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Ethical issues in business environment
Ethical issues in business environment
Corporate social responsibility corporate governance
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Corporate Social Responsibility is a company’s or management’s obligation to make decisions based on the best interest of the company and society as a whole. This can be divided in four criteria: Economic, Legal, Ethical and Philanthropic. Lush Cosmetics Ltd. is leading example on integrating ethical and philanthropic CSR into the business model and marketing methods. Lush is a cosmetic company that started in England, that specializes in making face and body products using organic, fresh and sustainable ingredients. Lush, like all successful companies, must meet their first criteria of economic responsibility of turning a profit. Lush included this as part of their mission statement, A Lush Life which states “We believe our products are …show more content…
Lush has always maintained this animal testing ban on their raw materials and final products, and only make 100% vegetarian products and 81% vegan products. According to their Green Policy they also “keep on top of regional and national legislation and partner with many groups to lobby for new regulations that drive and encourage a shift towards a greener future.” They use their buying power to encourage changes in legislation in order to create a more environmentally friendly …show more content…
Lush has a notable charitable product called the “Charity Pot” which started in 2007. The entire purchase price (minus taxes) of a Charity Pot lotion supports “humanitarian, environmental and animal rights causes locally and around the world.” The Charity Pot is often prominently displayed at the register and varies on what organization the proceeds go to. Staff members are also involved in the Employee Volunteer Program in which employees can volunteer with local Charity Pot partners in their community. Philanthropic social responsibility goes above and beyond what is ethical and is at the center of Lush’s highly ambitious and noble business
Ulta Beauty's macro-environment consists of being demographically open to targeting a wide variety of age groups as well as income. Ulta's focus right now is to expand father by targeting Millennials. They are doing this by creating an app called 'Glamlab', where customers can test out products digitally and generate more online sales. This is Ulta's way to keep up with the cultural changes in the macro-environment. (Jul 2017) Natural issues that may arise with the go green movement may be some of the products Ulta carries that test on animals. There brands include some of their more profitable brands like Benefit and Estée Lauder. (PETA 2017)
There has been some controversy regarding L’Oréal Canada and their use of animal testing in their cosmetic products. For certifications regarding safety, we currently possess 86% of manufacturing facilities that are either OHSAS 18001 or VPP certified. (L’Oréal Canada, 2014) Safety is a priority for us at L’Oréal Canada to ensure that our products are safe for our consumers so that they can enjoy the beauty of our cosmetic products. Health Canada has stated that science has not advanced to the point where they feel comfortable banning animal testing in the cosmetic industry, but that animal testing is not required for cosmetic products. (Bendall, 2011) However, the European Union has recently passed a Cosmetics Directive in 2009, which bans the use of animal testing in the cosmetic industry. The Cosmetics Directive bans the testing of finished products, ingredients within a product and the marketing of a product that has been tested on animals. (European Commission, 2014) As a result of these changes in Europe, it is important for L’Oréal Canada to consider alternative methods to animal testing for business to continue with countries in Europe, and so that consumers will feel more positive about purchasing our products due to them being cruelty-free.
Firstly, is the Is the organization’s economic responsibility met? Under the circumstances, I would consider this criterion met.To enumerate that point the company is valued at over $200 million, strong financial results have been achieved in less than 10 years. With the company's plans to increase the number of operations to 200 new stores, this will continually be met. By offering a product that is desirable for people living an active lifestyle Lululemon will continue to thrive. Legal responsibility is public addressed by the belief that “every person we hire, garment we create, store we open, customer, we educate and yoga class we attend contributes to building a legacy in our communities”. Lululemon works with different outlets to try and achieve a healthier and more informed community as to how the business is conducted. By introducing the new organic fiber line they demonstrate ethical responsibility. As a leader in the industry, Lululemon has set the bar high for community initiatives. Their discretionary responsibility is perceived by focusing charitable giving programs to the specific areas Lulu is located they have further connected themselves with the community. Not only is the money guaranteed to go back to the community, the citizens also have the opportunity to dictate which charity the funds should be applied too. An example of one of the activities is the Active Kids Movement program. Lululemon is a perfect example of social performance by meeting all the criteria.
Over the past couple of years many companies of these cosmetic products released that they are against animal testing including LUSH Fresh Handmade Cosmetics, The Body Shop, and many others. There are still companies that still do test with animals; over 250 on PETA’s website. A large percent of these are well-known companies such as Johnson & Johnson, Estee Lauder, Procter & Gamble, L’Oreal, and others that may surprise the consumer. The majority of these companies are producing the same products yet using different animal testing results. This causes the number of test subjects to be substantially larger than what is needed. The number of tests being conducted could be reduced if these companies either become anti animal testing or share results with other companies. This idea might seem like a long-shot since sharing information with their competitors seems ridiculous. If you take a step back from looking at each individual company, you’ll see that they are all conducting similar tests with similar products. Sharing results of these tests with other companies potentially selling similar products, with the same ingredients, will result in a large drop in animal testing (Search for Cruelty-Free
Lush is a company that being socially responsible, first of all, the company is trying their best to save the environment and protect the earth, most their product is handmade and 100% vegetarian, they use fresh natural ingredients such as fruit, honey to make their product. Moreover, in the lush product, it contains lesser toxic chemical compounds, most of the product does not have synthetics. Lush is also knowing for their naked product, their product is being sold with no extra package or just simple wrap, and their package is recyclable and biodegradable which is eco-friendlier and less waste. Also Lush is a company that against animal testing, the company cares about the animal welfare, their recent charity campaign is against canned hunting.
Corporate social responsibilities (CSR) have a different meaning in different company but in my view CSR is the concept which is the ability one of the companies can do for society. As the company responsibilities toward the society and environment in the way operate their business. CSR is about how companies manage the business processes to produce an overall positive impact on society. CSR also known as a “corporate citizenship” and with do that CSR is not provide an immediate financial benefit to the company but promote positive social and environmental change. (www.investopedia.com/terms/c/corp-social-responsibility). CSR is a high profile nation which the business world perceives as a strategic (Economist, 2008; Porter & Kramer, 2006)
Currently, businesses are facing a growing societal pressure to perform responsibly and sustainably. Western cultures have become more aware of the effect their consumption has on the environment. Furthermore companies are being put under pressure to treat labour, and where applicable, animals with greater care. However this is to an extent optional and it is often argued that corporate social responsibility is taken up voluntarily by the business and that following laws regarding ethical trading is just a prerequisite to “fulfilling the responsibility of enterprises” (Enderle, 2014, pp 723 - 735). Some businesses have monopolised on the added value of ethically sourced products, through promoting a positive brand
Corporate Social Responsibility (CSR) is the set of regulations that an organization makes to protect and increase the society in which it functions. There are three areas of social responsiblity: Organizational stakeholders, the natural environment and general social welfare.
McSpotlight on the Cosmetics, Toiletries and Household Cleaners Industry. (1997) The Ethical Consumer Guide to Everyday Shopping. Internet. http://www.envirolink.org/mcspotlight/beyond/unilever.html
The Luxury market is said to be comprised of high quality, glamour, celebrity and attitude. This market is expected in the industry for dealing non traditionally associate concerns about environmental impacts, human rights and wellness. With the outcome of the new report, 2016 Predictions for Luxury Industry: Sustainability and Innovation, that this market is trying to minimise the gap with sustainability. The two organisations which work relatively closely with the high-end product companies are the Luxury Institute and Positive Luxury. The founder of Positive Luxury is Diana Verde Nieto states that sustainability and social responsibility are no longer nice to have for luxury brands but is their requirement. (Winston, A 2016)
...rking has also empowered the traditional activists, like PETA (People for the Ethical Treatment of Animals). PETA is supporting cruelty free companies through their Beauty Without Bunnies Program. When you see their bunny logo, you know the product you are considering is cruelty-free. And, anyone with access to the internet can easily check their website at http://www.mediapeta.com/peta/PDF/companiesdonttest.pdf to find out if a cosmetic company they are interested in is complying with alternative testing or traditional animal testing. Companies currently producing cruelty-free cosmetics include: Lush Cosmetics, Affordable Mineral Makeup, 2nd love cosmetics, Bare Essentials, etc. And new ones keep on popping up. So, the solution is at hand with alternative testing and insisting that companies continue to develop testing methodologies that don’t involve live animals.
Problem: Many of the standard personal care products available to consumers are laced with chemicals and ingredients known to harm individual health as well as the environment. Savvy consumers are not only increasing the expectation of products that are in line with health conscious and ethical value systems, the global business community also recognizes the expectation of corporate social responsibility to stakeholders. Purpose: The purpose of this paper is to persuade the reader-consumer to patronize Tom’s Of Maine business
With no current regulations, the labeling of cruelty-free on products brings about the debate of whether or not brands should have the power in determining what makes their product cruelty-free. The biggest discrepancy comes with the question of what makes a product “cruelty-free”. Supporters of animal rights argue that whether it be the ingredients or the final product, any testing on animals, throughout the entire supplying and manufacturing process, takes away the right of a brand to label their product as cruelty free. The majority of brands have an opposed view with the alternate idea that if the finished product is not tested on animals, their product should be granted the cruelty-free label. As a result of these two opposing views, and
However, there can be more definitions about what Corporate Social Responsibility can be. For example, Corporate Social Responsibility can be the commitment which is continuing for a business to behave ethically and bring to economy the development to improve the workforces’ of the whole society and local community and their families’ quality of life. Corporate Social Responsibility is also known as the obligation of a company to serve the society’s interest and of course its own. With the help of the Corporate and Social Responsibility, social and environmental concerns companies can integrate into their business and stakeholders operations.
Consumers have expectations In terms of a good quality product that should be availed at a reasonable price. Consumers don’t only want the business to be socially responsible towards them in this manner of reasonable prices but way beyond this. They should meet the needs of consumers in ways of convenience and appearance. But business should also consider other aspects like environmental impact when packaging is disposed.