Case by Martin Ryan ISSUE A case study in http://www.europassedizioni.it http://www.principato.it e-mail: info@principato.it 183592 study per le Lingue comunitarie 1 ethical marketing The Body Shop Linked to... From the moment of its foundation by Anita Roddick, The Body Shop has always stressed the importance of ethical behaviour in every aspect of marketing its products. This emphasis has given the company a distinctive image and made it a pioneer in the world of business. Company profile A Pioneer of Business Company values Responsibility page 2 page 4 Core value 2 Protect Our Planet page 6 Core value 1 Support Community Trade Company founder Anita Roddick page 3 page 5 Core value 3 Activate Self-Esteem Core value 4 Oppose Animal Testing page 7 Core value 5 Defend Human Rights page 8 Case study Company profile A Pioneer of Business Three branches of The Body Shop in China, the United States and Canada. Exercises The Body Shop International is a global manufacturer and retailer of naturally inspired, ethically produced beauty and cosmetics products. Anita Roddick opened the very first The Body Shop store in 1976 in Brighton, on the south coast of England. There are now over 2,500 stores in over 60 countries with a range of over 1,200 products, including new markets in India, Pakistan, Namibia, Poland, Slovakia and Egypt. As well as selling products through their stores, the company also has e-commerce websites for online shopping 1. Read the information and fill in the table. in the UK , the USA , Canada, Australia, Korea and Japan. The Body Shop owns Soapworks, a soap factory based in Glasgow, Scotland, which represents the only manufacturing facility in the Company. Otherwise all other product manufacturing is outsourced. The firm has its own charity, The Body Shop Foundation. Launched in 1990, The Foundation gives financial support to organisations working to achieve progress in the areas of human and civil rights, environmental and animal protection. founder of the company present owner age of company original store 2. Answer the questions. 1. Do you know any Body Shop stores in Italy? 2. What kind of products do these shops sell? 3. Have you ever visited The Body Shop? 2 total number of stores presence in the world charity purpose of charity reason for firm’s distinctive image The Body Shop became part of the L’Oréal Group in 2006. L’Oréal is listed on the Paris Stock Exchange. However The Body Shop operates as a distinct entity, with its own Board and Executive Committee, within the L’Oréal Group. From the moment of its foundation by Anita Roddick the company has always stressed the importance of ethical behaviour in every aspect of marketing its products. This emphasis has given The Body Shop a distinctive image and made it a pioneer in the world of business. The Body Shop Company founder Anita Roddick Anita Roddick in front of her first shop. Anita Roddick shows Princess Diana some of the ingredients of Body Shop cosmetics in 1986. Exercises 1942 Born Anita Perilli in Littlehampton, near London; family had left Naples just before World War 2; mother had a cafe where Anita worked 1960s After leaving school does a variety of jobs and travels the world, including the Pacific islands, Australia, Africa 1970 Marries Gordon Roddick; they run a restaurant and small hotel; they have two daughters 1973 Finds inspiration after visiting a shop in San Francisco called “The Body Shop”, selling natural soaps and lotions 1976 Opens her own Body Shop in Brighton; only 15 products, invented using ingredients she had seen on her travels 1976-1984 Body Shop becomes instantly popular and grows rapidly, 50% per year; opens new branches in England 1984 Body Shop becomes a public company, listed on London Stock Exchange; using franchises, company spreads all over Britain and then abroad late 1980s Begins a series of social and environmental campaigns; creates an alliance with Greenpeace to save the whale; Body Shop stores sponsor local charities and community events 1990s Body Shop continues its expansion around the world; Anita becomes a controversial critic of business practices and, in particular, the cosmetics industry; important campaigns in favour of fair trade (“Trade not aid”) and women’s rights 2003 Retires as head of company; honoured by the Queen, Anita becomes Dame Anita Roddick 2006 Body Shop sold to L’Oréal for £652 million 2007 Anita dies; she had contracted hepatitis C following a blood transfusion in 1971; Prime Minister calls her “one of the country’s true pioneers” 3. Use the information in the table to prepare “A short history of The Body Shop”. 3 Case study Company values Responsibility “The business of business should not just be about money, it should be about responsibility. It should be about public good, .” not private greed AVIDITÀ Some of the causes that The Body Shop has supported. k c i d d o R a t i n A Anita Roddick believed that businesses have the power to do good. When she founded The Body Shop, she drew up a mission statement so that the new business would have a powerful sense of its own identity and the direction it should follow. Mission Statement of The Body Shop Our reason for being is to: – 1_______________ our business to social and environmental change. – 2_______________ the financial and human needs of our employees, customers, franchisees, suppliers and shareholders. – 3_______________ that our business is ecologically sustainable meeting the needs of the present SOSTENIBILE without compromising the future. – 4_______________ to local, national and international communities in which we trade by adopting a code of conduct which ensures care, honesty, fairness and respect. – 5_______________ for the protection of the environment, to defend human rights, and against animal AMBIENTE testing within the cosmetics industry. In order to make sure that the business continues to live by this Mission Statement, The Body Shop has created five core values. These values act as a practical guide to decision making at all levels of the company, helping to ensure that profits are made with principles. Core value 1 Support Community Trade Exercises Core value 2 Protect Our Planet Core value 3 Activate Self-Esteem AUTOSTIMA Core value 4 Oppose Animal Testing Core value 5 Defend Human Rights 4. Read the Mission Statement and choose the correct verb to fill in each space (1-5). Balance • Campaign • Contribute • Dedicate • Ensure 5. Answer the questions. 4 1. Why did Anita Roddick write a mission statement for her new company? 2. What is the purpose of the company’s five core values? 3. What kind of policies do you think each of the five core values would inspire the company to follow? The Body Shop Core value 1 Support Community Trade India, women collecting tea leaves. The Body Shop is committed to using responsibly sourced ingredients wherever possible, and working with the communities and people who supply these goods. The company asks all their suppliers to sign the Code of Conduct based on their Ethical Trade Programme, developed to improve conditions for all workers in the supply chain and to defend their human rights. This code is strictly enforced and monitored to ensure standards are met regarding child labour, discrimination, Exercises and employee pay, hours and working conditions. In 1987, The Body Shop launched Community Fair Trade. This was one of the first examples in the world of fair trade. Community Fair Trade has numerous benefits for the company, its customers and its suppliers. Building up long term trading relationships, the company does more than give a fair price. It offers suppliers, especially poor farmers in Third World countries, a predictable and regular income for their family and the security and confidence to develop their businesses. In turn The Body Shop has access to some of nature’s finest ingredients, which are grown by expert local farmers. Other products are made using old-established techniques, helping to preserve a traditional way of life. Community Fair Trade allows suppliers to build better futures for themselves and their communities. The programme benefits over 25,000 people in 22 countries worldwide. 6. Read the information and match the beginning of each sentence with the correct ending. 1. The Body Shop supports the rights of people working to produce their goods by... 2. The Body Shop guarantees a fair price for the products it buys by... 3. The Body Shop gives poor farmers the confidence to develop their business by... 4. The Body Shop is able to buy the best ingredients for its products by... 5. The Body Shop helps to preserve traditional ways of life by... a. 첸 building up long term relationships with expert local farmers. b. 첸 buying products which are made using oldestablished techniques. c. 첸 obliging all suppliers to sign a code of conduct guaranteeing working conditions. d. 첸 providing them with a regular predictable income. e. 첸 setting up and following the Community Fair Trade project. 5 Case study Core value 2 Protect Our Planet The Body Shop is active in the battle against climate change. The firm is constantly looking for new ways to improve business practices and reduce its carbon footprint. Body Shop stores are attempting to improve their energy efficiency, through new lighting and store signs with reduced energy use. The firm has introduced energy-awareness training for all store staff, has reduced air travel and is converting all company cars to lower-emission models. The company chooses sources of renewable energy wherever possible to run its offices, warehouses and stores around the world. In the UK alone, 65 per cent of stores are on renewable energy contracts. The Body Shop is conscious that every product we use has consequences for the planet, from the soap and shampoo that flows out of the Exercises 6 bathroom to the packaging we throw away. The Body Shop chooses raw materials carefully and only uses ingredients known to be non-toxic. The company also ensures that the ingredients it uses are biodegradable and capable of decomposing rapidly under natural conditions. To reduce waste, the firm is introducing plastic bottles made from 100 per cent recycled material. All carrier bags have been replaced with recyclable paper bags. The Community Fair Trade Bag for Life is made from 100 per cent organically grown cotton. The Body Shop aims to use the minimum amount of packaging materials for products. The weight and volume of packaging relative to its contents is measured, and the pack-to-content ratio never exceeds 0.2 grams of packaging per gram of product. 7. Read Core Values 2-4 and find examples of specific actions The Body Shop is taking to... 1. save energy 2. reduce carbon emissions 3. encourage the use of renewable energy sources 4. avoid polluting or damaging the environment 5. reduce waste 6. make their customers feel good about themselves 7. make their staff feel good about themselves 8. improve the condition of animals The Body Shop Core value 3 Activate Self-Esteem “ Company policy on employment • To promote diversity in our employment practices through global equal opportunities standards. • To enable personal development for our employees through volunteering, training and personal development plans. We encourage our employees to learn new skills. By funding a range of training courses, events and health treatments, we aim to increase our staff’s sense of well-being. We also have a policy of offering a minimum of three paid volunteering days a year. Our staff work with charities such as The Aldingbourne Trust, helping people with learning difficulties, and Children on the Edge, which supports the rights of children across the globe. „ The Body Shop works to encourage self-esteem both among its customers and the staff who work for the company. “ Company policy on marketing and advertising The Body Shop believes that each individual is unique and beautiful, regardless of age, skin colour, size and background. Our naturally inspired make-up, skin and body care products enhance individual beauty. We will offer products providing particular benefits to certain age groups or skin types, but will never play on our customers’ insecurities in order to sell products. • Our marketing messages celebrate individuality, health and well-being, not perfection and stereotypical beauty. • We will not sell our products based on negative images of age or glorification of youth. • We do not use models who are very young or thin. „ Core value 4 Oppose Animal Testing The Body Shop has always believed passionately that animals should not be used for cosmetic testing. The company has never tested its products on animals and has always insisted that all their suppliers should not test their ingredients on animals for cosmetic purposes. The firm has twice won the Good Business Award from the RSPCA (Royal Society for the Prevention of Cruelty to Animals) for its commit- ment to animal welfare. The Body Shop campaigns for increased research into alternatives to animal testing. The parent company L’Oréal has made a significant contribution in this area and has pioneered the research and development of EpiSkin – artificially grown human skin for use in skin irritancy tests – and this revolutionary approach to testing is now used by The Body Shop wherever possible. 7 Case The Body Shop study Core value 5 Defend Human Rights The Body Shop has led campaigns on many issues concerning human rights. Since 1994 they have raised funds and global awareness concerning domestic violence. Millions of pounds have been donated to support and protect abused women and children. One successful example was an organised street march and petition in Seoul, Korea, which was followed by a government commitment to increase spending on shelters for domestic-violence victims. Since 1993 they have campaigned and raised awareness of issues and taboos surrounding HIV and AIDS. This includes the Staying Alive Foundation, a project which aims to educate at-risk communities on safe sex, HIV and living with AIDS. Other campaigns support the fight against human trafficking. The current Stop The Trafficking of Children and Young People campaign is raising awareness and funds, and offers support for victims, or those at risk. “ Human Rights Principles The Body Shop is committed to being an ethical retailer, which works actively to address human rights issues in our own operations, our trading relationship as well as the communities and societies in which we operate. As a global business, we respect local, cultural and political differences, but will always insist that our business activities adhere to basic human rights. We will assess all our business activities to determine where we have direct or indirect impacts, ensure compliance with human rights legislation and work to have a positive impact on our stakeholders and on society at large. Examples of our principles in action: • We evaluate each of our direct product suppliers and ensure that high-risk factories are independently inspected and assisted in improving standards. • We have worked with the UN to create awareness of violence against children. • We have worked with plantation owners to ensure basic labour standards and protection of women. • We study human rights implications for all new markets. „ For more info visit Check the following websites for examples. 왘www.forbes.com (search “The world’s most ethical companies”) 왘www.ethisphere.com/past-wme-honorees/wme2011/ Exercises 8. Answer the questions. 1. What specific human rights campaigns has the Body Shop been actively involved in? 2. What other things does the company do to defend human rights? Direzione editoriale lingue straniere Adriana Massari Redazione Samantha Papaianni Progetto grafico e impaginazione Enrica Bologni Ricerca iconografica Eleonora Calamita Referenze iconografiche Archivio Principato, The Body Shop Company I testi e le immagini relativi a prodotti e aziende presenti in questo volume sono da intendersi come esemplificazione a scopo didattico secondo le norme del Codice di Autoregolamentazione del settore editoriale educativo dell’Associazione Italiana Editori. Il fascicolo è allegato al volume 8 Working in business 9. Find an example of another company which emphasizes ethical standards in its marketing and business practices in general. 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