Reported by: Maria Aleni B.

Verallo MBM II

Company Background:
The Body Shop was founded in 1976 in Brighton, UK by Anita Roddick The business concept revolutionized the cosmetics industry

The image of Glamour and Beauty was changed Made use of natural exotic products to cleanse and polish the skin and hair Promoted a new movement by refusing animal testing and being environmentally friendly

Products:
The Body Shops product differentiation strategy goes back to the core values of the company: Use of natural ingredients from all over the world Good image of the company considering ethical and social issues Support sustainable economy

Core Values
The Body Shop and I have always been closely identified in the
public mind. Today, it is impossible to separate the company values from the issues that I care passionately about social responsibility, respect for human rights, the environment and animal protection, and an absolute belief in Community Trade. But The Body Shop is not, and nor was ever, a one-woman-show its a global operation with thousands of people working towards common goals and sharing common values. Thats what has given it a campaigning and commercial strength and continues to set it apart from mainstream business. --- Anita Roddick

The Body Shop created five core Values. These values act as a practical guide to decision making at all levels of the company, helping them to ensure that their profits are made with principles.

Ethical Issues:
The

business of business should not just be about money, it should be about responsibility. It should be about public good, not private greed --Anita Roddick Against Animal Testing This used to be a big issue in the cosmetic industry They have never tested their products on animals All their suppliers had to sign a statement guaranteeing that they had not done Animal Testing for the previous years. The European Union banned animal testing for finished cosmetic products in 2004, and for ingredients

Ethical Issues:
Body Shop isnt going to make them financially rich but it does enable them to maintain their chosen way of life through co-operation to achieve

autonomy.
-- Anita Roddick

Support Community Trade:

Made sure that suppliers sign up in their code of conduct Over 250,000 people profit from their community trade program Fair trade : Fair trade is an organized social movement that aims to help producers in developing countries to make better trading conditions and promote sustainability. It advocates the payment of a higher

Ethical Issues:
Activate

Self Esteem

Beauty is about well being and self esteem

Celebrate diversity and emphasize well being and comfort Create positive messages on womens rights

Ethical Issues:

Defend Human Rights:

HIV/ Aids Campaign Fight against human trafficking

Environmental Issues:
Protect

the planet

Minimize waste and resource use Minimize the contribution to Climate Change Support environmentally responsible materials and technologies

Environmental Issues:

Historical reasons:
1960s Anita Roddick
United Nations Researcher
Field expeditions Use of logically grown plants and extras (e.g. rice grains, jojoba oil)

Business concept is based on using natural resources and being in harmony with the environment

Examples:

Climate Change:

In 2001, joint campaign with Greenpeace helped highlighting the importance of renewable energy in the fight against global warming Reduction of Carbon Dioxide emissions:
90% of car fleet are hybrid by the end of 2008

Minimizing Waste

Reduce, Reuse, Recycle

Avoid excess packaging Use sustainable raw ingredients(e.g. plastic bottles from 100% recycled materials, 100% recyclable carrier paper bags Renewable resources

Examples:

Use of environmentally responsible materials

Examples:

Use of environmentally responsible materials:

Palm oil In 2007, there was a change of the entire soap range to be manufactures using palm oil from one of the leading sustainable plantations in Colombia One of the first retailers to join the Roundtable on Sustainable Palm Oil The plantations are visited to ensure the protection and welfare of communities, workers and the surrounding jungle is preserved and

Charitable Foundation

The Body Shop Foundation was launched in 1990 (registered charity no. 802757). It gives financial support to pioneering, frontline organizations that otherwise have little hope of conventional funding. The Foundation's focus is to assist those working to achieve progress in the areas of human and civil rights, environmental and animal protection.

 The original Body Shop was a series of brilliant accidents. It had a great smell, it had a funky name. It was positioned between two funeral parlours--that always caused controversy. It was incredibly sensuous. It was 1976, the year of the heat wave, so there was a lot of flesh around. We knew about storytelling then, so all the products had stories. We recycled everything, not because we were environmentally friendly, but because we didnt have enough bottles. It was a good idea. What was unique about it, with no intent at all, no marketing nous, was that it translated across cultures, across geographical barriers and social structures. It wasnt a sophisticated plan, it just

Anita Roddick:

She

opened her first shop primarily to make an income for herself and her daughters while her husband is away to fulfill a lifelong dream of riding on horseback from Buenos Aires to New York City.

Anita Roddick : Early Life

Grew up working in the family

owned caf in Littlehampton, West Sussex

Taught briefly in a local elementary school before accepting a position as a library researcher for the International Herald Tribune in Paris.

Moved to Geneva, where she joined the United Nations International Labor Organization to work with issues of Third

World womens rights

Anita Roddick: Early Life

She traveled extensively and

experienced different cultures

In her travels, she developed a

fascination for the simplicity and effectiveness of the beauty

practices of women she encountered.

Returning to England, she met Gordon Roddick, a Scots poet and adventurer who shared her love of travel. After two daughters they decided to settle down and convert a

Victorian house in Brighton into a hotel.

Anita Roddick: The Entrepreneur

Roddick first saw a shop in Berkeley, CA called The Body Shop in the early 1970s She opened her first Body Shop in 1976 along side with a local herbalist, she prepared the first product batches on her kitchen stove and packaged them in the cheapest containers she could find - urine sample bottles.

Anita Roddick: The Entrepreneur

Roddick gradually developed a loyal clientele. Some found the natural products less irritating to sensitive skin; others

liked their novel aromas and textures; and many just enjoyed
the relaxed, honest shop environment.

By April 1977, first franchises were granted By 1978, the first franchisee outside UK opened in Belgium. By April 1984 The Body Shop goes public on U.K. unlisted

securities market

Anita Roddick: Early Activism

1985 - Stop the dumping of toxic waste in North Sea, Greenpeace 1986 - Campaign against whaling of sperm whales, Greenpeace 1987 - Acid Rain pollution, Friends of the Earth 1987 - Published first 'Green' Diary, Friends of the Earth 1980s - Against Animal Testing for cosmetics, collected 4 million signatures through shops 1990 - The Body Shop Foundation set-up. Over first 6 years of operation donated more than 3.5 million

Anita Roddick: Campaigns

2001 - present - Challenging Globalization/Free Trade agenda of WTO, Trade Justice Coalition 2001 - present - Sweatshop Labor and workers' rights in Free Trade Zones, National Labour Committee 2001 - present - Free the Angola Three 2001 - 2002 - Positive Energy Campaign with Greenpeace 2003- present - Help Stop Violence in the Home Domestic Violence Campaign with Refuge (the UKs largest single provider of accommodation and

Anita Roddick: Awards

1984 - Veuve Clicquot Business Woman of the Year 1988 - OBE - Order of the British Empire 1991 - Center for World Development Education's World Vision Award, USA 1993 - Banksia Foundation's Australia Environmental Award 1993 - Mexican Environmental Achiever Award 1993 - National Audubon Society Medal, USA 1994 - Botwinick Prize in Business Ethics, USA 1994 - University of Michigan's Annual Business Leadership Award, USA 1995 - Women's Business Development Center's First Annual Woman Power Award, USA 1996 - Women's Center's Leadership Award, USA 1996 - The Gleitsman Foundation's Award of Achievement, USA 1997 - United Nations Environment Programme (UNEP), Honouree, Eyes on the Environment 1999 - British Environment & Media Award 1999 - Chief Wiper-Away of Ogoni Tears, Movement for the Survival of the Ogoni People, Nigeria 2001 - International Peace Prayer Day Organisation's Woman of Peace 2003 - DBE (Dame Commander of the British Empire)

Anita Roddick on selling The Body Shop to Loreal:

I think its an obscenity dying rich and I dont want to be defined by business; after all, were only remembered for what we do in civil society.

Anita Roddick (1942-2007)

Roddick died of acute brain hemorrhage at about 6:30 p.m. on 10 September 2007, after being admitted to St Richard's Hospital, Chichester. The previous evening she suffered from a severe headache. She fulfilled her promise to leave her estate to charities, on moral grounds.

The Body Shop Approach:

The Body Shop Approach:

Challenges:

Entry in the U.S. Market posed some challenges in The Body Shop such as:
Environmental concern has been less of a public issue in the United States during the 1980s. It was hard to recruit staff to embraced Body Shop values and could fit into the organization FDA and various city regulations Many questioned whether The Body Shops resistance to advertising would limit growth in the communications intensive U.S. Market

Controversies:

The September 1994 investigative article "Shattered Image: Is The Body Shop Too Good to Be True?," written by Jon Entine and published in Business Ethics magazine Entine reported that Anita Roddick, founder of Body Shop International (BSI) in the UK, had stolen the name, store design, marketing concept and most product line ideas from The Body Shop founded in 1970 in Berkeley, California by Peggy Short and Jane Saunders who started the French-style perfume store, where customers could do their own blending. Entine reported that Roddick subsequently fabricated her story of traveling around the world discovering exotic beauty ingredients. In 1989, Roddick purchased the U.S. and Israeli rights to The Body Shop name, and the Berkeley-based chain of five stores renamed itself Body Time.

Controversies:
He reported that Roddick's "natural" products contained extensive amounts of artificial colourings, scents and preservatives. Despite Roddick's unsubstantiated claims and inaccurate reports in popular articles and even some university case studies that Roddick's The Body Shop "gave most of its profits to charity", documents from Britain's Charity Commission showed that Roddick's company gave nothing to charity over its first 11 years and was penurious in its philanthropy thereafter. The Body Shop also faced millions of dollars in claims by disenchanted franchisees, who believed they had been mis-sold franchises.

Controversies:

Entine referred to The Body Shop's marketing as "greenwashing," which was one of the first uses of that term. The article in Business Ethics (now defunct), which was cited with a National Press Club Award for Consumer Journalism in 1994, is still widely used in university business ethics classes and is generally credited with prompting companies claiming to be socially responsible to match their claims with operational practices and to increase transparency.

Present Status:
The Body Shop International now has 1,200 products in 2,500 stores in 61 countries.

Ms. Sophie Gasperment has been the Chief Executive Officer of The Body Shop International since June

Conclusion:

The Body Shop International is shaped from the personal values of Anita Roddick. The Body Shop through Anita Roddicks commitment to corporate social responsibility redefined how business can be about the public good. Through Anita Roddicks involvement in certain ethical, political and environmental issues, The Body Shop had not gone unnoticed and were able to reach their market, the green

Thank you !