THE BODY SHOP Question 1. Company mission, philosophy and goals: overall purpose of body shop, identifying its stakeholders and influence on the company. Outcome 1 Anita Roddick. Human Rights Activist. Founder of The Body Shop comments that :- “I just want The Body Shop to be the best, most breathlessly exciting company – and one that changes the way business is carried out. That is my vision. ” The Body Shop has just come out top in the 1991 UK Awards for Volunteering. Every employee can have half a day off a month, with pay, to do some voluntary service.
Anita Roddick says: “You educate people, especially young people by stirring their passions. So you take every opportunity to grab the imagination of your employees. You get them to feel they are doing something important. ” As for money, “l think its value is the spontaneity it gives you. There are too many exciting things to do with it right now to bother about piling it up The Body Shop Mission:- The Mission Statement of The Body Shop requires us to run our business in a way that balances economic, social and environmental needs.
As well as assessing ourselves against our Mission Statement we also ask for comment from those outside the business with whom we share common objectives. The beauty behind our business. What we do. Why we do it. How we do it. And what makes us different. We believe there is only one way to beautiful, nature’s way. We’ve believed this for years and still do. We constantly seek out wonderful natural ingredients from all four corners of the globe, and we bring you products bursting with effectiveness to enhance your natural beauty and express your unique personality.
And whilst we’re doing this, we always strive to protect this beautiful planet and the people who depend on it. We don’t do it this way because it’s fashionable. We do it because, to us, it’s the only way. In June 2008, The Body Shop International held a stakeholder panel review meeting. The aim of the panel was to invite NGO’s to comment on current social and environmental performance within the business and help shape the future of The Body Shop sustainable development agenda. Ethics:-
The Body Shop, which is the world’s second largest cosmetics franchise and has 2,400 stores in 61 countries, Its distinctive eco-friendly image – it was the first British cosmetics chain to introduce refillable bottles – has been preserved by L’Oreal and it continues to campaign for the rights of local producers. In June 2007, while announcing its deal with Daabon, The Body Shop called on manufacturers and retailers to follow its lead to help slow the drastic environmental and social effects of unsustainable production. “We have changed our entire soap range to be manufactured using palm oil from one of the leading sustainable plantations. orkers and the surrounding jungle is preserved. “Production impacts on the rights of indigenous populations, often creates poor labour conditions and has severe health implications for women working on the plantations,” it read. The Body Shop has a current commitment to community trade by seeking out small-scale farmers, traditional craftspeople, rural co-operatives and even tribal villages, according to the company’s website. “The Body Shop is committed to the defence of human rights and trading ethically, and works closely with suppliers to uphold our values.
We are aware of the allegations regarding land rights in Colombia and we are liaising with our suppliers in that region and monitoring the situation closely. ” OBJECTIVES Business Objectives Objectives give the business a clearly defined target. Plans can then be made to achieve these targets. This can motivate the employees. It also enables the business to measure the progress towards to its stated aims. The most effective business objectives meet the following criteria: S – Specific – objectives are aimed at what the business does, e. g. hotel might have an objective of filling 60% of its beds a night during October, an objective specific to that business. M – Measurable – the business can put a value to the objective, e. g. €10,000 in sales in the next half year of trading. A – Agreed by all those concerned in trying to achieve the objective. R – Realistic – the objective should be challenging, but it should also be able to be achieved by the resources available. T- Time specific – they have a time limit of when the objective should be achieved, e. g. by the end of the year. Stakeholders
The 2008 stakeholder panel consisted of representatives from the British Union for the Abolition of Vivisection (BUAV), Oxfam-UK, Traidcraft, and World Wildlife Fund (WWF) . The meeting was chaired by Gordon Roddick. The stakeholder panel focused on three key areas: – •Providing feedback on progress of The Body Shop against social and environmental objectives and recommendation made by the 2007 stakeholder panel •Discussion on the future 2008-2010 social and environmental targets of TBS •Reviewing the re-invigorated brand communication to be launched in August 2008
The overall opinion of the stakeholder panel was that The Body Shop business continues to be driven by values and not just commercial goals. The Body Shop is committed to taking a holistic view of its company and its social and environmental impacts. The Body Shop had performed well against its 2007/2008 targets; future targets for The Body Shop for the period 2008-2010 were deemed on standard but could be strengthened further, and the panel offered some suggestions for consideration.
All members of the stakeholder panel welcomed the opportunity to participate in the meeting and recognised it as an important example of corporate governance and mechanism for promoting transparency. The Chairman of the panel, Gordon Roddick, has endorsed the report of the panel and commented: ‘This was a brave and transparent process for The Body Shop to undertake. It stands alongside the best of The Body Shop in its determination to maintain its leadership in keeping the company truly reflective of its roots. ’
The aim of this report is to provide an outline of the stakeholder panel meeting and a summary of how The Body Shop has integrated recommendations made by its stakeholders into its sustainable development programme. Sustainable Ingredients, Raw Materials and Chemicals In 2007 the main achievements of The Body Shop included: •Sourcing sustainable palm oil for use in soaps. Manufacturing all soap from sustainable palm oil during 2008 •Further increasing the use of Forest Stewardship Council (FSC) wood across accessory and gift ranges •Introducing the first 100% recycled PET bottle
Against Animal Testing In 2007/2008 the main achievements of The Body Shop to support its commitment to end animal testing has focused on: •Commissioning an Independent Audit to assess performance against the Humane Cosmetics Standard (HCS) – in April 2008 The Body Shop achieved a ‘Gold Standard’ •Establishing a systematic process for ensuring that all raw materials used by The Body Shop meet the HCS requirements. This involved installing a new web-based database to enable formulators and other key staff to directly view the Against Animal Testing status of each raw material. Training the Quality Assurance team on the HCS and monitoring of the Against Animal Testing process •Ongoing dialogue with BUAV on relevant EU legislation Success The Body Shop was successful because: •All the products were created from natural ingredients. •None of the products were tested on animals. •The products were packaged in recyclable materials. •During that time people were recognising that they should be environmentally friendly. These aspects led to direct rivalry between themselves and department stores worldwide.
When her husband came home from America he helped launch several more shops and developed the business structure of the company. Responsibilities of Organisation There are four dimensions of corporate responsibility •Economic – responsibility to earn profit for owners •Legal – responsibility to comply with the law (society’s codification of right and wrong) •Ethical – not acting just for profit but doing what is right, just and fair •Voluntary and philanthropic – promoting human welfare and goodwill Strategy Taken and Market Share It is very clear in the beginning which path will Body Shop traverse.
The identity that it possesses is that its products are made for a cause, i. e. social and environmental justice, while of course, keeping that its products are marked with quality and excellence. According to the Body Shop Retail Sales report, the total sales worldwide boosted by 7% to ? 772 million (Body Shop International. With the growing market capacities of the Far East Asian region, international brands like Body Shop will definitely create big. It is reported that Body Shop stores in the Asia Pacific region, particularly in Southeast Asia, Hong Kong and Taiwan, increase its sales by 12% while operating profits to ? 9. 7 million (Geary, 2005). This only shows the variety of strategies that has to be taken by a multinational company in order to survive. If products fail in shops, then let the products be sold at home. Question 2. Evaluate the internal and external environmental factors impacting on body shop’s growth? Outcome 2 SWOT Analysis S -Strength W-Weakness O -Opportunities T -Threats Internal factors: Strengths: •Brand (name, image, ethics, values, natural ingredients) •Experience, financial backing and expertise of L’Oreal Weaknesses: Loss of trust from different stakeholders in the supply chain (publications in press) •Number of stores in the UK External factors: Opportunities: •Increased interest of men in their appearance (The ‘Metrosexual’ factor) •Increased awareness of organic and eco friendly products (89% avoid synthetic chemicals in personal care goods) Threats: •Slower distribution (because of the chemical legislation)•Unstable supplies of ingredients, materials and products. •New legislation banning animal tested products Bibliography “Body Shop Chief to Step Down. ” The New York Times, 13 May 1998.
Brock, Pope. “Anita Roddick. ” People Weekly, 10 May 1993. Davidson, Andrew. “Anita Roddick. ” Management Today, March 1996. Elmer-Dewitt, Philip. “Anita the Agitator. ” Time, 25 January 1993. Fallon, James. “Body Shop’s Operating Deficit Grows. ” WWD, 9 May 1997. Lee, Julian. “Body Shop Axes Top Global Role. ” Marketing, 31 July 1997. Masako Fukuda. “Cosmetics Put on a More Natural Face. ” Nikkei Weekly, 15 September 1997. Roell, Sophie. “US Headache as Boss Quits. ” Investors Chronicle, 13 February 1998. Wallace, Charles P. “Can the Body Shop Shape Up? ” Fortune, 15 April 1996.