Csr Pyramid Case Study
Applying the Carroll`s CSR pyramid to the Body Shop, it can deducted that the basic responsibility of the firm was to legitimately pursue a growth strategy through profit maximisation by offering natural-based beauty products at reasonable prices, hence its ‘economic responsibility’. Through its purchase of the ‘Community Trade Products’, it bought raw materials from marginalized communities for a fair price and this contributed to the overall economy of the concerned countries. For instance marula oil derived from Namibia while bananas from Caribbean, honey in Zambia and Shea butter from Ghana.
Aside this level, comes the ‘legal responsibility’ the Body Shop engaged in social work projects like the ‘Greenpeace’ in 1986, ‘Friends of the Earth’ in 1990 and adapted its values based on the law against animal testing in UK. Further the Body Shop is also known to be among the first cosmetic companies to comply with the ‘Humane Cosmetic Standards (HCS)’ and was the
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The most laudable part was about the fact that the report rested largely on stakeholder interviews from international franchisees, employees, customers, suppliers, shareholders to local community and campaigning groups. Such an all-inclusive approach demonstrated that the Body Shop cared for its stakeholders voluntarily, funneled only by business's desire to engage in social activities.
As chronically displayed in the case study, the Body Shop had many challenges in trying to establish the very first level of the pyramid- ‘Economic Responsibility’ and agreed to be acquired by L`Oreal. Interestingly however, the Body Shop is in a very unique situation by achieving the top level of the pyramid quite proficiently.
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