smiling Tree’s focus on sustainability is our natural alignment with so many organizations across so many industries. Sustainability isn’t unique to any one industry, and we firmly believe if an organization operates on planet Earth, environmental sustainability can and should play a role in guiding its mission and values.
TWB: In what ways do you hope your business contributes to a broader movement of sustainability in the ecommerce and corporate gifting industries?
KBS: I envision a corporate gifting industry in the US where high-quality, low eco-footprint gifts made in the USA are the norm, and my dream is for Smiling Tree to be a leader in that space. My hope is we’ll not only be a prime example of the success that can come with prioritizing sustainability over profits, but a source of inspiration and motivation for other gifting brands to do the same.
I’m excited to continue using Smiling Tree as a platform from which to share our challenges, successes, and tactile how-to’s with the broader B2B community as a whole.
TWB: Looking ahead, what are your future sustainability goals for Smiling Tree, and how do you plan to further innovate in the eco-friendly space?
KBS: We’re looking into B Corp certification, carbon-neutral shipping, and additional “sustainability upgrades” (like planting extra trees, supporting environmental education programs, etc.) that allow our customers to “go even greener” with their gifting impact.
As our customer base grows, so too do our opportunities for further conversations with them around what sustainability specifically means to their unique organization and how that translates to tangible outcomes and results. This will ultimately guide our goals for expanding the quantifiable “sustainability benefits” we offer our customers.
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“At the end of the day, knowing we’ve created something that’s not only meaningful to families but also respects the planet – that’s what keeps us going.”
– Kathleen Batalden Smith
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Alignment with the UN SDGs
Kathleen Batalden Smith’s Smiling Tree Gifts and Smiling Tree Toys align well with several of the United Nations Sustainable Development Goals (SDGs). Here’s how:
Goal 12: Responsible Consumption and Production
Kathleen’s businesses focus on producing handmade, eco-friendly wooden products, emphasizing sustainable sourcing and minimal waste in production. The use of reclaimed and sustainably harvested hardwoods and biodegradable packaging reflects responsible consumption and production practices.
Goal 13: Climate Action
By partnering with Trees for the Future and planting a tree for every item sold, Smiling Tree directly contributes to reforestation efforts, addressing climate change and its impacts. This initiative demonstrates a commitment to climate action through tangible, nature-based solutions.
Goal 8: Decent Work and Economic Growth
Kathleen prioritizes fair pay and flexible working conditions for her team, creating a supportive work environment that promotes decent work. Her approach to business also emphasizes building long-term relationships with customers, which contributes to economic growth while maintaining ethical practices.
Goal 17: Partnerships for the Goals
The collaboration with Trees for the Future illustrates the importance of partnerships in achieving sustainability goals. By working alongside other organizations that share her values, Kathleen strengthens her impact and contributes to a broader movement toward sustainability.
Goal 9: Industry, Innovation, and Infrastructure
Through innovative production methods that prioritize sustainability while allowing for growth, Kathleen exemplifies how businesses can innovate responsibly. Her focus on maintaining quality control during scaling shows an integration of sustainability into the industry.
Goal 15: Life on Land
By focusing on sustainable forestry and tree planting, Smiling Tree contributes to the preservation of terrestrial ecosystems and biodiversity. This is aligned with the goal of sustainably managing forests and combating desertification.
Conclusion
Kathleen Batalden Smith’s work at Smiling Tree Gifts and Smiling Tree Toys exemplifies how a business can effectively integrate sustainability into its core operations. Through responsible sourcing, community engagement, and environmental stewardship, she not only contributes to the UN SDGs but also inspires others in the corporate gifting industry to prioritize sustainability.
Welcome to The World’s Best Magazine‘s “Discovering Harmony” series, where we look into the intricate relationship between nature and sustainability. This collection of articles is designed to illuminate the pressing environmental challenges and celebrate the innovative solutions shaping our future.
Exclusive Interviews: Voices of Change
In our exclusive interviews, we sit down with leading environmentalists, visionary scientists, and influential policymakers who are driving the sustainability movement. These thought-provoking conversations offer a glimpse into their groundbreaking work and personal journeys, providing insights into how they are making a tangible impact on our world.
Expert Round-Ups: Collective Wisdom
Our expert round-ups bring together diverse perspectives from specialists across various fields. These curated discussions explore the latest research, trends, and strategies in sustainability. Whether it’s advances in renewable energy, the latest in conservation technology, or grassroots initiatives making waves, these articles showcase the collective wisdom of those at the forefront of environmental change.
In-Depth Features: Stories of Innovation
Through compelling features, we highlight groundbreaking projects and success stories from around the globe. Our “Featured Lists” listicle articles will spotlight top innovations, impactful initiatives, and key trends in sustainability. These engaging lists provide a snapshot of the best practices, tools, and ideas driving progress in environmental stewardship.
Interactive Insights: Engaging with the Issue
To further enrich your experience, we include our usual People’s Choice polls where readers can vote for their favorite innovations, solutions, and perspectives. This interactive element not only lets you engage directly with the content but also helps shape the ongoing conversation about sustainability. Your votes and opinions provide valuable feedback and foster a dynamic dialogue around the critical issues we cover.
Join us on this journey as we explore the vital intersection of nature and sustainability. Discovering Harmony is more than just a series—it’s a call to action for a world where human progress and environmental stewardship go hand in hand.
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I have 5 baby nieces and nephews, so I loved learning about this option as a more sustainable alternative to traditional toy gifts.
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