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Write a 13 page essay on Case Study Work Based Learning.Download file to see previous pages... L'Oreal reported revenues of $19.8 billion in 2004 with more than 52,000 employees worldwide.The news of
Write a 13 page essay on Case Study Work Based Learning.
Download file to see previous pages...L'Oreal reported revenues of $19.8 billion in 2004 with more than 52,000 employees worldwide.
The news of acquisition has surprised Animal protection organizations and ethical consumers worldwide. Though this deal has been endorsed by financial analysts for its financial viability there are sharp protests from ethical consumer forums. They have reacted with surprise at the news that L'Oreal will acquire The Body Shop International. There have been particular concerns over the future of The Body Shop's firm and consistent stance against animal testing and ethical consumerism. The groups issuing this statement work together in a global coalition operating those programs such as the Corporate Standard of Compassion (US) and Humane Cosmetics Standard (EU), working closely with leading cosmetics companies worldwide to end animal testing.
The acquisition is over but major challenges lying ahead of L'Oreal and Body Shop of identifying the metrics to measure success, and unifying the contrasting 'people' cultures and management styles of a French corporate giant and a UK-based company whose culture - and business and operating model - is inextricably based upon a strong ethical trading stance, is matter of importance for success of merger.
Though L'Oreal and Body Shop belonged to the same business domains there was a large gap between their operating business philosophies. While Body Shop has been a champion of ethical business and ethical consumerism L'Oreal's track record in this field has not been that clean. L'Oreal has accepted in past, the use of animal testing for their cosmetology and dermatology research. L'Oreal receives a worst rating from Ethical Consumer for its animal testing policy, and also has had boycott calls against it for testing its cosmetic products on animals. And while the Body Shop has always considered natural ingredients as important, L'Oreal is criticized by environmental campaigners for including harmful pollutants and worrying chemicals in its cosmetics. Another worry is its link to Nestle. In many European surveys consumers have voted Nestle as a least ethical and responsible organization because of its baby milk which it advertise to be substitute of breast milk.
Business Ethics
Body shop has sensitized the European customers about the business ethics. According to business philosophy of Body Shop it is opposed to testing products and various ingredients used in cosmetics on animals. Body Shop has also been a champion of business ethics and corporate responsibility to contribute for the cause of society. Following are some lines from the corporate values they are said to follow:
"We consider testing products or ingredients on animals to be morally and scientifically indefensible. We support small producer communities around the world who supply us with accessories and natural ingredients. We believe that it is the responsibility of every individual to actively support those who have human rights denied to them. We believe that a business has the responsibility to protect the environment in which it operates, locally and globally."
Considering above statements, L'Oreal and Nestle, which owns 26% of L'Oreal, do not have a healthy records at least for the social activists, environmentalists and for Body Shop till the date of acquisition. Anita Roddick, CEO and founder of Body Shop, has many times lashed out at the policy of Nestle of not being ethical.
