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Essay on Socially Responsible Action and The Body Shop

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Corporate Social responsibility has been a hot topic for business for the last 15 years. The initial revolution started in the 1960's with the protesting of corporations taking advantage of 3rd world nations as well as the actions to stop the testing of chemicals on animals. This was fairly ineffective until the world's population entered the information age of the early 1990's and organisations could no longer hide their actions from the populace. The result of this has been a world outcry for socially responsible actions within corporations as the world's consumer body is now concerned. This makes being socially responsible not only moral but profitable as well. Few companies have acted as responsibly in the global market as the Body Shop. Since 1976, Anita Roddick has built her entire organisation around socially responsible business and is considered a movement leader. Her company has made many ground breaking policy changes over the last thirty years in which other companies continue to try and emulate.

Corporate Social Responsibility Stakeholder Theory

The most widely accepted theory called the Stakeholder Theory that takes the concept of social responsibility to the masses. Phillips (2003) believes that an organisation needs to map whoever their actions affect from employees, stockholders, consumers, suppliers, local community and the environment and it is only at this point where being truly socially responsible can be found. Conceptually you want to use a Rawlsian theory for development in that you place yourself in everyone's shoes that you come in contact with and determine from their view point if you could act better on their behalf.

A more practical approach to this theory is the concept of triple bottom line accounting and social reporting. This takes all the stakeholders, divides them into sub groups and then analyses their impact to a measurable indicator. Although many impacts cannot be given a quantitative figure, it can still show weaknesses in current policies so amendments can be made.

Triple bottom line accounting is the reporting method where the basis of a company's profits is no longer measured by its economic performance but also its environmental and social performance as well. Environmental impacts can normally be given a number far easier then social impacts so many organisation world wide are trying to develop a form of social reporting which can be used to standardise the way a company measures their social responsibility (Hacket, 2001).

As many of these concepts are still being developed, reporting a socially responsible business portfolio for The Body Shop will require using a widely accepted stakeholder list. The World Council for Sustainable Development's 2004 report has given one of the most comprehensive guides to reporting on these standards, which will be used in this report. The following is a generalised list to measure performance standards that will be described and explained in more detail from a wide range of experts during the analysis to ensure a uniform ideal of social responsibility is used.

Human Rights
Employee Rights
Environmental Protection
Community Involvement
Supplier Relations

After compiling the performance indicators, the final critique will use a basic triple bottom line accounting audit as socially responsible business performance is best judged when placed beside economic performance. The reasons for this is a company who continues to under perform from over involvement in being socially responsible is only temporarily doing good as eventually their employees and local community will suffer from their failure.

Social Responsibility Portfolio for The Body Shop inc.

Human Rights

"All companies have a direct responsibility to respect human rights in their own operations. Their employees and other people with whom they work are entitled to rights such as freedom from discrimination, the right to life and security, freedom from slavery, freedom of association, including the right to form trade unions, and fair working conditions" (Haven, pg17, 1998) Considering what Haven has said in regards to this, it is important for all organisations to check their operations to ensure any business being done outside their actual market should be audited to ensure the high standards are being upheld for humanity. Any company actions that encourages exploitation of developing nations including sweat shops, child labour, unfair trade practices or even the backing of governments of foreign nations who promote exploitation can be seen as a large negative to the movement.

Company Actions

A long-standing advocate of human rights The Body Shop has consistently used their influence to promote a better world culture. Their initial campaign in the late 1980's was a joint effort with Amnesty international where they advocated for corporation involvement to use their purchasing power for protecting developing nations peoples. Within this Body Shop has enabled many actions to occur over the years.

1990- started an awareness and support program to protect the lifestyles of the Brazilian tribesmen whose forests and livelihoods have been stripped by logging.

1991- Body Shop conceptualised and financed a newspaper that was written by and sold by homeless people in New York. Called the Big Issue, it continues to this day as a way that homeless people in many North American cities to make money to get off of government aid.

1992-Current- Body Shop is an advocate against the exploitation of people in developing countries. On several occasions over the years they have made public the actions of large corporations who were using struggling economies for gain. In 1992 Body Shop publicly condemned the actions of the Nigerian government for exploiting its people and brought to light the Shell's corporations involvement in this from using cheap labour for oil production. This battle with the Nigerian government has continued against their military regime and during 1995 even managed with the help of Amnesty International to free democratic promoters called the Ogoni 19.

1992- Current- A busy year for Body Shop, Anita Roddick started the Children on the Edge foundation (COTE) which is used to support orphanages in 3rd world nations or nations in war. Initial focus on Romania, it currently has worldwide support and along with Body Shop funding it is almost self sufficient as foreign aid recognises their efforts. Current actions (1999-current) in Kosovo include the funding of local builders to help rebuild schools and housing after the Serbian war.

2000- Body Shop instituted the human's right award that focuses on people who help eliminate child labour.


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