Business ethics group assignment case study m a c cosmetics and animal testing issue

MINISTRY OF EDUCATION AND TRAINING NATIONAL ECONOMICS UNIVERSITY -*** - BUSINESS ETHICS GROUP ASSIGNMENT Lecturer: Nguyen Bich Ngoc CASE STUDY: M.A.C Cosmetics and animal testing issue Participants: Nguyen Khanh Minh - 11224243 Nguyen Huong Giang - 11221778 Vu Thi Minh Khue - 11223141 Nguyen Mai Phuong - 11225255 Class: International Business Management 64A School of Advanced Education Programs (AEP) MINISTRY OF EDUCATION AND TRAINING NATIONAL ECONOMICS UNIVERSITY -*** - BUSINESS ETHICS GROUP ASSIGNMENT Lecturer: Nguyen Bich Ngoc CASE STUDY: M.A.C Cosmetics and animal testing issue Participants: Nguyen Khanh Minh - 11224243 Nguyen Huong Giang - 11221778 Vu Thi Minh Khue - 11223141 Nguyen Mai Phuong - 11225255 Class: International Business Management 64A School of Advanced Education Programs (AEP) This is a preview Do you want full access? 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Log in Abstract MAC Cosmetics is a renowned cosmetics brand that has gained international recognition for its extensive range of beauty products With a strong focus on innovation and quality, MAC has positioned itself as a leader in the industry However, the brand has faced significant scrutiny and backlash due to its involvement in animal testing practices The issue of animal testing has become a central point of contention for MAC Cosmetics Many consumers and animal rights activists have expressed their disapproval and concern over the brand's testing methods, leading to a decline in trust and reputation The controversy surrounding MAC's animal testing practices has had a detrimental impact on its image and sales MAC Cosmetics has faced significant challenges and criticism due to its involvement in animal testing However, the brand's commitment to phasing out such practices and investing in alternative testing methods demonstrates its determination to prioritize ethical and crueltyfree principles Through transparency and continued efforts, MAC can work towards regaining the trust and support of consumers who share the same values This document aims to address the predicament faced by MAC Cosmetics in relation to its involvement in animal testing It examines the impact of the controversy on the brand's reputation and sales, as well as the steps taken by MAC to overcome the issue and restore its credibility Table of contents Abstract .3 Table of contents A M.A.C Cosmetics introduction .5 B M.A.C Cosmetic’s ethics issue: Animal testing MAC Cosmetics’ animal testing controversy Consumer Trends China's requirements and MAC's Strategies for Penetrating the Populous Market a China’s requirements b MAC's Strategies for Penetrating the Populous Market Other Evidence for MAC's Animal Testing 10 The reaction of public opinion and the action of MAC 13 Actions of MAC Cosmetics 16 Other issue 18 M.A.C Cosmetic’s positive movement 20 a For animal testing 20 b For other issue 21 C Conclusion 25 Reference 26 A M.A.C Cosmetics introduction MAC Cosmetics, standing for "Make-up Art Cosmetics", founded in 1984 by Frank Angelo and Frank Toskan in Toronto, Canada, has become a prominent makeup brand renowned for its diverse range of products and commitment to inclusivity Currently owned by Estée Lauder Companies, MAC offers an extensive selection of makeup items, including lipsticks, foundations, eyeliners, eyeshadows, and more, catering to a wide array of skin tones and individual preferences One of MAC's notable features is its collaboration with numerous celebrities, such as Mariah Carey, Ariana Grande, and Nicki Minaj, allowing them to create unique and iconic makeup collections that capture their individual styles and personas MAC Cosmetics takes pride in being an inclusive brand that promotes diversity and equality They prioritize offering a comprehensive range of shades to cater to all skin tones, ensuring that everyone can find products that suit their unique beauty needs Additionally, the brand has implemented a recycling program, encouraging customers to return empty containers in exchange for free lipstick, highlighting their commitment to sustainability and environmental responsibility The brand's dedication to excellence has not gone unnoticed, as MAC Cosmetics was named the most popular cosmetic brand in the United States in 2019, according to a survey conducted by Statista Furthermore, MAC has received numerous prestigious awards, including the Allure Best of Beauty Award for Best Red Lipstick and the InStyle Best Beauty Buys Award for Best Foundation, showcasing their commitment to creating high-quality and innovative products This is a preview Do you want full access? 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Log in B M.A.C Cosmetic’s ethics issue: Animal testing MAC Cosmetics’ animal testing controversy The discovery of MAC Cosmetics' involvement in animal testing in 2012 caused a significant uproar among consumers and animal rights activists It shattered the perception that MAC was a cruelty-free brand, as it had claimed The revelation came to light thanks to the relentless efforts of dedicated animal rights activists who had been diligently investigating the practices of various cosmetics companies One organization that had been actively engaged in discussions with MAC Cosmetics regarding the issue of animal testing was PETA, known for its relentless advocacy for animal rights PETA had been in communication with MAC for an extended period, raising concerns about their testing practices and urging them to adopt alternative, cruelty-free methods In fact, PETA went so far as to explicitly warn MAC that if it did not take decisive action to end animal testing, it would be included on their list of companies that test on animals—a reputation that no cosmetic brand would desire The PETA website states that MAC Cosmetics is an animal testing company Consumer Trends The increasing awareness and consciousness among consumers regarding the products they use have significantly influenced their purchasing decisions, favoring cruelty-free brands As per a report published by Forbes, there has been a noticeable surge in the demand for crueltyfree cosmetics in recent years This trend highlights a growing shift in consumer preferences, with a greater emphasis on ethical and sustainable practices in the beauty industry The report reveals that an increasing number of companies are recognizing this consumer demand and opting to transition to non-animal testing methods This shift represents a significant milestone in the industry, as more and more brands align themselves with crueltyfree principles The adoption of alternative testing approaches, such as in vitro methods and advanced computer simulations, has allowed these companies to develop safe and effective products without resorting to animal experimentation The transformation towards cruelty-free cosmetics not only reflects the changing values and concerns of consumers but also signifies a broader movement towards a more compassionate and ethical approach in the beauty industry The rising number of companies embracing cruelty-free practices demonstrates a collective commitment to prioritize the well-being of animals while still delivering high-quality products to meet consumer expectations Source: Forbes China's requirements and MAC's Strategies for Penetrating the Populous Market a China’s requirements China, as one of the world's largest consumer markets, presents a lucrative opportunity for international brands seeking to expand their reach However, penetrating the Chinese market comes with a unique set of challenges and requirements One demand that poses a significant hurdle for cosmetics companies is China's mandate for animal testing In accordance with Chinese regulations, all cosmetics sold in the country must undergo animal testing This stringent requirement has become a major obstacle for companies striving to maintain a cruelty-free status, including MAC Cosmetics Despite MAC's commitment to avoiding animal testing within its own facilities, their products are subjected to testing in Chinese government laboratories, performed by government employees Source: Ethical Elephant the amount of packaging used in MAC's holiday gift sets has drawn criticism for its perceived excessiveness and lack of consideration for environmental sustainability This has prompted discussions about the importance of promoting eco-friendly initiatives, reducing plastic waste, and adopting more sustainable packaging solutions Overall, MAC Cosmetics has encountered criticism and controversy across various fronts, including inclusivity, cultural appropriation, and environmental impact These incidents have sparked important conversations about the brand's values, ethical practices, and the need for greater awareness, inclusivity, and sustainability in the beauty industry By addressing these concerns and taking proactive steps to address them, MAC can foster a more positive and inclusive brand image while aligning with the evolving expectations and values of their customers M.A.C Cosmetic’s positive movement a For animal testing MAC Cosmetics engages in regular communication with their customers and the public regarding their animal testing policies They understand the importance of transparency and have made efforts to educate their customers about the steps they are taking to phase out animal testing 20 This is a preview Do you want full access? 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Log in MAC actively participates in industry-wide initiatives, such as the "Leaping Bunny" program, which certifies companies as cruelty-free By obtaining this certification, MAC demonstrates their commitment to cruelty-free practices and provides assurance to consumers who prioritize ethical beauty products Furthermore, MAC Cosmetics supports legislative efforts to ban animal testing for cosmetics globally They understand the significance of regulatory changes in achieving their goal of eliminating animal testing Through their advocacy, MAC aims to create a more compassionate and ethical beauty industry Internally, MAC conducts regular reviews of their ingredients and suppliers to ensure compliance with their animal testing policies They have implemented a "Supplier Code of Conduct" that sets clear expectations for suppliers regarding animal welfare and ethical standards This demonstrates MAC's commitment to holding their suppliers accountable and ensuring the cruelty-free production of their products In summary, MAC Cosmetics has made significant commitments to phase out animal testing Through their investment in alternative testing methods, collaboration with stakeholders, transparency in their policies, and advocacy for legislative changes, MAC is actively working towards becoming a 100% cruelty-free brand Their efforts highlight their dedication to ethical practices and meeting the expectations of consumers who prioritize cruelty-free beauty products b For other issue Lack of inclusivity in product offerings MAC Cosmetics has taken steps to address the needs of customers who feel that their shade range is not inclusive enough, particularly for those with deeper skin tones They recognize the importance of inclusivity and have implemented several initiatives to represent a wide range of skin tones One of the ways MAC has addressed the issue is through collaborations with individuals who have darker skin tones For instance, in 2017, MAC collaborated with Taraji P Henson, an 21 This is a preview Do you want full access? 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Log in actress with a darker complexion to launch a limited-edition capsule collection that included products in shades that were suitable for deeper skin tones MAC has also improved the formulation of its products to cater to a broader range of skin tones They have upgraded their formulation technology to ensure that the shades are more inclusive, and they regularly introduce new foundation shades Furthermore, MAC's website provides a user-friendly shade finder tool that customers can use to find the right shades that suit their skin tone Additionally, MAC's makeup artists in stores and at counters are trained to find the right shades for customers based on their skin tone MAC is taking proactive steps to address the concerns and needs of customers who feel that their shade range is not inclusive enough They are consistently working towards improving their range, and by collaborating with celebrities and formulating new products, they are providing more options for people of all skin tones Controversial collaborations In 2017, MAC cosmetics collaborated with Jeffree Star, a controversial YouTube personality with a history of making racist and derogatory comments After the announcement of the partnership, MAC faced backlash from customers who demanded the cancellation of the collaboration with Jeffree Star In response, MAC released a statement acknowledging the concerns raised by customers and confirmed that they were reviewing the collaboration MAC stated that they not support individuals who demonstrate divisive behavior or who not align with their values on equality and inclusivity Ultimately, MAC decided to cancel the collaboration with Jeffree Star based on their commitment to diversity, inclusivity, and equality MAC Cosmetic's decision to cancel the collaboration was praised by many, demonstrating the company's commitment to ethical and socially responsible business practices MAC's response to concerns about their collaboration with Jeffree Star showed that the company takes issues related to diversity, inclusion, and equality seriously By reviewing the collaboration, listening to customer feedback, and 22 This is a preview Do you want full access? 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Log in making the responsible decision, MAC demonstrated its commitment to promoting a positive and inclusive brand image and protecting its reputation Accusations of cultural appropriation In 2015, MAC faced criticism from the Latino community for appropriating the Mexican holiday "Day of the Dead" for its makeup collection Many people found the products and theme offensive and culturally insensitive In response, MAC issued an apology and removed the images of the products from its website The company stated that it was not their intention to offend anyone and acknowledged their mistake In addition to this, MAC donated to a scholarship available to students of Latin-American and Caribbean backgrounds Similarly, MAC faced backlash in 2016 for the launch of its "Yash" lipstick, which allegedly appropriated the traditional Indian concept of "nude" Many people found the name to be offensive and accused MAC of being culturally insensitive In response, MAC apologized and changed the name of the product to "Persistence." They also released a statement acknowledging their mistake and committed to creating a more inclusive and culturally respectful brand Environmental impact of products and packaging MAC Cosmetics has demonstrated commitment to reducing the environmental impact of its products and packaging In 2018, MAC launched the "MAC Cosmetics Takeaway" program in the UK and Ireland to encourage customers to bring back their empty MAC product containers for recycling Customers who returned six empty MAC containers received a free MAC lipstick of their choice The program has been successful, and it has enabled MAC to recycle thousands of empty containers Similarly, in 2020, MAC introduced the "Back to MAC" program to promote responsible disposal of product packaging The program encourages customers to return their empty product containers to MAC and offers a free lipstick in exchange The company then recycles the empty containers to minimize waste 23 This is a preview Do you want full access? 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Log in MAC has also made efforts to introduce sustainable packaging options for its products Starting in 2019, MAC introduced a limited-edition holiday collection that featured packaging made from 100% recycled plastics Similarly, the launch of the "Studio Fix Fluid Foundation" was accompanied by the introduction of new refillable bottles to reduce packaging waste In conclusion, MAC has demonstrated a commitment to reducing the environmental impact of its products and packaging by implementing programs promoting responsible disposal of product containers, using recycled materials in packaging, and prioritizing sustainable and refillable packaging options MAC's initiatives exemplify its efforts to make an impact towards more sustainable and eco-friendly beauty practices 24 This is a preview Do you want full access? 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Log in C Conclusion Leading the cosmetics industry, MAC Cosmetics faces the immense responsibility of satisfying both shareholders and stakeholders Acknowledging past shortcomings, MAC has taken decisive actions to address ethical concerns, recognizing that competitiveness and cost management should not be their sole focus The company has been confronted with allegations of animal testing practices that have caused significant damage to its reputation However, MAC has demonstrated resilience and an unwavering commitment to win back the trust of its stakeholders through extensive corporate social responsibility efforts While there is still progressed to be made, MAC Cosmetics is receiving positive responses from the industry as it actively incorporates social responsibility into its operations The company has undergone strategic transformations, aligning its conduct and activities with ethical expectations and its own corporate culture By prioritizing environmental improvement, transparency, and the assurance of fair working conditions in its supply chain, MAC has managed to shift public opinion in a positive direction MAC's comprehensive range of initiatives and goals aimed at reducing or eliminating animal testing from their product lineup is a testament to their enduring commitment to ethical and cruelty-free values As a prominent global leader in the beauty sector, MAC sets an exemplary standard for other companies to follow, making significant strides towards the ultimate eradication of animal testing in the cosmetics arena With their unwavering dedication and influential position, MAC Cosmetics continues to shape the industry's future, where compassion and innovation go hand in hand 25 This is a preview Do you want full access? Go Premium and unlock all 27 pages Access to all documents Get Unlimited Downloads Improve your grades Upload Share your documents to unlock Free Trial Get 30 days of free Premium Already Premium? Log in Reference Matlin, J (2017c, July 7) MAC Is Finally Speaking Out Amid Criticism for Animal Testing Teen Vogue https://www.teenvogue.com/story/mac-animal-testing-chinacriticism Olukiran, T (2021, May 17) Is mac cruelty-free and vegan? allplants https://allplants.com/blog/lifestyle/is-mac-cruelty-free-and-vegan Cruelty-Free Kitty (2021, July 6) Is MAC Cruelty-Free? • Latest Cruelty-Free Kitty Update https://www.crueltyfreekitty.com/brands/mac/ De Vlaming, S (2023, March 8) Is MAC Cruelty-Free? Here's The Astounding Truth Beautymone https://beautymone.com/is-mac-cruelty-free/ Vy (2021) What’s Going On With China’s Animal Testing Laws in 2021 Ethical Elephant https://ethicalelephant.com/china-animal-testing-laws-2021/ Animal Testing (n.d.) MAC Cosmetics - Official Site https://www.maccosmetics.com/animaltesting Vy (2023) MAC (Estee Lauder) Ethical Elephant https://ethicalelephant.com/ismac-cruelty-free-vegan/ Peters, A (2020) MAC Cosmetics responds to allegations of racism from former staff Dazed https://www.dazeddigital.com/beauty/article/49505/1/mac-cosmeticsresponds-to-allegations-of-racism-from-former-staff Rebels, L (2015, November 1) The Day of the Dead Makeup Video M•A•C Cosmetics Doesn’t Want You to See Latino Rebels https://www.latinorebels.com/2015/11/01/the-day-of-the-dead-makeup-video-maccosmetics-doesnt-want-you-to-see/ 26 This is a preview Do you want full access? Go Premium and unlock all 27 pages Access to all documents Get Unlimited Downloads Improve your grades Upload Share your documents to unlock Free Trial Get 30 days of free Premium Already Premium? Log in 10 Abroad, V (2022) Is MAC Cosmetics Cruelty-Free and Vegan? The Vegan Abroad https://www.theveganabroadblog.com/is-mac-cosmetics-cruelty-free-and-vegan/ 11 Combs, T (2018, March 8) MAC Cosmetics Is No Longer Cruelty-Free - Logical Harmony Logical Harmony https://logicalharmony.net/mac-cosmetics-is-no-longercruelty-free/ 12 Animal Testing (n.d.-b) https://www.elcompanies.com/en/ourcommitments/viewpoints/animal-testing 13 Is M.A.C Cosmetics (Estee Lauder) Cruelty-Free? | PETA (2020, June 18) Beauty Without Bunnies https://crueltyfree.peta.org/company/mac-cosmetics-estee-lauder/ 14 Pham, J (2018, November 4) StyleCaster StyleCaster https://stylecaster.com/beauty/makeup/706800/sia-mac-cosmetics-collaborationanimal-testing-criticism/ 15 Banker, S (2021, October 5) Do Consumers Care About Ethical Sourcing? Forbes https://www.forbes.com/sites/stevebanker/2021/10/05/do-consumers-care-about-ethicalsourcing/?sh=760683ac5f50 16 Admin (2021) Cosmetics that are ‘Made in China’ — Require Animal Testing by Law? Ethical Elephant https://ethicalelephant.com/china-animal-testing-laws-cosmetics-madechina-vs-sold-china/ 17 Alternatives to animal testing | Cruelty Free International (n.d.) https://crueltyfreeinternational.org/about-animal-testing/alternatives-animal-testing 18 Radi, S (2023) Public Awareness of the Impact of Animal Testing in the Cosmetic Industry IntechOpen https://doi.org/10.5772/intechopen.1001088 27