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Case Details

Case Code: BECG148
Case Length: 21 Pages 
Period: 2006-2017    
Pub Date: 2017
Teaching Note: Available
Price:Rs.500
Organization : The Body Shop International Plc.
Industry : Cosmetics
Countries : UK; Europe; US; Global
Themes: Corporate Sustainability/ Corporate Social Responsibility 
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Business Strategy
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‘Enrich Not Exploit’: Can New CSR Strategy Help Body Shop Regain Glory?

This case was a Runner Up in the 2017 oikos Global Case Writing Competition (Corporate Sustainability track), organized by oikos International, Switzerland.
 

ABSTRACT

 
This case looks at some key challenges before Jeremy Schwartz (Schwartz), CEO of The Body Shop International Plc. (Body Shop), and its International Director of Corporate Responsibility and Campaigns, Christopher Davis (Davis), as they try to re-establish the company as a leader in ethical retail and maintain its distinct image amid tough competition and boost sales.

Body Shop was regarded as a pioneer in modern CSR practices and was strongly associated with the social activism of its founder, Dame Anita Roddick (Roddick). The case discusses how since its inception, Body Shop had endorsed and championed various social issues such as opposition to animal testing, development of community trade, building of self-esteem, campaigning for human rights, and protection of the planet. Through these initiatives, the company had cultivated a loyal base of customers. The case goes on to discuss the acquisition of Body Shop by the beauty care giant, L’Oréal SA (L’Oréal), and how its ethical image suffered after the takeover. Customers and activists felt betrayed by the deal as Roddick had previously been vocal in her criticism of companies like L’Oréal on account of their alleged unethical policies. According to Schwartz, after the death of Roddick in 2007, Body Shop’s fortunes reportedly took a sharp downturn and its ethical message faded. Moreover, with a host of new competitors making their way into the green cosmetics market, the sales of Body Shop plummeted.

In 2016, to reinvigorate the brand, position itself as a more ethical business, and reassert its position as a trailblazer of positive change, Body Shop unveiled its new global CSR campaign. The new commitment entitled ‘Enrich Not Exploit’ outlined 14 sustainable targets with a focus on people, products, and the planet, touching all areas of the business, to be delivered by 2020. The initiative was aimed at supporting Body Shop in its aim of becoming the world’s most ethical and sustainable global business. But will this help Body Shop regain its past glory?
 
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Issues

The case is structured to achieve the following teaching objectives:
  • Analyze the new CSR strategy adopted by Body Shop.
  • Understand how The Body Shop established itself a champion of CSR under Anita Roddick.
  • Understand the issues and challenges faced by Body Shop after its acquisition by L’Oréal.
  • Evaluate the ‘Enrich Not Exploit’ commitments and the issues and challenges faced by Body Shop with regard to its new sustainability initiative.
  • Explore ways through Body Shop can regain its leadership position in ethical business..
Contents
INTRODUCTION
THE BODY SHOP (1976–2006)
TAKEOVER BY L’ORÉAL
BODY SHOP’S CORE VALUES
CRITICISM
TIME FOR CHANGE
FORMULATING A NEW CSR STRATEGY
ENRICH NOT EXPLOIT
MARKETING THE NEW COMMITMENT
CAN BODY SHOP REGAIN ITS FORMER GLORY?
EXHIBITS

Keywords

Pyramid of CSR, Evolution of CSR, Strategic CSR, CSR and Sustainability, Societal marketing concept, Competitive advantage, ‘Masstige’ sector, Ethics, Business Ethics, Corporate sustainability, L’Oreal

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