Oct 03 2010
COMM 101: Casestudy: Daabon Organic
‘Business Ethics‘ has always been a topic of considerate discussion across the business world; but being able retain that ideology has always posed challenges – even for big multinationals such as Body Shop.
Last year, one of their Palm Oil suppliers, ‘Daabon Organic‘ was attempting to evict local farming communities out of a ranch 320km north of Bogota, the country’s capital. But upon discovering this Body Shop terminated its contract with Daabon, in spite of the fact that Daabon produced an extensive 90% of the company’s Palm Oil stocks.
Is this Body Shop living up to its ethical codes and conducts? Or is it merely a gesture in order to retain the company’s moralistic image to keep customers coming? It’s hard to maintain competitive without keeping up with the ‘Green’ scheme of things, afterall.
But regardless of intentions, if Body Shop is going to retain its customers in terms of brand loyalty, it must continue taking measures like these can at least help to keep community stakeholders out of any negative externalities, in order to make sure it meet’s customer’s expectations of Body Shop being an ethical company in terms of production processes.
http://www.guardian.co.uk/business/2010/oct/03/body-shop-palm-oil-supplier