The Role of Csr in Cosmetic Industry
Chapter 1: Introduction
1 Introduction
In this chapter, background information of the importance of CSR, especially for the cosmetics industry is revealed. In addition, the purpose and the scope of this paper are to be described too. Lastly, an overview of this paper structure is shown.
1.1 Background of the study
Nowadays, CSR has become the basis on what organization do well in the rapidly changing global world. Cosmetic companies have been seen as unethical and non-environmentally friendly business practices because of unsustainable sources of products, testing on animals and chemical pollution and so on. In recent years, CSR is usually implemented into cosmetic companies’ policies and practices so that the CSR activities can bring them positive social, legal, environment and economic impact (Organic Monitor, 2010). Those cosmetic companies try to lower the environmental impact of their cosmetic products by using greener formulations, such as using natural and organic ingredients (Article 13, 2002). It is because the cosmetic products will bring direct impact to the users.
Therefore, cosmetics are closely linked with people who are more careful to choose and concern about the skincare that they are purchasing. Health-conscious consumers grow more aware of the implication of what they apply on their skin. Therefore, cosmetic companies intend to become more responsible about the products that they are producing, supplying and selling. It is important that the production of each product of every company comply with the law and specific health requirements. Cosmetic companies not only implement CSR to meet the legal requirement, but also consider it as a way to achieve extra growth and increase profitability of business.
However, because of the industry’s fast growing nature, it is important for cosmetic companies to differentiate from the competitors in order to be successful to achieve growth and profit. Cosmetic companies regard CSR as a strategy to
1 Introduction
In this chapter, background information of the importance of CSR, especially for the cosmetics industry is revealed. In addition, the purpose and the scope of this paper are to be described too. Lastly, an overview of this paper structure is shown.
1.1 Background of the study
Nowadays, CSR has become the basis on what organization do well in the rapidly changing global world. Cosmetic companies have been seen as unethical and non-environmentally friendly business practices because of unsustainable sources of products, testing on animals and chemical pollution and so on. In recent years, CSR is usually implemented into cosmetic companies’ policies and practices so that the CSR activities can bring them positive social, legal, environment and economic impact (Organic Monitor, 2010). Those cosmetic companies try to lower the environmental impact of their cosmetic products by using greener formulations, such as using natural and organic ingredients (Article 13, 2002). It is because the cosmetic products will bring direct impact to the users.
Therefore, cosmetics are closely linked with people who are more careful to choose and concern about the skincare that they are purchasing. Health-conscious consumers grow more aware of the implication of what they apply on their skin. Therefore, cosmetic companies intend to become more responsible about the products that they are producing, supplying and selling. It is important that the production of each product of every company comply with the law and specific health requirements. Cosmetic companies not only implement CSR to meet the legal requirement, but also consider it as a way to achieve extra growth and increase profitability of business.
However, because of the industry’s fast growing nature, it is important for cosmetic companies to differentiate from the competitors in order to be successful to achieve growth and profit. Cosmetic companies regard CSR as a strategy to