According to Archie B. Carroll, The Pyramid of Corporate and business Social Responsibility targets 4 aspects- Financial Responsibilities, Legal Responsibilities, Ethical Responsibilities and Philanthropic Obligations. When comes up the business model of YOUR BODY Shop, one would usually reach the notion that The Body Shop is at the forefront in the growth for Corporate Social Responsibility (CSR) available circle. In the end, they are really strong advocates of Rational Trade, Environmental Conservation, Fair Practices, among numerous others. Also, they are able to keep the momentum for extension and earnings maximisation amidst each one of these sociable activities. Anita Roddick, the creator of YOUR BODY Shop, was acknowledged for the improvement of moral consumerism, a concept that merchants of other major brands soon used suit.
It may appear like The Body Shop appropriate the bill of any Model CSR firm, but through careful examination and evaluation, it can be seen that The Body Shop is yet to be a true representation of the Pyramid.
Firstly, the foundation which the model is made on is Economical Responsibility. In the words of Archie Carroll and Ann Bucholtz, it is "the business enterprise concepts centered on increasing the long-term financial performance of the organisation. " It's the most crucial part of the pyramid, if the company is able to support itself and increase its performance. Despite entering into a extreme overhaul of its techniques in the first 1990s, 'restructuring the company, changing the very best management team by bringing in other professional managers, installing tighter inventory and control systems, and streamlining functions', the company reported less than stellar development in the past due 1990s. Show prices decreased 65%, from $6. 55 in 1992 to around $2. 29 in April 1996. Likewise, sales in america fell by 6 percent in 1997.
Also, they failed to employ key stakeholders like franchisee owners, when there have been accusations that the business was restricting the development of franchisee outlets. It was reported that in December 2000, eight U. S. Body Shop franchisees who managed 13 locations, were accusing the father or mother company of impeding their business through the withholding of securities to franchisee-owned businesses. This was seen as poor representation of The Body Shop that adversely damaged its reputation, aggravating the less than adequate business performance already observed in the United States during the 1990s.
In the first 1990s, YOUR BODY Shop management was more concern with improving their eco-friendly assignments alternatively than making changes with their range of products. They were unable to meet up with the new market needs as their rivals like Boots, Superdrug and Lush were able to do, drastically minimizing the market talk about. Other competition like Bath tub & Body Works started to expand its chain of outlets countrywide, leaving YOUR BODY Shop battling to do 'catch-up'. The fine balance of emphasizing on business continuality and communal activism is a crucial factor which companies have to juggle. The Body Shop appears to be tilted for the latter.
When the company was portrayed in an awful light by the Mass media, the Problems Management solution carried out was less to be desired. When this article criticizing The Body Shop by Jon Entine was posted available Ethics newspaper in 1994, Gordon Roddick devoted a grave miscalculation when he sent out a 10 webpage letter refuting the says by Jon Entine to the members of the Business Ethics journal, whose contact details he obtained through a third party. Such an action from a top-management executive was detrimental to the trustworthiness of YOUR BODY Shop, as people commenced to question the business enterprise ethos of the business. It didn't help the problem when your body Shop have been in the press for the wrong reasons- criticisms against the company and its founders, information on poor profits and the speculation that things were not heading well for The Body Shop.
Despite the fact that there have been many misgivings in the way YOUR BODY Shop satisfied its financial responsibility, it performed however embark on several measures which were geared towards earnings maximisation and business growth. In the US market, YOUR BODY Shop started advert placements in the Multimedia from 1995- 1996, especially during the Christmas Season to profit from the gift-giving culture of the US Consumer market. They used ads to compete keenly against the discounts and gift-with-purchase offers offered by Bathroom & Body Works. Also, The Body Shop reverted back to the 'more profitable franchising strategy'. Actually, near to half of the stores in the US were owned straight by the company, the others being franchisee-owned. By 1996, all but 12 of its 841 retailers beyond your US and Britain were franchises. However, due to lack of ability to solidify their foothold in the market earlier, this resulted in lost in opportunity for expansion as competitors started to have a bigger share of the market.
The next layer of the pyramid is RESPONSIBILITY. It is without a doubt that the merchandise of The Body Shop has constantly kept to medical and Safety Rules of the U. K and other countries. There were no reports of adverse pores and skin reactions towards YOUR BODY Shop products, due mainly to the fact that the majority of its recipes are hundreds of years old concoctions from indigenous peoples from various areas of the earth. Yet, we can not ignore the fact that YOUR BODY Shop didn't provide a level learning field for the Franchisees in the US. This led to the whole episode of 8 franchisees filing a lawsuit in 1998 against the company for under cutting the terms for buyback, for "fraud, deceptive inducement, and inequitable treatment of franchisees. " This situation stayed a concern till 2001. This brings the business enterprise Ethics of the company into question. The actual fact that franchisee-owned businesses was a driving make for the performance of the business meant that preserving a good relationship using its franchisee partners was essential and necessary. Effective stakeholder management, like the utilization of "The Clarkson Concepts", could have been good to maintain a healthy relationship with the franchisee companies. They could experienced "implemented a stakeholder performance dimension system", as advised by Archie Carroll and Ann Buchholtz in their book Business & Culture- Ethics and Stakeholder Management.
Back to the idea of Gordon Roddick obtaining contact information of a magazine's set of members to send his letter in relation to allegations by Jon Entine. The ethicality of such a practice comes to question when the information was collected from an authorized, and not from the newspaper editors themselves.
This involves the next level of the pyramid - Moral Responsibility. A point of contention is the whole notion of Consumer Exploitation. The Body Shop marketplaces its products as products that support Fair Trade, Against Creature Testing and ultimately more superior in terms of its far reaching impacts on the united states of origins. Their products are priced at a higher premium because of these says. However, from the statement by Jon Entine available Ethics mag in 1994, the marketed 'benefits to world' is highly questionable. Other allegations of YOUR BODY Shop's failure to deliver what they promised also began to surface in other newspapers. This brings us to the point of whether individuals are truly paying for the required products and final results which were communicated to them at the idea of purchase. This threatened the basis that made YOUR BODY Shop famous in the first place- Honest Consumerism.
The pinnacle of the pyramid is the Philanthropic Duties. As identified by Archie Carroll and Ann Bucholtz, they may be 'activities that are voluntary, led only by business's desire to activate in communal activities that aren't mandated, not necessary by regulations, rather than generally expected in an ethical sense. Credit should be accorded to your body Shop for putting quite a heavy focus on this responsibility in its operations. 'The launch of its Public Auditing Programme (Values Article) in 1994, helped in keeping tabs of their progress in the many "environmental, public, and animal cover initiatives. " (Archie Carroll, Ann Buchholtz). This guaranteed that the business located all its public goals and anticipations, initiatives and campaigns through a strenuous research to stock undertake whether the company was able to reach its targets as guaranteed. The comprehensiveness of the report was a brand new approach that brought Corporate Community Responsibility to new frontiers. Something to laud about was that the article depended heavily on stakeholder interviews- international franchisees, employees, customers, suppliers, shareholders and local community and campaigning communities. This all-encompassing approach demonstrated that YOUR BODY Shop respected its stakeholders and included them in its main business of "only one way of to be beautiful, nature's way. " Also, the forming of The Body Shop Base in 1990 is a testament of the business's commitment to route a portion with their profits to the different causes that fit the company's emphasis of the preservation of individual and animal privileges and the surroundings.
The Body Shop continues to embrace the ethos of its creator of using YOUR BODY Shop to impact change in population. Yet, more could be done to publicise its involvement in such philanthropic causes and maybe even going for a more vigorous role in rallying other companies to become listed on in the effort. YOUR BODY Shop could possibly take part in more sponsorship activities for environmental causes that have a detailed link with the products they carry. For example, they could screen adverts on the benefits associated with the business's Trade Not Aid scheme on Ghana and its own people, where they source their cleaning soap products from. On the other hand, they could increase their branding coverage by firmly taking it upon themselves to push for better pay compensations for workers in third-World Countries available world or even in government authorities. This may be in the form of lobbying for change by gathering signatures from the public, and subsequently boosting it up to the Member of Parliament or Country's market leaders. The Body Shop could effectively endorse certain environmental groups and their triggers and its top management could provide in these categories as leaders of their steering community. In some sense, embarking in an alternative form of advertising- not of the products, but of their commitment to result change to contemporary society and following a ideals organized by Anita when she first exposed her stores in 1975.
Another point that was of hot debate was the sale to L'Oreal in Mid 2006. Some supporters of The Body Shop believed that the deal could derail the initial ideals of going against animal screening, environmental concerns and the utilization of reasonable trade practices. Simply put it that the philanthropic obligations that are the strength of The Body Shop may be affected. Their concerns were not distant as L'Oreal was indeed involved with animal tests in the early 1980s. Some people saw the sale has an indication that Anita Roddick was going against her concepts. Currently, L'Oreal has taken care of that The Body Shop works as a separate entity within the same company and hence YOUR BODY Shop is constantly on the uphold its beliefs and beliefs. However, we cannot safely and securely say that such a posture will be taken care of in the foreseeable future.
It may seem to be that because of it's early on entrance into the whole idea of honest consumerism and corporate and business citizenry, and the pioneering of an extremely comprehensive Values Statement, done yearly, pulls us compared to that paradigm that The Body Shop is the model CSR company.
However, as evidently exhibited, YOUR BODY Shop has already established many troubles even trying to determine the 1st level of the pyramid- Monetary Responsibility. Interesting as it might seem, YOUR BODY Shop is in an exceedingly unique situation of being in a position to achieve the most notable level of the pyramid quite successfully, but not the first few levels. The opposite is true for numerous others. As the post-Anita Roddick command team under L'Oreal works at building this platform, of charting new course and performance targets of YOUR BODY Shop, only time will notify if the company can eventually be considered a role model for others to emulate- a model company with strong concentrate on CSR yet not diminishing on the bottom line.