When a company wants to have a better reputation, there exist various solutions to win everybody's support, but there is also an obvious one that consists in getting involved in fair trade.
Nowadays, more and more companies adopt this strategy to keep their customers and gain others. The Body Shop understood that a long time ago and based its success on what is called “Community Trade”.
This company, created in 1976 by Anita Roddick and bought out in 2006 by L'Oréal, is now the second largest cosmetic franchise in the world and has no less than 2,400 stores in 61 countries.Anita Roddick funded this company according to the following motto :
“Working for The Body Shop should not just be selling bars of soap, but working for the community, lobbying for social change, campaigning for the environment…working in fact, for the greater good”.
It sums up very well this organization spirit that emphasizes above all the importance of social and environmental campaigns.
Actually, The Body Shop doesn't claim its products are “all-natural”, but "inspired by nature". The main goal is to introduce fair trade ingredients in the industry.
Here is an example with Ghanaian cocoa butter : By paying a consistently fair price for their cocoa beans, TBS contributes to the Kuapa Kokoo social fund, which invests in clean drinking water, medical and educational facilities.
Another example is the Ecuadorian banana purée that TBS buys from El Guabo - a small group of 400 expert farmers in Ecuador - enabling them to receive medical and life insurance, added to a fair price for their products.
The company, sometimes considered as anti-capitalist or against globalization, uses its influence and profits for programmes such as “Trade Not Aid”, aimed at enacting fair labour practices, safe working environments and pay equality. This initiative, launched in 1991, has the aim of helping people in the third world by creating trade so that they can use their resources and sell their products. It notably enabled the opening of a paper factory in Nepal, creating 27 jobs for the production of bags, notebooks and scented drawer liners.
The Body Shop founder Anita Roddick got so involved in social activism that, when she died, in 2007, Prime Minister Gordon Brown paid tribute to her, calling her “one of the country's true pioneers”. Besides, "She campaigned for green issues for many years before it became fashionable to do so and inspired millions to the cause by bringing sustainable products to a mass market. She will be remembered not only as a great campaigner but also as a great entrepreneur", he added.
Nowadays, people are more sensitive to these social and environmental issues, that is the reason why this example of Community Trade should be followed by other cosmetics companies.
Even if they get involved in fair trade with the mere intention of getting a better reputation (and thus increasing profits), it could at least benefit marginalized producers.
Camille S.
That’s a really interesting article.
ReplyDeleteI know The Body Shop but I had absolutely no idea of their “Community Trade” strategy. I am really surprised of what the company did (even if it’s for its reputation more than likely). Hence, I think companies must think this way and follow the Body Shop model. However, I don’t think all companies could work this way because first of all, they would lose too much money and it is not their point. I mean, if their objective was to contribute to the end of the development differences and the imperialism of bigger countries, they would probably not produce everything in China where there are poor working conditions.
And plus, I don’t think I am the only one, but I really never buy products in favor of Fair Trade, for the main reason that they are too much expensive, and we all know that in our society, low prices are selling points.