(Solution Download) 1 How has The Body Shop continued to address the

1. How has The Body Shop continued to address the four components of corporate social responsibility?
2. What is your assessment of The Body Shop?s response to Jon Entine?s Business Ethics article? Has The Body Shop misrepresented itself to stakeholders, and if so, how?
3. Jon Entine and others have accused The Body Shop of using intimidation to stifle critics. Does this appear to be a valid criticism? Was The Body Shop justified in hiring Hill & Knowlton to conduct a public relations campaign?
4. Has the Body Shop?s reputation been damaged by the incidents in this case? How might the company improve its reputation? Do you believe the steps described in this case, including the hiring of an advertising agency, will help or hinder these efforts?
5. Describe the roles you believe Gordon and Anita Roddick should play in the Body Shop?s future operations. How might a stockholder, a customer, a supplier, and an employee assess the roles that the Roddicks should play?

Between 1991 and 1995, The Body Shop continued to expand its operations. The Body Shop had opened twelve hundred stores by early 1995.1 More than 100 company owned and franchised stores were operating in U.S. shopping malls and downtown shopping districts. During the period 1991 to 1994, sales and net income grew from $231 million and $41 million to $330 million and $47 million, respectively.
The Body Shop had moved its U.S. headquarters from Cedar Knolls, New Jersey, to a less expensive and more central location?Raleigh, North Carolina. The original location worked well when The Body Shop opened its first U.S. stores in New York City and Washington, DC, but soon proved to be a logistical problem. Roddick was frustrated that the New Jersey hires did not seem as creative or impulsive as her English staff. In retrospect, she realized that having some of her U.K. staff help train the first U.S. managers and employees or even setting up her headquarters in a college town such as Boulder, Colorado, or a city such as San Francisco would have been a better choice than starting from scratch in New Jersey.


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