Corporate social responsibility (CSR) or corporate citizenship entails companies behaving in a socially responsible manner, and dealing with other business parties who do the same. With growing public awareness and demand for socially responsible businesses, it is little wonder that companies of today take corporate social responsibility into account when planning future socially responsible business operations. This case study examines one such example of corporate social responsibility exemplified by The Body Shop.
The Body Shop is a manufacturer and retailer of naturally inspired, ethically produced beauty and cosmetics products. According to The Body Shop Corporate Social Responsibility website, “If business comes with no moral sympathy or honorable code of behaviors, then God help us all.” is The Body Shop’s mantra and it certainly walks the talk when it comes to corporate social responsibility.
Sustainable Supply Chain Strategy
The Body Shop works with its suppliers to promote socially responsible practices in its supply chain as part of its supply chain strategy. This is part of its wider Framework for Corporate Social Responsibility.
As described on its corporate social responsibility website, in 1987, The Body Shop launched Community Trade. Community Trade is a targeted supply chain strategy to purchase natural ingredients and accessories from socially or economically marginalized communities around the world. It gives these producers access to a market that would otherwise be out of reach and provides a fair and reliable income, as well as a commitment to creating a sustainable business. For example, The Body Shop’s moisturizing socks produced by a Community Trade Supplier, Craft Aid in Mauritius, provides employment to 160 people, 40% of which have disabilities.
The Body Shop also started the Ethical Trade program in order to improve conditions for workers in the supply chain as part of its supply chain strategy, ensuring that there are no human rights abuses. Suppliers also have to sign up to The Body Shop Code of Conduct, which is in line with best practice and international labor standards. For example, The Body Shop’s peppermint intensive foot rescue product is manufactured by a factory which is audited to ensure Ethical Trade compliance.
Engaging the Community through Community-based Projects
One approach to engaging in corporate social responsibility is through community-based development projects. Community-based and community-driven development projects have become an important form of development assistance among global socially responsible companies. An economic relationship implies a strategy of engaging the wider community into the core business activity of the company so that communities become embedded in corporate supply chain strategy to create a sustainable business.
An example of this approach is seen in The Body Shop’s launch of the 2008 Stop Violence in the Home campaign on the theme of friendship. By providing practical tools to empower women to provide support to friends in need, the campaign aimed to be a source of inspiration and support for millions of women around the world.
For example, as part of the campaign, The Body Shop created a "For Me, For You" Special Edition Shea Lip Care Duo which capitalized on its success as being known for its lip balm. The Stop Violence in the Home campaign also raised £1.9 million by 2008 and reached 56 markets. In each market, all the funds raised were donated to the chosen non-profit charity organization, to help fund vital projects of prevention, support, and protection for women and children.
Corporate Philanthropy
The Body Shop also donates a portion of its pre-tax profits to corporate philanthropy as part of its efforts to be more socially responsible. The Body Shop makes charitable contributions through The Body Shop Foundation which aims to give financial support to pioneering, frontline organizations that otherwise have little hope of conventional funding. The Body Shop Foundation's focus is to assist those working to achieve progress in the areas of human and civil rights, environmental and animal protection.
Jo Bilson - Jo Bilson is a management consultant with interests including venture capital and entrepreneurial finance.
