Case 3: The Body Shop: Poster Child of Early CSR Movement
1. As this case begins, how does The Body Shop address the four components of corporate social
responsibility (CSR)? What tensions among these components are at work?
The Body Shop (TBS) does well with the economic component, as shown by its steady earnings
growth. It seems to regard profit as a byproduct of its overall success. One may wonder what
effect increased competition will have on this attitude, especially if the rate of earnings growth
traditional advertising techniques can be construed as failures to adequately address the
economic component.
2. Does The Body Shop employ any questionable practices with regard to its hiring practices?
The Body Shop does refuse to hire employees on the basis of non-related work factors. The
Body Shop asks potential employees questions about “personal heroes” and individual beliefs.
Case Discussion Q&A, Business & Society, Carroll 10e
Roddick maintains that businesses exist to make social change. This purpose has traditionally
4. Can a company such as The Body Shop succeed in trying to balance profitability with an
obsession with social causes?
Certainly, there is statistical evidence that indicates that firms who act ethically and pursue
philanthropic activities can succeed financially. In the case of The Body Shop, its own history is
5. During Part B, how does The Body Shop continue to address the four components of CSR?
The Body Shop has struggled with its economic responsibilities. The company needs to keep its
6. What is your assessment of Jon Entine of The Body
as The Body Shop misrepresenting itself to its stakeholders?
Business Ethics editor and publisher Marjorie Kelly, and she
was satisfied that the charges were sound. At a minimum, Entine raised some issues that required
7. What
are the most serious of the allegations?
8. In Part C, has the firm snapped back from any damage done to its reputation? Did The Body
9. Do the low buyback
ethics, or are these just the economic realities of risk investments such as franchises?
10. By the end of the case, what is your assessment of Anita Roddick? Was she a good
finally failed?
This question is rather open-ended and requires the student’s opinion based on a reading of all
the cases. It certainly is difficult to balance socially responsible enterprise with global economic
11.
businesses? Has The Body Shop been able to conti
ownership?
12.
sales around? What is the future of The Body Shop?