In this case, how does The Body Shop address the four components of social responsibility? In the Body Shop, what tensions among these components were at work? Legal- the Body Shop avoided animal testing and used all natural ingredients to avoid any lawsuits. They knew the products were safe since people have been using them for years. Ethical- Anita's personal and moral beliefs into her work is that she is against animal testing and made a great effort to make sure her company and the suppliers also feel the same way.
She also wanted her employees to fit a certain image and hired accordingly, some could argue this can cause some ethical problems.
Philanthropi
The mission statement of The Body Shop is “To dedicate our business to the pursuit of social and environmental change” and the entire com
...pany was based around this. They contributed a part of their earnings to environmental change. As a result of Anita’s strong ethical beliefs and mission statement there could be some issues arising that prevent the company to make a substantial profit.
Anita shared her views about certain products with other companies in hopes of reducing animal testing. She preached to her customers about animal rights, environmental causes and spread her message. Some tensions arise from the components of corporate responsibility. Anita’s ethical and philanthropic values were reflected in her hiring procedures. This can cause some legal actions taken by applicants who thought they were given and unfair advantage. Some other tensions could arise between the economic and philanthropic components. Economic- The Body Shop used inexpensive ingredients in the products offered.
Ther
was also a recycle program where the customers could return used bottles and receive a discount which would save the company money by not having to buy more supplies. The Body Shop also created a company with strong values that customers stood by which was the reason their success. Analyse the Body Shop’s power using both levels spheres of power discussed in Chapter 1.
How do you assess the company’s mission statement? The Mission statement clearly takes a stand with business and addresses there environmental and cultural concerns. It concentrates on the beliefs and activist thoughts not profit. pheres/levels Macro level Intermediate Level Micro level Technological Come out with new ideas Invent new product that require no animal testing Come out with new ideas Follow alternatives to animal testing. Environmental Be environmental conscious and protect, it Protect the environment and pursued others to Give back to agencies protecting environment Protect environment and buy products that support belief Political Influence change in legislation Come out with new legislations about animal testing Follow own rules set for product creation Abide by laws regarding animal rights.
Individual Level Economic Make a profit Set a market price for goods Increase Net Income Promote company Social/cultural Commit to change Change attitudes of public Commit to values Change personal behaviours to reflect company individual Influence customers Influence personal change Influence employees to change Come out with new ways to benefit organisation. Does the Body Shop employ any questionable practices with respect to hiring? The Body Shop asks potential employees questions about “personal heroes” and individual beliefs. Is it ethical to ask such questions of applicants? Are such questions fair
to applicants?
I understand her need to represent her core values and reflect that into her employees but I am unsure how personal heroes could represent that. I also think some problems could arise when asking about beliefs on certain social issues because it could reveal elements about the person’s religion and other personal areas which are illegal questions to be asked. Hiring based on individual beliefs could create potential lawsuits from applicants who feel they were given unfair and unbiased treatment. I also believe that these questions are unethical because it can give Anita unfair reasons to not hire an individual.
Just because she may not like their personal hero or beliefs, that shouldn’t prevent them from the job. What is your assessment of Anita Roddick’s philosophy regarding the “purpose of a business”? In my view I would say it is great, she was able to use her success to help other activists groups and promote her principles. And also if her purpose is to use her business to support her beliefs and help environmental issues then she did stay true to that based on the facts presented in the case. She has a responsibility to her customers and they know and also follow her beliefs.
What are Anita Roddick’s strengths and weaknesses as a leader? Should she stay on in a managing role or step aside and allow a more experienced person to run the marketing operations? Anita’s strengths as a leader first started when she was able to build a company from limited finances, she was also able to turn her small business into a profitable organisation and give
back the community. She stayed true to her beliefs and they were reflected into her business. She did however have some weaknesses that stood out. Anita had to face tough competition and the Body Shops products couldn’t compete.
She was also had problems when marketing to US consumers. I also think that her hiring procedures were questionable and her stance on no advertising would make it difficult to get her message out. I think that Anita should step aside and let someone more experienced help with marketing the business if she wants to get ahead. She could take on a consulting role and lend her information about the organizations she wants the company to support. Without a sufficient marketing plan it may be difficult for her company to stay successful just by word of mouth, especially if she wants it to grow and not just be a small business owner.
Anita Roddick claims that her firm does not advertise, yet it receives free media exposure and publicity through the social causes it champions and her personal appearances. Is this an appropriate approach for a business to follow? I think this is completely appropriate. Anita’s business mission and role in the company is to spread her message and inform the public and she followed her mission by talking about her causes and getting the word out. I also think as a business owner she owes it to her stakeholders to make a profit and by letting others know what her philosophies where, it was also able to benefit her business as well.
What is your opinion of the Body Shop/ American Express advertising
campaign? Was it a sound business decision on Roddick’s part? What does the American Express campaign imply about The Body Shop and its customers? Is it different from the image of the non-profit organisations that The Body Shop endorses? Did Roddick commit an ethics transgression by advertising through the American express ad that contravened her earlier statements and policy, or was this different? How should she explain herself?
The American express campaign was a different way to advertise her company indirectly but without changing her original beliefs. It expressed the stores and the customer’s beliefs and showcased what they stand for. I don’t think she committed an ethics transgression because the ad did promote the company however she did it in a tasteful way. She didn’t advertise a particular product like most company’s do but shared her beliefs and used her power to spread the message like she wanted to do all along, it just so happened to benefit The Body Shop as well.
She continued to follow her mission and role in the company and stayed true to her core beliefs. Can a company such as The Body Shop succeed trying to balance profitability with an obsession with social causes? Today, especially there is a stronger stance on environmental issues and affects and this company can use this niche to distinguish itself from others, as long and they stay aligned to the mission statement. The Body Shop can succeed because there are plenty of people with the same values. They just have to come up with a way to reach all of them and promote their ideas.
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