Conflict between Corporate Social Responsibility, Governance and Ethics on One Hand and Business Performance, Growth and Competitive Advantage in a Global Economy on the Other

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Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Abstract

The thesis discusses the conflicts that are there between corporate social responsibility, corporate governance and ethics, and business growth, competitive advantage and profitability. The conflicts identified in this paper are the result of various theories and studies given on the same topic. Of course there are people who believe that corporate social responsibility helps a company with its profit maximization and there are those who believe that it is corporate social responsibility that deviates the company from focussing on its core objectives. Each group has their own reasons and rationales for putting up their theories and arguments. The paper not only highlights these conflicts but also examines them in reality. It uses The Body Shop as a case in point and examines how the corporate social responsibility initiative taken by the company conflict with corporate governance, competitive advantage, business growth, profitability, and business ethics. It draws on conclusions and makes recommendations on how the company can capitalize on the opportunity and use the various sustainability activities it has undertaken to create a positive image of the company in the minds of the target audience and gain the customer lifetime value as well as foster business growth.

Table of Contents

Introduction1

About The Body Shop1

Statement of objectives2

Research questions2

Limitations of the investigation3

Literature review3

Discussion of issues8

Quality10

Conflict Resolution11

Fair trading relationship13

Summary14

Conclusion16

Recommendations16

References17

Conflict between Corporate Social Responsibility, Governance and Ethics on One Hand and Business Performance, Growth and Competitive Advantage in a Global Economy on the other

Introduction

The responsibility of a corporation towards the society has been debated for a very long time now. On one hand, the responsibility of an organization is profit maximization. On the other hand, the organization is seen as a social agent who should give back to the society in which it operates (Shoemaker et. Al. 2006, p. 449). In this context, different companies associate different value propositions when it comes to the alignment of decision making by the corporation with the long term strategic growth. While some view it as a means of growth, there are also companies that face conflicts between corporate social responsibility, business ethics and corporate governance on one hand and business performance, growth and competitive advantage on the other.

The Body Shop International plc, also called The Body Shop is a public limited company listed on the London Stock Exchange. It is the second most favoured cosmetic company in the world. It operates in over 61 countries through its 2400 ...