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Reported by: Maria Aleni B.

Verallo

MBM II

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Company Background:

The Body Shop was founded in 1976 inBrighton, UK by Anita Roddick

The business concept revolutionized the

cosmetics industry

The image of Glamourand Beauty was changed

Made use of naturalexotic

products to cleanseand polish the skin and hair

Promoted a new movement by refusing animal

testing and being environmentally friendly

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Products:

The Body Shops product differentiation strategygoes back to the core values of the company:

Use of natural ingredients from all over the

world

Good image of the company considering

ethical and social issues

Support sustainable economy

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Core Values 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, andan absolute belief in Community Trade. But The Body Shop is not,and nor was ever, a one-woman-show its a global operation withthousands of people working towards common goals and sharingcommon values. Thats what has given it a campaigning and

commercial strength and continues to set it apart from mainstreambusiness.

--- Anita Roddick

The Body Shop created five core Values. These values act as apractical guide to decision making at all levels of the company,helping them to ensure that their profits are made withprinciples.

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Ethical Issues:

The business of business should not just be about

money, it should be about responsibility. It should be

about public good, not private greed

--Anita Roddick

Against Animal TestingThis used to be a big issue in the cosmetic industry

They have never tested their products on animalsAll their suppliers had to sign a statement

guaranteeing that they had not done Animal Testing for

the previous years.

The European Union banned animal testing for

finished cosmetic products in 2004, and for ingredients

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Ethical Issues:BodyShop isntgoing to make them financially rich but it does enable them

to maintain their chosen way of life through co-operation to achieve

autonomy.

-- Anita Roddick

Support Community Trade:Made sure that suppliers sign up in their code of

conduct

Over 250,000 people profit from their community tradeprogram

Fair trade : Fair trade is an organized social

movement that aims to help producers in developing

countries to make better trading conditions and promotesustainability. It advocates the payment of a higher

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Ethical Issues:

Activate Self EsteemBeauty is about well being and self esteem

Celebrate diversity and emphasize well being

and comfortCreate positive messages on womens rights

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Ethical Issues:

Defend Human Rights:

HIV/ Aids Campaign

Fight against human trafficking

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Environmental Issues:

Protect the planet

Minimize waste and resource use

Minimize the contribution to Climate Change

Support environmentally responsible materials and

technologies

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Historical reasons:

1960s Anita Roddick

United Nations Researcher

Field expeditions Use of logically grown plants and extras

(e.g. rice grains, jojoba oil)

Business concept is based on using

natural resources and being inharmony with the environment

Environmental Issues:

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Examples:

Climate Change: In 2001, joint campaign with Greenpeace

helped highlighting the importance ofrenewable energy in the fight against globalwarming

Reduction of Carbon Dioxide emissions: 90% of car fleet are hybrid by the end of 2008

Minimizing Waste Reduce, Reuse, Recycle Avoid excess packaging

Use sustainable raw ingredients(e.g. plastic bottlesfrom 100% recycled materials, 100% recyclablecarrier paper bags

Renewable resources

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Examples:

Use of environmentally responsiblematerials

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Examples:

Use of environmentally responsiblematerials:

Palm oil

In 2007, there was a change of the entire soap

range to be manufactures using palm oil from

one of the leading sustainable plantations in

Colombia

One of the first retailers to join the Roundtableon Sustainable Palm Oil

The plantations are visited to ensure the

protection and welfare of communities, workers

and the surrounding jungle is preserved and

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Charitable Foundation

The Body Shop Foundation waslaunched in 1990 (registered charity

no. 802757). It gives financial support

to pioneering, frontline organizationsthat otherwise have little hope of

conventional funding. The

Foundation's focus is to assist thoseworking to achieve progress in the

areas of human and civil rights,

environmental and animal protection.

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The original Body Shop was a series of brilliantaccidents. It had a great smell, it had a funkyname. It was positioned between two funeralparlours--that always caused controversy. It was

incredibly sensuous. It was 1976, the year of theheat wave, so there was a lot of flesh around. Weknew about storytelling then, so all the productshad stories. We recycled everything, not because

we were environmentally friendly, but because wedidnt have enough bottles. It was a good idea.What was unique about it, with no intent at all, nomarketing nous, was that it translated acrosscultures, across geographical barriers and social

structures. It wasnt a sophisticated plan, it just

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Anita Roddick:

She opened her first shop primarily to make

an income for herself and her daughterswhile her husband is away to fulfill a lifelong

dream of riding on horseback from Buenos

Aires to New York City.

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Anita Roddick :

Early Life

Grew up working in the family

owned caf in Littlehampton, West Sussex

Taught briefly in a local elementary school before accepting a

position as a library researcher for the International Herald

Tribune in Paris.

Moved to Geneva, where she joined the United Nations

International Labor Organization to work with issues of Third

World womensrights

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Anita Roddick:

Early Life

She traveled extensively and

experienced different cultures

In her travels, she developed a

fascination for the simplicity and effectiveness of the beauty

practices of women she encountered.

Returning to England, she met Gordon Roddick, a Scots

poet and adventurer who shared her love of travel. After two

daughters they decided to settle down and convert a

Victorian house in Brighton into a hotel.

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Anita Roddick:

The Entrepreneur

Roddick first saw a shop in Berkeley, CA called The Body

Shopin the early 1970s

She opened her first Body Shop in 1976 along side with a

local herbalist, she prepared the first product batches on her

kitchen stove and packaged them in the cheapest containers

she could find - urine sample bottles.

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Roddick gradually developed a loyal clientele. Some found

the natural products less irritating to sensitive skin; othersliked their novel aromas and textures; and many just enjoyed

the relaxed, honest shop environment.

By April 1977, first franchises were granted

By 1978, the first franchisee outside UK opened in Belgium.

By April 1984 The Body Shop goes public on U.K. unlisted

securities market

Anita Roddick:

The Entrepreneur

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Anita Roddick: Early Activism

1985 - Stop the dumping of toxic waste in NorthSea, Greenpeace

1986 - Campaign against whaling of sperm whales,

Greenpeace 1987 - Acid Rain pollution, Friends of the Earth

1987 - Published first 'Green' Diary, Friends of the

Earth

1980s - Against Animal Testing for cosmetics,

collected 4 million signatures through shops

1990 - The Body Shop Foundation set-up. Over first

6 years of operation donated more than 3.5 million

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2001 - present - Challenging Globalization/FreeTrade agenda of WTO, Trade Justice Coalition

2001 - present - Sweatshop Labor and workers'rights in Free Trade Zones, National Labour

Committee

2001 - present - Free the Angola Three

2001 - 2002 - Positive Energy Campaign withGreenpeace

2003- present - Help Stop Violence in the Home Domestic Violence Campaign with Refuge (the UKs

largest single provider of accommodation and

Anita Roddick: Campaigns

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Anita Roddick: Awards

1984 - Veuve Clicquot Business Woman of the Year1988 - OBE - Order of the British Empire1991 - Center for World Development Education'sWorld Vision Award, USA1993 - Banksia Foundation's Australia Environmental Award1993 - Mexican Environmental Achiever Award1993 - National Audubon Society Medal, USA1994 - Botwinick Prize in Business Ethics, USA1994 - University of Michigan's Annual Business Leadership Award,USA1995 - Women's Business Development Center's First Annual WomanPower Award, USA1996 - Women's Center's Leadership Award, USA

1996 - The Gleitsman Foundation's Award of Achievement, USA1997 - United Nations Environment Programme (UNEP), Honouree,Eyes on the Environment1999 - British Environment & Media Award1999 - Chief Wiper-Away of Ogoni Tears, Movement for the Survivalof the Ogoni People, Nigeria2001 - International Peace Prayer Day Organisation's Woman of

Peace2003 - DBE (Dame Commander of the British Empire)

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Anita Roddick on selling The

Body Shop to Loreal:

I think its an obscenity dying rich

and I dont want to be defined by

business; after all, were onlyremembered for what we do in civil

society.

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Anita Roddick (1942-2007)

Roddick died of acute brain hemorrhage at about 6:30

p.m. on 10 September 2007, after being admitted to St

Richard's Hospital, Chichester. The previous evening she

suffered from a severe headache. She fulfilled her

promise to leave her estate to charities, on moral grounds.

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The Body Shop Approach:

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The Body Shop Approach:

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Challenges:

Entry in the U.S. Market posed somechallenges in The Body Shop such as: Environmental concern has been less of a

public issue in the United States duringthe 1980s.

It was hard to recruit staff to embracedBody Shop values and could fit into theorganization

FDA and various city regulations

Many questioned whether The BodyShops resistance to advertising would

limit growth in the communicationsintensive U.S. Market

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Controversies:

The September 1994 investigative article "ShatteredImage: Is The Body Shop Too Good to Be True?,"written by Jon Entine and published in BusinessEthicsmagazine

Entine reported that Anita Roddick, founder of BodyShop International (BSI) in the UK, had stolen thename, store design, marketing concept and mostproduct line ideas from The Body Shopfounded in 1970in Berkeley, California by Peggy Short and JaneSaunders who started the French-style perfume store,where customers could do their own blending. Entinereported that Roddick subsequently fabricated her storyof traveling around the world discovering exotic beautyingredients. In 1989, Roddick purchased the U.S. andIsraeli rights to The Body Shop name, and theBerkeley-based chain of five stores renamed itself BodyTime.

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Controversies:

He reported that Roddick's "natural" productscontained extensive amounts of artificialcolourings, scents and preservatives.

Despite Roddick's unsubstantiated claimsand inaccurate reports in popular articles andeven some university case studies thatRoddick's The Body Shop "gave most of itsprofits to charity", documents fromBritain's Charity Commission showed thatRoddick's company gave nothing to charityover its first 11 years and was penurious in itsphilanthropy thereafter. The Body Shop alsofaced millions of dollars in claims bydisenchanted franchisees, who believed they

had been mis-sold franchises.

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Controversies:

Entine referred to The Body Shop'smarketing as "greenwashing," which wasone of the first uses of that term. Thearticle in Business Ethics(now defunct),

which was cited with a National PressClub Award for Consumer Journalism in1994, is still widely used in universitybusiness ethics classes and is generally

credited with prompting companiesclaiming to be socially responsible tomatch their claims with operationalpractices and to increase transparency.

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Present Status:

The Body Shop International

now has 1,200 products in

2,500 stores in 61 countries.

Ms. Sophie Gasperment has

been the Chief Executive

Officer of The Body Shop

International since June

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Conclusion:

The Body Shop International is shapedfrom the personal values of AnitaRoddick.

The Body Shop through Anita Roddickscommitment to corporate socialresponsibility redefined how businesscan be about the public good.

Through Anita Roddicks involvement incertain ethical, political andenvironmental issues, The Body Shophad not gone unnoticed and were able to

reach their market, the green

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Thank you !