...Should CSR be used as a Marketing Tool by Producers in the Cosmetics Industry? ABSTRACT The purpose of this paper is to prove that CSR can be used as a positive approach in the area of marketing and promotion, particularly in the cosmetic industry. The paper substantiates this hypothesis by drawing on theory from scholarly articles and literature and analysing data from annual reports. A portion of the research is dedicated to the Body Shop, based on analysis of their annual reports, as well as the reaction of different stakeholder groups based on several literatures. The paper finds that there are positives and negatives in using CSR and promoting it using marketing depending on the consumers’ perceptions. It also finds that there exists an information asymmetry between producers and consumers in terms of CSR for their products. The paper supports previous ideas that CSR is useful in benefitting the company brand and value and that it can also be used to influence a consumer’s purchase decision of the cosmetics. INTRODUCTION In conceptual theory, CSR is how a company incorporates “social, environmental and economic issues into their values and business operations in a transparent and accountable manner” (FAITC, 2012). In simple terms, CSR is the actions that a company undertakes or doesn’t undertake during their business functions to benefit society and their stakeholders. There are many arguments for and against CSR and also differing views on whether it actually “pays”...
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...focuses on the benefits of Corporate Governance (CG) and Corporate Social Responsibility (CSR) engagement as well as the company’s strategies involving CSR by using The Body Shop as the main focus of the report. The Body Shop was regarded as one among the first companies in the cosmetic industry to publish a report on its social responsibility commitment. The Body Shop has been using Corporate Social Responsibility (CSR) successfully established itself as leader in the arena of social responsibility, and increasing awareness of its name and product ranges. One of the company strategies is providing extensive programs aimed at educating its consumers about corporate actions and using Anita’s philosophy related to the Environment, Human and Animal rights and Fair Trading program for the selling point. The Body Shop went through the tough time later with the criticisms from the activist groups campaigning for consumer to ban The Body Shop. As these activist group accused the company of misleading the information and abusing the CSR for the benefits of the company. 1. The Body Shop History The Body Shop was founded in 1976 by Anita Roddick, selling natural soap and lotion products, in Brighton, UK (Van, Nijhof and Jeurissen, 2009), She was inspired to set up the shop after seeing a store called ‘The Body Shop’ in Berkeley, California, USA, that sold cosmetic like shampoos, lotions and body creams (Purkayastha, 2006). Also, having worked as a United Nations researcher in the...
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...global organisations in implementing corporate CSR policies Prepared for John Toth Prepared by Emma Wimhurst 10 November 2013 Contents Section Page 1 Introduction 3 2 Definition of Corporate Social Responsibility 3 2.1 Carroll’s pyramid of CSR 3 2.2 Theoretical clusters 4 2.2.1 Instrumental theories 4 2.2.2 Integrative/Political theories 4 2.2.3 Ethical Theories 4 3 Implementation of CSR 5 4 The Body Shop: core purpose 5 5 Balancing act 6 6 Heightened awareness 6 7 Cost Implications 7 8 New Look: Stakeholder’s conflict 8 9 Challenges 8 9.1 Increased responsibility 8 9.2 Daily implementation challenges 8 10 Recommendations 9 11 Conclusion 10 12 Appendix one: The Body Shop 12 13 Appendix two: New Look 14 14 Appendix three: Carroll’s Pyramid 17 15 Appendix four: Schwartz and Caroll Venn diagram 18 16 Appendix five: Ethical Trading Initiative 20 17 Bibliography 21-24 1. Introduction This report identifies the key challenges faced by organisations with a global supply chain in implementing Corporate Social Responsibility (CSR) policies. The Body Shop (appendix 1) and New Look (appendix 2) are UK based companies, with a global trading presence and both depend on a global supply chain for the purchase of their products. In 2013 both companies remain committed to CSR and ethical trading. These companies have been...
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...CSR- Corporate Social Responsibility Economic, legal, ethical, and philanthropic expectation placed on organisation by society at any given time. CSR – Carroll and Buschholtz 2002 http://scholar.google.com/citations?user=qMalUAcAAAAJ&hl=en7 The Body Shop Anita Roddick We believe that CSR is fundamental to the success of a business. We motion that all businesses should incorporate CSR within their business. For example, The Body Shop incorporates a strong CSR throughout their business. Incorporating aspects into the community, ethical trade and the environment. Davis Model of CSR indicates social responsibility arises from social power and therefore the influence a business has impacts the responsibility the business has to external factors such as environment. For example, the five core values of The Body Shop: Support community, defend human rights, against animal testing, self-esteem and protect our plant. Further referenced by the fact Body shop work with organisations such as Greenpeace. Argument: “Expensive” The social costs and benefits of activity product or service raise. Increased reputation and standing for trade. Social aspects of customer clientele can improve sales as customers like to be seen to be helping. Trust factor increases. Highlights possible cost benefits for company. Argument for Time consuming. Good CSR attracts customers and attains talented and professional staff. Assuring the reputation...
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...It is a central tenet of advocates of the concept of corporate social responsibility (CSR) that corporations receive a social sanction from society that requires that they, in return, contribute to the growth and development of that society. There is little argument as to the existence of this sanction but considerable debate as to whether it requires more of the corporation than the obvious: enhancing the society by creating and delivering products and services consumers want, providing employment and career opportunities for employees, developing markets for suppliers, and paying taxes to governments and returns to shareholders and other claimants on the rents generated by the corporation. For those with a narrow conception of CSR, the corporation has little, if any, obligation to the society other than the creation of economic rents that can accrue to the stakeholders with recognized rights to those rents. For those with an expansive view of CSR, the corporation should serve as an instrument of public policy by other means. For those seeking a compromise, CSR is something in between these two extremes. The discourse between the two extremes has, to some extent, taken on the characteristic of a religious debate, since little fact or science has been brought to bear that would reveal what the costs and benefits of CSR truly are. This has arisen not simply because many of those involved in the debate have a vested interest in the outcome and “From...
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...economic, social, and environmental responsibilities are satisfied simultaneously. Companies these days are issuing corporate social responsibility reports that detail their environment, labor, and corporate giving practices. Also some firms have employed a position of director of corporate social responsibility. Although many firms are endorsing a culture of ethics and social responsibility, some believe that it is being done was a public relations campaign. One of the most common ways to approach CSR is corporate philanthropy. This includes monetary donations and aid given to nonprofit organizations and communities. Donations are made in areas such as the arts, education, housing, health, social welfare and the environment, among others. Owner of Headbands of Hope, Jessica Ekstrom sells made-in-the-U.S. headbands and donates a dollar of each sale to childhood cancer research through the St. Baldrick's Foundation. Another approach to CSR is to incorporate the CSR strategy directly into operations. For example Starbucks now engages in Fair Trade procurement of its Teas and Coffees from around the world. Corporate Social Responsibility may be implemented in many departments of an organization such as human resources, business development or public relations or even be a separate unit. In some...
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...problems 2-3 2.3 The Objectives of the study 3-4 2.0 Literature Review 5 3.4 Definition of CSR 5 3.5 The Evolution of CSR 5-7 3.6 Carroll’s 4 Components Pyramid CSR 7 3.7.1 Philanthropic Responsibility 7-8 3.7.2 Economic Responsibility 8 3.7.3 Legal Responsibility 8-9 3.7.4 Ethical Responsibility 9 3.7 CSR in Malaysia 9-11 3.8 Business Benefits in CSR 11 3.9.5 It protects the company’s brand reputation and image. 11-12 3.9.6 It differentiates the firms from the competitors. 12 3.9.7 It reduces government scrutiny and regulations. 12-13 3.0 Research Methodology 13 4.9 Research Approach 13 4.10 In-Depth Interview 13-14 4.11 Research Design 14-15 4.0 Results 15 5.12 Demographic/ Sample Characteristics 15 5.13 How Do Consumers Define CSR? 16-17 5.14 Is CSR an Important Purchasing Decision Factor? 18 5.15 How influential are CSR activities in order to create brand awareness? 29 5.0 Discussions 20-21 6.0 Conclusions and Implications 22 ...
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...Introduction The Body Shop is the second largest cosmetic franchise in the world and a global manufacturer as well as retailer of naturally inspired. It has 2,400 stores which are located in 61 countries all around the world. The registered name of The Body Shop is called The Body Shop International plc and it’s headquarter is placed in Littlehampton, West Sussex, England. The Body Shop is well known for its cosmetic products such as Body Butter, Peppermint Foot Lotion and Hemp which are manufactured by natural ingredients. The Body Shop instituted pioneering social responsibilities and ethical stances as their key branding strategy which emphasized on “Natural” and “Environmentally Friendly”. For example all their ingredients used to produce their products are not tested on animals; they give monetary donations to the communities and they had business partnership with developing countries, compared to its products. From the view on the history of Body Shop, Anita Roddick and her husband Gordon Roddick were enthused to company a beauty products store after seeing a store called ‘The Body Shop’ in Berkeley, California during their visit to United States in 1970. The shop sold cosmetics products ranging from shampoos, lotions, and body creams in small plastic containers. On the 27 March 1976, Anita and Gordon opened a copycat version at 22 Kensington Gardens, Brighton, England, also calling their new store “The Body Shop”. Besides, they also copied the green color scheme as well...
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...UAMP1004 PUBLIC RELATIONS Tutorial 2: Introduction Questions 1. Public Relations is the art and science of analyzing trends, predicting their consequences, counseling organization leaders, and implementing planned programs of action which will serve both the organization’s and public interest – Mexican Statement 1978. Explain the meaning of this statement and give your views about serving both the organization’s and the public interest. 2. Explain the differences between public relations and marketing. 3. Due to the recent economic downturn, your management has decided to merge advertising, marketing and public relations departments. Your CEO has approached and asked you to explain to your subordinates the reasons behind integrating these departments. What would be your argument to defend the decision of the management? Give your opinion. ### Tutorial 3: Kempen Tandas Bersih Mid Term Test (May 2010) In South Korea, the public toilet has become a tourist attraction; in Malaysia, public toilets are tourist attractions, too – for the wrong reason. 1. Looking at the cartoon above, suggest the negative impact of dirty public toilet in Malaysia. 2. Instead of using TV1 and TV2 to promote a campaign, what other electronic communication channels would be more suitable and why? 3. Suggest the possible ‘source’ of this campaign. 4. Suggest two possible ‘noise’ in this campaign. 5. Why is evaluation important in a campaign? 6. Why is research important in...
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...text archive of this journal is available at www.emeraldinsight.com/0959-0552.htm The Body Shop and the role of design in retail branding Tony Kent and Dominic Stone The School of Creative Enterprise, London College of Communication, University of the Arts London, London, UK Abstract Purpose – To demonstrate how a company’s retail store design relates to its brand and is influenced by, and contributes to, its corporate values. Design/methodology/approach – The case study briefly summarises the significance of corporate values, branding and design in the retail industry, and subsequently explores The Body Shop’s application of these elements to its business. The case study is contextualised by The Body Shop’s retail environment forming a particularly important communication channel for the company. Findings – The Body Shop has in many ways been the victim of its own success. Being a unique proposition, and having effectively created its own retail category, it has appeared slow to evolve its brand identity. The strong association between the company and its campaigning founder, increasing competition and changing consumer attitudes, have been significant factors in the company’s struggle to re-align and update its brand. Research limitations/implications – The case study largely draws on secondary sources. However, it is informed by one of the authors’ experience and knowledge of The Body Shop’s design process, which has previously remained unpublished. Practical implications...
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...as different as chemical manufacturing, mining, agriculture and fishing can do permanent damage to local ecosystems. Globalisation and its irreversible effects can also be blamed to a large extent to these organisations. While end consumers of these industries who demand the products these organisations manufacture are at fault too, it is undeniable that many corporations have ignored their social responsibility and simply focused on their profitability at the stake of harming their immediate environment. In the context of this unacceptable policy, some fractions of the corporate world have started to accept a philosophy that focuses on both profit as well as functioning ethically. This principle, called Corporate Social Responsibility (CSR) refers to initiatives taken by an organisation to measure and reduce the negative impacts it has on its environment. It generally refers to the extra efforts taken by the organisation to focus on the social wellbeing of all its stockholders and to the world at large. ABOUT CORPORATE SOCIAL RESPONSIBILITY Companies at times invest in local communities in order to compensate for the negative impacts their operations might have. The most obvious way might be to donate money to charity. Or, a firm that begins to operate in a socially backward community consisting of people from the lower economic classes can build schools, hospitals in that area or improve infrastructure. Similarly, an organisation that diversifies into pharmaceuticals, may...
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...The potential business benefits of corporate social responsibility 目录 Executive summary 3 Introduction 3 What is corporate social responsibility? What is social responsibility reporting? What’s the importance of it? 3 What kind of the benefits company can get by taking corporate social responsibility? 4 Human resources 5 Risk management 5 Brand differentiation 5 License to operate 6 Company Expansion 6 Conclusion 6 Bibliography 7 Website 7 Book 7 corporate social responsibility and profit Executive summary In this report is illustrating the potential benefits for companies to perform the Corporate Social Responsibility. Corporate Social Responsibility Although the cost is huge, it can turn into some benefits to assistant company running, such as in the aspects of risk management brand differentiations, License to operate and company expanding, the company can have some potential benefits to help make long term profits and sustainable growth. And the public need companies to perform what social responsibility they have taken for decision making and other uses. Introduction In the increasingly complex and spectacle world, such as corporate scandals and uncertainty economy have diminished trust in corporate sector.(business report)Therefore, the requirement for companies to implement and perform a corporate social responsibility...
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...Lush “Happy people making happy soap” EXECUTIVE SUMMARY Lush Marketing Plan Page 1 I. Situation Analysis Lush Products and Services: Creators of Lush have been working together to craft their handmade cosmetics since the 1970’s, but not under the name Lush. Luckily in 1994 the company was able to recreate itself and reopened its doors as Lush Inc. Their headquarters are in Poole, England where they really changed the bathing world by introducing the public to new bath products such as Bath Bombs, Shampoo Bars and Massage Bars. Lush offers organic hair care, shower care, skin care and body fragrances. 1 The company was an instant success in England and now they have over 600 stores in 43 different countries. Lush believes in “happy people making happy soap.” Industry Analysis: Lush Inc. is a privately held company based in Poole, England. The company manufactures and has a market of personal health care products and gifts. There is no industry yet for organic cosmetics, which Lush ultimately falls into, however, Lush advertises itself as a cosmetic company. Thus Lush falls into the industry of cosmetic, perfume, or beauty supply stores that primarily engage in retailing cosmetics, perfumes, toiletries, and personal grooming products. 2 In 2002, there were 10,786 cosmetic, beauty supplies and perfume stores in the United States.3 Also in 2002, the cosmetic industry 1 Marketline, “Lush Limited,” Marketline, http://0www.marketlineinfo.com...
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...ingredients. Lush emphasizes its dedication to the planet and its support for animals and other humanitarian causes, often. Their ideas about what is safe, humane, and ethical, however, differ from those whose activism is altruistic rather than exploitative. An important factor discussed in Lush's success are its Lushies, as the company calls them, the consumers of Lush cosmetics, who belong to a significant subculture in society: the ignorant but eager, they want to belong, and in this desire, have kept Lush alive. Also included is a SWOT analysis of the company, an explanation as to how Lush has failed to grow from its Corporate Social Responsibility, (CSR), followed by the cosmetics industry's part in globalization and the company's contributions to sustainability. Keywords: cosmetics, ethics, safe synthetics, CSR, globalization, sustainability LUSH COSMETICS EXPOSED: UNNATURALLY GOOD. 3 Lush Cosmetics Exposed: Unnaturally Good. Lush is a funky cosmetic company geared toward college kids and aging hipsters. With their “cool” layouts, aesthetics of bright colors with black and white captions and headers written in a rebellious but playful font, cause-centered mission statements galore, videos, charts, and links, they boast an overwhelming pride in their ethics and style. While their philosophies are admirable, the marketing presentation itself is nauseating in its efforts to lure and trap consumers into spending lots of money for little...
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...are selling more than products but also services. Their service are moving more towards to customer-oriented so that they could meet the needs of customer thus gain customer loyalty towards their brand. This brings me to the core of my assignment, which is to identify and analysis the communication activity of the cosmetics brand and recommend a better customer-oriented communications for the brand. I have choose The Body Shop as my main subject. 1.0 Introduction of Organisation The Body Shop is solely franchisee by Rampai-Niaga Sdn Bdn in West Malaysia. There are more than 64 stores operating in the western Malaysia. The Body Shop is driven by values, high quality skin and body care retailer for natural inspired skin and body care products. The Body Shop is authority in developing 100% Vegetarian personal care products. The company only use a few products that are animal-derived ingredients such as honey. All products cruelty-free as endorsed by People for the Ethical Treatment of Animals (PETA) and the products are not tested on animals. The Body Shop strongly believe that true beauty...
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