As we all know, Body Shop is now holding a great success in the industry of cosmetics over the past 40 years. The Body Shop retail stores is now expanded very quickly throughout the industry. The secret of success would be the objectives of the company. Because Body Shop is in duty with its social responsibilities rather than making profits for shareholders only.
Body Shop claims that do not test their products on animals. In order to be healthy and maintain a “green” brand image, it also promises to use natural ingredients in their products. The executive of Body Shop obviously follows the moral guidelines when making decision. This is what we called business ethics. Business can meet dilemma during decision making. For example, whether a bank should invest in a company that manufactures weapons or tests chemicals on animals? Is it understandable to close an industry to save cost thus generate more profits even though there would be job losts and an shock in employment？
Making ethical decisions for businesses can do harm the short term benefits as it costs a lot in the most of times. However, It could be substantial benefits from acting ethically. Firstly, It could avoid potentially expensive court cases, this can reduce the costs of fines by governments. Also, while the Body Shop is acting ethically, It gains more consumer loyalty than its competitors do. This leads to increase in future sales of their products. Lastly, well-qualified staff can be attracted to work for the company with the most ethical and social responsibility policies.