The Body Shop: Social Responsibility or Sustained Greenwashing?

Abstract:

Since its inception, it had endorsed and championed various social issues such as opposition to animal testing, developing community trade, building self-esteem, campaigning for human rights, and protection of the planet. Through these initiatives, the company had cultivated a loyal base of customers who shared these values.

L'Oréal, on the other hand, had been severely criticized by activists for allegedly testing its cosmetics on animals, exploiting the sexuality of women, and selling its products by making women feel insecure. Moreover, Nestlé owned 26 percent of L'Oréal and Nestlé was one of the most boycotted companies in the world for its alleged unethical business practices and aggressive promotion of baby milk in developing countries.

Some of Body Shop's critics and customers said that they felt betrayed by the deal as Roddick had previously been vocal in her criticism of companies like L'Oréal. They called for a boycott of Body Shop's products. However, Body Shop and Roddick defended the deal by saying that the acquisition by L'Oréal would not compromise Body Shop's ethics; the merger would, in fact, give Body Shop a chance to spread its values to L'Oréal. L'Oréal also announced that Body Shop's values would not be compromised and that it would continue to operate as an independent unit.

This case discusses the reactions of consumers, activists, and CSR experts to the acquisition of Body Shop by L'Oréal. The acquisition throws up some questions such as: Is Body Shop guilty of greenwashing? Does it have the influence to extend its values to L'Oréal? The case also looks into the issue of whether L'Oréal was trying to improve its own image and to buy CSR through this deal.

Issues:

» Understand the issue of sustainability rhetoric and greenwashing with regard to the acquisition of Body Shop by L'Oréal

» Understand the challenges faced by a company in building a corporate image and brand on the social marketing concept

» Appreciate the importance of the cultural and CSR factors in mergers and acquisitions vis-à-vis financial and strategic parameters

Contents:

Keywords:

The Body Shop International Plc., natural-based and ethically-sourced beauty products, L'Oréal SA, Dame Anita Roddick, Corporate Social Responsibility, Greenwashing, Consumerism, Mergers and Acquisitions, Consumer advocacy activism, environmental management , Beauty Care, animal protection and testing, Community Trade product, Product boycott, Business Ethics

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1] L'Oréal SA, headquartered in Clichy, France, is the world's leading cosmetics and beauty company. Its portfolio includes various brands in the field of cosmetics, concentrating on hair color, skin care, sun protection, make-up, perfumes, and hair care. In 2005, L'Oréal's revenue was €14.53 billion and it earned a net income of €1.639 billion. As of December 2005, it employed 52,080 people.