Question

BBB4M - Introduction to International Business Unit 3- Unit 3-Lesson 12 Key Question #12 Read the following article and answer the accompanying questions. Body Shop Founder Rants from the Soul Body Shop founder Anita Roddick is the world's first social entrepreneur-a woman who is doing well by doing good. Her mult- By contrast, she sees multinationals often national cosmetic corporation is a holistic exploiting vulnerable people in poor coun- blend of business smarts, activism and in- tries. She has become an outspoken part of terest in social causes. Her cosmetic em- the anti-sweatshop movement which is pire is truly a pioneer, representing the first growing south of the border to embarrass retailing opportunity for the public to "ethi- retailers who import goods made under cally purchase. Body Shop products are dreadful conditions, or by children or slaves in some cases derived from unique and often ancient cura- tive recipes, are not animal tested and are "There are armies attached to companies environmentally benign with ingredients now. Mercenaries. One retailer buys from brought directly from indigenous peoples sweatshops in developing countries where rather than from a series of profit-gouging women workers are forced to take birth con- intermediaries. She also pioneered leaves trol or abortion pills. "These are obsceni- of absence for staff wishing to become in- ties". She said. volved in causes such as Bosnia, as well as giving workers 25% of the profit they create "What I want the business community to for use in their communities. leam is that there's an obsession with mar- gins. These guys don't see the motivational "I believe in fair trade. In India, our workers aspect of letting people take time off for wanted a health clinic and a day care so we causes or of ethical purchasing for their did. It was only 50 000 pounds extra, and employees who would take greater pride in we're still wealthy. How much is enough? the company." She said. "People in busi- she said. "We don't spend our money on ness being philanthropic is not the answer Lear jets and all the fancy crap that goes That's chequebook charity. But business on. There has to be a better way of doing practices should be moralistic." business. With morality. Kindness". Adapted from: Diane Francis. "Body Shop's founder rants from the soul". Financial Post. 1. What is a "social entrepreneur"? 2. What does "holistic" mean in relation to a business philosophy? 3. Do you think it is possible to do business with morality and kindness? Explain. 4. Anita Roddick would likely support the idea of "moral universalism". Explain the meaning of moral universalism and write your own critique of the concept. 5. Name three other companies who claim they support doing business in an ethical and moral way - not using sweat shops or damaging the environment. Copyright © 2005, Durham Continuing Education Page 12 of

Answer 1

Ans.1.- Social entrepreneur means a businessman who is using his entrepreneurship and business skills to solve social problems.

Ans.2.- The term “holistic” in relation to business philosophy means that a business considers and thinks about the benefits of all its stakeholders through its business polices instead of focussing on the welfare of only some people. It also sometimes relates to the concept of six-sigma as it focuses on the continuous overall improvement of products and organisation.

Ans.3.- Indeed, it is not only possible to do business with morality and kindness but also the need of hour as most of the companies are only concerned about their monetary profits and revenue and exploits the customers. But, a company which does its business in an ethical way always get respect and builds strong brand loyalty among its customers which ultimately help it to earn more revenue and gain benefits. Hence, it is quite possible to do business in an ethical, moral and environmental friendly way.

Ans.4.- Moral Universalism means that there are certain principles, values and ethical concepts which applies universally regardless of culture, race, sex, nationality, or any other distinguishing socially construed feature. But this concept of Moral Universalism like any other philosophical concepts has also got its share of criticisms. Some of them are as follows-

· People usually don’t agree on a single source/interpretation of moral standards. Hence, moral universalism does not hold true.

· It is quite observable that every society, and in some cases within a society itself, have different moral standards and opinions about certain social issues.