She dedicates much of her attention to the empowerment of communities in the Third World. Her campaigns for the Third World include “Stop the Burn” to save the Brazilian rainforests and “Trade not Aid”. The Body Shop sets an example not to exploit Third World workers by paying them much lower wages to those that are earned by British workers. In 1993 Anita met people who had their lands been destroyed through oil exploration by the giant oil multinational Shell. They were from Ogoni tribe, Nigeria seeking justice and restoration against the wealthy company. Anita had gained handful of experience in campaigning which turned in to an international cause célèbre. Sadly and unfortunately, the protestors’ key spokesperson, Ken Saro-Wiwa and 8 other Ogoni, were executed in 1995 by the Nigerian Government. The campaign however went on and eventually 19 other imprisoned Ogoni were released. In 1997, after 4 years of desperate pressure, Shell finally issued a revised operating charter that sets the commitment of the company to human rights and sustainable development. In the following year, they launched their ‘Profits with Principles’ advertising campaign declaring their recognition of the interests of a much wider group of stakeholders in their businesses. Anita likes to think the campaign had a positive impact on Shell to understand about what it really means to be a corporate citizen.
Anita has also got involved with social activism in the United States. She joined over 40 other companies whose ambition is to change the way the business operates in America by promoting progressive policies as family leave and environmental friendly manufacturing.
At the Body Shops, the people who have the same concern towards environmental and social issues as the Body Shop are hired. Body Shop headquarters staffs are given one day a month off to work with disadvantaged children. Their sales people are knowledgeable but not forceful.
Anita Roddick and the Body Shop have always been closely identified with each other in the people’s mind. Today, it is hardly possible to set aside the company values from the issues that she cares passionately about – social responsibility, respect for human rights, the environment and animal protection, and a staunch belief in profit with principles. But The Body Shop is not, and nor was ever, a one-woman-show – it’s a global operation with hundreds and thousands of people working towards common goals and sharing common values. That’s what has given it a campaigning and commercial strength and continues to distinguish it from mainstream business. Lastly, people often say “One person cannot make a difference”. Anita Roddick, however, not only did not believe that, she proved it. And the Body Shop demonstrates an excellent example of business that pursues an ethical business strategy and earns with principles.
2.2 The importance of mission statements
A mission statement is a company's articulation of the purpose of its existence to its customers, employees and the entire world. Obviously, businesses exist to make money, maximize profits and shareholder value, but the mission statement is more about the front line than the bottom line. In simple words, a mission statement states the organization’s purpose in the larger environment. Beyond any successful business, there lies a clear and well meant mission. The mission statement should represent the company's vision of how it would like to be seen by the outer world.
Mission statements generally include a statement of purpose, a business statement, and an indication of the company's values. The statement of purpose explicitly states the purpose of the company. For example, a car company's purpose is to manufacture cars. The business statement describes how they are going to manufacture those cars. The values portion of the statement talks about the common values shared throughout the company and how those common values contribute to the final product.
An ideal mission statement should be inspiring to employees. The statement brings a certain focus to the staff as the purpose of their work crystallizes and they are able to see the value of their contribution. Few things in life are as fulfilling as the knowledge that you are contributing something greater than yourself. The mission statement should allow each employee to see their own personal role in the firm's success.
Customers will be reassured when they are exposed to the statement as they will be able to see that the company is committed to their purpose. Customers can also sometimes form a connection with the firm if the values outlined are ones they share. People like to work with others that they like and agree with, it's a natural human instinct.
Beauty products selling companies’ mission statements usually focus on how their products able to transform women’s looks and outside images. Most of them focus on changing women’s inner beauty and some however are committed to address social and environmental issues as part of their business. Avon, the leading direct seller of beauty and related products puts its mission statement as: “The Global Beauty Leader We will build a unique portfolio of Beauty and related brands, striving to surpass our competitors in quality, innovation and value, and elevating our image to become the Beauty Company most women turn to worldwide. The Women's Choice for Buying We will become the destination store for women, offering the convenience of multiple brands and channels, and providing a personal high touch shopping experience that helps create lifelong customer relationships. The Premier Direct Seller We will expand our presence in direct selling and lead the reinvention of the channel, offering an entrepreneurial opportunity that delivers superior earnings, recognition, service and support, making it easy and rewarding to be affiliated with Avon and elevating the image of our industry. The Best Place to Work We will be known for our leadership edge, through our passion for high standards, our respect for diversity and our commitment to create exceptional opportunities for professional growth so that associates can fulfill their highest potential. The Largest Women's Foundation We will be a committed global champion for the health and well-being of women through philanthropic efforts that eliminate breast cancer from the face of the earth, and that empower women to achieve economic independence. The Most Admired Company we will deliver superior returns to our shareholders by tirelessly pursuing new growth opportunities while continually improving our profitability, a socially responsible, ethical company that is watched and emulated as a model of success”.
The Body Shop’s mission statement reflects their uniqueness as far as beauty business is concerned, which says; our reason for being: to dedicate our business to the pursuit of social and environmental change. To creatively balance the financial and human needs of our stakeholders: employees, customers, franchisees, suppliers and shareholders. To courageously ensure that our business is ecologically sustainable, meeting the needs of the present without compromising the future. To meaningfully contribute to local, national and international communities in which we trade, by adopting a code of conduct which ensures care, honesty, fairness and respect. To passionately campaign for the protection of the environment and human and civil rights, and against animal testing within the cosmetics and toiletries industry. To tirelessly work to narrow the gap between principle and practice, while making fun, passion and care part of our daily lives. The Body Shop is committed to addressing social and economic injustice, access to education and protection of the environment and animal life, taking into consideration current global issues and situations. Not only did they want to make profits, they want to create social and environmental change. It does not really promise on transforming women’s looks, instead it offers “a two-for-one sale” no other cosmetic company could ever hope to match: buy a bottle of “natural” lotion and get social justice for free.
When a firm focuses its efforts on satisfying some customers-to gain its objectives-the effect on society may be completely ignored. Further, some consumers want products that may not be safe or good for them in the long run. Some critics argue that businesses should not offer cigarettes, high heeled shoes, alcoholic beverages, sugar coated cereals, soft drinks, and many processed foods-because they are not good for consumers in the long run. These critics raise the basic question: Is the marketing concept really desirable? Many marketing managers and socially conscious marketing companies are trying to resolve this problem. Their definition of customer satisfaction includes long range effects-as well as immediate customer satisfaction. Then try to balance consumer, company, and social interests.
Strategy is not about devising and implementing a linear path towards one particular outcome-it is way of thinking that must be in the forefront of our mind as we observe the world around us, and it must permeate every decision we make. It may take time to adopt a strategic way of thinking, but once we do it will become second nature. The world around we-the context which you are making strategic decisions-never stays still. Stay alert to your changing environment and always look for new and better options. Strategic management is not about making continuous knee-jerk reactions to a series of unconnected events-it is about making a conscious choice to create our future.
2.3 The advantage and disadvantages of pursuing ethical business strategies
Ethical business is built on relationships. Ethical activity is concerned with human activity and so is business. From this perspective bad ethics is bad business – customers, suppliers and employees ultimately all leave. Ethical business would consider the following issues while pursuing business strategy; involvement in the community, honesty, truthfulness and fairness in marketing, use of animals in product testing, agricultural practices e.g. intensive farming, the degree of safety built into product design, donation to good causes, the extent to which a business accepts its alleged responsibilities for mishaps, spillages and leaks, the selling of addictive products e.g. tobacco and involvement in the arms trade, trading with repressive regimes.
Ethical issues arising from internal and industry practices are a follows; treatment of customers - e.g. honoring the spirit as well as the letter of the law in respect to warranties and after sales service, the number and proportion of women and ethnic minority people in senior positions, the organization’s loyalty to employees when it is in difficult economic conditions, employment of disabled people, working conditions and treatment of workers, bribes to secure contracts and child labor in the developing world and business practices of supply firms.
Unethical business strategies would simply involve the following unethical practices; pricing lack of clarity in pricing, dumping – selling at a loss to increase market share and destroy competition in order to subsequently raise prices, price fixing cartels, encouraging people to claim prizes when they phoning premium rate numbers, “bait and switch” selling - attracting customers and then subjecting them to high pressure selling techniques to switch to an more expensive alternative, high pressure selling - especially in relation to groups such as the elderly, counterfeit goods and brand piracy, copying the style of packaging in an attempt to mislead consumers, deceptive advertising, irresponsible issue of credit cards and the irresponsible raising of credit limits, unethical practices in market research and competitor intelligence, selling goods abroad which are banned at home, omitting to provide information on side effects, unsafe products, built in obsolescence, wasteful and unnecessary packaging, deception on size and content, inaccurate and incomplete testing of products and treatment of animals in product testing.
The ethical business mind of the Body Shop can be clearly seen from its mission statement: “To dedicate our business to the pursuit of social and environmental change. To creatively balance the financial and human needs of our stakeholders: employees, customers, franchisees, suppliers and shareholders. To courageously ensure that our business is ecologically sustainable, meeting the needs of the present without compromising the future. To meaningfully contribute to local, national and international communities in which we trade, by adopting a code of conduct which ensures care, honesty, fairness and respect”. The Body Shop uses its stores and its products to help address human rights and environmental issues. The Body Shop has always been recognizable by its green color, only color that could have been found to cover the damp walls of the first shop. This very color has in fact never been changed over the years, being a clear indication of company’s environmental concern. As far as the advertisements of the products are concerned, Anita uses the unconventional method of advertising to stay within the profits with principles philosophy.
Pursuing ethical business strategies demonstrate many advantages, however, they are certain disadvantages attached to them. From the profit earning point of view, the amount of money earned from business by companies that follow ethical business strategies may be comparably lower than that of which do not pursue ethical strategies. This is simply because some portions of the earnings are used towards to solving the environmental and social issues. And it sometimes consumes a lot of time and energy that could be used to acquire more profits.
Not all strategies have to be exciting growth strategies. If prospects are poor in some product-market, then a “phase-out” strategy may be needed. The need for phasing out becomes more obvious as the sales decline stage arrives. But even in market maturity, it may be clear that a particular product is not going to be profitable enough to reach the company’s objectives using the current strategy. Then the wisest move may be develop a strategy that helps the firm phase out of the product-market, perhaps over several years. Obviously, there are some difficult implementation problems here. But phase out is also a strategy and it must be market-oriented to cut losses. In fact, it is possible to milk a dying product for some time if competitors move out more quickly. This situation occurs when there is still ingoing demand although it is declining and some more customers are willing to pay attractive prices to get their old favorite.
When a firm focuses its efforts on satisfying some customers-to gain its objectives-the effect on society may be completely ignored. Further, some consumers want products that may not be safe or good for them in the long run. Some critics argue that businesses should not offer cigarettes, high heeled shoes, alcoholic beverages, sugar coated cereals, soft drinks, and many processed foods-because they are not good for consumers in the long run. These critics raise the basic question: Is the marketing concept really desirable? Many marketing managers and socially conscious marketing companies are trying to resolve this problem. Their definition of customer satisfaction includes long range effects-as well as immediate customer satisfaction. Then try to balance consumer, company, and social interests.
Strategy is not about devising and implementing a linear path towards one particular outcome-it is way of thinking that must be in the forefront of our mind as we observe the world around us, and it must permeate every decision we make. It may take time to adopt a strategic way of thinking, but once we do it will become second nature. The world around we-the context which you are making strategic decisions-never stays still. Stay alert to your changing environment and always look for new and better options. Strategic management is not about making continuous knee-jerk reactions to a series of unconnected events-it is about making a conscious choice to create our future.
REFERENCES
Peter Jones, 2009. Strategic Management, London: Dorling Kindersley Limited
The Body Shop webpage. <URL:http://www.thebodyshop.com
Chatzky, Jean Sherman.”Changing the World” Forbes 2 March 1992:83-4
Queenan, Joe. “saved by the Belle.” Chief Executive June 1994:66-67
The Anita Roddick’s web page. <