Unit 37 - Understanding Business Ethics P1 M1
Case study : The Body Shop
P1 Explain the ethical issues a business needs to considers in its operational activities
M1 Assess how a selected business could improve the ethics of their operation
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Unit 37 - Understanding Business Ethics
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Abdulalah Al-Jobore,
Unit 37: understanding Business Ethics
P1 M1
The implication fir the bunioenn’n iperatioal actiiten if actot
ethically
P1- Explaio the ethical innuen a bunioenn oeedn ti cionidern io itn
iperatioal actiiten
M1- Annenn hiw a nelected bunioenn ciuld impriie the ethicn if
their iperatio
Cane ntudy
By
Abdulalah Al-Jibire
1
,Abdulalah Al-Jobore,
Unit 37: understanding Business Ethics
P1 M1
Iotriductio
I am an online journalist working for the Ethical Consumer Magazine
(www.ethicalconsumer.org), I have been asked to produce a case study for the
government website to explain the main factors that businesses need to be aware of
with regard to their ethical behaviour. We have decided as group of journalists to use
‘The Body Shop’ as a case study in order to see how this shop is making and
producing their products and whether they are from a natural source or not.
Operatioal actiiten
In term of business, the operatonal actvites are usually referring to the day-to-day
actvites that help the business to achieve its primary purpose. Some businesses
might face some issues connected to the ethics due to the fact that they might make
some strategic or operatonal decisions without considering impact of them.
Therefore, this might afect the environment, customers, or staf. In regardless of the
reason of these issues, the government has set up the business ethics which are vital
part of the business management.
The Body Shop is one of the largest companies in the world which aims to sell the
best and high quality products with the fnest ingredients that help ‘’to create a
range of naturally-inspired beauty products’’. For example, they sell a product called
‘Oils of life’ which made from cold pressed oils of natural origin. Similarly to other
businesses, The Body Shop also want to expand its business more over the countries,
as it is one of the their main aims of their company.
https://www.thebodyshop.com/about-us/our-heritage
https://www.thebodyshop.com/face/moisturisers/oils-of-life-intensely-revitalising-
facial-oil/p/p000513
Defioitio if bunioenn ethicn
Every business will have its own corporate aims which wants to achieve them in
order for the business to be successful, therefore the business ethics will deal with
what is ‘right’ and ‘wrong’. There are many business which will try to achieve their
aims with less care about the public benefts. For example, is it right for a business to
achieve its aims by paying lower wages, or hurtng the local area with the factory’s
smoke and harmful gasses? In March 2006, Castle cement Ltd has been fned
£99,000 for breaches involving the release of dioxins from the old kilns. Therefore,
the local residents had complained of dust, noise and vibraton at the plant. In our
2
, Abdulalah Al-Jobore,
Unit 37: understanding Business Ethics
P1 M1
society, the individuals are requires of a standard of behaviours and also expects
businesses to follow these standards.
Therefore, the business ethics is to apply the ethical values to the business
behaviours, as these behaviours applies to all of the business’s aspects such as the
sales techniques and boardroom strategies. The business ethics is a matter of choice,
as it depend on the business and its staf, therefore, theses ethics applies on the
behaviours of the individuals and the company as a whole.
Since The Body Shop is producing a 100% natural products, they provide the
stakeholders of the business with clear and identfable corporate culture. In
additon, The Body Shop believes ‘’in business as a force for good’’. This means that
all of the worker of the supply chain (the network between the Body Shop and its
suppliers to produce and distribute its products) should be free from ‘exploitaton’
and ‘discriminaton’ as this will help to make the suppliers feel free and safe at the
work environment.
https://www.thebodyshop.com/about-us/ethical-trade?clear=true
http://news.bbc.co.uk/1/hi/wales/northeeast/4770405.stm
Ethical actiiten
Most of the ethical business has a wide range of business actvites which is trying to
make the world better by making a positve contributon to the community. For
example, The Body Shop is aim to be ‘’the world’s most ethical and sustainable global
business’’ as their business is not just about making proft but also about the public
good. They try to make a positve contributon to our community by making sure
they provide the customers with products from natural ingredients and many other
commitment in order to beneft the public.
Valuen if bunioennen
Usually the personal values that determine how people behave are not written down
in a paper or anywhere else, this is due to the fact that they are a state of mind
which cannot be written. In term of business, the values of the business’s founder or
the key individuals’ values (such as the values of the corporate executve) are usually
used to be the corporate values. For
example, the main corporate aims of The
Body Shop is to sell the public natural
products that can save the environment,
therefore, Anita Roddick ( the founder of
3
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