Case Study: the Body Shop

This analysis wishes to expound the ethical issues and arguments revolving around the management, marketing and production side of The Body Shop business.

The big question on “to what extent can companies that claim to be ethically conscious and socially responsible live up to the high standards they claim and hold to others? ” Is targeted to be answered here. There are other groups involved In their stand, this analysis wishes to Identify them, and eventually, understand them on the point of view of a consumer and a socially responsible person.

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The Body Shop was founded in 1976 by the late British environmental and human sights campaigner Dame Anita Rowdier in Brighton, United Kingdom. With 25 handmade body care products during the start of their venture and with a goal of promoting quality natural products and responding to our environmental needs, they grew up to be known with now 1,000 natural skin and hair products and has developed into a major international retailing store with about 2,133 outlets in 54 countries around the world.

Through the years as the company continued to expand their marketing and distribution, The Body Shop continued to stand with its values of not Just innovating heir products but with an advocacy on improving the lives of women in the developing countries as well as promoting animal rights. They are promoting protection of the environment and against animal testing thus, increasing awareness of corporate social responsibility.

Because of this, The Body Shop was voted the second most trusted brand in I-J in 1999 and ranked 27th in 1998 survey of international chief executives in the Financial Times as most respected company in the world.

The success of the business equally paired with the great belief on ethical values. A year before the death of the owner, The Body Shop was sold to the L’Oreal corporate group in 2006 for the cost of 652 million pounds. In 1994, they made a re- launch of the company opening new business strategies such as The Body Shop at Home, which is more of a direct-selling activity aimed to penetrate the market on a more personal way. Then, another launch was made with the use of internet in order to keep pace with the technology.

The scope of this analysis is within the period to which l. The question on ethical consciousness and social responsibility governing a retain organization is the main topic to be discussed here. The issue on The Body Shops’ campaign regarding the using of animals for testing on human cosmetics will be the focus. The question is, how honest is The Body Shop with its stand on animal protection that they follow ethical procedures at the same time, they manufacture their products without violating them.

This analysis aims to find the effects on the production and marketing issues and if they affect the consumers and the image of the company. To look at the profile and advocacy of different animal organizations and co- elate them to the business of body care products and the testing of these products before they will be out on sale in the market.

To know the effects of the animal testing which taps to violate business ethics and environmental issues. To know the impact of this issue to the company and the consumers of The Body Shop products. Ill.

Internal Environment Along with the company’s expansion and product developments, the company focused on marketing strategies which is the advocacy on human and animal rights that made the consumers loyal to The Body Shop products. The Body Shop promotes NO to animal testing but is not specific and aggressive on the process of their production. In 1989, the company campaign switched from “not tested to animals” to “against animal testing” after a lawsuit claimed that The Body Shop’s labels were misleading, since product ingredients may have been tested on animals.

It says in the 2005 Value Report that the company refuses to buy any ingredients that have been tested on animals for cosmetic purposes after December 30, 1990, but points out that most of the working ingredients used in cosmetic and littler products have been animal tested for some purpose at some time. It was also said that some of their products contain animal products such as gelatin or crushed bones. These reports are all contradicting to the values and stand of the company. In spite the strong campaign, The Body Shop puts principles before profits.

Allegations and denials were made and the effect of misleading the public became an issue. Although the company won the suit and publicity, the battle had focused attention on the Body Shop’s ethical record and inspired additional criticism.

B. External Environment The Body Shop is known to be one of the most famous retailers of body care products Ana tentacle values. People for the Ethical Treatment of Animals (PETA) is the largest animal rights organization in the world, with more than 3 million members and supporters.

PETA focuses its attention on the four areas in which the largest numbers of animals suffer the most intensely for the longest periods of time: on factory farms, in the clothing trade, in laboratories, and in the entertainment industry. PETA works through public education, cruelty investigations, research, animal rescue, legislation, special events, liberty involvement, and protest campaigns. PETA reports that right now, millions of rats, rabbits, cats, dogs and other animals are locked inside cages and waiting in fear of the next terrifying and painful procedure that will be performed on them.

More than 100 million animals every year suffer and die in cruel chemical, drug, food and cosmetic tests, biology lessons, medical training exercises, and curiosity-driven medical experiments. We as human beings may think that they are Just animals or pests, but when we talk about the bulk of these living things, it may sound alarming because it is an abuse already. This is the main goal of the PETA organization, to stop this abuse in all ways. The Animal Liberation Front (ALFA) on the other hand, carries out illegal actions against industries who profit from animal exploitation.

These actions most often take the form of liberating live animals from fur farms, slaughterhouses, etc.

Or economic sabotage in the form of property destruction. These two organizations may have the same goals and concern about the animal communities and as expected, they are both against animal testing. The strength of the company to be a lead in the industry and the products minded high in quality is that the consumers continue to buy and patronize The Body Shop products. The weaknesses are problems surrounding the business side such as high operating cost and the negative publicity it earned.

Opportunities continue to grow as The Body Shop continues to open more stores across the globe. The recent venture in India opened 8 more stores catering to the culture and needs of the people living there.

Plus the introduction of direct selling and online shopping with the use of internet. The threats still sides for more strong competitions with there companies offering the same product line. The negative publicity on animal testing somehow affects the awareness of the public. The issue on this went hand in hand along with the growing business and innovation of The Body Shop Company. ‘V.