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The Body Shop

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by

Dee Nguyen

on 26 March 2013

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Transcript of The Body Shop

Challenges & Problems Continued Anita's response Continued.. "L'Oreal has never been an advocate against
animal testing and it's a known fact that their cosmetics are constantly been tested on animals. Before the L'Oreal sell out in 2006, TBS was featured on Naturewatch's website as one of the approved retailers for not testing or using ingredients that have been tested on animals." "Though this is what TBS claimed, their products contained ingredients that have been tested on animals by other companies. This then lead to extensive criticism from consumer watchdogs and this intesified when TBS made a move to be taken over by a cosmetic giant, L'Oreal." The Body Shop "After the sell-out to L'Oreal
Naturewatch released a statement on their website: 'We feel that The Body Shop has sold out and is not standing by its principles." SUPPORT COMMUNITY FAIR TRADE -created to help less fortunate
-gains benefits to over 300,000 people by giving the Body Shop products

Criticism:-said to be a marketing tactic
-some of these products are still purchased elsewhere By: Anna, Jody, Dee and David Background of Company "The Body Shop (TBS) was founded in 1976 by Anita Roddick. She founded TBS on the values of organic and natural products that aren't tested on animals." "One of the unique qualities that made TBS stand out from the rest of the generic cosmetic company, was their constant marketing of their products that were not tested on animals." "Which then lead to appeals to
boycott TBS products. Consumers who are shopping at TBS are actually supporting L'Oreal even though they are not buying form L'Oreal directly they are still suppporting the companies animal testing by association." "Loyal customers felt betrayed:
'“The Body Shop used to be my high street ‘safe-house,’ a place where I could walk into and know that what I bought was okay, that people were actually benefiting from my purchase. Now the people benefiting are the overpaid, underworked ‘fat-cat’ CEOs of animal-testing L’Oréal and baby-milk-selling Nestlé. By buying from the Body Shop, you are now no longer supporting ethical consumerism. If I want legitimate fair-trade, non-animal tested products, I can find them easily, at the same price, elsewhere.” Is there a Culture Shift?? "First off.. What is a culture shift?" How is it linked to The Body Shop? "A culture shift is evident when the people of the organisation realise & recognise that their current organisational culture needs to transform in order for them to succeed and progress onward therefore a change can occur." "The Body Shop holds a culture that is anti animal testing, for human rights, workers justice and the social justice movement. Anita Roddick believed that a business is about oe than just the exchange of products and money but about an exchange in experience, community action and knowledge where ultimately its about human relationships.......

Therefore!

For a culture shift to occur within this organisation something major must happen...... and this change is closely related to the organisations takeover by L'Oreal" The Effects of the Culture Shift in the TAKEOVER.. "As a whole The Body Shop was doing exceptionally well in creating profit and sales for the business... the beliefs and values that Anita instilled onto the organisation made it exceptionally successful in the sense that it differed from other businesses that produced organic products and this was through outsourcing organic materials from villages such as the ones in Guatemala.
Anita believed that it was imperative to support the work of those who harvest and collect materials and their human rights." The Body Shop Values -AGAINST ANIMAL TESTING
- COMMUNITY FAIR TRADE
- ACTIVATE SELF ESTEEM
- DEFEND HUMAN RIGHTS
- PROTECT OUR PLANET Spoken:
"The Body Shop Values state clearly on their website that they are against animal testing, support community fair trade, activate self esteem, defend human rights and protect our planet. however these values have been challenged as critics discover that TBS do not follow their values and simply state them to "be different." Criticism: Against Animal Testing - TBS does not test on animals
- All products are vegan friendly and animal cruelty free.

Criticized for: Spoken:
"The Body Shop were highly criticized following their merging with said to be the "least responsible company" by critic Mike Brady. Aside from the fact that this potentially damaged their brand in the long run, their values of "against animal testing" remain true. The main concerns were that TBS would acquire these traits through the merge." Criticism: Activate Self Esteem -"Today’s media and western society promote an unrealistic notion of beauty" - TBS Website
- The selling of The Body Shop to L'Oreal raised issues in regards to "self esteem"
- L'Oreal known for using airbrushed models and TBS use "real" people in their campaigns
Criticism
- The acquisition would deter TBS from these values
-The chance to make money Spoken: "Another one of the body shops values is that they activate self esteem. The Body Shop have got so caught up in their activism that they do not realize that this can make women and men feel insecure about themselves as there is a lot of pressure to be "beautiful". The fact that TBS merged with L'Oreal raises the issue of these "values" and the truth behind the motives of these actions. The merge can deter TBS from these issues and become more like L'Oreal which is a worry for a company like The Body Shop who have built their brand on being different and not just wanting to make a profit." "The Body Shop are also believed to have a community fair trade policy intact. The policy was created to help the less fortunate, those who are less fortunate and those in third world countries. How it works is that the body shop will purchase their ingredients from these countries, such as brazil nut oil that can be found in hair conditioner, to benefit up to 300,000 people. What is really happening is that it is said to be a marketing and PR tactic as less than 1% of these sales go to these countries they are “helping”. Tbs do not always purchase these products from the same supplier and purchase them from mainstream, commercial sellers. " Defend Human Rights -Universal Declaration of Human Rights.
-child labor and the plight of indigenous Australians.
- sponsors such as Amnesty International, Care and All together now.

Criticism:-Pay low wages-opposed to trade unions-not giving employees opportunities "TBS also states another one of their values to be that they Defend Human Rights. Their policy is called the Universal of Human Rights. Some of their sponsors for this policy include Amnesty International, Care and All Together Now. This policy covers aspects in regards to workers’ rights, embracing a safe, healthy working environment, fair wages, no discrimination on the basis of race, creed, gender or sexual orientation, or physical coercion of any kind. The criticism which lies here is the fact that this policy does not stay true to their words. What was discovered is that the body shop actually pay their store employees low wages, which is in fact the bare minimum." Protect our Planet -protect the environment locally and globally
-Products 100% vegetarian
-shop fittings from a Forest Stewardship Council (FSC) approved source.
-minimal packaging and the use of recycled materials
-partners include Australian conservation foundation and climate friendly.

Criticism:
-threaten legal action at those who criticize them for their “green” ways
- money makers
(gave less than half the average of what other “non green” companies do.) "The last value the body shop claim as theirs is that they “Protect The Planet” as much as this can be true can be false also. It is true that the body shop using recycling materials for their products, it is however much different to the hand written labels that the body shop used to use for their products from the beginning.

Criticism included the fact that the body shop say they give away the majority of their profits but really they give less then half the average of what other “non green” companies do. " Is the CSR practice strategic? Mission Statement

“We believe true beauty comes from the heart. For us, beauty is much more than a pretty face. It’s about feeling good and doing good, too.

We make our products with love and care. We source some of the finest raw ingredients from the four corners of the globe. We harness the skills of artisan farmers and add our expertise to create effective products that are wonderful to use.

We trade fairly so communities benefit as well as you. We never test on animals, and all our products are 100% vegetarian.

We campaign with passion on issues close to our heart, because activism is in our blood. We always keep people, animals and the planet in mind.So when you shop with us, you are choosing...

BEAUTY WITH HEART


Company Overview

The Body Shop is the original, natural and ethical beauty brand. We seek out wonderful natural ingredients from all four corners of the globe to deliver products bursting with effectiveness, to enhance your natural beauty.” So... Is the CSR Practices strategic? - Research proves CSR Strategies are a form of Brand Marketing
- Strategies attract criticism
- statements seem fabricated against research
-“Money Makers”
– donate minimal profits
- Not true to their Values "It can be determined that certain aspects of the body shops csr practices are a form of brand marketing and "green washing". Certain strategies that the body shop practice such as "Protecting the Planet" are true but to the point where they have been criticized by the media for being "money makers". This allegation was released because it had been noted that the Body Shop donate minimal profits. The body Shop state that they donate the majority of their profits but really they donate half the average of what a regular company will donate.

The main issue for The Body Shop in terms of whether their CSR practices are deemed to be a form of brand marketing or genuine rely on their values and through the acquisition with L'Oreal and if they remained true to their values. VIDEO: The Story of Anita Roddick Discusses how The Body Shop started
The vision & reasoning behind The Body Shop
The development of CSR
The implementation of CSR within an organisation
The mistakes and challenges faced
The effects of the changing world Corporate Social Responsibility Going international - The impact it created When the company began to gain more profit from the sales of its products as well as the takeover by L'Oreal it was evident that The Body Shop sort of lost sight of their values and the beliefs they stood out for, this is especially related to being part of the L'Oreal organisation where it has shown that the company was using animals to test their products whose actions goes against The Body shops anti animal testing.

A culture shift was also evident in its first introduction to the United States market, where the company began to struggle with creating hype and sales for its products due to more competitors and the different consumers culture where consumers where unfamiliar with the name THE BODY SHOPS
CSR POLICIES
&
THE APPLICATION OF ITS CSR THEORIES CSR Policies - What are they?? "The Body Shops CSR Policies closely relate to their values and beliefs as a company in a sense that everything they stands for is what made them successful now but more importantly in the past when it was first created, therefore it is imperative that these policies are embedded into their corporate culture...

"…There is no more powerful institution in society than business…The business of business should not be about money, it should be about responsibility. It should be about public good, notprivate greed.”
-Anita Roddick, Business as Usual

These values/ intiatives are:
Against animal testing of any sort
The development of community trade
Building self esteem for their employees
Campaigning for human rights
Protecting the planet / sustainability " __________________ cdc The Body Shops CSR Responsibilities & its CSR Application Ethical Responsibility -
Ethical responsibility is something that The Body Shop strongly promotes which means to “leave this world a better place, and there are different focus and different ways to achieve that. It is about our heritage, our values”.
"Being ethical is to do business in the right way, do business with integrity and transparency, this refers to a range of issues from choosing the right ingredient/package, how suppliers are being paid, how they test their products and building programs for fair trade."
The Body Shop engages in a number of initiatives with their suppliers to not solely enhance performance, but to also ensure ethical compliance in their supply chain through clear application to the standards of practice to ensure ethical behaviors

“Why are we different: we respect the environment. We are against animal testing for cosmetics. We are committed to establishing non - exploitative trading relationships with indigenous people. We campaign for human rights. Our business is something that people - employees, customers, suppliers, franchisees - can feel great about, but only on one condition: The Body Shop must never let itself become anything other than a human enterprise” Economic Responsibility -
Corporations have a responsibility to generate profit for shareholders, but not at the expense of the environment or people. “Profits with principles must be achieved in order to sustain the long term future”.
It is The Body Shops responsibility to “take care of business, but with that comes our responsibility that is bigger than our business”. Businesses have a responsibility to not just make money, but to also have a positive influence on the environment they operate in and the people they affect.
Maintaining a dynamic between short and long term needs of the business and its stakeholders in order to achieve a sustainable future. Legal Responsibility - It is a fundamental policy of The Body Shop that all employees observe and comply with the laws and regulations applicable to its business in each country where they operate, in addition to each employee act with high standards of business integrity. The Body Shop International's commitments are to conduct business in accordance with their values and with all relevant laws and regulations i.e Code of Conduct. ..and the challenges it creates for the organisation Recommendation Due to The Body Shop facing many challenges, issues and criticism surrounding The Body Shop in effect of L’Oreal and the company it has become as discussed above. We have created recommendations and solutions to these challenges, issues and criticism Recommendations - Continued The Body Shop Reflection/Analyse
Separation between the relationship of TBS & L'Oreal
Shift in focus
Refocus Anita Roddick's vision & foundations SPOKEN - Recommendations in tackling such issues
The Body Shop needs to reflect upon itself and how have these issues/challenges and criticism has taken effect on the company

Due to the heavy effect of L’Oreal on The Body Shop, in order for The Body to regain itself as an organisation that start off as the first in the implementation of CSR than The Body Shop needs to separate itself from the relationship with L’Oreal. Even though through the implementation of marketing and brand marketing techniques in separating this, consumers have been able to see through this and depict such as a tool in generating profit.

An issue that is heavily faced is that since the take over The Body Shop has shifted its focus that of L’Oreal’s which is the focus on profit of the financial line. In order The Body Shop to become the essence of the foundations it was built upon, The Body Shop needs to refocus itself not that of L’Oreal and on profit but focusing on the effect of the triple bottom line.

In order to accomplish that The Body Shop needs to refocus itself and its priorities, it needs to go back to it foundations that was started by Anita Roddick’s and her vision of the company. With The Body Shop implementing successful CSR that was started in the beginning and continuing such will allow The Body Shop to regain its success that it had accomplish in the beginning of the company. Recommendations - Continued Green washing - Branding/Marketing techniques
What it communicates & perception
True roots in tackling issues
Time & persistence
Demonstrating CSR activity Instead of using green washing as its branding and a marketing technique but fully carrying out what the company communicates and that not just the perception that it wants to create in that of an organisation but fully implementing what the company communicates to its audience, through such shows the companies true goals that it wishes to admire to.

In order for the company to adhere back to its true roots and tackles those challenges faces it will take lengthy time for the company to regain what it had lost but with time and persistence the company will be able to demonstrating true CSR activity to its audience.

CSR activities that the company should embark upon is firstly rectifying its activities that has caused criticism which involves the issues that the company has been caught out upon, that of using ingredients from cross borders in helping the communities, that of its projects in helping rural communities and the confirmation of its products that are not tested on animals.

Additional CSR activities that the company can examine into in implementing are promoting projects that demonstrate that of CSR in ethical practices and social responsibility. The company can look into projects that contribute to the community and ultimately benefit the well being of the community. SPOKEN SPOKEN These activities that demonstrate a positive effect on the triple bottom line of profit, people and planet are what the organisation should be aim for. In the continue of the pursue and implementation of these CSR activities will help promote the CSRI (Corporate Social Responsibility Index) in which ultimately affects the perception of the organisation and demonstration the of the social responsibility of the organisation. Understanding that this is a major change and effect in the recommendation to the organisation but due to the issues/criticism and challenges faced by the organisation such heavy activities would be required in tackling such but understanding that such activities may not be required if the organisation is able to rectify the issues that has been bestold upon the organisation. If being able to rectify these issues and reverse the damages caused with the culture shift in the relation of L’Oreal. Being able to transform the organisation to what the foundations was originally built upon and what Anita Roddick had seeked in its visions when it was first started will be able to transform and change the route in CSR demonstrated by the organisation. From rectifying such issues is a start in achieving what was set out in the beginning that was the first organisation in implementing CSR. SPOKEN Recommendation - Conclusion SPOKEN Through our recommendations we do not embark that the company to transition back to when the products had hand written labels but merely to follow the foundations it was created upon and what made the organisation differ to others, in that it was the first organisations in implementing CSR. The Body Shop needs to reanalyse itself and examine the opportunities that lie and the beneficial effects through such recommendations create. Q&A THANK YOU! BY ANNA,
JODY,
DEE &
DAVID The beginning, its foundations & the vision CSR - Triple bottom line - Merging with L'Oreal "least responsible company.
- Not standing by their values
- Not making clear that their products are 100% not tested on animals
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