The Body Shop: Social Responsibility or Sustained Greenwashing?
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Case Details:
Case Code : BECG067
Case Length : 25 Pages
Period : 2002-2006
Organization : The Body Shop International Plc.
Pub Date : 2006
Teaching Note : Available
Countries : UK, Europe, USA
Industry : Beauty care / Cosmetics
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A Controversial Makeover Contd...
On the other hand, L'Oreal was viewed by activists as the face of modern
consumerism - a company that tested its cosmetics on animals, exploited the
sexuality of women, and sold their products by making women feel insecure.
Moreover, Nestlé owned 26 percent of L'Oreal. Nestle was one of the most
boycotted companies in the world for its alleged unethical business practices
and aggressive promotion of baby milk in developing countries.
Body Shop's critics said that they felt betrayed by the deal as Roddick had
previously been quite vocal in her criticism of companies like L'Oreal. They
called for a boycott of Body Shop's products as they felt that the company had
sold out its values and principles.
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Body Shop and Roddick defended the deal by saying that L'Oreal would not
compromise Body Shop's ethics and that the merger would give Body Shop a
chance to spread its values to L'Oreal. L'Oreal also announced that Body
Shop's values would not be compromised and that it would continue to operate
as an independent unit.
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Many
analysts were concerned that Body Shop's image would be affected by the
acquisition. Some activists felt that Body Shop would not be able to
function independently and that an important partner in CSR had been
lost. However, they were a few who felt that Body Shop's values would
rub in on L'Oreal and believed that the deal had some positives.
There were also questions raised about whether L'Oreal was trying to
improve its image and buy CSR through this deal. But for Body Shop's
staunchest critics, the acquisition by L'Oreal was vindication of their
view that Body Shop was nothing more than a greenwasher. |
Background Note
In 1970, Roddick (then Anita Perella) and Gordon Roddick (Gordon) were inspired to set up a beauty products
store after seeing a store called 'The Body Shop' in Berkeley, California, USA, that sold cosmetics like shampoos,
lotions, body creams, etc. The California store was run by two entrepreneurs, Jane Saunders and Peggy Short, who sold
cosmetics on the 'care for the environment' plank...
Excerpts >>
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