Question

Case Study: The Body Shop - Corporate Social Responsibility"
Entrepreneur Anita Roddick founded The Body Shop in 1976, by opening a small shop in Brighton where she established a position in the market for nature based beauty products with minimum packaging.

The business grew rapidly from one small shop in Brighton on the South Coast of England with only approximately 25 hand mixed products on sale to a universal network of more than 1500 shops. Franchising allowed for quick growth and expansion of the enterprise on an international level as hundreds of industrialists from all over the world were inspired by Anita Roddick's idea

According to her, a business should not be all about making profits, rather it should be environmental friendly. According to these principles she established a position in the market for beauty products which were environmental friendly in nature and required minimal packing.

CSR strategies employed by "The Body Shop" are incorporated in its corporate philosophy (values and issues): defending human rights and protecting the planet, for example the company is strictly against animal testing, supporting human rights organizations like the Red Cross and fair trade via selecting natural ingredients and minimal packaging for the products.

The Body Shop's CSR strategies can be viewed through its products and processes in terms of community trade: people poor regions can trade their products and in this manner they will be utilised and the people can make money out of the trade and meet their basic needs and requirements. This way The Body Shop supports environmental groups, gets involved in socially responsible actions so people living in poor regions can make their living.

The Body Shop's advertisements (through web and store based surveys) are unique and promote socially positive messages: "Fight for a better world" and "Love your body".
Questions
1. Identify and define the four levels of Corporate Social Responsibility (CSR)
2. Apply these four levels of CSR to The Body Shop (provide an example for each level)
3. Explain the benefits to The Body Shop of being socially responsible (provide an example of each benefit

Answer 1

The FOUR levels of Corporate Social Responsibility are as under :-

1. Philanthropy
2. Environment Conservation.
3. Diversity and labor practices.
4. Volunteerism.

According to the Carrolls CSR pyramid, the FOUR responsibilities are as under :-

1. Philanthropic responsibilities : Be a good corporate citizen.
2. Ethical Responsibilities : Be ethical
3. Legal responsibilities : Obey the law.
4. Economic Responsibilities : Be profitable.

ANS 2. The Body Shop has been an example of all the four CSR activities.

1. Philanthropic responsibilities : The company has been a good corporate organization. as it encourages the other citizens to take part in the business development process.
2. Ethical Responsibilities : The company has been very just on the manufacturing and the marketing of the products. It does not use any banned products, animal fat / skin, animal testings, etc. They also have a ethics of sharing equal profit with their partners
3. Legal responsibilities : The company has very clearly stated and has exhibited the respect for international and the local laws in all the economies that they operate in.
4. Economic Responsibilities : Profit sharing for the business partners and growing the business in the most economical manner to generate profit and also impart :value for money" to its customers.

ANS 3. The biggest benefit to the company is the "acceptance" of the company and its products by the consumers because of the policies and Ethics. The company developed the best products using natural resources that are highly beneficial for the human body. No animal testing or animal products are used in the manufacturing process by the company. "Fair trade practices" to cut on cost and improve the value proposition for the product.

The second important thing was that the company was always very transparent with its policies with its consumers and business partners. This helped the company gain the trust in the international market.

The "profit sharing" concept helped develop the franchise network in the shortest possible manner. It also helped the company to become an international brand.

The company has been very active in protecting the environment and participating is social causes as volunteering for Red Cross,