Ethical Issues in Business (Body Shop) Essay Example

the ethical standards she promotes through her company.

What do you think makes a company ethical? Read on and find out how this organization markets itself as being ethical… Set up on 26 March 1976 by Anita Riddick, the founder of The Body Shop, the Body Shop sets out to offer an environmentally-friendly, feel-good business with products ranging from hair and body to beauty and gifts.Now well-known for creating a niche market segment for naturally inspired hair and skin care products, the Body Shop now has more than 1,900 shops operating in 50 countries. The products that are sold in the outlets are produced with natural ingredients from all over the world, encouraging local and global trade. As well as its well-known “Against Animal Testing” campaign, the Body Shop also helps promote self-esteem, supports community trade and human rights organizations, and plays a significant role in promoting environmentally friendly messages around the globe. Their Mission Statement is as follows (Body Shop webpage, 2006): “To dedicate our business to the pursuit of social and environmental change” •“To creatively balance the financial and human needs of our stakeholders: employees, customers, franchisees, suppliers and shareholders” •“To courageously ensure that our business is ecologically sustainable: meeting the needs of the present without compromising the future” •“To meaningfully contribute to local, national and international communities in which we trade, by adopting a code of conduct which ensures care, honesty, fairness and respect” •“To passionately campaign for the protection of the environment, human and civil rights, and against animal testing within the cosmetics and toiletries industry” •“To tirelessly work to narrow the gap between principle and practice, whilst making fun, passion

and care part of our daily lives”. Their mission statement attracts many audiences around the world and helps to develop a bond with their readers.

Not only have they started out wanting to be ethical from the start but til today they have put their full efforts in containing their image as being one of the most ethical businesses. More importantly, their values help in shaping their image as well. The main principles and beliefs that define their ethical approach to business are segmented into five pillars which are: Defend Human Rights, Activate Self-Esteem, Support Community Trade, Protect Our Planet, and Against Animal Testing.These values shape the foundation of their campaigns and community programs, as well as their ethical policies and guidelines. 1. ‘Defend Human Rights’ The Body Shop believes that all businesses, big or small, have a role to play in implementing social change.

If more organizations took steps in being socially responsible and demonstrated their social conscience then governments would have no choice but to listen. It's the large businesses that have the influence over governments - and us, as individual consumer, who have the influence over the large businesses. With over 1,900 shops around the globe, The Body Shop has the opportunity to influence and raise awareness to millions of people.And they feel that it is only right to support them. They then began their campaign on the human rights issue with Amnesty International in 2002.

(Body Shop webpage, 2006). In 2004, they won two successful awards and launched two huge and successful global campaigns that focus on HIV and Aids as well as domestic violence. Domestic violence affects one in four

women in their lifetime, regardless of their ethnic origin or social status and this figure has increased over the past ten years (BBC website, 2004). Therefore, The Body Shop have initiated a campaign against domestic violence, and titled it, “Blow the Whistle on Violence against Women (Body Shop webpage, 2006). The program involves training and educating staff members with experts on this field and training them with the aspects of domestic violence.

The Body Shop used shop windows and stocking space to support and advertise this cause and encourage awareness with problems in domestic violence in the home. The campaign is successively running in more than 35 markets around the globe and is making a considerable difference. They have also been increasing funds and raising awareness about HIV and Aids for several years now but from 2007 there will be the initiation of a new campaign in which they are in no doubt confident that it will aid those who are affected by Aids or HIV. The Body Shop Foundation is committed to supporting innovative global projects working in the areas of human and civil rights and environmental and animal protection. To date The Body Shop Foundation has donated over ? 8million to organizations worldwide (Body Shop webpage, 2006). ” 2.

‘Protect our Planet’ The Body Shop has a definitive aim of being economically, socially, and ecologically sustainable. They also seek to ensure that they are responsible and ethical in all of their actions and activities. This strategy envelops all the environmental impacts that The Body Shop creates or can influence. It focuses on their responsibilities and keeps impacts that aim in protecting the environment

all through their global business.It places interest on the environmental issues that are main priorities in supporting the company’s trading charter and mission statement.

These priorities therefore set out their broader vision of their values. They ensure that environmental protection and social procedures are practiced constantly throughout their operations. The Body Shop focuses on the environmental concerns that are most important for the company as a whole and their stakeholders, which is as follows: ? Discharge of greenhouse gases - since they result from their use of non-renewable energy and their effects are key to the issue of global climate change. ? Waste – since this is a result of many of their activities, including packaging waste that is outside their products’ use.They also prioritize their resources on areas of the business that has major impact on the environment: ? Supply Chain – since many of their environmental impacts are the consequences of activities in areas of their supply chain.

?Product Design – since the way they design their products immediately has an effect on the environment. As part of their “Protect our Planet” campaign, The Body Shop is aware of the energy they consume and the waste they produce from their manufacturing process. The tables below illustrate the total Electricity consumed and the Waste disposed and recycled from the past few years (Body Shop web page 2006, 2). TOTAL ELECTRICITY USE: 2003/4 2002/3 2001/2Electricity used by Company (MWh)35,37330,04930,738 Renewable Electricity used by Company (MWh)10,3179,91410,718 CO2 Emissions from Electricity (Tones) 11,4299,9069,825 % Electricity from Renewable Sources 31%33%35% (This includes all company offices, stores, and distribution centers) (Body Shop web page 2006, 2) WASTE DISPOSED &

RECYCLED: US 2003/4 2002/3 2001/2 Waste Disposed to Landfill (tones)1378482 Waste Recycled (tones)128284202 Recycling to Landfill Ratio48% vs 5277% vs 23%71% vs 29% (Body Shop web page 2006, 2) 3.

‘Support Community Trade’ “Our trade with these communities is not just about creating another product or market for The Body Shop.It is about exchange and value, trade and respect, friendship and trust. ” -Anita Roddick One thing that the Body Shop believes in is that big businesses have an enormous responsibility in using trade not only as a means to money but also to make positive influences in the world. As a global company, The Body Shop trades with neighboring communities, regularly in isolated areas, who would not usually be given the opportunity to trade directly with a company like The Body Shop. Therefore, its purpose is to create a positive social and economic difference within individual districts, in return for handcrafted accessories and natural ingredients.

Who Benefits from community trade & Why??? According to The Body Shop, everybody benefits: •The Body Shop gets vast products and ingredients therefore supplying them with a healthier approach in doing business that includes fairness, trust and respect. •Suppliers benefit from receiving receipts of genuine orders, support in attempting to meet their expanded community objectives in ways they would prefer, and there is the aspect of fair pricing. Suppliers also expand their markets and build up essential business skills. •Consumers get high quality ingredients and products from all over the world and have a chance to support community trade organizations.

They are also given the opportunity to spend their money where it would affect the lives of people around the world.

•Business deals with ethical trade and the opportunity to learn from their success and failure and be able to react to the increasing demands for improved standard of global trade. Just from purchasing products including Community Traded shea butter and cocoa butter, you make a huge difference to not only the lives of farmers and women but also to their children. Community Traded accessories supports communities in Bangladesh, India and many more countries. 4.

‘Activate Self Esteem’ During 2004 their constant strategy is to position a long term emphasis on concerns with direct significance to their core consumer base - women.With campaigns running around the globe on domestic violence and protecting human rights, the body Shop has established a strong reputation. The company also wants women to focus on self-esteem just as much as the social and environmental causes. The Body Shop tries to activate self-esteem by not promoting and advertising their products with glossy model looks or magazines that put down self-esteem. They believe that if a person is always bombarded with these kinds of images and pictures, then one’s self esteem will be put down therefore creating real dangers. Many of their main beliefs are about showing understanding and compassion for other people, but “'activate self-esteem'” is focusing on consumers themselves!Self-esteem is all about self-confidence, self-awareness, self-acceptance and self-worth.

“It's about respecting yourself, looking after your body and soul, and being proud of who and what you are” (Body Shop webpage, 2006). Throughout time, women bodies have been used to fit the latest trend or fashion. Waists are stuffed in corsets, their skin bleached, the fat being sucked out, or silicone injected. The

Body Shop, however, offers a range of natural hair and skin care because they work and they do not state or advertise miracles.

Their products will not make consumers look younger or slimmer but sell products that help women look after themselves and feel good inside. 5. ‘Against Animal Testing’The Body Shop truly believes that cosmetic testing on any animal is unnecessary, unethical, and ought to be forbidden. They position themselves as a company that does not test their products on animals and ensures that the ingredients they use in their products is also not tested on animals. In all their product labels, it is visibly stated that they are 'Against Animal Testing' (AAT).

Their AAT policy and the yearly observance checks they run concerning with all their suppliers also undergo independent review. The most important thing is that company’s do not test or offer animal testing and that they should d everything they can to stop these tests in the future.The Body Shop is continues to do stop these tests through supplier monitoring, Ingredient purchasing rule, and rating systems. Since the Body Shop is a big company, their actions are visible and open to the public therefore the pressures to manage these ethical issues are greater than those of a much smaller company.

Any negligence of ethical actions will reflect tremendously on the company therefore would contradict the company’s code of ethics. What makes the Body Shop successful in keeping their ethical image is because they have done a good job in keeping a pure image and follow everything they state in their values and mission statement. This is what makes them a leading

company that will continue to grow and be successful.Their position on this subject led them in becoming “the first international cosmetics retailer to be endorsed by leading animal protection groups under their Humane Cosmetic Standard”(The Body Shop webpage, 2006). Alternative Tests ? As a different option of testing on animals, The Body Shop supports the development and use of alternative technologies. The Body Shop puts consumer safety first and will never negotiation about any aspect of it.

Refusing to test on animals does not reduce their ability to provide safe, innovative and effective products for their consumers. When testing their products for safety and accuracy, they use tests such as “Irritection”- a substitute for rabbit eye test, and use human volunteer trials such as patch tests on skin to help in ensuring effectiveness and safety.Many people believe that testing on animals has been banned but the truth is that according to the “Royal Society for the Prevention of Cruelty to Animals”, around 38,000 animals are still being used as tests all over Europe, and many more internationally (Body Shop webpage, 2006). As a global organization, The Body Shop is careful in ensuring that they do not go against their values as well as promises to their customers in being against all sorts of animal testing. The body shop has many goals that they hope to achieve in the next couple of years.

Some of these are: •To make sure that 40% of the electricity comes from renewable energy sources. •Identify and develop ways in order to improve their use of energy focusing on distribution and service centers. Research ways in which they could integrate a

greater percentage of used material in a greater majority of their products/bottles. •Identify ways in which to decrease the amount of waste as well as increasing the amount of recycled waste material from local facilities, Soapworks ltd and service centers. The Body Shop has taken great political stance in defending human rights, being against animal testing, protecting our planet, supporting community trade.

They also use recycling and reusing of products (bottle refills, tree filling) as a daily program and not only does it save natural resources but it also encourages other people to recycle as well. They encourage consumers by offering to refill a bottle than is returned for half of the sale price.With these different campaigns and the way they do business on an everyday basis, The Body Shop gained respect and proved to consumers and businesses that they run their business ethically. The Body Shop attracts a great number of consumers’ everyday with the benefits of their best selling products from the Tea Tree Oil variety to Vitamin E Cream Moisturizers and banana shampoos (Body Shop webpage, 2006).

According to the Consumers Association, in 1999 The Body Shop was chosen as the second most “trusted brand in the UK. ” In 1997, according to the Interbrand survey criteria, the business was also named 28th big brand in the world, and placed second in the retail segment. In a 1998 survey, The Financial Times executives ranked The Body Shop as the 27th most respected company of all times.Unethical practices haven’t necessarily brought a business down ten or twenty years ago, but unethical business actions and practices today could lead to an early death of

a business. With the path they are taking, The Body Shop as a business will never die and will only be valued and respected more and more.

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thebodyshopinternational. com/web/tbsgl/env_how_are_we_doing. jsp (accessed March 25, 2006). 2004, “Hitting Home – Domestic Violence”, BBC Website. Available: http://www.

bbc. co. uk/health/hh/what02. shtml (accessed March 25, 2006).