MASHINIi

Herbalife.

HLF.US | Wholesale of other household goods

Herbalife Nutrition is a global multi-level marketing (MLM) company that develops, markets, and sells dietary supplements, weight management, sports nutrition, and personal care products. The company operates through a network of independent distributors who purchase products at a discount and sell ...Show More

Ethical Profile

Mixed.

Herbalife's ethical standing is mixed, largely due to its multi-level marketing (MLM) model. The company paid a $200 million FTC settlement, $20 million to the SEC for allegedly misleading investors, and $123 million in FCPA charges. Critics cite average distributor earnings of $31,668-$35,250, often below national averages, raising economic opportunity concerns. Reports suggest 20% of products may have negative health effects, and the company conducts animal testing for regulatory compliance. Positive initiatives include 'Nutrition for Zero Hunger' and plastic waste reduction efforts.

Value Scores

Better Health for All0
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect-10
-100100
Fair Trade & Ethical Sourcing0
-100100
Honest & Fair Business-30
-100100
Kind to Animals-40
-100100
No War, No Weapons0
-100100
Planet-Friendly Business-20
-100100
Respect for Cultures & Communities0
-100100
Safe & Smart Tech0
-100100
Zero Waste & Sustainable Products-40
-100100

Better Health for All

0

Herbalife's core products, such as dietary supplements and personal care items, do not have inherent addiction potential. The company is not a pharmaceutical firm, and its operations do not involve conducting clinical trials or health research. In 2017, a protein bar was voluntarily recalled due to an undeclared fish allergen, though no illnesses were reported.

1
The Herbalife Family Foundation awarded $5 million in grants in December 2024.
2
Herbalife partners with Feed the Children on the 'Nutrition for Zero Hunger' initiative, which includes nutrition education and advocacy, and expanded efforts during the COVID-19 pandemic to deliver food and essentials.
3
Additionally, 79% of its US Distributor Nutrition Clubs are located within 5 miles of areas with limited access to healthy or affordable foods.
4

Fair Money & Economic Opportunity

0

The provided articles do not contain specific, concrete data points relevant to the defined KPIs for 'Fair Money & Economic Opportunity'. Herbalife is described as a multi-level marketing company that develops, markets, and sells dietary supplements, not a financial institution that lends, insures, moves, or stores money. Therefore, the metrics related to financial products, lending, fees, and financial inclusion are not addressed by the available evidence.

Fair Pay & Worker Respect

-10

Herbalife's CEO to median employee pay ratio was 345:1 in 2024, with the CEO's total compensation at $13.21 million

1
and median employee compensation at $38,313.
2
Employee surveys indicate an overall job satisfaction score of 72
3
and an overall work happiness score of 77.
4
No quantitative data is available regarding living wage coverage, collective bargaining share, safety incident rates, pay equity ratios, turnover rates, labor violation incidents within the past three years, insecure contract share, or health insurance coverage.
5

Fair Trade & Ethical Sourcing

0

The provided article, Herbalife's 2021-2022 Global Sustainability Report, explicitly states that no quantitative data is provided regarding fair trade or ethical sourcing. While the company has set targets to assess 80% of product ingredient suppliers for sustainable practices by 2025

1
and 100% of soy and cocoa suppliers by 2025,
2
these are future assessment targets and not current performance metrics for any of the defined KPIs related to fair trade certification, audit frequency, traceability, or incident reporting.

Honest & Fair Business

-30

Herbalife was ordered to pay a $20 million fine by the SEC in 2023 for allegedly misleading investors about its China business model between 2012 and 2018.

1
The company has a comprehensive Code of Conduct, updated in June 2025, which includes an anti-corruption policy that explicitly prohibits improper payments and requires compliance with anti-bribery laws, including the U.S. Foreign Corrupt Practices Act (FCPA) and the U.K. Bribery Act.
2
Employee training on the Code is mentioned, but its frequency and effectiveness metrics are not provided. Herbalife also maintains a whistleblower policy, communicated through its Code of Conduct, which includes a 24/7 toll-free IntegrityLine hotline operated by an independent third party, allows for anonymity where permitted by law, and states that retaliation is not tolerated.
3

Kind to Animals

-40

Herbalife is not certified cruelty-free.

1
The company's Animal Testing Policy, updated in July 2022, states that animal testing is not conducted for topical skin and hair care products.
2
For ingestible products, animal testing is only performed when required by applicable laws and regulations and when no other alternative is available.
3
Herbalife encourages its suppliers to use alternative testing methods whenever feasible.
4
The company is a member of organizations working to develop alternative methods, including the American Society for Cellular and Computational Toxicology and the Botanical Safety Consortium, and sponsors the Johns Hopkins Center for Alternatives to Animal Testing.
5
In 2022, 77% of the proteins used in Herbalife products were plant-based by weight of total protein-based ingredients.
6

No War, No Weapons

0

Herbalife Nutrition's core business is not related to arms, defense, or dual-use technologies. In response to the war in Ukraine, Herbalife suspended operations in Russia, ceasing product shipments and closing all 62 sales centers.

1
The company also pledged to donate any profit from Russia to organizations supporting Ukrainian refugees.
2
The Herbalife Nutrition Foundation raised over $200,000 and contributed an additional $100,000, totaling nearly $300,000, for Save the Children's Ukraine Crisis Relief Fund, providing assistance to children.
3
Herbalife requires compliance with human rights standards, including fair labor practices and prohibition of child labor, forced labor, and human trafficking, through its Supplier Code of Conduct.
4
It screens over 20,000 new and existing suppliers daily for ethical concerns and uses a due diligence solution to flag issues.
5

Planet-Friendly Business

-20

Herbalife incorporates 25% recycled materials (Post-Consumer Resin) into its Formula 1 Healthy Meal Nutritional Shake Mix canisters in North America, an initiative launched on January 26, 2021, with global expansion planned

1
. This is estimated to remove 500 tons of plastic from landfills
2
. In 2022, the company diverted 153 gross metric tons of food product waste to animal feed in Venray, Netherlands, and recycled 4.3 metric tons of materials at its distribution centers
3
. Herbalife also removed 8 million plastic scoops annually from products in Europe and Africa, eliminating an estimated 45.6 metric tons of virgin plastic per year, and plans to launch a sustainable scoop made from sugarcane by-product in EMEA in 2024
4
.

Respect for Cultures & Communities

0

Herbalife's charitable giving through the Herbalife Family Foundation (HFF) includes $5 million in grants in 2024 to 164 nonprofits in 59 countries

1
, supporting general community development and child welfare organizations like Boys & Girls Clubs
2
. These donations are not specifically allocated to cultural heritage organizations. The company also provides unconscious bias training for all employees
3
and a 'DEI Playlist' through its learning management system
4
, which constitutes standard diversity training rather than specific cultural sensitivity components.

Safe & Smart Tech

0

Herbalife reported no material cybersecurity incidents or unauthorized data use incidents for the fiscal year ending December 30, 2023.

1
The company's security program includes asset discovery, vulnerability scanning, patch management, configuration management, and penetration testing.
2
Employees receive mandatory security awareness training and hold various IT, cybersecurity, and audit certifications, including CISSP, CISM, CISA, CCSP, ISO 27001 LA, IAPP CIPP/CIPM, Ali-ACP, and CRSC.
3

Zero Waste & Sustainable Products

-40

Herbalife incorporates 25% Post-Consumer Resin (PCR) in its Formula 1 Healthy Meal Nutritional Shake Mix canisters in North America, with global expansion planned

1
. The company has implemented several waste reduction initiatives, including removing 1,600 metric tons of plastic from F1 canisters since 2008
2
and eliminating 4.7 million single-use plastic bags in 2019
3
. Additional initiatives include a partnership with Green Antz Builders, Inc. for a recycling program in the Philippines (2021)
4
, the Asia Pacific Simply Recycle Challenge (2022)
5
, and a global responsibility partnership with Plastic Bank (2022-2024)
6
. Herbalife aims to remove 500 tons of plastic from the waste stream and prevent over 180,000 kilograms of plastic from entering oceans by 2023
7
. The company encourages customers to recycle or upcycle canisters
8
. No waste disposal violations were mentioned in the reporting period.
9

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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.