Corporate social Responsibility – a new concept of “market”
Maybe Ben & Jerry’s and The Body Shop set themselves up for a fall by appearing to have a monopoly on making an honest buck. But their struggles are a lesson on how little we know about the minefield of “ethical” marketing. The Body Shop, along with the American ice cream maker Ben and Jerry’s, was hailed as a new breed of green, or environmentally conscious, business.
Ben and Jerry’s
A Ben & Jerry’s offers a very sweet benefits package to employees. First, every one of the 700+ Ben & Jerry’s workers is entitled to three free pints of ice cream, sorbet or frozen yogurt per day worked. (Some workers use allotments of their free treats to barter for other goods and services in town such as haircuts. Beyond the freebies, personnel receive a 50% discount on the company’s frozen goodies, a 40% discount on merchandise and a further 30% break on non-Ben & Jerry’s foods at company outlets.
B Workers are further entitled to pay family leave and may take advantage of the Employee Stock Purchase Program to purchase company stock (after six months with the organization) at a 15% discount. Beginning in 1998,316 stock options are awarded to each worker (excluding directors and officers) and stock is also assigned to each employee’s 40IK plan at the end of the calendar year. These contributions are intended to achieve the company’s goal of linked prosperity, i.e. to assure that future prosperity is widely shared by all employees.
The Body Shop
C History of The Body Shop Anita Roddick started The Body Shop with a mere £4,000 and a dream. With over 1,900 stores in 50 countries. The Body Shop was founded in 1976 in Brighton, England. From her original shop, which offered a line of 25 different lotions, creams, and oils, Roddick became the first successful marketer of body care products that combined natural ingredients with ecologically-benign manufacturing processes. Her company’s refusal to test products on animals, along with an insistence on nonexploitative labor practices among suppliers around the world, appealed especially to upscale, mainly middleclass women, who were and have continued to be the company’s primary market. As sales boomed, even the conservative financial markets approved of The Body Shop, s impressive profit picture, and a public stock offering in 1984 was successful. An expansion campaign followed. In 1988 the company entered the U.S. market by opening a store in New York City, and by 1997 the company boasted 1,500 stores, including franchises, in 47 countries. Anti-marketing seemed to be smart marketing, at least as far as The Body Shop was concerned.
D Part of the secret of The Body Shop’s early success was that it had created a market niche for itself. The company was not directly competing against the traditional cosmetics companies, which marketed their products as fashion accessories designed to cover up flaws and make women look more like the fashion models who appeared in their lavish ads. Instead, The Body Shop offered a line of products that promised benefits other than appearance healthier skin, for instance rather than simply a better-looking complexion. The company is known for pioneering the natural-ingredient cosmetic market and establishing social responsibility as an integral part of company operations. The Body Shop is known for its ethical stances, such as its monetary donations to the communities in which it operates, and its business partnerships with developing countries. In 1988 Roddick opened her first store in the United States, and by that time- through various social initiatives such as the 66 Stop the Bum” campaign to save the Brazilian rainforest (the source of many of the company’s natural ingredients, (and strong support of employee volunteerism -The Body Shop name had become synonymous with social activism and global preservation worldwide. The company had also become immensely profitable.
E By the mid-1990s,however,The Body Shop faced growing competition, forcing it to begin its first major advertising initiative, the most prominent part of which was the “Ruby” campaign. The campaign was personified by Ruby, a doll with Rubenesque proportions who was perched on an antique couch and who looked quite pleased with herself and her plump frame. Randy Williamson, a spokesperson for The Body Shop, said: “Ruby is the fruit of our long-established practice of challenging the way the cosmetic industry talks to women. The Ruby campaign is designed to promote the idea that The Body Shop creates products designed to enhance features, moisturize, cleanse, and polish, not to correct ‘flaws.5 The Body Shop philosophy is that there is real beauty in everyone. We are not claiming that our products perform miracles.”
F the Competition the Body Shop lost market share in the late 1990’s to product-savvy competitors that offered similar cosmetics at lower prices. The main competitors are H20, Sephora, Bath and Body Work, and Origins. Research Results Research showed that women appreciate The Body Shop for its ethical standards. They are pleased by companies with green actions, not promises. The research proved that The Body Shop has been put on the back burner in many people’s minds: overcrowded by newer, fresher Brands. Companies like the Body Shop continually hype their products through advertising and marketing, often creating a demand for something where a real need for it does not exist. The message pushed is that the route to happiness is through buying more and more of their products. Under such consumerism, the increasing domination of multinationals and their standardised products is leading to global cultural conformity. Other downfall factors also include misleading the public, low pay and against unions, exploiting indigenous people Also the mass production, packaging and transportation of huge quantities of goods is using up the world’s resources faster than they can be renewed and filling the land sea and air with dangerous pollution and waste
G the Problem the Body Shop has used safe and timid advertising over the last decade, decreasing market share and brand value. With the rise of new, more natural and environmentally friendly competitors, The Body Shop can no longer stand behind being the greenest or most natural. The Solution The Body Shop is the originator of ethical beauty with our actions speaking louder than our words. This is the new direction of The Body Shop. We will be a part of different acts of kindness in big cities. We will eliminate unwanted graffiti, purify city air, and give the customer an opportunity to be a part of something good.
Question (1)
Questions 1-4
The reading Passage has seven paragraphs A-H.
Which paragraph contains the following information?
Write the correct letter A-G, in boxes 1-4 your answer sheet.
1
An action taken to Establishing social responsibility in conservation project
2
A description of the conventional way the ads applied to talk to its customers
3
A history of a humble origin and expansion
4
Management practices are intended to lined up the company’s goal with participants, prosperity
Questions 5 - 7
Questions 5-7
Choose the three correct letter, A- F.
Write your answers in boxes 5-7 on your answer sheet.
What are true about the Ben & Jerry’s company management
- A
- B
- C
- D
- E
- F
Questions 8 - 10
Questions 8-10
Choose the three correct letter, A- F.
Write your answers in boxes 8-10 on your answer sheet.
What are the factors once contributed to the success for the BODY SHOP?
- A
- B
- C
- D
- E
- F
Questions 11 - 13
Questions 11-13
Choose the three correct letter, A- F.
Write your answers in boxes 11-13 on your answer sheet.
What are the factors leading to the later failure for BODY SHOP Company?
- A
- B
- C
- D
- E
- F
Question (14)
Questions 14-19
Reading passage 2 has nine paragraphs (listed A-H)
Which paragraph contains the following information?
Write the appropriate letters A-Hin boxes 14-19 on your answer sheet.
NB you may use any letter more than once
14
examples of countries where electricity use is greater during the day than at night
15
detailed description of an experiment that led to photovoltaics being promoted throughout the country
16
The negative effects of using conventional means of generating electricity
17
An explanation of the photovoltaics system
18
The long-term benefits of using photovoltaics
19
A reference to wealthy countries being prepared to help less wealthy countries have access to photovoltaics
Question (20)
Questions 20-26
Do the following statements agree with the information given in Reading Passage 2?
In boxes 20-26 on your answer sheet, write
TRUE if the statement is true
FALSE if the statement is false
NOT GIVEN if the information is not given in the passage
20
Photovoltaics are used to store electricity.
21
Photovoltaics are used to store electricity.
22
The solar-powered houses on Rokko Island are uninhabited.
23
In 1994, the Japanese government was providing half the money required for installing photovoltaics on homes
24
Germany, Italy, the Netherlands and Australia all have strict goals with regard to greenhouse gas emissions
25
Residential electricity use is the major source of greenhouse gas emission.
26 Energy-saving measures must now be included in the design of all new homes and improvements to buildings.
Question (27)
Questions 27-32
Do the following statements agree with the information given in Reading Passage 3?
TRUE if the statement is true
FALSE if the statement is false
NOT GIVEN if the information is not given in the passage
27
The title of the debate is not unbiased.
28
All the scientists invited to the debate were from the field of medicine.
29
The message those scientists who conducted the survey were sending was people shouldn’t take risks.
30
All the 40 listed technologies are riskier than other technologies.
31
It was worth taking the risks to invent antibiotics.
32
All the other inventions on the list were also judged by the precautionary principle.
Questions 33 - 39
Questions 33-39
Summary
Complete the following summary of the paragraphs of Reading Passage, using no more than three words from the Reading Passage for each answer. Write your answers in boxes 33-39 on your answer sheet.
When applying precautionary principle to decide whether to invent a new technology, people should also consideration of the
33
,along with the usual consideration of
34
For example, though risky and dangerous enough, people still enjoy
35
for the excitement it provides. On the other hand, experts believe that future population desperately needs
36
in spite of their undefined risks. However,the researches conducted so far have not been directed towards increasing the yield of
37
,but to reduce the cost of
38
and to bring more profit out of it. In the end, such selfish use of precautionary principle for business and political gain has often led people to
39
science for they believe scientists are not to be trusted. |
Question (40)
Questions 40
Choose the correct letter, A,B,C or D.
Write your answers in boxes 40 on your answer sheet.
What is the main theme of the passage?
- A
- B
- C
- D