the Body Shop
Teaching Case
______________________________
Journal of Applied Case Research
Sponsored by the Southwest Case Research Association
“BUSINESS AS UNUSUAL”:
A CASE STUDY ON THE BODY SHOP
Subhadip Roy
ICFAI University, India
Lopamudra Ghosh
ICFAI University, India
© Journal of Applied Case Research
Accepted: September 2008
2
“BUSINESS AS UNUSUAL 1 ”: A CASE STUDY ON THE BODY SHOP
“The business has existed for one reason only – to allow us to use our success to act as a force of change, to continue the education and consciousness-raising of our staff, to assist development in the Third World and above all, to help protect the environment. What we are trying to do is to create a new business paradigm, simply showing that business can have a human face and a social conscience”.
- Anita Roddick (1991) 2
ANITA RODDICK STEPPED DOWN AS THE BODY SHOP CHAIRPERSON
February 2002, the founder of one of the biggest cosmetics companies in the world, Anita
Roddick (Anita) stepped down as the chairperson of the Body Shop along with husband
Gordon Roddick (Gordon), who was a co-chair along with her. A number of controversies in the mid and end 1990’s had badly affected the company’s image as doing “business with a human face” as opined by Anita in the quote given above. Periods of losses, coupled with poorly motivated shareholders, de-motivated franchisees, unsuccessful restructuring attempts and public propaganda against the company was proving to be too strong for the company to cope up. Thus, the decision of Anita and
Gordon came up after several unsuccessful attempts to find a buyer for the firm.
However, they still maintained control over more than 50% of the company’s voting rights along with Ian McGlinn, a friend of the Roddick’s and an early investor in the company. Around the same time, the then CEO Patrick Gournay, (who actually ascended the throne in 1998 when Anita stepped down as the CEO) resigned and was replaced by
Peter
______________________________
Journal of Applied Case Research
Sponsored by the Southwest Case Research Association
“BUSINESS AS UNUSUAL”:
A CASE STUDY ON THE BODY SHOP
Subhadip Roy
ICFAI University, India
Lopamudra Ghosh
ICFAI University, India
© Journal of Applied Case Research
Accepted: September 2008
2
“BUSINESS AS UNUSUAL 1 ”: A CASE STUDY ON THE BODY SHOP
“The business has existed for one reason only – to allow us to use our success to act as a force of change, to continue the education and consciousness-raising of our staff, to assist development in the Third World and above all, to help protect the environment. What we are trying to do is to create a new business paradigm, simply showing that business can have a human face and a social conscience”.
- Anita Roddick (1991) 2
ANITA RODDICK STEPPED DOWN AS THE BODY SHOP CHAIRPERSON
February 2002, the founder of one of the biggest cosmetics companies in the world, Anita
Roddick (Anita) stepped down as the chairperson of the Body Shop along with husband
Gordon Roddick (Gordon), who was a co-chair along with her. A number of controversies in the mid and end 1990’s had badly affected the company’s image as doing “business with a human face” as opined by Anita in the quote given above. Periods of losses, coupled with poorly motivated shareholders, de-motivated franchisees, unsuccessful restructuring attempts and public propaganda against the company was proving to be too strong for the company to cope up. Thus, the decision of Anita and
Gordon came up after several unsuccessful attempts to find a buyer for the firm.
However, they still maintained control over more than 50% of the company’s voting rights along with Ian McGlinn, a friend of the Roddick’s and an early investor in the company. Around the same time, the then CEO Patrick Gournay, (who actually ascended the throne in 1998 when Anita stepped down as the CEO) resigned and was replaced by
Peter