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

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.. However, the bran

MINISTRY OF EDUCATION AND TRAINING

NATIONAL ECONOMICS UNIVERSITY

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BUSINESS ETHICS GROUP ASSIGNMENT

Lecturer: Nguyen Bich Ngoc

CASE STUDY: M.A.C Cosmetics and animal testing issue

Participants: Nguyen Khanh Minh

Nguyen Huong Giang Vu Thi Minh Khue Nguyen Mai Phuong

- 11224243 - 11221778 - 11223141

- 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

Nguyen Huong Giang Vu Thi Minh Khue Nguyen Mai Phuong

- 11224243 - 11221778 - 11223141

- 11225255

Class: International Business Management 64A

School of Advanced Education Programs (AEP)

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 cruelty-free 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 4

A M.A.C Cosmetics introduction 5

B M.A.C Cosmetic’s ethics issue: Animal testing 6

1 MAC Cosmetics’ animal testing controversy 6

2 Consumer Trends 7

3 China's requirements and MAC's Strategies for Penetrating the Populous Market 8 a China’s requirements 8

b MAC's Strategies for Penetrating the Populous Market 9

4 Other Evidence for MAC's Animal Testing 10

5 The reaction of public opinion and the action of MAC 13

5 Actions of MAC Cosmetics 16

6 Other issue 18

7 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.

B M.A.C Cosmetic’s ethics issue: Animal testing

1 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

2 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 cruelty-free 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 cruelty-free 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

3 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

To gain access to the Chinese market, companies must obtain a hygiene permit issued by the Chinese government, and these permits explicitly necessitate compliance with animal testing regulations Ken Marenus, the Senior Vice President of Research and Development at Estée Lauder Companies, explained that the Chinese government's testing requirements are a mandatory prerequisite for importing products

MAC's role within these government-run labs remains unclear, as they are not directly present during the testing process However, animal advocacy groups have raised grave concerns about the procedures, asserting that animals endure extreme suffering According to Kathy Guillermo, a senior vice president of PETA, “substances will be force-fed to the animals, smeared onto their [skin] and into their eyes” adding that “the bottom line is death” “MAC doesn’t test on animals,” Anna Klein, vice president of Global Corporate Affairs, Global Communications at Estée Lauder Companies (MAC’s parent company), tells Teen Vogue Technically, she’s right MAC employees are not testing on animals But the

company’s products are tested on animals — in China, in government labs, by government employees.

“The Chinese government requires you to get something called a hygiene permit to import

your products,” Ken Marenus, SVP of Research and Development at Estée Lauder Companies

b MAC's Strategies for Penetrating the Populous Market

MAC has the option to cater to its Chinese customers and include them in their market without resorting to animal testing if they exclusively focus on selling their cosmetics online This approach would allow them to ship products directly to customers in China without the need for animal testing, as cosmetics sold exclusively online are not subjected to such requirements However, MAC has made a deliberate choice to sell its products through physical stores in mainland China

By opting to have a presence in brick-and-mortar stores in mainland China, MAC willingly consents to and bears the cost of having their products tested on animals Consequently, like many other cosmetics brands selling in mainland China, MAC cannot be considered cruelty-free in 2023 due to their involvement in animal testing

Although MAC may not directly conduct these animal tests themselves, they are fully aware that Chinese authorities will test their products on animals as a prerequisite for selling them in the country This decision, made in order to gain access to the Chinese market, raises ethical concerns and is at odds with MAC's purported commitment to cruelty-free practices

MAC Cosmetic stores in China

4 Other Evidence for MAC's Animal Testing

One of the concerning aspects regarding MAC's cruelty-free status is its ownership by Estée Lauder, a parent company known for its involvement in animal testing Estée Lauder openly admits to conducting tests on animals when required by law, which undermines their claim to be a cruelty-free company even in the year 2023

Estee Lauder’s Cruelty-Free Claims

While MAC asserts on its website that they do not test on animals, they also make a notable statement acknowledging that "some governments conduct animal testing to prove safety before they will allow us to sell our products." This implies that MAC may indirectly participate in animal testing due to the regulatory requirements imposed by certain countries, including China

MAC talks about animal testing on their website

Another factor that raises doubts about MAC's cruelty-free status is the absence of certification from reputable third-party cruelty-free organizations such as Leaping Bunny or PETA These certifications provide independent verification and auditing of a brand's commitment to cruelty-free practices Without such certifications, MAC's claims of being cruelty-free rely solely on their own statements, leaving room for skepticism and the need for external validation

Criteria to determine cruelty-free product

The lack of third-party certification also limits consumers' ability to make informed choices and support brands that align with their values Without an external body substantiating and auditing MAC's cruelty-free commitments, consumers are left to navigate the ambiguity surrounding the brand's ethical practices on their own

Overall, the combination of MAC's ownership by Estée Lauder, their acknowledgment of the requirements of animal testing in certain countries, and the absence of third-party cruelty-free certifications all contribute to the uncertainty surrounding MAC's commitment to cruelty-free practices These factors give rise to valid concerns among consumers and animal rights advocates who seek transparency, accountability, and ethical alternatives in the cosmetics industry

5 The reaction of public opinion and the action of MAC

The revelation of MAC cosmetics' animal testing practices in 2012 sparked a significant backlash from consumers and animal rights activists This scandal contradicted the brand's claims of being cruelty-free and raised questions about its ethical standards Many people who were once loyal customers felt betrayed and outraged, leading to widespread calls for a boycott of MAC and other cosmetics companies that engage in animal testing

Social media platforms became a battleground for consumers to express their disappointment and frustration Hashtags and online campaigns were created to raise awareness about the issue and encourage others to join the boycott The power of social media amplified the voices of those who demanded change, forcing MAC cosmetics to confront the consequences of their actions

As the scandal unfolded, MAC's sales took a hit, as reported by Business Insider The negative publicity and consumer backlash had a tangible impact on the brand's bottom line In the face of declining sales and a tarnished reputation, MAC realized that it had to take immediate action to restore its image and regain the trust of its customer base

People present their opinion on twitter

Acknowledging the anger and disappointment expressed by consumers, MAC cosmetics publicly addressed the issue Terry Klein, a spokesperson for the company, acknowledged the consumer sentiment and urged people to trust their intentions “We understand that people are angry,” says Klein “We ask that they trust our intention, knowing that we are making a profit there, but we are also making progress.”

In response to the controversy, MAC announced a commitment to ending their animal testing practices and transitioning towards becoming a fully cruelty-free brand They recognized the need for significant changes in their testing policies and procedures MAC engaged with various animal rights organizations, including PETA and Leaping Bunny, to obtain certifications as a cruelty-free brand

To demonstrate their commitment to change, MAC introduced a range of "cruelty-free" products that had not undergone animal testing However, some consumers remained skeptical about the brand's sincerity and demanded more transparency and accountability