The Body Shop : Societal Value

The Body Shop : Societal value in the store

Group members : • • • • • •

Vũ Thị Thùy Dương – BA070057 Hoàng Thị Thanh Huyền – BA070081 Phạm Ngô Diễm Ngọc – BA07 Tạ Thảo Phương – BA070116 Nguyễn Mai Phương Thảo – BA070145 Phạm Hoài Thu – Ba070153

Outline : • 1. Summary • 2. Answer 5 questions

Summary

Mission Statement Pursuit of social and environmental change Balance the financial and human need of stakeholders in a creative way Ecologically sustainable business, meeting the needs of the present without compromising the future Contributing to community by a code of conduct which ensures care, honesty, fairness and respect Protecting the environment, human and civil rights, and against animal testing within the cosmetics and toiletries industry Tireless work to narrow the gap between principle and practice, whilst making fun, passion and care part of our daily life

PROBLEMS Focus on the image of naturalness and heath VS Many products contain chemical substances

Fair Trade policy VS The Body Shop not a specialized organization

Aim to “clean up its own waste” VS In-store refills

Philanthrop -ic contribution s and employee volunteer activities VS Some manage to donate substantial amounts

Rule of animal testing and business ethics VS Not applied to medical ingredients

Not neglect business objectives and fun VS Not meeting the objectives fully

Question 1 : • Specify the means-end chain for a product of your choice from the Body Shop. For each level , indicate the problem solving and/or enrichment of meanings of this product.

What is means-end chain (MEC) ?!? • a means can be an end, an end can also be a means Save times and efforts On time delivery

Reliability

Social recognition

Preserving environment

Well -being Fund raising to Staying Alive Foundation

Refill packaging No animal testing

Ingredients imported from third world countries Naturally- based product

Tantalizing lip butter

Question 2: To what extent is the positioning of the Body Shop based on environmental & social claims ? Would other drugstore chains be advised to use these claims?

The Body Shop based on Social & Environmental claims. It may aim at 3 targets: 1.

Creating an ethical profile and using it as competitive advantage.( In fact, there are a lot of big companies which do bad things to gain benefits).

2.

Attracting customer and establish their trust by psychological impact ( Almost everyone want to be good person)

3.

By this way, brand can exist for a long time than another.

Should drugstore chains learn? •

 It’s a smart direction to extend. If you do the same as your claims, you will be great. Customer will love & be thankful to you. Competitors will envy but respect.

YES !

• However, it’s also a double-edged knife. You can easily lose customer’s trust if you cheat or have mistake. Be careful plz!

Question 4 : What could have been Anita Roddick ’s optimal response to the negative publicity about The Body Shop

+ The Body Shop's Trade Not Aid program: avoided exploiting native peoples and helped developing countries earn money selling renewable resources rather than destroying their habitat

N O I + Support two to three campaigns aC year for such causes as T A r i e AIDS education, t voter registration, and opposition to h By animal testing in the cosmetics industry.

• The Body Shop must be more honest and open to public about what they think, what they do, and what they want their customers to do. • The Body Shop may have encouraged criticism from others, because “if we make the mistakes, we must admit and try to fix them by any way” (Anita Roddick)

Question 5 : • At the beginning, The Body Shop’s employees were almost a big family. Nowadays, the company employs 5,000 employees. How does this change affect the possibility of meeting the company’s objectives ?

• 1. social responsibility • 2. naturally-based quality • The Body Shop (UK) is a global company with a number of branches worldwide (47 countries and 5,000 employees).

• 1998 Patrick Gournay became CEO. • The US business was owned by a non-director of The Body Shop • Expand company  more owners  conflict in benefit  difficult to implement company’s objective

What did they do? • In august 1998 the hemp products and related promotional material were seized by French police (marijuana-drug). • Using non-natural ingredients and petrochemicals. • Only little profit turnover to spend on social programs.

•Thanks for Listening !