(Tiểu luận) corporate social responsibility reportcase study the body shop

MINISTRY OF EDUCATION AND TRAINING

HO CHI MINH CITY OPEN UNIVERSITY

CORPORATE SOCIAL RESPONSIBILITY REPORT

CASE STUDY: THE BODY SHOP

PhD: Van Thi Hong Loan

Students: 2154010280 – Pham Quang Huy 2154010443 – Nguyen Le Duy Long

2154010307 – Le Thi My Huong 2154013018 – Le Thi Hien Luong

HO CHI MINH, 19 DECEMBER, 2023TH

TABLE OF CONTENTS

I ABSTRACT 1

II INTRODUCTION 1

1 Overall view of “Social entrepreneurship” 1

2 The Body Shop International Limited’s Background 1

III.CSR ISSUES 3

1 Allegedly using ingredients tested on animals 3

2 Having trouble with balance sheet 3

3 The Body Shop was called for a boycott after being sold to L’Oréal 4

VI.GROUP’S OPINION 7

VII PRACTICAL ISSUES RELATED TO THE CASE 9

VIII QUESTIONS OF CASE STUDY 10

IX.REFERENCE

The Body Shop is a cosmetics and skin care brand from the UK The brand is known for its products made from natural ingredients and its commitment to community service In this case, The Body Shop encountered a number of CSR issues that affected the reputation of the brand and its stakeholders Since then, The Body Shop has come up with strategies to solve the problems they encounter.

1 Overall view of “Social entrepreneurship”

A business and management discipline that focuses on using business approaches to tackle social and environmental issues Owners of social enterprises, known as social entrepreneurs, seek to generate both social and environmental value as well as financial profits.

Social enterprises frequently address topics such as poverty reduction, education, health care, the environment, and other social concerns It is critical that they evaluate not only commercial earnings but also their beneficial impact on the community and the environment when measuring their success.

Social entrepreneurship typically entails activities such as developing products and services with a social impact, improving opportunities for local communities, employing innovative business models to solve social problems, and frequently collaborating with non-profit organizations and governments to achieve larger social goals.

2 The Body Shop International Limited’s Background

Established in 1976 It began with founder, Anita Roddick, opening a little green shop in Brighton with a belief in something revolutionary: that business could be a force for good For this objective, The Body Shop has maintained this value in their

product for over 40 years All their products show how company care about the environment, social issues

The Body Shop has a long history of advocacy, dating back to 1986 Anita collaborated with Greenpeace on the Save the Whales campaign to end the brutal practice of whaling by promoting oil jojoba as a replacement for sperm whale oil, which was widely used in cosmetics at the time They began to expand They started because they wanted to continue Today, they are a trusted global brand with decades of successful operations, and they are uniquely positioned to voice the concerns and wants of millions of customers to authorities around the world, to ensure enduring beneficial change.

Furthermore, The Body Shop has always been a pioneer in establishing initiatives to demonstrate its social responsibility, such as Action for Change, Love Yourself Campaign, Against Animal Testing, Building a Biological Bridge, and many other campaigns, from its inception to the present All of these programs are being launched in accordance with the founder's initial idea, Dame Anita Roddick, that “Business shapes the world It is capable of changing society in almost any way you can imagine.”

The Body Shop's "Action for Change" campaign is more than just a product promotion; it is also a strong commitment to social and environmental principles The "Love Yourself" campaign focuses on the value of self-care and self-respect The "Against Animal Testing" campaign is more than just a commercial purpose; it is also a statement against animal cruelty in product testing.

Furthermore, the "Building Biological Bridges" campaign emphasizes The Body Shop's dedication to environmental conservation and the development of projects that benefit the biosphere All of these initiatives are more than just marketing campaigns; they are a significant component of their global mission to effect positive change in society and the environment These campaigns demonstrate The Body Shop's enduring influence and strong commitment to social responsibility and environmental protection.

Too long to read onyour phone? Save

to read later on your computer

Save to a Studylist

The Body Shop has always been more than a beauty brand thanks to Anita's love for the environment and advocacy for causes It has a goal - profit and ethics functioning in tandem Their items were never tested on animals and were not created by exploiting anyone Through their Community Fair Trade initiative, they worked fairly with farmers and suppliers while also assisting communities to grow Today, more and more firms are following in their footsteps

III.CSR ISSUES

1 Allegedly using ingredients tested on animals

Before being sued

The Body Shop made a promise: We are as committed today to our Against Animal Testing policy as we ever were And that’s guaranteed None of our suppliers’ sources of ingredients that are used in our products have been tested or re-tested on animals for cosmetics purposes since 31st December 1990.

After being sued

In 1989, The Body Shop switched from “not tested on animals” to “against animal testing” labeling after a lawsuit by the German government The lawsuit claimed that The Body Shop labeling was misleading, since their products’ ingredients may have been tested on animals

2 Having trouble with balance sheet

Beyond balance-sheet problem, the company that likes to insist it puts principles before profits has been buffeted for years by allegations

Roddick angrily denies, that it has misled the public about everything

She decided to sell The Body Shop to L’Oreal in 2006 for £652 million (from which, she received a net £130 million) and her death in 2007

3 The Body Shop was called for a boycott after being sold to L’Oréal

L’Oréal claims to have stopped testing finished products on animals since 1989, but activists argue that ingredients are still not monitored.

Ruth Rosselson, at Ethical Consumer Magazine, said: “I for one will certainly not be shopping at The Body Shop again L’Oréal has yet to show its commitment to any ethical issues at all.”

Boycotts from animal protection groups because activists argued that the ingredients in L'Oréal products remain unsupervised.

1 Key stakeholders:

a) Owners: As of the time in the L'Oréal case study, L'Oréal is the owner of The

Body Shop During a period when The Body Shop faced financial constraints, the decision to sell to a new owner who had previously tested on animals also had implications for the commitment to cruelty-free practices for both brands The sale had an impact on the two brands' pledge against animal testing.

b) Founders: Dame Anita Roddick is the founder of The Body Shop The

decision to change the label from "not tested on animals" to "against animal testing" during the sale to L'Oréal affected her reputation and public trust There were significant contradictions with Dame Anita Roddick's initial commitment made at the inception of the company.

c) CEOs: In each era, different CEOs with different goals would lead The Body

Shop CEOs would face significant pressure from shareholders and the business community in addressing the issues outlined in the case study The goals and challenges would vary under different leadership, and CEOs would need to navigate these pressures to resolve the issues at hand.

2 Others:

a) Customers: they have strong action that boycotted the brand, the result

Roddick have to sell the company to L’ORÉAL.

b) Competitors: Competitors use The Body Shop's distinction, and social

entrepreneurship, to create a competitive similarity for themselves This decreases the Body Shop's campaign competition

c) L’ORÉAL: Following the challenges that the Body Shop had encountered,

held and took over the activities of the Body Shop

V.STRATEGY & TACTICS and SWOT analysis1 Strategy:

The Body Shop was claimed to become a global brand by taking a more ethical approach to business, such as using recycled packaging and natural ingredients that were not tested on animals.

2 Tactics:

Against corporate conventions and what is perceived as the beauty industry'sfrustrating demands on women.

 When you buy a Body Shop product, you help to improve the lives of women in poor countries, support animal rights, safeguard the environment, and boost the supply of social responsibility.

The problem that the company concentrated on campaigning against was theexploitation of animals in the testing of human beauty items.

 The use of animals to test cosmetics and toiletries products and ingredients continues around the world today.

 It is estimated that over 35,000 animals are used in cosmetics tests every year throughout the European Union alone.

 In some cases the tests can cause suffering and even death

 The Body Shop believes cosmetics testing on animals is unethical, unnecessary

and should be banned

Since December 31, 1990, none of our suppliers' sources of materials utilizedin the company's goods have been tested or re-tested on animals for cosmeticspurposes.

 Although The Body Shop may not itself use ingredients that have been tested on animals, or even source from companies that have tested on animals, the firm clearly continues to benefit from the knowledge gained by others who have previously used animals to test the same ingredients and ensure they are safe for human use

The Body Shop switched from “not tested on animals” to “against animaltesting” labeling

 The lawsuit of the German government claimed that Body Shop labeling was misleading, since their products’ ingredients may have been tested on animals.

3 SWOT analysis

Declaration of in carrying out tasks for society and community The Body Shop demonstrates to users that they are a social business, that they do not use animal-tested substances, that they are anti-animal testing techniques, and that they are a company that enhances the lives of women in an impoverished country.

Changing the label from "not tested on animals" to "against animal testing" sparked concerns about the company's commitment to transparency.

Although they do not utilize items that have been tested on animals, they do use the knowledge that other companies have It makes the organization depend on suppliers.

Change packaging, use recyclable products Increasing consumer environmental awareness and assisting the Body Shop in improving its image as a social enterprise in the eyes of consumers

Packaging should be changed, and recyclable products should be used Increasing consumer environmental awareness and assisting the Body Shop in improving its image as a social enterprise in the eyes of consumers

A lawsuit from the German government over product labels has affected the brand's reputation The larger the beauty industry market, the more companies have ways of implementing social responsibility like the body shop, which greatly affects the brand position in the minds of customers.

For summary, the Body Shop's business will be an effective instrument in tackling competitors' shortcomings and threats At the same time, when forming the company, the Body Shop must consistancely describe and actions its position as committed For example, extending wildlife protection services, altering the way product ingredients are checked, and so on.

VI.GROUP’S OPINION

Issue 1: Allegedly using ingredients tested on animals

The Body Shop’s Solution

 It was changed from “No Animal Testing” to “Anti-Animal Testing” due to being sued by the German Government.

Group’s opinion:

 Research new testing methods

 Do not cooperate with suppliers of ingredients tested on animals

Issue 2: Having trouble with balance sheet

The Body Shop’s solution

 Roddick angrily denies

 Sell The Body Shop to L’Oreal in 2006 for £652 million

Group’s opinion:

 Don’t agree with this action

 Selling TBS to another company is not wrong, but Roddick sold it to L'oreal - a company that is also being suspected of testing its products on animals This makes TBS even more boycotted

 Roddick should TBS to Lush - A famous British cosmetic brand specializing in skin, body, hair, oral care, etc Because Lush does not test products on animals In the 1980s, the founder of Lush read articles about Anita Roddick, and the two collaborated.

Issue 3: The Body Shop was called for a boycott after being sold to L’Oréal

The Body Shop’s Solution:

 L’Oréal claims to have stopped testing finished products on animals since 1989, but activists argue that ingredients are still not monitored.

 Ruth Rosselson, at Ethical Consumer Magazine, said: “I for one will certainly not be shopping at Body Shop again.”

Group’s opinion:

 L'oreal is forced to make a commitment and take real action on not testing products on animals (This could be holding a press conference, or making the testing process public).

VII.PRACTICAL ISSUES RELATED TO THE CASE

Sapa O’ Chau tourism company limited

Sapa O' Chau was founded by Shu Tan, a Hmong man who grew up in a poor village Officially established in 2013 and until now, Sapa O' Chau Travel is the only tour operator in Vietnam that is officially registered as a social enterprise.

Sapa O' Chau's principle is a social enterprise: work hard and contribute to Sapa and all ethnic minorities It is made up of five inter-connected pieces: the boarding facility, the hotel, coffee shop, the Hmong handicraft store and the tour operation.

Mission is to promote learning, provide sustainable employment, and empower our community.

These actions help their society:

 Training and creating jobs for ethnic minority youth in Sa Pa, helping them have a stable income and improve their lives.

 Protect and promote the diverse culture of ethnic minorities, respect and cooperate with local communities.

 Implement sustainable tourism, minimize negative impacts on the environment and raise awareness about nature protection.

 Support other social projects, such as building schools, providing clean water, giving gifts to poor children.

Social enterprise KOTO

KOTO was founded in 1999, with the vision "Through the power of the social enterprise model to help disadvantaged and vulnerable children change their lives, confidently enter life", and carry the mission “Equip disadvantaged and vulnerable children with life skills, vocational training and provide opportunities so they can continue to build their own futures.”

In 1999, starting from a sandwich shop, creating jobs for 9 homeless children As a non-profit enterprise, KOTO uses revenue to directly invest back into training programs instead of paying dividends to shareholders like traditional business forms.

Profits extracted from the revenue of social enterprise activities are reinvested in training programs.

VIII.QUESTIONS OF CASE STUDY

1 What is your definition of a social entrepreneur? How is it different from aregular entrepreneur? Is this something that you see yourself becoming?