Joan Bavaria, Eric Becker, and Simon Billenness corroborated certain assertions made by Jon Entine. Concerns arose in 1994 regarding the growth estimates for Body Shop's stocks. Franklin's Insight modified their stock advice to "hold" due to an increase in the stock's worth and a rival company's expansion plans. At an early June Social Investment conference held in Toronto, Jon Entine presented his research results on the corporation.
Franklin Research & Development Corporation sold its clients' shares in the Body Shop on both June 17 and June 22. In the company's July 15 issue of Franklin's Insight, it was announced that due to concerns about the accelerating growth of its major competitor Bath & Body Works in the U.S. and Europe, as well as fears of a negative magazine article leading to a potential drop in stock prices, Franklin had lowered its rating to a sell after previous
...ly holding it. Despite this change, there was no immediate response.
Financial Times journalist Andrew Jack, in an article published on August 19th, addresses the controversy surrounding Franklin Continues. Despite facing challenges, the Insight team is committed to exposing the truth without resorting to sensationalism or name-calling, as evidenced by their handling of the "Body Shop Affair." The key concern is whether this incident will have a long-term negative impact on socially responsible investing and businesses.
The community can use this experience to improve and become more resilient. Insight has learned the significance of thoroughly verifying company assertions.
Over the past few weeks, the media in Britain has been heavily concentrating on the social performance of the Body Shop, being as focused as they would usually be with th
Royal Family. Following this news, the stock value for Body Shop declined from nearly 250 pence to a minimum of 205 pence, however now it has gradually risen back up to 216 pence. Ultimately, two significant questions arise from this discussion:
- Why did this issue reach such a boiling point?
- What is the Body Shop’s social record? How The Story Started.
On the other hand, our previous evaluation of the company has been questioned due to recent findings. According to a German newsletter, The Body Shop utilizes ingredients that are not sourced from plants in its products. Furthermore, an animal rights group in Britain has denounced the organization's animal testing practices.
Journalists closely followed the stock's movements and investigated the background of Entine while also speculating about the contents of his upcoming article for Business Ethics magazine. On September 1st, the article was released and prompted The Body Shop to defend itself by publishing a 32-page document titled "Memorandum of Response to the Allegations of Jon Entine". The company also responded strongly to the article and referred to it as "recycled rubbish". Anita Roddick, the founder of The Body Shop, was quoted calling a animal rights group that had criticized the company "a bunch of babies".
Despite publicly promoting certain standards, the company has not fully adhered to them, but has still reaped benefits from doing so. Additionally, the company has worsened its problems by repeatedly refusing to provide evidence for its claims and responding confrontationally to critics. This goes against fundamental principles of social responsibility, such as transparency and approachability from top management.
The Body Shop's performance
in various important aspects will be presented fairly in this article as we believe that all companies, regardless of their intentions, should adhere to certain standards.
For a fee of $195.00, you can access the entire Franklin Research Insight.
Franklin Research's Insight affiliate comprises Franklin Research ; Development Corporation, an investment advisor that prioritizes social responsibility. For information on portfolio services, performance records, fees, account sizes, or special consulting arrangements, please contact Chitra Staley at the Boston-based office located at 711 Atlantic Avenue in MA 02111. The accuracy of the information provided in this newsletter is believed to be reliable but not guaranteed. The opinions expressed are current as of publication and may change.
The paper used was bleached with hydrogen peroxide and made entirely from post-consumer, non-deinked materials. The use of soy-based inks was employed during printing. The Body Shop primarily operates as a franchisor and wholesaler. As such, their interactions with their franchisees are a critical aspect of the company's corporate responsibility endeavors.
Franklin Research & Development's personnel devoted significant efforts to corroborate the data utilized in this article. Our objective is to steer clear of using provocative phrasing or making assumptions regarding others' intents.
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