The Body Shop Saga by Anita Roddick - Essay Example

The Body Shop Saga by Anita Roddick It was the idea, not the product, that elevated the Body Shop to iconic status, the idea and the woman who was its embodiment, Anita Roddick, now Dame Anita Roddick. In an interview Roddick herself said that: “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.” (Roddick). Roddick promoted the idea of a business with “soul,” that is, making profits with principles intact (Jones, 1998). The first Body Shop, painted an appropriate green, opened in 1976. Roddick’s timing was excellent. The first Earth Day had been celebrated in 1970, with the participation even of corporations such as the chemical and petroleum industry giants Monsanto and Texaco. There was growing international consciousness on issues related to the environment and sustainable development. People’s desire and determination to “do something” about these problems produced the social movements of the 80s and beyond. Green business proved to be good business It made people feel good that they had not only bought good products but supported causes such as the famous saving the whales movement. The “business with principles” marketing strategy obviously worked. By 1992, the business was valued at 700 million pounds. By 1992 Body Shop shares were being sold at 3.72 pounds at the London stock exchange. At that time they were known as “the shares that defy gravity.” (Entine 2002) The Body Shop Saga 3 Who could know that by 2006 the shop built on corporate social responsibility (CSR) would be sold to L’Oreal, a player in the high-end beauty industry, that is 26% owned by Nestle. Roddick and The Body Shop from the very beginning expressed its stand against animal testing. Yet it is now part of the L’Oreal cosmetic company, which still subjects thousands of animals to painful tests. Roddick built up The Body Shop as a socially responsible and accountable business but Nestle has been rated the least socially responsible corporation in the world. A number of people and organizations that admired Dame Anita Roddick, activist-businesswoman, were horrified at these developments. They charged the charismatic figure with selling-out her principles in exchange for the 180 million pounds that she and her husband received for their shares in The Body Shop. (They still own about 18% of BSI). (Entine, 2002) Actually as early as 1999, a Pulitzer Prize winning report written by Jon Entine and Marianne Jennings had already questioned the Body Shop International’s actual record on the issues of animal testing, protection of the environment, human rights, and community trade. (The report was updated in 2002 by Entine). The most salient points of the 1999 and 2002 report “revealed a huge ethical gap between BSI's marketing image and its actual practices…This deception…is pervasive: Roddick stole the Body Shop name and marketing concept, fabricated key demands of the company myth, misrepresented its charitable contributions and fair trade programs and has been beset by employee morale and franchise problems. Moreover, its "natural" products are filled with petrochemical colorings, fragrances, preservatives and base ingredients such as mineral oil and petrolatum.” The truth of some charges was verified by Anita’s husband, Gordon Roddick. For example although Body Shop products were projected as “natural,” he The Body Shop Saga 4 admitted the BSI’s use of chemical ingredients, stating that “all (cosmetic firms) did it.” (Entine, 1999). The 2002 update provided more details including the following: The contradiction between BSI’s stand on the environment and reports of BSI dumping pollutants into a New Jersey river system. The charges were made by a former EPA lawyer and BSI manager The discrepancy between BSI purchase of gift baskets made by human rights violator China and BSI commitment to human rights. Discrepancy between BSI commitment to natural products and reports by consumer guides criticizing BSI product quality and heavy use of synthetic materials. BSI charitable contributions only amounted to 1.46% per year in the 90s. The Downward Slide After reach its peak in 1992, BSI started the long slide down. People cited various factors. First, there was a lot of competition from both established and new firms that walked and talked green. Unfortunately for BSI, their competitor’s products proved in many cases to be superior both in quality and price. BSI was criticized for selling pricey but low quality cosmetics. Second, BSI faced many problems connected with franchising arrangements. For example it was charged with favoring its own stores over franchises, failing to supply the latter with enough products while providing enough to the former. Due to these and other problems, the price of BSI stock has plummeted down. Since 2001, rumors of a sale have circulated, with strong denials by the Roddick couple. In 2006 it became an accomplished fact. (Entine 2002) How do we view the Body Shop saga and its heroine Anita Roddick? The Body Shop Saga 5 Roddick called The Body Shop an experiment in realizing profit with principles. (Jones 1998) We cannot deny that 130 million pounds is a sizable chunk of profits so we could say the experiment was successful in that aspect. But what about principle? Did Roddick and BSI practice the profit with principle philosophy? If we base our answer on the Entine reports, the facts surrounding the BSI sale and opinions of many social movement advocates, we may be disposed to say No, not consistently. It was a pretty good example -- not so much of using products to promote principles (as Roddick asserts), but of using principles to promote, and sell, products. Still we have to thank the woman who represented The Body Shop for decades and still does in the public mind. Anita Roddick did stimulate public interest and encourage involvement in issues vital to our survival and survival of the world. She has encouraged the consumer to demand accounting and reforms from powerful transnational corporations that make so many decisions that affect so many lives, without their knowledge and consent. She may be flawed, but in her own way, Anita Roddick was both pioneer and trailblazer. Cited Articles 1. Entine, J. (2002). Body Flop: Anita Roddick proclaimed that business could be caring as well as capitalist. Today the Body Shop is struggling on both counts. Retrieved 21 Feb. 2006 from: http://www.jonentine.com/articles/bodyflop.htm 2. Entine J. and Jennings M. (1999). Business with a Soul: A Reexamination of What Counts in Business Ethics. Hamline Journal of Public Law and Policy. Vol. 20, No. 1. Accessed on 21 Feb. 2006 from http://www.jonentine.com/articles/business_with_soul.htm. 3. Jones, M. (1998) Interview with Anita Roddick. Share International. Accessed 21 Feb. 2006 from http://www.share-international.org/archives/social-justice/i_social-justice.htm 4. Roddick, Anita. About Anita Roddick. Accessed 21 Feb. 2006 at http://www.anitaroddick.com/aboutanita.php 5. Roddick, Anita. (2006). Every Body Grows Strong. Accessed 21 Feb. 2006 from http://www.anitaroddick.com/readmore.php?sid=547 Read More