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BUSINESS DISSERTATION: BU6001
An investigation into the impact of the Body Shop’s Corporate Social
Responsibility on their consumers’ decision making process and buyer
behaviour.
Enas Ali
J09600
STEPHENIE HODGE
A dissertation submitted in partial fulfilment of the requirements of the University of
Chester for the degree BA Hons Events Management & Marketing and Public
Relations.
CHESTER BUSINESS SCHOOL
MAY 2015
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An investigation into the impact of the Body Shop’s
Corporate Social Responsibility on their consumers’
decision making process and buyer behaviour.
3
Acknowledgements
Many thanks to my very helpful supervisor Steph Hodge for guidance throughout the
entire dissertation module.
I am also very grateful for my family and close friends for their continuous support,
and the participants that helped conduct research successfully.
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Abstract
This research study covers several topics regarding Corporate Social Responsibility
(CSR), the Body Shop’s CSR story and activity, and the perceptions of their
consumer’s in regards to it. It investigates the way that CSR helps increase profits as a
competitive advantage, and the way in which their consumers’ behaviour and decision
making processes are affected.
The objectives of this study are to understand the literature and theory available about
the topics discussed, and to conduct primary research to discover data indicative to the
consumer’s perceptions and opinions of the Body Shop’s business ethics, CSR
practice and production.
In order to meet these objectives a literature review was established consisting of
several newspaper and journal articles and interviews regarding CSR and the Body,
and two focus groups were carried out in two 1 hour meetings, which were then
recorded and transcribed in an abridged manner for analysis. The findings have shown
a connection between the Body Shop being very CSR active and their customers
purchasing from them and being loyal.
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Declaration
This work is original and has not been submitted previously for any academic
purposes.
All secondary sources are acknowledged.
Signed: Enas Ali
Date: 05/05/2015
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Contents
Table of Contents
Acknowledgements ......................................................................................................... 3
Abstract.......................................................................................................................... 4
Declaration..................................................................................................................... 5
Contents.......................................................................................................................... 6
List of Tables & Figures..................................................................................................8
1.0 Introduction......................................................................................................... 9
1.1 Background to the research.................................................................................... 9
1.2 Research question and aims.................................................................................... 9
1.3 Justification for the research................................................................................. 10
1.4 Methodology....................................................................................................... 10
1.5 Outline of the chapters......................................................................................... 10
1.6 Definitions .......................................................................................................... 10
2.0 Literature Review.............................................................................................. 12
2.1 Introduction .......................................................................................................... 12
2.2 A little about Corporate Social Responsibility ......................................................... 12
2.3.1 Importance of CSR & Surviving it ................................................................... 13
2.4 About the Body Shop’s CSR.................................................................................. 14
2.4.1 CSR Activity .................................................................................................. 14
2.4.2 L’Oréal........................................................................................................... 15
2.4.3 Anita Roddick................................................................................................. 16
2.4.4 Activists ......................................................................................................... 16
2.5 CSR affecting buyer behaviour............................................................................... 17
2.5.1 Exploiting consumer’s idealism ....................................................................... 18
2.6 Summary ............................................................................................................ 19
3.0 Methodology............................................................................................................ 20
3.1 Introduction ........................................................................................................ 20
3.2 Research Philosophy............................................................................................ 20
3.3 Approach............................................................................................................ 21
3.4 Research Strategy.................................................................................................. 21
3.4 Research design................................................................................................... 22
3.5 Research procedures............................................................................................ 23
3.5.1 Collection and Analysis ................................................................................... 24
3.5.2 Sampling process ............................................................................................ 24
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3.5.3 Pilot process ................................................................................................... 25
3.6 Ethical considerations .......................................................................................... 25
3.7 Summary ............................................................................................................ 26
4.0 Findings .................................................................................................................. 27
4.1 Introduction ........................................................................................................ 27
4.2 Findings for each research question ...................................................................... 27
4.4 Summary......................................................................................................... 30
5.0 Analysis & Conclusions........................................................................................... 32
5.1 Introduction ........................................................................................................ 32
5.2 Analysis/conclusions about findings and literature review...................................... 32
5.3 Analysis/conclusions about research aims ............................................................. 35
5.5 Overall conclusions.............................................................................................. 37
5.5.1 Limitations of the study................................................................................... 37
5.7 Opportunities for further research........................................................................... 38
References..................................................................................................................... 39
Appendices ................................................................................................................... 42
Appendix A. Performance Reviews (x3) ................................................................... 42
Appendix B. Focus Group 1 Transcript ..................................................................... 47
Appendix B. (1) Focus Group 2 Transcript................................................................ 53
Appendix C. Research Proposal................................................................................ 60
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List of Tables & Figures
Table 1. Factors that determine purchasing a cosmetic product…………………..27
Table 2. Products most commonly purchased at the Body Shop………………….29
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1.0 Introduction
1.1 Background to the research
Cosmetics companies have received criticism for a long time in regards to ethics and
non-environmentally friendly practices. Companies can avoid that by integrating CSR
and sustainability, which involves activity such as abiding by not testing on animals,
sustainably sourcing and lessening carbon footprint. (Anonymous, 2010)
The Body Shop is largely involved in CSR and focus on ethical outsourcing and
production, and is widely known to be a ‘green company’. Consumers and target
markets are affected by this movement, and this behaviour can be manipulated to
benefit corporate success and high sales.
1.2 Research question and aims
The research question revolves around establishing the effects and responses of
consumers that shop at the Body Shop. It aims to investigate what the Body Shop
have actually achieved, how much of it has been projected at their target market, and
whether this projection has worked successfully in satisfying customers. The research
aims go as follows:
1. To have read all relevant literature in order to have full insight on CSR, the
Body Shop’s business ethics, their CSR activity and any major crisis or
successes they faced.
2. To conduct, analyse and evaluate primary research of a sample of the Body
Shop customers, to pick up their views and opinions on whether CSR is a
determining factor in their decision making process.
3. To gain broad knowledge about the importance and power of CSR
engagement by linking literature to current practices conducted by the Body
Shop, and how aware their target markets are of it.
4. To form a strong opinion backed up by the information gained from aims 1, 2
and 3 in order to draw an overall conclusion on whether CSR does in fact
affect the Body Shop’s customers.
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1.3 Justification for the research
The researcher has always had a strong interest in buyer behaviour and psychology,
and that the idea that a target market can be understood, and then that understanding
be used to excel at marketing and increase their profitability. Existent knowledge of
the body shop’s CSR campaigns inspired an investigation into the validity of their
activity and how their business ethics actually influence their customers.
This research topic is of current occurrence and can be feasibly investigated in that the
nature of the question involves identifying the Body Shop’s history in CSR and their
current practices, and then identifying how the sample population chosen reacts and
behaves from it with a survey based strategy.
1.4 Methodology
Primary and secondary data were collected using an interpretevist philosophy and
approach to the methodology. The secondary data selected consists of a literature
review covering topics of CSR, the pros, cons and uses of it, and the Body Shop’s
ethics and CSR practices.
In terms of primary research, the data collected and analysed was via focus groups
which were then audio-recorded, transcribed and coded statistically to formulate
patterns and conclusions. All data and findings gained were then analysed in
accordance to the literature and research aims set.
1.5 Outline of the chapters
The following chapters will break down the research in order of the stages required to
complete it. Chapter 2.0 is the literature review covering CSR, Green marketing,
Strategic competitive advantage, and the Body Shop’s CSR practices. Chapter 3.0 is
the methodology chosen in order to conduct research in which the methods,
procedures, and ethics are provided. The chapter that follows consists of all the
findings of the primary focus groups undertaken. Chapter 5.0 is the analysis and
conclusions of the research conducted and the primary findings.
1.6 Definitions
Corporate Social Responsibility (CSR) is a management that organisations employ
in their corporate strategy, which involves them operating and monitoring all actions
in an ethical, legal manner that creates or promotes social and environmental good.
(Bitchta, N.d.)
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Fair Trade involves outsourcing and trade with better prices, decent working
conditions and wages for suppliers and employees, and supporting the development of
less fortunate working communities. Companies see this as an opportunity to connect
with societies and make strong links with their stakeholders.
http://www.fairtrade.org.uk/en/what-is-fairtrade/what-fairtrade-does
Good Business Ethics require a business to run under moral principles that determine
the way that they function and act. The principles involve abiding the law and
avoiding causing any harm to any part of our world, whether the environment or a
society. http://businesscasestudies.co.uk/anglo-american/business-ethics-and-
corporate-social-responsibility/what-are-business-ethics.html#axzz3Z1WmJqVp
Consumer decision making process is the process customers go through before they
purchase a product or a service, or don’t. (Strydom, 2004)
Buyer behaviour is the reaction and activity when assessing, purchasing, using,
valuing and disposing a product or service. (Khan, 2008)
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2.0 Literature Review
2.1 Introduction
This chapter discusses the literature found relevant to the research. This secondary
research was conducted by addressing main themes such as the basis and importance
of CSR, and how it affects and is affected by buyer behaviour. The other theme of the
literature review is the Body Shop’s CSR, the history of it providing information
regarding their campaigns, their CSR activity, and their allegations and challenges
faced.
2.2 A little about Corporate Social Responsibility
The Green Paper on CSR presented by the European Commission (2002) defines CSR
as ‘a concept that companies function by, whereby they incorporate environmental
and societal concerns within their business operations, and make direct involvement
in a charitable basis. Companies today are aware of the relations between responsible
behaviour and sustainable success. Papafloratos (N.d.)
In his paper, Papafloratos also describes it as an umbrella that covers all the theories
that link to CSR such as social policy, stakeholder theory, and corporate citizenship.
Quite often, companies see one theory link or be a continuation of the other, as
activities merge under the umbrella of CSR.
Idowu and Towler (2004) in Papafloratos (N.d.) Clarify that some European
governments put CSR as a high priority, much like the UK where a CSR Minister was
appointed March 2000. Similarly, retracted from ICSSR website (2003) is another
meaning to CSR that defines it as dealing with a businesses’ attention towards issues
such social responsibility with production, being involved within communities, and
having socially responsible relations between all stakeholders.
Bowen (1995) in Papafloratos (N.d.) Argues that corporations operate in a socially
responsible manner when their honest aim is to make profits, whilst acting
respectfully to human and individual rights, good ethics and justice.
Corporations have awoken to the fact that having ‘transparent operations’ and being
Corporately Socially responsible will give them a raise in profits. (Entine 2007)
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2.3.1 Importance of CSR & Surviving it
Entine (2007) points out and lists several examples of strong recent influences of
CSR. Oil companies now discuss which of them is leading and advancing in the cause
of using alternative and clean energy. Marks & Spencer have been widely praised for
their CSR plan to decrease their carbon footprint and reduce their overall damage to
the environment. Cadbury Schweppes is recognised as committed to take action
against climate change. Tesco promotes themselves as socially responsible by
providing carbon labels on everything they produce and sell.
In her 2007 article, Entine tries to show a pattern to us where green marketing and
green operations have merged and blurred lines. These green initiatives have been
argued to achieve their ideas and inspiration of green promotions by the Body Shop’s
founder Anita Roddick.
An example of the massive influence of CSR is Nike’s large consumer boycott in the
early 1990s. They faced trouble with the public after the New York Times and various
other mass media outlets reported that they had abusive labour practices at some of
their Indonesian suppliers. (Porter & Kramer, 2006) Activists have and will target the
most visible and successful companies to draw them to environmental issues. Perhaps
it is that they have the finances to truly make a change, even if the corporations have
little impact on the problem addressed. Porter & Kramer (2006) give another example
of Nestle, which only consume 0.0008% of the world’s fresh water supply, yet are a
major target in the global debate for access to fresh water.
We have seen a massive growth in green marketers benefiting from –exploiting-
idealistic consumers. (Porter & Kramer, 2006) This ‘cause-related marketing’ is being
criticised as to whether green practices are a way to gain an ethical shopper.
Arguably, green marketing is not necessarily a soul-less capitalist strategy as some
organisations must have genuine initiative and intention to be helpful and responsible
within and outside the organisation.
In her article in 1995, Entine perceives a socially responsible business as one that is
honest, fair, and provides good quality products and services, and not one that strives
to be known as the kindest most generous corporation. She also agrees that many
organisations are becoming involved in campaigns to protect the environment.
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2.4 About the Body Shop’s CSR
NBS has shown research by Avram & Kuhne in their 2008 article from the Journal of
Business Ethics, whereby there are three suggested interconnected sustainability
strategies which help firms build a competitive advantage. Firstly, this is pollution
prevention by which emissions and waste are reduced in a continuous process of
improvement towards the set goal. Secondly is product stewardship: when a product’s
life cycle and impacts are analysed they can be reduced and made less harmful to
everyone as well as the environment. The third strategy is sustainable development.
By achieving and maintaining a strong frame of ethics and social and environmental
purpose, an organisation will be more successful with the public. (NBS, 2011)
2.4.1 CSR Activity
Marati (2012) writes that long before it became fashionable to be ethical and have
strong CSR, Roddick and the Body Shop acted as leaders in the ethical world of
business, as they were the first natural beauty products shop in the UK. Roddick
founded it in 1976, even though L’Oréal –who are ethically questionable- later
acquired the Body Shop, who still remain to work under their 5 core values: “Support
Community Trade, Defend Human Rights, Against Animal Testing, Activate Self-
Esteem, and Protect Our Planet”. http://www.thebodyshop.com/values/index.aspx
The Body Shop launched the first Against Animal Testing public awareness campaign
that was then followed by many more. In 1996, they presented the European Union
(E.U.) with a petition signed by four million people calling on the E.U. to stop the sale
of animal tested products. Marati (2012) goes on to highlight in 1998, the U.K
banned animal testing on products and ingredients, and this was seen as a victory very
much attributed to the Body Shop and their founder Anita Roddick. The E.U. banned
animal testing for finished cosmetic products in 2004, and then for cosmetic
ingredients in 2009.
Today, the only products sold and made by the Body Shop are animal cruelty free,
and vegetarian friendly. They follow animal protection principles that commit to
guaranteeing no raw ingredients or products are tested on animals, clearly
communicating their policies to customers and suppliers, whilst supporting ongoing
research into alternatives to stop all animal testing. (Marati, 2012)
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As listed on their official website, The Body Shop Foundation was established in
1990 as a charity funding human rights and environmental protection groups. In 2001,
they continued their CSR practices by switching their head offices in Watersmead to
‘Ecotricity’ which provides them with renewable energy. As well as this, they had
converted many of their shops to green electricity.
Aside from their biggest success with the four-million signature petition for the
Against Animal Testing campaign in 1998, the Body Shop is also the first
international cosmetics company that signed up to Humane Cosmetics Standard,
known to be recognised and supported by important animal protection groups. (The
Body Shop, 2014) http://www.thebodyshop.com/services/aboutus_history.aspx
Another ethical operation the Body Shop work under is its community trade
programmes. They run a number of community-bettering orientated projects in places
like Somalia and Nicaragua. They also support sustainable development as they
source their ingredients from less fortunate and disadvantaged communities in the
world, providing them with good working conditions, decent wages, working under a
general fair-trade principle. Despite their activities, some critics still doubt the claims
made by the Body Shop about their products but lack real evidence.
http://www.lencd.org/files/casestory/Corporate_social_responsibility_at_the_body_sh
op/225-Bk3PartB_GLOBAL_body_shop.pdf
2.4.2 L’Oréal
The Body Shop was purchased by L’Oréal for $1.1 billion in 2006. Due to this,
animal welfare activists such as Naturewatch and Uncaged were outraged, calling for
boycotts and accusing Roddick of being a sell-out. Marati (2012) quotes the
Independent’s claim that the Body Shop’s image was tarnished and business and
customer satisfaction were hurt. Mike Brady, a coordinator of activist group Baby
Milk Action, which protested Nestlé practices said the Body Shop linked themselves
to the world’s ‘Least responsible company’.
Booth (2006) states that L’Oréal has not tested its cosmetic products on animals since
1990 but did continue to test new ingredients on animals, as required under European
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law until otherwise in 2009. However, the British Union for the Abolition of
Vivisection was set to question the Body Shop and how it expects to run under its
cruelty-free status with their new ownership, despite L’Oréal insisting that the Body
Shop’s policies would be strictly applied across their entire range of products. (BBC,
2006)
2.4.3 Anita Roddick
Anita Roddick has previously been addressed as ‘Queen Green’. Entine (2007)
describes her at her prime time in 1992 to be an international legend too.
She then argues this title by criticising Roddick’s claims. One of which was that she
disliked advertising and capitalism, and followed by implementing a promotional
stunt. In her PR campaign, Roddick went out to Ixmiquilpan, Mexico where she spoke
and listened to Nanhu Indian villagers. She was seen taking down several unusual and
unrealistic requests such as a new tortilla machine and allegedly guaranteed them
£12,500 that was never received. Entine (2007) questions whether Roddick is an
honest and ethical business woman.
In her article in 1995, Entine exposes Roddick as a liar who told stories about how
when she first started up the Body Shop she sourced ingredients from ‘bare-breasted
natives’.
Anita was in an interview for Shareguide held by Hughes (N.d.) where she was asked
what she would say to environmentalists that believe remote, undiscovered
indigenous tribes should be left alone and shouldn’t be traded with. Anita replied by
telling them to “dream on” as she believes the livelihood of the indigenous people is
to trade, and if there is no form of abuse then trading with them is good business, as
all tribes have been discovered, so there’s no harm done.
2.4.4 Activists
The Body Shop faced a boycott in 2006.This boycott, called by Naturewatch and
backed up by Uncaged was opposing L’Oréal’s policy on testing ingredients on
animals. The Body Shop initially was on Naturewatch’s list of approved chains for
three years until L’Oréal bought it, after which the director of Naturewatch urged
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everyone to boycott them, Booth (2006) continues to directly quote the director of
Naturewatch, John Ruane, in his concerns that if people spent their money at the Body
Shop it could go to animal testing.
2.5 CSR affecting buyer behaviour
CSR has shifted towards responsible competition; being the most responsible and
ethical business. The movement of CSR has grown and transitioned due to all the
environmental activism and regulations that have changed over time, and
governmental and legal requirements have become very serious. (Saeed & Arshad,
2012)
Porter & Kramer (2006) suggest that if a corporation analysed their prospects for CSR
the same way they do their core business choices, that framework would allow them
to discover the real cost of CSR, whether a constraint or a charitable investment.
When planned accordingly, good CSR can source good opportunity, innovation and
competitive advantage.
As a competitive advantage, CSR is most commonly seen as a cosmetic response in
the sense of media and public relation campaigns, enabling companies to showcase
good CSR reports and along with that, a good image. Statistically speaking, out of the
250 largest multinational corporations, 64% published CSR reports in 2005, and by
doing this began a movement of report writing. (Porter & Kramer, 2006)
CSR has strategic, marketing and technological implications and impacts that work as
competitive advantages. Militaru & Ionescu (2006) simplify the need for companies
to engage in CSR activity, as it depends on the extent and concentration of
competition in the market, and how much consumers are willing to pay for socially
responsible products and services. The more competition the company faces, the
lower the margins and along with that, less opportunity to provide social activity and
benefits. In opposition, the less the competition, the more potential for higher margins
and with that higher ability for CSR activity.
It is clear that there is a relationship between CSR and advertising. Companies will
receive recognisable attention and benefits of bettering their reputation for their
ethical and responsible activity. Militaru & Ionescu (2006) say to distinguish between
persuasive CSR and informative CSR advertisements in order to build a personal
opinion on the company. Technologically speaking, the increase in concern of the
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environment has shifted production to the end-of-life disassembly of products. This
means that products can now be created, then recreated once their life cycle has ran
out for recycling and reusing processes, thus decreasing wastage.
2.5.1 Exploiting consumer’s idealism
Hughes (N.d.) voices in the interview with Roddick that consumer awareness is
growing immaculately; for example when Levi’s publically admitted to production in
China, their sales plummeted. Consumer opinions are crucial in how businesses run.
Roddick replied by recognising that companies fear for their corporate reputation and
consumer revolt. Businesses are more likely to focus on reputation management,
where CSR will come into a strategic plan. Exxon, Shell, and Nike all employ many
Public Relation companies to help repaint their image to the public. This will of
course, not work with the entire public as we are able to access truths via the internet
and all the activists keeping companies in check. (Hughes, N.d.)
Generally, the Body Shop’s main purpose like all multinational organisations is to
maximise profits for their stakeholders. They have over 1,500 stores in 47 countries
and various other expansion plans. There is a sense of feeling like a better person
when shopping at the Body Shop, when in truth shopping cannot help better the
planet. They have been called out to be misleading the public by
http://www.mcspotlight.org/beyond/companies/bs_ref.html about their claims of
products being natural. This is untrue because like all large cosmetic companies they
use non-renewable petrochemicals, synthetic colours, and preservatives, and experts
have warned the public about potential side effects to the skin from some of the
synthetic ingredients. They have also been known to irradiate chemicals to kill
microbes, this radiation is generated from harmful uranium which then cannot be
disposed of in a safe manner.
The Body Shop are widely known for being against animal testing, yet they fail to
clarify that many of the ingredients they use have been tested on animals by other
companies. They also accept ingredients tested on animals before and since 1991.
And as a company that aims to eliminate animal cruelty, some of their products
contain gelatine. As an ethical organisation, they only pay store staff low wages, near
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the expected minimum, and under the official European decency threshold. By
opposing trade unions, they have found a way to keep labour costs down. None of the
employees are unionised, meaning that they would have to channel concerns by the
company. http://www.mcspotlight.org/beyond/companies/bs_ref.html
2.6 Summary
In conclusion, it is argued that CSR is a front for businesses to appear giving and
compassionate, gaining consumer loyalty and trust. The review also highlighted cases
where companies have suffered due to the reaction of the public to any unethical
operations. The Body Shop have done many CSR related activities and are very
ethically engaged in campaigning for social and environmental issues, however there
was a gap in the literature of any recorded documents about consumer’s perceptions
of the Body Shop’s CSR activity.
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3.0 Methodology
3.1 Introduction
In this chapter all the methodology used in the research is listed. The research is
clarified in terms of what philosophy, approach, design and procedures the researcher
has chosen, what data collection and analysis methods were implemented and how it
was conducted ethically.
Primary and secondary data are both information gained to obtain a conclusion on a
topic. Stokes (2011) Defines both. Primary data collection involves the researcher
planning where the data will be obtained from and how it will be collected from the
source, being the survey groups in this research. Secondary data are already existent
and put together for another specific research, providing the new researcher with a
different interpretation of a topic. (Stokes, 2011) In this research the comparative
secondary data was gathered for the literature review.
This research was conducted as a basic research. According to Hedrick et al. (1993)
an explanatory basic research’s purpose is to expand on knowledge that is already
existent, whilst discovering new findings. This can be implemented by observing
social behaviour and attitudes (Hedrick et al., 1993), suitable for this research when
seeking out patterns and shaping the study.
3.2 Research Philosophy
Cryer (2006) defines the interpretivist research paradigm as a philosophy that
involves variables that cannot be acknowledged with ease and creates a verdict out of
quality of data rather than statistical information in a scientific paradigm. Hackley
(2003) simplifies it as the theoretical way in which sources of data are interpreted.
Interpretive approaches give the opportunity to make almost a segmented overview of
results without speaking statistically. This was suitable for this research as it involved
interpreting the qualitative data from participants in the focus groups, and then
analysing it in a quantitative style, thus being best suited under the interpretivist
philosophy.
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3.3 Approach
An inductive approach was chosen. It is a methodological approach for research
where data is collected from a small sample in relation to the research topic. With
inductivism, ontology –what is real, how is it determined- and subjectivity play a big
role in determining what is truth by considering how respondents answer; the quality
of their answers. (Stokes, 2011) The Body Shop and CSR are very large topics, and
the exact data required by the researcher would be the opinions and quality of answers
of two small groups of six.
The inductive and deductive approach can sometimes be used together, but have
differences. Lee & Lings (2008) show a cyclical graph that breaks down the deductive
approach as discovering and researching a theory, after which a hypotheses is
generated about the topic, and then data is gathered to test the educated guess.
Inductivism, or induction, has the reverse pattern. It has no hypothesis as firstly the
researcher collects and gathers their data, after which a generalisation is made from
the data analysed, and only then a theory is formed. (Lee & Lings, 2008) This
research followed a very similar structure, whereby there was no initial hypothesis -
only an interest in the research topic- and then data was collected, analysed, after
which a generalisation and theory was made.
3.4 Research Strategy
Saunders et al. (2009) says the research strategy must be suitable to the approach, and
researchers must consider whether it will help you best in answering the research
question. Survey based strategy can be used in the inductive approach. It’s a regularly
used strategy for business research as it allows room to collect a large amount of
different data in one sitting, and to help answer queries of what respondents say, who
and where about (Saunders et al. (2009). This strategy suited because the focus groups
would not be conducted in hope of achieving one type of data, but on the contrary
needed to collect a large different amount of data to try and determine a theory on
how consumers really do behave with the Body Shop.
Jankowicz (2005) calls it the survey method, but method in this context means what
approach will be taken to collect data and analyse it, which in this case is survey
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based. This is used for larger groups of people who represent a population for the
purpose of investigating present issues.
This study is descripto-explanatory in the nature that it is a descriptive and
explanatory study. Robson (2002) in Saunders et al. (2009) define descriptive
research to form a clear image of people’s actions, or a certain situation. Saunders et
al. (2009) also defines explanatory studies as trying to help understand the cause
between an event, or explain a relationship between variables. Therefore, all the
methods used were aimed to achieve an understanding of the Body Shop’s
consumers’ behaviour and psychology, and the relationship between their CSR and
brand image to consumers.
3.4 Research design
The research design was chosen to be a mono method design. Mono method means
that only one method of research is used. This choice means the data was collected
using a single qualitative technique along with qualitative data analysis procedures.
Data analysis procedures were utilised to quantify the qualitative data into numerical
systematic coding and themes, so that it could be analysed in a statistical manner.
(Saunders et al. 2009) The primary data could be collected using only one method,
being a survey group. This way the planning and formulating of the focus groups
were detailed and concentrated on only that, decreasing the time and cost constraints
of perhaps a questionnaire.
Surveys are an interpretive approach under which focus groups can fall under,
therefore a mono-method design was used of focus groups only. Fisher (2007) says
you can do a questionnaire-based survey in that the questions you ask are the same
and a constant, having the answers as variables. This made coding and analysing more
effective later.
There must be a time horizon that a research project goes by. This research fell under
the cross-sectional time horizon. Payne & Payne (2004) address it as a study that only
collects data once and in a short period of time. Cross-sectional focus groups will
collect data to form a conclusion about a specific population at a specific point in
time; the focus group will enquire about the consumer behaviour of the Body Shop
customers and their beliefs towards CSR in a one hour long session per focus group.
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Cross-sectional surveys have been described as snapshots of the populations which
data is gathered about. (Lavrakas, 2008) Cross-sectional research may be repeated
periodically; however, in this case it will be repeated in order to acquire enough data.
3.5 Research procedures
The research procedures and techniques provide a step-by-step on how to achieve the
data required in a survey based strategy. Janowicz (2005) has also grouped the
techniques into three, the category this research fell under was “semi-structured and
open ended techniques” (Janowicz, 2005, p.221), due to the nature of holding a focus
group. There is a structure and main themes are fixed, but not a fully structured and
planned set of answers to choose from.
Focus groups are a means of achieving qualitative data in a sitting, according to Lee
& Lings (2008) consisting of usually five to eight respondents. The entire discussion
was focused around one topic with a semi-structured plan for questions (Lee & Ling,
2008); the questions were planned but answers were entirely qualitative. The answers
of these questions were then transcribed and coded in order to focus on reliability and
validity of the research.
Sapsford (1999) in Gray (2004) describes a survey as a semi-structured systematic
data collection method, by which researchers may identify a behaviour or set of
opinions of a population affected by the topic of investigation.
Marshall (1999) explains that focus groups are usually between four to twelve
unfamiliar participants, therefore, the researcher decided to have two groups of 6
each, brought together because of a common characteristic of being a Body Shop
customer. Krueger & Kacey (2014) and Marshall (1999) all justify this choice by
saying that having more than one research focus group can help the researcher
identify trends and themes within the qualitative opinions brought forward. Therefore
the focus groups were set up in two groups, one aged 20 to 25 and one 25 to 30. The
point of conducting two focus groups was to have more answers for a more thorough
analysis when quantifying the data. The age variable between the two groups was to
investigate if age as a demographic could have an effect, yet this was not the purpose
behind the layout of the focus groups. Focus groups worked to an advantage as
participants could be interviewed directly, and good participant observation was
implemented. It was economic and easy to set up and record.
24
The research was descriptive in the sense that it took in the characteristics of the
participants at a fixed point in time. Gray (2004) discusses descriptive surveys and
how they are often used for market research and discovering public opinion. In this
case, the focus groups took a descriptive approach and were analytical, in the sense
that the data gathered about participants was then compared to the age variable set,
the research aims and to the secondary data already collected to help test and answer
the theory in the sector. (Gray, 2004)
3.5.1 Collection and Analysis
Data carries information that then needs to be interpreted and analysed. (Ghauri &
Gronhaug, 2010) A method of qualitative analysis is filtering irrelevant information
from the data that helps build the case. This research analysis was semi structured and
focused on understanding the data itself and then categorising it. The data collected
was audio recorded during the focus groups held, and then transcribed by only
including conversation directly relevant to the questions structured for the study.
Miles & Huberman (1994) in Ghauri & Gronhaug (2010) present an interactive model
that shows the components and stages of analysing data which begins with collecting
the data, followed by data reduction, data display and then drawing out the
conclusions. In this study, data was collected via focus groups, reduced in the
transcripts, displayed in the findings within the set themes coded, and the conclusions
were drawn through the analysis stage and finally in the conclusions.
3.5.2 Sampling process
Stokes (2011) introduced cluster sampling, whereby the researcher can identify a
specific situation linked to the research like a social group, and then choose
respondents that are connected to the social group. As well as this, there is
convenience sampling (Stokes, 2011) involving choosing a known population for the
sample such as relatives and friends. The researcher followed these processes in that
cluster sampling was used when understanding the need for a social group of the
Body Shop shoppers, and then convenience sampling was used to find direct
acquaintances and ask them to participate in the focus groups.
Having access to a non-scientific and subjective snowball sampling frame, meant that
the researcher was familiar with one or more contacts, called upon to carry out the
surveys, and then had them contact anybody that had the same characteristics to
25
participate and so forming the ‘snowball effect’ (Brewerton, 2001). Due to the
constraints of being in one place during the research, this approach was appropriate
for smaller populaces and therefore required non-probability sampling. The sampling
was not random. It was deliberate sampling as some characteristics had to be shared
amongst all participants of the focus groups. It was haphazard in the sense that it was
chosen due to convenience. (Kumar, 2008)
3.5.3 Pilot process
The Pilot process is crucial in order to collect data effectively. Once the method is
selected, having a practice study will help in determining the flaws and gaps existent.
(McBurney & White, 2009) In this case the survey questions were practiced in a pilot
study and feedback was received whereby for example, the survey did not inquire
why participants behaved in a certain way but simply if they had or not. After this
pilot was done, the question’s specificity was modified.
3.6 Ethical considerations
Ethical issues mainly involved how appropriate the researcher and the research was,
in terms of behaviour and respect to rights. Most importantly, to consider the
contributors and ensure they’re not negatively affected any way by this research. This
meant guaranteeing consideration and that there was privacy to the degree required, to
avoid the participants feeling anxious, embarrassed or threatened. Saunders et al.
(2009)
The participants of the survey groups delivered what Stokes (2011) explains as
informed consent. I provided a verbal agreement to confidentiality and the partakers
gave verbal and physical signs demonstrating consent.
Confidentiality is in regards to “not disclosing information obtained by a particular
person or source to a third party” (Stokes, 2011, p.21) Most often it will incur the
participant’s name and personal details not be disclosed along with the information
they give.
Due to the nature of the methodological approach, subjectivity is hard to measure and
bias must be considered as a variable. (Stokes, 2011) Bias is not an issue in this
research as the personal views and answers given will base the primary research
results in a coded system.
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3.7 Summary
The primary methods used proved to be useful, and enabled the researcher to take the
question and turn it into a viable, comprehendible research. The mono-method
research design chosen was good for this research because it meant that all the
analysis and time spent was focused on one method’s findings. The population and
sampling methods adopted allowed the researcher to guarantee that the participants
were in fact buyers of the Body Shop’s products and were relevant to the study.
Initially, the design would have involved an interview with a member of the Body
Shop. The methods were chosen as opposed to interviews or questionnaires due to
limitations to interview the appropriate candidate, and the results of a questionnaire
would be the equivalent of a focus group except in this case, take more time.
All ethical considerations have been addressed, and a verbal contract of anonymity
was made when conducting the focus groups.
27
4.0 Findings
4.1 Introduction
As previously mentioned there were two focus groups carried out; one with six
participants aged 20 to 25, and another a week later with six participants aged 25 to
30. This chapter presents the findings for all the questions asked to all the respondents
of the focus groups.
4.2 Findings for each research question
Question 1: Do you feel strongly about Corporate Social Responsibility (CSR), and
organisations giving back to communities? Why?
75% of participants said ‘Yes’ that they agreed to feeling strongly about CSR
delivered by organisations. The thought of giving back to communities is comforting
to participants and makes them feel good about themselves and society.
25% said ‘No’, they haven’t been exposed to it and know not much of it, and will not
act strongly towards it. A participant from each group mentioned the fact that it’s not
as simple as making CSR campaigns. One mentioned that it is “widely used as a PR
tool” and the other that “it would be good if companies made it clearer what they are
doing for the planet, but it’s not easy.”
Question 2: Do you consider yourself an ethical shopper?
25% of participants responded with the answer ‘No’. 33% said ‘Yes’, they shop
ethically, and 42% said only to an extent, not fully.
Question 3: What is the main driver to your decision making process to purchase any
health and beauty product?
The respondents answered with a combination between 6 factors. Table 1 shows
which factors were mentioned, and how many participants had said these determine
buying a health and beauty product.
Table 1.
Factors that determine purchasing a
cosmetic product
Number of participants
28
Necessity 1
Recommendations & reviews 3
Price of product 3
Brand and product quality 4
Natural & less harmful ingredients 3
Ethical business practice & against
animal testing
3
Question 4: Did you know that L’Oréal bought the Body Shop for $1.1 billion in
2006?
Only 17% were aware of the takeover of L’Oréal on the Body Shop, and 83% of
participants were unaware and shocked despite being regular customers.
Question 5: Do you consider L’Oréal to be ethical and uphold good CSR?
41% answered with yes, a participant explained that in their opinion, if nothing bad
has been heard about the company, it must therefore mean they’re good. One
participant claimed the reason behind all CSR activity is to create an advertisement
and guilt customers into purchasing their products.
25% believed that L’Oréal was not an ethical organisation, one participant mentioned
that they have tested on animals at a point in the past. 34% were entirely unaware of
any of L’Oréal’s CSR.
Question 6: How often do you shop at the Body Shop?
Categorised and grouped into yearly, monthly and on occasion, 6 out of 12
participants shop at the Body Shop once to four times a year. 3 out of 12 shop there
once to four times a month, 5 participants also said to visit the Body Shop during
season offers such as Christmas time, when certain products run out and need
refilling, and in order to buy gifts and birthday presents for friends.
Question 7: Are you aware of any of their CSR activity?
The remaining participants listed a few being no animal testing, fair trade, protecting
the planet, sustainable sourcing of ingredients, and promotion of human rights of
29
native suppliers. A participant pointed out they have strong links with Greenpeace,
and held campaigns for human rights and against animal cruelty.
Question 8: Do you know about their 7 core values?
75% of participants said ‘No’. One participant said they were only aware of ethical
sourcing, one mentioned the company valuing their customers, and one that they were
an environmentally friendly business.
Other CSR activity was mentioned that did not address the 7 core values in exactitude
but still showcased their practices. These were fair trade, defending human rights,
protecting the planet, and being against animal testing.
Question 9: What do you know about the Body Shop’s business ethics?
5 out of 12 of partakers knew nothing about their ethics. The remaining listed very
few points individually. These ethical facts were their commitment to human rights,
being a ‘green’ company, ensuring of ethical and fair trade, not testing on animals and
sustainability with resources. One participants recalled that they disclose all
ingredients in their products on the packaging which supports something they called
‘informed consumer decision making’.
Question 10: What do you most commonly purchase at the Body Shop & why?
Table 2. Shows the products most commonly bought by the partakers of the focus
groups, and the main reason behind their purchase.
Table 2.
Product most commonly purchased Reason for favoured purchase
Body butters 60% said they buy these most because
they’re moisturising and smell good
UV Protective lotion Hydrates and protects skin well
Bath lily, Bath gloves, Bath body scrub Product, packaging, appearance and
good smell
Soaps and body washes Smell good and are reasonably priced
Make up, make up brushes 4 out of 12 participants like that all
ingredients are listed, and the quality,
30
durability and shades provided are not
found elsewhere
Seaweed facemasks Because of effectivity and ingredients
Banana shampoo and conditioner Because of effectivity and ingredients
Question 11: Has your degree of knowledge of the Body Shop’s CSR affected your
choice in buying their products? How?
83% said their CSR has had an effect to a certain degree on whether or not they
purchase products from the Body Shop. 4 out of 12 confidently said ‘Yes’. The Body
Shop’s brand image is seen as a good healthy and clean one, and one participant said
it doesn’t make them feel like the product’s bad for them or the environment. One
participant likes their values in terms of giving back to communities, the environment
and the health and beauty industry. One partaker of the focus group prefers their
products due to the prices being more affordable as opposed to costlier brands with
the same degree of CSR if not less.
The participants that answered by saying them buying the Body Shop’s products was
only partially due to their CSR activity gave reason for it. Two explained that it makes
them feel better as consumers, and like their purchases are making a positive
difference to society. Two voiced that they purchase from the Body Shop because it is
known to be ethical and a good company. One participant argued ‘Yes’ and ‘No’; the
Body Shop was viewed by the participant as too “braggy”, like lush, “too in your
face” suggestive of it being a marketing tool.
2 out of 12 said the Body Shop’s CSR has had no real influence on their decision
making process when they have purchased their products. One participant said the
main drivers are price and fragrance.
4.4 Summary
This chapter listed all key primary data gathered from both focus groups undertaken
for the purpose of this research. The full transcripts of the focus groups are available
in Appendix B and Appendix B (1). The focus group recordings were transcribed,
including every relevant piece of data during the research being conducted.
31
Focus groups were chosen by the benefits backed up by Krueger & Casey (2000) in
(Onwuegbuzie et al, 2009) in that it’s an economical and efficient method to collect
data from multiple partakers in one sitting. In the next chapter these findings will be
analysed using keywords-in-context analysis whereby significant or repeated words
within the text are coded and then grouped. (Onwuegbuzie et al, 2009)
32
5.0 Analysis & Conclusions
5.1 Introduction
Stokes (2011) explains coding as a process that leads to categorisation and classifying
data so that an understanding from qualitative data can be made. The findings and
data were coded and looked over several times to establish any patterns, recurring
words or statements, language, and metaphors. Every occurrence found is described
as a code that indicates that this particular pattern shows it belongs to a certain
category of response. In this research for example, links between buyer behaviour and
a company’s CSR activities were coded and made.
This chapter analyses the data in findings in comparison and in accordance with the
literature used for secondary research, and consists of several links such as CSR being
argued to be a competitive advantage tool, and ethical shoppers being customers at the
Body Shop. Following that, conclusions are drawn summarising the relationship
between findings, the research aims and an overall conclusion in regards to the
research question.
5.2 Analysis/conclusions about findings and literature review
CSR and SCA
As seen in the findings, a participant highlighted the importance of being well known
and well-advertised for CSR activity in order to increase sales. Entine (2007) did
mention that organisations are well aware that being public and open about their CSR
activities will increase their profitability.
Another participant said that companies that actually achieve change and
improvement and are successful in their CSR are more appealing than companies that
just adopt CSR out of necessity and norm. This suggests that by advertising and
campaigning, and having the target market very aware of the Body Shop’s ethical
activities, they will gain a bigger market share and sales will rise.
33
CSR as a PR tool
Examples are seen in the literature by Entine (2007) of companies such as Marks and
Spencer, Cadbury Schweppes and Tesco showcasing large CSR plans described as
green marketing and green operations.
A participant of the focus group commented that CSR is “widely used as a PR tool”
and another that when companies showcase CSR they are simply implementing an
advertising campaign, and are attempting to guilt customers into buying from them.
Public image is highlighted to be of big importance to consumers and their buyer
behaviour towards cosmetic brands. When discussing the Body Shop, a participant
said that as long as they haven’t heard bad activity from them, they cannot be a
majorly bad business.
When discussing L’Oréal, the same theme continued arguing that as long as negative
feedback had not been heard of, they must be a company that hold their standards
high, and if they hadn’t upheld good CSR, they wouldn’t be a big company. These are
strong statements made that suggest a very strong influence of the media, public
knowledge and image of a brand will determine the likeability of it.
‘Exploiting consumer idealism’
A strong theme was noted throughout the primary data collected in regards to
customers feeling emotionally invested in bettering the planet, and the Body Shop
showcasing that as important to them. According to the findings, customers feel as
though they are doing more than just purchasing a product for selfish use. They feel as
though they are standing against animal testing and for fair trade. One participant
admit that the Body Shop’s CSR has stopped her from using products from any other
company that is equally as involved in CSR, nor using anything that mistreated people
or animals.
Porter and Kramer (2006) have explained the vast growth of companies benefiting
from being green marketers and taking advantage of consumers’ idealisms. It is
argued that ‘cause-related marketing’ and green practices are used to gain customers
and win over loyalty.
34
Participants highlighted the link between a company being viewed as ‘good’ and how
much positive publicity it receives. Links are made in regards to the power of
activists, as well and the power of the consumer’s preferences. A participant in the
study commented on brands having bad images, and how that decreases the want for a
product or association with that brand. To the participant, the Body Shop is seen as a
good and healthy brand with a clean image, therefore they like it.
Determining factors of their decision making process
An important part of this investigation was to understand what all the factors were in
a customer deciding to buy from the Body Shop, in order to help understand if their
CSR is one of them.
Customers have shown to be influenced by reviews and recommendations. A
participant confidently said they would not buy from a band they hadn’t heard much
of. Another argued the same point, that a company’s reputation is an important theme
of attraction for customers. Good reviews and the public’s acceptance are drivers to
their decision making process.
There were other noted variables that determined a purchase within the focus groups.
These were price, quality of product and scent, ensuring the brand is against animal
testing, and making sure the ingredients are healthy and less harmful.
The research question addresses the Body Shop consumer’s decision making process,
therefore research was conducted for it and data was collected on what specifically
customers consider when buying their products.
The Body Shop’s CSR
The Body Shop is a ‘green company’ as mentioned earlier, this means they practice
CSR such as changing their head offices to a system that provides them with
renewable energy, and running sustainable development and community-improving
projects. Also mentioned in the literature was their large success of the 4 million
signatures on the petition to stop testing on animals.
35
Findings of the primary research found that participant shoppers did not know entirely
all their CSR related activity, but mostly good practices. The mentioned values and
practices were their links with Greenpeace, their campaigns for human rights and
against animal cruelty, their sustainable sourcing of ingredients, promotion of rights
of native suppliers, aims to be a green company and decrease impact on the
environment, fair trade, full disclosure of ingredients and not testing products
themselves on animals.
However, participants were unaware that as stated in the literature, they pay staff low
wages, accept ingredients tested before 1991, and contain synthetic ingredients in
their natural products.
Another coded analysis in the findings was that only 17% knew that L’Oréal bought
the Body Shop in 2006. They received bad publicity and difficult response from
activists, as well as this, there was enough information available regarding this case.
In conclusion, the Body Shop have actively promoted favourable activity and
withheld any excessive promotion of scandalous news.
5.3 Analysis/conclusions about research aims
Aim 1: To have read all relevant literature in order to have full insight on CSR, the
Body Shop’s business ethics, their CSR activity and any major crisis or successes they
faced.
This aim was successfully met with the vast amount of literature regarding
green marketing and buyer behaviour. The Body Shop have a large amount of
coverage and studies conducted about their business strategy available, that
provided the researcher with good insight on how as a company, the Body
Shop has successfully engaged in CSR.
Aim 2: To conduct, analyse and evaluate primary research of a sample of the Body
Shop customers’ views and opinions on whether CSR is a determining factor in their
decision making process.
36
The research was successful in achieving this aim in the sense that the data
and answers did include CSR as a determining factor for the Body Shop
buyers, and exposed other factors too such as the scents of their products.
Aim 3: To gain broad knowledge about the importance and power of CSR
engagement and activity by linking literature to current practice conducted by the
Body Shop, and how aware their target market is of it.
There were various examples in the literature highlighting the power of good
or bad publicity for a famous organisation. Findings showed participants on
the topic of publicity and good image and how it impacts how they feel about
the brand.
Avram & Kuhne (2008) suggested the three sustainability strategies that help a
firm build a competitive advantage. These three are pollution prevention,
product stewardship, and sustainable development. The literature and findings
both indicate that having a strong CSR strategy will improve the firm’s
relationship with the public.
A conclusion from the analysis can be drawn that having good CSR, leads to
having a good brand image, which then leads to obtaining a good customer
base.
Aim 4: To form a strong opinion backed up by the information gained from aims 1, 2
and 3 in order to draw a conclusion on whether CSR does in fact affect the Body Shop
customers.
The findings revealed that there is a strong percentage of customers that are invested
in CSR and are shopping at the Body Shop due to their CSR practice. The data has
also shown that people who shop at the Body Shop are mostly ethical, compassionate
buyers and have an emotional investment towards benefitting the planet with CSR
practice. Some participants felt that by shopping there, they are more helpful in
bettering the planet as opposed to shopping elsewhere.
37
5.5 Overall conclusions
When comparing focus groups in terms of the age variable, the findings suggested
that the focus group of participants aged 25 to 30 provided information regarding the
topics discussed, whilst the focus group aged 20 to 25 were less aware of CSR, and
the Body Shop. The results suggested they were less involved and less aware of exact
CSR activity within organisations.
To an extent, the research agrees with another that discusses how companies are
investing, acting upon and publishing CSR and sustainability reports, however
research has shown that customers are not usually aware of companies that do in fact
practice CSR actively, nor are they certain of fair or ethical trade. (Anonymous, 2010)
Arguably, it is evident that it’s found to be greatly important to incorporate CSR into
a business strategy, and throughout this research the data has suggested that with a
good strategy comes good image and good customer base.
The research question asked whether or not the Body Shop’s CSR had an impact on
their consumers’ buyer behaviour, their favouritism, loyalty and decision making
processes. The research findings answered the question by showing the participants
that actively purchased from the Body Shop to be invested in ethical shopping, and
enjoyed purchasing their products due to certain practices such as being against
animal testing.
5.5.1 Limitations of the study
The researcher would have liked to carry on the research and address a different
sample, one with a wider age group, and conduct 3 to 4 focus groups to test any
correlation over a wider spectrum of age, however due to location and time
constraints the right candidates were not presentable.
An interview would have been conducted with a member of management at the Body
Shop, however due to their busy schedules and lack of availability the interview was
reviewed and removed.
38
5.7 Opportunities for further research
This research shows opportunities to further it by investigating different aspects of
CSR, looking at the topic from a different point of view; how companies decide what
activity to practice and what to invest in. The further research could also interview the
CSR manager of the Body Shop in regards to their PR and brand image strategies, and
CSR strategies.
39
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Appendices
Appendix A. Performance Reviews (x3)
43
44
45
46
47
Appendix B. Focus Group 1 Transcript
Focus Group 1(20-25)
Mediator: This focus group’s aim is to investigate whether or not, you, as the Body
Shop customers are affected in your decision to buy their products because of their
corporate social responsibility activities. All the responses from this focus group will
remain anonymous and your personal details will remain confidential. I’ll repeat each
question to you individually as many times as you need me to; take your time to
answer, speak freely and honestly.
1. Do you feel strongly about Corporate Social Responsibility (CSR), and
organisations giving back to communities? Why?
a) I wouldn’t say I felt strongly about it but it kind of makes you think that
you’re giving something back when you buy something. And that maybe
they are making a stand against animal testing and fair trade.
b) Well yes, and that’s because I feel that big organisations can do a whole
lot more for the community than one singular person ever could.
c) Yes and no, I know it is an important issue but I wouldn’t go out of my
way to only buy from organisations that give back. I do feel strongly about
the situation, global warming, cutting down trees like these are all issues I
actively want to do something about and it would be good if companies
made it clearer what they are doing for the planet, but it’s not that easy.
d) Yes. Because it’s important for the communities and environment in which
the business operates? I want less pollution - does that fall under the CSR?
I don’t know.
e) Umm, no I don’t know what they are really. Like being pro- environment?
I don’t have an opinion on it.
f) Yeah I do I think it’s important. Because it’s nice to know that companies
are doing their bit for the world and it means that also, were working
towards saving our planet. If everyone gave something back and cared
then there would be a way out. End of the day it is all up to us to each do
our bit.
2. Do you consider yourself an ethical shopper?
a) No I don’t think I’m an ethical shopper, but I wouldn’t knowingly buy a
product if I knew they tested on animals.
b) To a certain extent. Maybe not entirely.
48
c) No, I don’t go out of my way just because I don’t have time and I have a
very small disposable income and in my mind, I feel as though these
companies are more expensive.
d) Yeah.
e) Not particularly, I’m not very aware, but if I am aware of like animal
testing and stuff I won’t buy it.
f) Not really, but if I had the money to buy completely Fairtrade I’d
definitely do it. Being a student kind of hinders my options though.
3. What is the main driver to your decision making process to purchase any
health and beauty product?
a) I usually think ‘do I need it? Is it going to make a difference to my skin or
face?’ Or I check recommendations.
b) Making sure that the brand is against animal testing and that it’s suitable
for me.
c) Quality. Price isn’t really a big deal because products that you’re putting
on your face should be good quality and that comes at a price... Big name
brands do drive my decisions too, I wouldn’t really buy a brand that I’ve
never heard of.
d) Reviews on Makeupalley, and if there are any bad chemicals that might
give me a bad reaction I don’t want it. Usually if a product smells good
and is popular, I’ll just read a review and if they are mostly good and do
what they say, I get it. Price shouldn’t be over the top either.
e) The smell if it’s scented, the quality and price.
f) For me, quality. If a product is good quality and does what it says then I’ll
buy it. I like to try new products and see if they work and if they do, then
I’ll keep buying them.
4. Did you know that L’Oréal bought the Body Shop for $1.1 billion in
2006?
a) No I did not know that.
b) Did not know that.
49
c) No.
d) No.
e) I did not.
f) No I didn’t, that’s kind of a shock actually.
5. Do you consider L’Oréal to be ethical and uphold good CSR?
a) No I wouldn’t think they would be ethical like the Body Shop are.
b) Yeah.
c) I don’t really know a lot about the brand and I don’t use their products.
d) I have no idea, I don’t really buy L’Oréal products.
e) Haven’t a clue, won’t without looking into it.
f) Not at all. I’m pretty sure that they used to test on animals at some point.
6. How often do you shop at the Body Shop?
a) I used to buy all my face routine products from the Body Shop; cleansers,
moisturisers. I do still use their make-up brushes but I possibly go in once
or twice a year to actually purchase something.
b) I would say that half of my products that I use on a daily basis are from
Body Shop so maybe 1 or 2 times a month.
c) Twice a year but their stuff lasts me all year round.
d) Whenever I walk by it and something catches my eye – or during different
seasons like Christmas when they come out with limited editions… Or!
When I run out of body butter and want to restock.
e) Used to be monthly but now like once every few months, I tend to get their
stuff as gifts now.
f) Every now and then, probably about once a month? It depends on whether
something I really like of theirs has run out and I need a new one, but I
won’t go out of my way to buy it, just the next time I’m near a shop I’ll go
in and get whatever it is I need.
50
7. Are you aware of any of their CSR activity?
a) Against animal testing, fair trade, protecting the planet stuff.
b) I know that they’re against animal testing, they’re committed to protecting
the planet and they ensure ethical trading.
c) Kind of. I am aware they do a lot of things but not sure exactly what.
d) Nope.
e) Nope. Not off the top of my head.
f) I don’t know about it, but I’m aware that they give back to communities. I
don’t think it’s advertised very well and I think they should focus on it
more because I’m sure more people would buy their products if they did.
8. Do you know about their 7 core values?
a) Never heard of it, ha.
b) I don’t know all of it, can’t remember off the top of my head.
c) No, no idea.
d) Not all of them, they are against animal testing and they want to protect
the planet and that’s great.
e) Umm, no.
f) I know that their products are all ethically sourced. I enjoy reading the
packaging on their products, it gives me a kind of reassurance that I’m
doing some good.
9. What do you know about the Body Shop’s business ethics?
a) Sorry I don’t know anything about the business ethics?
b) They have a commitment to human rights and therefore ensure ethical
trading in the business process.
c) Fair trade maybe? I don’t know much about their ethics but, I would make
the presumption that they are better than others.
d) Nothing.
51
e) Nothing.
f) Absolutely nothing, I’m definitely going to give it a look later to see what
they get up to.
10. What do you most commonly purchase at the Body Shop & Why?
a) Make up brushes. I find them the best brushes on the market, they’re soft
and long lasting and very durable.
b) Their body butter, eye makeup, lip butter, brushes and this seaweed mask
because they all work like magic.
c) BB cream because it’s really good quality and I can’t get that shade
anywhere else. Oh and lip liners.
d) Body butters. Because they are moisturising, good quality, and have loads
of smells to choose from which all smell really nice. I also liked their
banana shampoo and conditioner but I remember it wasn’t always
available.
e) Their Moringa body butter because it makes my skin soft and it smells
amazing.
f) I buy their body butter and lip balms because their products actually work
and smell amazing. I’d like to buy more but it can be expensive and in
reality I don’t have a high disposable income.
11. Has your degree of knowledge of the Body Shop’s CSR affected your
choice in buying their products? How?
a) I guess to a degree my choice to shop at the Body Shop was maybe
because it’s well known for being ethical and makes you feel like maybe,
my purchase is maybe making a difference.
b) Their visible campaign has definitely influenced my decision to buy their
products - the first time, afterwards I continued to do so mainly because
their products are great.
c) Yes, other brands like Maxfactor and Collection 2000 I wouldn’t buy from
because the image their brands have makes me feel like they’re bad for me
or the environment. But the Body Shop has a good healthy, clean image
and that’s what I like.
d) Not really, I think they are a good company and I’ll still keep buying their
products because I haven’t found anything bad about them really.
52
e) No because I know nothing about it and still shop there.
f) It’s probably influenced a bit. Like, I like the Soap and Glory products and
would buy them, but also like to opt for the Body Shop because it makes
me feel like I’m doing something to help the world.
KEY:
No or negative response
Yes or positive response
Key word repeated within the
question’s answers
Showing personal investment
and influence of good CSR
Points repeated throughout
focus group in regards to
publicity
Body Shop CSR activities and
operations
53
Appendix B. (1) Focus Group 2 Transcript
Focus Group 2 (25 – 30)
Mediator: This focus group’s aim is to investigate whether or not, you, as the Body
Shop customers are affected in your decision to buy their products because of their
corporate social responsibility activities. All the responses from this focus group will
remain anonymous and your personal details will remain confidential. I’ll repeat each
question to you individually as many times as you need me to; take your time to
answer, speak freely and honestly.
1. Do you feel strongly about Corporate Social Responsibility (CSR), and
organisations giving back to communities? Why?
a) In all honesty, growing up and living in Bahrain I don’t think that
we’re much aware of CSR to be able to have any strong feelings
towards it. Personally I am not. But, the thought that some
organisations could be giving back to the community gives me a bit of
hope.
b) I think organisations that go beyond just profit and business practices
are ideal for bettering society both economically and socially. By being
involved with the community they strengthen the ties, and they aren’t
just selling a product, it brings humanity to business and retail.
c) Yes I do, because I feel that it’s important that organisations give
something back as this will help out other people. If they don’t do this
then it will be them getting richer and not doing any good for their
customers or the communities that helped them become successful.
The world should help each other so that everyone is always getting
something back for the work they do and the help they give.
d) Yes, I would much prefer a company that takes care of the
environment and the people around them; I strongly believe it’s their
responsibility.
e) Yes... I am a strong believer in looking after the environment, helping
the unemployed and believe in resources being used meaningfully.
f) I feel strongly about corporations giving back to the communities for
ethical reasons; the purpose of corporations cannot be sustainably
achieved without people and resources. I don’t feel like CSR is the
most effective way to achieve that as from what I know, it’s widely
used as a PR tool. You know, feel good VS real good. Companies
based on shared value who achieve ‘real good’ are more appealing to
me than companies that just adopt CSR.
54
2. Do you consider yourself an ethical shopper?
a) It depends. I mean if I knew for sure that a human being or animal
could’ve been negatively affected in the process of making the product I
won’t buy it. Still sometimes I just don’t bother asking why a product is
cheaper because who doesn’t love a bargain.
b) Mostly I only shop and endorse organisations and retailers that give back
with job placements for groups and help with charitable donations to better
the planet. And that don't discriminate against groups of people around the
world.
c) I do consider myself to be an ethical shopper. I would never shop at a
place knowing that they mistreat their staff or underpay workers. I believe
that everyone should be treated well, so if a company doesn’t comply with
this then I won’t associate myself with them or pump money into that
company. It’s the same with make-up companies that test on animals, I
don’t want to associate with a company that thinks this is okay so I would
never buy their products, I would feel too guilty and as if I was supporting
them.
d) I wouldn’t say I go out of my way to do so but given the chance I would
much rather purchase a product from a brand which practices “fairly”.
e) Yes, I regularly buy fair trade products.
f) Mostly, yes. I try to choose ethically from the products that are available to
me.
3. What is the main driver to your decision making process to purchase
any health and beauty product?
a) Mainly, the price.
b) I have a more personal lifestyle due to my brush with cancer. I look at how
a product’s made and what the research shows, actual medical studies, to
base my decision, and how it betters my body if I use it.
c) The main aspect would be the ethics behind them, like I said I won’t buy
anything that mistreats people or animals. I don’t feel this is right. They
can definitely afford to find other ways to test ingredients and pay their
workers properly. Another driver would be reviews on the product, if I
heard that the product is good then I will be more likely to buy the product
55
than if I have heard nothing about it. A company’s reputation is massively
important.
d) I buy mostly baby products like wipes and creams because they contain
less chemicals, at least I think?
e) That the products have not been tested on animals, I’m an animal cruelty
activist.
f) Price and ingredients. I shop for products that use the least amount of
harmful chemicals within my budget. I’m not against paying slightly more
for a less harmful health and beauty product.
4. Did you know that L’Oréal bought the Body Shop for $1.1 billion in
2006?
a) No.
b) No I was unaware.
c) I didn’t know that, but I haven’t really heard anything bad about L’Oréal
so I like this news. As long as a company’s good then merging them is
always a bonus, right?
d) I knew L’Oréal took over Body Shop but didn’t know how much for.
e) No, I did not know this. Despite, being a regular customer of body shop.
f) Yes.
5. Do you consider L’Oréal to be ethical and uphold good CSR?
a) Sure. But sometimes I believe that companies showcasing that they hold
good CSR are just creating another advertising campaign to guilt trip
consumers into buying their products.
b) Through social media and news maybe I’d think so, I haven't heard any
negative feedback so I would have to say so far they must hold their
standards pretty high. The way they give explanations of the products
benefits to the public, they hold positive and responsible feed back to the
consumer too.
56
c) As far as I know they are ethical. I mean I never really looked into it, but if
they were that bad then everyone would know about it surely. So they
must uphold good CSR as far as I’m concerned.
d) L’Oréal wouldn’t be the first on my list in terms of ethics, they must
uphold good CSR otherwise they wouldn’t be so big.
e) I am not sure, don’t know much about L’Oréal as an organisation - I don’t
use their products.
f) No.
6. How often do you shop at the Body Shop?
a) Well, I haven’t shopped there since probably 2013.
b) About twice a month.
c) I tend to go to the Body Shop whenever I run out of a certain product; I’m
quite a loyal shopper so, if I find a product that I like I’ll keep buying that
product every time it runs out. I will also then buy this product for my
friends for when it’s their birthdays because I love their products that
much.
d) Once in a while, like a few times in a year.
e) Several times a month, it’s mainly to buys gifts for others.
f) 3 or 4 times a year.
7. Are you aware of any of their CSR activity?
a) No.
b) Not really, I heard of American Express making deals and offers when you
shop at the Body Shop.
c) I’m not really aware of their specific activities, I don’t keep up to date with
these things. But I know they’re all about loving the planet, and I love the
body shop, I can’t imagine there will be anything bad.
d) I know Body Shop have strong links with Greenpeace & campaign for
human rights and against animal cruelty.
e) I know they don’t test their products on animals that’s why I shop there.
f) Some. They do sustainable sourcing of some ingredients and promotion of
rights of their native suppliers.
57
8. Do you know about their 7 core values?
a) No.
b) No.
c) I don’t know about their 7 core values. But I assume they would be the
standard values that involve like, looking after customers and being kind to
the environment. Most big companies that are good tend to have these core
values.
d) Fair trade, defend human rights, protect the planet and against animal
testing- that’s all I’m aware of.
e) No, I do not know about their 7 core values. However I do know they
value customers and doing the best they can in terms of being CSR.
f) Some. No animal testing. Fairtrade sourcing.
9. What do you know about the Body Shop’s business ethics?
a) I only know that they don’t test on animals.
b) The company is a Green company, has less of a bad impact on the
environment and human rights especially where they outsource their
labour for the making of products deemed healthy and good for us.
c) I don’t know anything really about their ethics, all I know is they haven’t
done anything majorly bad because if they had then I would have known
about it. I see them as being a nice, caring, giving company.
d) Body Shop is all about ethical trade.
e) I know they like to be sustainable with their resources they take from
around the world.
f) Well I’ve already listed some things I know. They also disclose full
ingredients on their products, which supports informed customer decision
making.
10. What do you most commonly purchase at the Body Shop & Why?
a) I used to buy their body butter because it smelt good, but then I found a
better alternative for myself.
58
b) Lotion with UV protection, I’ve tried other alternatives for a cream that
hydrates my skin and protects it well and they have a non-clogging
formula.
c) I buy the strawberry body butter because I like the smell of it and I feel it’s
the most moisturising body butter that I have tried- my skin stays smooth
and it leaves it smelling nice.
d) Always buy their bath lily, bath gloves & occasionally their body scrub.
The bath lily & gloves in my opinion are the best and come in cute
colours. The creams and scrubs smell good.
e) I buy soaps and body washes because they smell good and make my skin
feel nice. They are also reasonably priced, I find the brand very reliable.
f) Make up. Because all the ingredients are listed.
11. Has your degree of knowledge of the Body Shop’s CSR affected your
choice in buying their products? How?
a) No not really, just the fragrance and price of their products.
b) Yes, I’ll always buy things from the body shop. And as a future business
owner I now want to look into eco-friendly ways of running a company.
c) I don’t really have much knowledge so I can’t say that it has affected it.
But if I knew that it was bad then it probably would affect my purchases
and I would avoid the company. Now I just like them more.
d) Yes and no- It’s nice that the company has strong ethics I’m just not into
how braggy they are about it, & lush too; to me it’s a little bit of a turn off,
too in your face.
e) Yes, because I like their values in terms of giving back to communities,
giving back to the environment and the beauty and health industry. It has
actually stopped me from using other products from companies that don’t
promote or conform to CSR views.
f) Yes. I prefer products from the body shop to costlier brands that don’t
exercise the same degree of care.
59
KEY:
No or negative response.
Yes or positive response
Key word repeated within the
question’s answers
Showing personal investment
and influence of good CSR
Points repeated throughout
focus group in regards to
publicity
Body Shop CSR activities and
operations
60
Appendix C. Research Proposal
BU6001/BU6301 - Project Proposal
-----------------------------------------------------------------------------------------------------------------
The applicant
1.1. StudentAssessmentNumber:J09600
1.2. StudentID Number:1222374
2. Name ofcollaborating establishments:
The Body Shop
3. The programme of research
3.1. Title of the proposeddissertation: Aninvestigationintothe impactof Corporate
Social Responsibility onthe BodyShop’sconsumers’decisionmakingprocess
and buyerbehaviourinthe UK.
3.2. Research questionbackground
Corporate Social Responsibility(CSR)isamanagementthatorganisationsemployin
theircorporate strategy,whichinvolvesthemoperatingandmonitoringall
actionsinan ethical,legal mannerthatcreatesor promotessocial and
environmental good.
Thisresearchpaperwill explorehow The BodyShop,as a healthandbeautyproducts
retailer,utilisesitsgoodethicsandCSRand inwhichwaysthisinfluencestheir
market’sbuyerbehaviouranddecisionmakingprocesswhenpurchasing
productsfrom them.Thispaperwill analyse thisqueryviathe resultsgathered
fromthe bodyshopconsumersinthe northwestof England.
3.3. Research aim(s) (Objectivesofthe study)
1. To understandthe relevantterminologyandtheoryinvolvedinthe topicsincluded
for myresearch.
2. To have readall relevantliteratureinordertofullycomprehendthe wayinwhicha
retailercompanyaimstosatisfy theircustomers’demandandexpectationsinan
ethical andresponsible approach.
3. To conduct,analyse andevaluate primary research of asample of the BodyShop
customers’viewsandopinionsonwhetherCSRisa determiningfactorintheir
decisionmakingprocess.
4. To gainstrongknowledge aboutthe importance andpowerof CSRengagementand
activity bylinkingtheoryto currentpractice intermsof the BodyShop’s policies
and protocol whenengagingtheirtargetmarket.
61
5. To forma strongopinionbackedupbyfacts,usingthe informationgainedinaims1
2 and 3 in orderto draw a conclusiononwhetherCSRdoesinfact affect
consumerpurchasesand The Body Shop as a businessornot.
4. Initial literature review
‘The qualitative continuum’ meansthatonthe one endare the highlyqualitative,
reflectivetypesof analysiswhenanalysingresearchdata.Whereasonthe otherend
are typeswhichtreatthe qualitative datainaquantitative manner.Thiscouldmean
conductinganalysisbycountingandcoding. Dawson(2009)
“A strategiccompetitiveadvantage canbe existedwhenafirmhasa product whichis
considered bycustomersasbetterthanof its competitors.Forthatto happena firm
mustcare about social responsibility. The globalizationof business andindustry,
politicsandthe mediabringsfarmore attentiontobear oncorporate social
responsibility.The relationshipbetweenpoliticsandeconomicsischanging.
Globalizationhas engenderednew opportunitiesforenterprises;atthe same time as
complexityincreases enterprises’activitiesencompassmanycountries.Enterprises
face entirelynewchallenges, especiallyincountriesoutsidethe affluentpartof the
world.Teimouri etal.”(2011)
*Inserthere howglobalisationwasutilisedbythe BodyShopto engage inCSR
activity*
“Roddick'svisionencompassesvariousaspectsof the worldcommunity.Itstatesthat
The Body Shop'ssuccessisdependentuponitsrelationshipswithall itsstakeholders:
employees,franchisees,customers,communities,suppliers,shareholdersandNGOs.”
5. Outline Methodology:
Thisresearchprojectisbeingdone forexploratoryandexplanatorypurposes.The research
strategiestobe usedare groundedtheoryandarchival researchforsecondaryresearch.For
primary,the designwill be actionresearch forconductingprimaryresearch.(Saunders,
Lewis,Thornhill.2009)
A realistresearchapproachmeansthe researchwill identifytheoriesandacademic
knowledge andevaluatesoptionsforactions.Inthiscase the researchdesignischosenin
orderto identifywhetherCSRinfluencesthe BodyShop’stargetmarket’sbuyerbehaviour.
Thiswouldinclude researchingreadilyavailable informationandthenconducting
questionnairestotheirconsumersinordertounderstandwhetherthe hypothesissetisin
fact correct. Fisher&Buglear(2007)
Observational designtofocusgroups:prospective orretrospective dependingonthe way
answersor data iscollected.
Populationisall the individuals,organisationsanddocumentsneededtoconductthe
research.
Sample Size:(Dawson,2009)
62
Primaryresearchwill consistof handingoutquestionnairestothe BodyShopshoppers,after
askinga wide range of queries,aspecificconsensus/hypothesisorgapwill arise thatcan be
focusedon.
Data analysisandrationale: Qualitative dataanalysismeans enoughtimemustbe dedicated
for data processing.Itworksbasedontheoretical principlessuchasSocial Interactionism,
Hermeneutics,andPhenomenology.Adamsetal (2014) Inorder to aidthe analysis,afocus
groupsummarywill be producedtobe completedstraightafterthe focusgroups.Dawson
(2009) As well asthis,there isSoftware available foruse onthe Universityof Chester
Moodle page.
The evidence gatheredfromresearchwill be documentaryanddemonstrativeevidence in
that itas documentary,itisclassedasreal evidence thatwill require authenticationi.e.a
questionnaire asthe answersare notguaranteedtobe accurate or correct.As
demonstrative,Iwill be usingdiagramslikegraphstoback upmy resultsconclusions.Adams
et al (2014)
Beingethical throughoutthe entire researchbydoingnostakeholdersoranyindividuals
involvedanyharm,havingfull integrityevenwithsecondarydataanditsreliability
throughoutthe entire dissertationresearch.The workwill be referencedcorrectly
throughoutinorderto avoidplagiarism.Quinlan(2011) Accordingto Quinlan,Validityis
verifiedbasedonhow“logical,truthful,robust,sound,reasonable,meaningful anduseful”is
the research.Transparencyisimportantinethicstoo,so anyindividual involvedinthis
researchwill have full transparencyof myobjectives,the purposesandaimsof everyfocus
groupand all researchmethodsused.
Adamset al (2014) clarifiesthata mandatorystepof beingethical whenconductingresearch
isto provide everyresearchsubjectorindividualwithaconsentformwherebytheysignthat
theyare aware of everythingtheyshouldbe andagree tothe termsof the researchset.
6. Proposedplan of work:
o Readacademicbooksand journalsaboutfindingaresearchtopicandresearch
methodology.e.g.(Saunders,Lewis,Thornhill,2012) to understandandapply
researchapproachesandmethodsanddecide the dissertationquestionby
February 6th
2015.
o Researchthroughand readacademicjournalsandreportsabout CSR in the
retail sector,andin specificThe BodyShop’sCSRandbusinessethics. February
- March 2015.
63
o Readacademicbooks about CSR,itsinfluencesandcustomersatisfactionin
the retail sector. February - March 2015
o Readand revise academicbooksandjournalsonhow to correctlyconduct
questionnaires. February2015
o Write out and planall questionsforquestionnaires. February2015
o Conductinterviews,gatherresultstoformcorrelationstothenanalyse them
and identifygapsinmydatawhere furtherresearchisrequired. February2015
o Use the stagesinthe planof work againstthe researchaimsto make sure all
objectivesare beingmet. February- March 2015
o Write and finishthe remainingchaptersof dissertation usingall primaryand
secondaryresearchdataacquired. March 2015
o Finalise,proof-readandsubmitthe completeddissertation. April 2015
7. References:(APA layout)
1. Dawson,C. (2009). Introduction to Research Methods:A Practical Guide
forAnyoneUndertaking a Research Project.4thed.England:How To
Books. P.116
2. Saunders,M. Lewis,P.Thornhill,A. (2009). Research Methodsfor
Business Students.5thed.England:PearsonEducation.
3. Fisher, C., & Buglear, J. (2007). Researching and writing a dissertation: A
guidebook for business students. Harlow: Prentice Hall/Financial Times.
4. Quinlan, C., (2011). Business Research Methods. Andover: Cengage
Learning. Retrieved from:
https://www.dawsonera.com/abstract/9781408055502
5. Adams, J., Khan, H., Raeside, R. (2014). Research methods for business
and social science students. 2nd ed. London: Sage.
Business Dissertation - Enas Ali
Business Dissertation - Enas Ali

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Business Dissertation - Enas Ali

  • 1. 1 BUSINESS DISSERTATION: BU6001 An investigation into the impact of the Body Shop’s Corporate Social Responsibility on their consumers’ decision making process and buyer behaviour. Enas Ali J09600 STEPHENIE HODGE A dissertation submitted in partial fulfilment of the requirements of the University of Chester for the degree BA Hons Events Management & Marketing and Public Relations. CHESTER BUSINESS SCHOOL MAY 2015
  • 2. 2 An investigation into the impact of the Body Shop’s Corporate Social Responsibility on their consumers’ decision making process and buyer behaviour.
  • 3. 3 Acknowledgements Many thanks to my very helpful supervisor Steph Hodge for guidance throughout the entire dissertation module. I am also very grateful for my family and close friends for their continuous support, and the participants that helped conduct research successfully.
  • 4. 4 Abstract This research study covers several topics regarding Corporate Social Responsibility (CSR), the Body Shop’s CSR story and activity, and the perceptions of their consumer’s in regards to it. It investigates the way that CSR helps increase profits as a competitive advantage, and the way in which their consumers’ behaviour and decision making processes are affected. The objectives of this study are to understand the literature and theory available about the topics discussed, and to conduct primary research to discover data indicative to the consumer’s perceptions and opinions of the Body Shop’s business ethics, CSR practice and production. In order to meet these objectives a literature review was established consisting of several newspaper and journal articles and interviews regarding CSR and the Body, and two focus groups were carried out in two 1 hour meetings, which were then recorded and transcribed in an abridged manner for analysis. The findings have shown a connection between the Body Shop being very CSR active and their customers purchasing from them and being loyal.
  • 5. 5 Declaration This work is original and has not been submitted previously for any academic purposes. All secondary sources are acknowledged. Signed: Enas Ali Date: 05/05/2015
  • 6. 6 Contents Table of Contents Acknowledgements ......................................................................................................... 3 Abstract.......................................................................................................................... 4 Declaration..................................................................................................................... 5 Contents.......................................................................................................................... 6 List of Tables & Figures..................................................................................................8 1.0 Introduction......................................................................................................... 9 1.1 Background to the research.................................................................................... 9 1.2 Research question and aims.................................................................................... 9 1.3 Justification for the research................................................................................. 10 1.4 Methodology....................................................................................................... 10 1.5 Outline of the chapters......................................................................................... 10 1.6 Definitions .......................................................................................................... 10 2.0 Literature Review.............................................................................................. 12 2.1 Introduction .......................................................................................................... 12 2.2 A little about Corporate Social Responsibility ......................................................... 12 2.3.1 Importance of CSR & Surviving it ................................................................... 13 2.4 About the Body Shop’s CSR.................................................................................. 14 2.4.1 CSR Activity .................................................................................................. 14 2.4.2 L’Oréal........................................................................................................... 15 2.4.3 Anita Roddick................................................................................................. 16 2.4.4 Activists ......................................................................................................... 16 2.5 CSR affecting buyer behaviour............................................................................... 17 2.5.1 Exploiting consumer’s idealism ....................................................................... 18 2.6 Summary ............................................................................................................ 19 3.0 Methodology............................................................................................................ 20 3.1 Introduction ........................................................................................................ 20 3.2 Research Philosophy............................................................................................ 20 3.3 Approach............................................................................................................ 21 3.4 Research Strategy.................................................................................................. 21 3.4 Research design................................................................................................... 22 3.5 Research procedures............................................................................................ 23 3.5.1 Collection and Analysis ................................................................................... 24 3.5.2 Sampling process ............................................................................................ 24
  • 7. 7 3.5.3 Pilot process ................................................................................................... 25 3.6 Ethical considerations .......................................................................................... 25 3.7 Summary ............................................................................................................ 26 4.0 Findings .................................................................................................................. 27 4.1 Introduction ........................................................................................................ 27 4.2 Findings for each research question ...................................................................... 27 4.4 Summary......................................................................................................... 30 5.0 Analysis & Conclusions........................................................................................... 32 5.1 Introduction ........................................................................................................ 32 5.2 Analysis/conclusions about findings and literature review...................................... 32 5.3 Analysis/conclusions about research aims ............................................................. 35 5.5 Overall conclusions.............................................................................................. 37 5.5.1 Limitations of the study................................................................................... 37 5.7 Opportunities for further research........................................................................... 38 References..................................................................................................................... 39 Appendices ................................................................................................................... 42 Appendix A. Performance Reviews (x3) ................................................................... 42 Appendix B. Focus Group 1 Transcript ..................................................................... 47 Appendix B. (1) Focus Group 2 Transcript................................................................ 53 Appendix C. Research Proposal................................................................................ 60
  • 8. 8 List of Tables & Figures Table 1. Factors that determine purchasing a cosmetic product…………………..27 Table 2. Products most commonly purchased at the Body Shop………………….29
  • 9. 9 1.0 Introduction 1.1 Background to the research Cosmetics companies have received criticism for a long time in regards to ethics and non-environmentally friendly practices. Companies can avoid that by integrating CSR and sustainability, which involves activity such as abiding by not testing on animals, sustainably sourcing and lessening carbon footprint. (Anonymous, 2010) The Body Shop is largely involved in CSR and focus on ethical outsourcing and production, and is widely known to be a ‘green company’. Consumers and target markets are affected by this movement, and this behaviour can be manipulated to benefit corporate success and high sales. 1.2 Research question and aims The research question revolves around establishing the effects and responses of consumers that shop at the Body Shop. It aims to investigate what the Body Shop have actually achieved, how much of it has been projected at their target market, and whether this projection has worked successfully in satisfying customers. The research aims go as follows: 1. To have read all relevant literature in order to have full insight on CSR, the Body Shop’s business ethics, their CSR activity and any major crisis or successes they faced. 2. To conduct, analyse and evaluate primary research of a sample of the Body Shop customers, to pick up their views and opinions on whether CSR is a determining factor in their decision making process. 3. To gain broad knowledge about the importance and power of CSR engagement by linking literature to current practices conducted by the Body Shop, and how aware their target markets are of it. 4. To form a strong opinion backed up by the information gained from aims 1, 2 and 3 in order to draw an overall conclusion on whether CSR does in fact affect the Body Shop’s customers.
  • 10. 10 1.3 Justification for the research The researcher has always had a strong interest in buyer behaviour and psychology, and that the idea that a target market can be understood, and then that understanding be used to excel at marketing and increase their profitability. Existent knowledge of the body shop’s CSR campaigns inspired an investigation into the validity of their activity and how their business ethics actually influence their customers. This research topic is of current occurrence and can be feasibly investigated in that the nature of the question involves identifying the Body Shop’s history in CSR and their current practices, and then identifying how the sample population chosen reacts and behaves from it with a survey based strategy. 1.4 Methodology Primary and secondary data were collected using an interpretevist philosophy and approach to the methodology. The secondary data selected consists of a literature review covering topics of CSR, the pros, cons and uses of it, and the Body Shop’s ethics and CSR practices. In terms of primary research, the data collected and analysed was via focus groups which were then audio-recorded, transcribed and coded statistically to formulate patterns and conclusions. All data and findings gained were then analysed in accordance to the literature and research aims set. 1.5 Outline of the chapters The following chapters will break down the research in order of the stages required to complete it. Chapter 2.0 is the literature review covering CSR, Green marketing, Strategic competitive advantage, and the Body Shop’s CSR practices. Chapter 3.0 is the methodology chosen in order to conduct research in which the methods, procedures, and ethics are provided. The chapter that follows consists of all the findings of the primary focus groups undertaken. Chapter 5.0 is the analysis and conclusions of the research conducted and the primary findings. 1.6 Definitions Corporate Social Responsibility (CSR) is a management that organisations employ in their corporate strategy, which involves them operating and monitoring all actions in an ethical, legal manner that creates or promotes social and environmental good. (Bitchta, N.d.)
  • 11. 11 Fair Trade involves outsourcing and trade with better prices, decent working conditions and wages for suppliers and employees, and supporting the development of less fortunate working communities. Companies see this as an opportunity to connect with societies and make strong links with their stakeholders. http://www.fairtrade.org.uk/en/what-is-fairtrade/what-fairtrade-does Good Business Ethics require a business to run under moral principles that determine the way that they function and act. The principles involve abiding the law and avoiding causing any harm to any part of our world, whether the environment or a society. http://businesscasestudies.co.uk/anglo-american/business-ethics-and- corporate-social-responsibility/what-are-business-ethics.html#axzz3Z1WmJqVp Consumer decision making process is the process customers go through before they purchase a product or a service, or don’t. (Strydom, 2004) Buyer behaviour is the reaction and activity when assessing, purchasing, using, valuing and disposing a product or service. (Khan, 2008)
  • 12. 12 2.0 Literature Review 2.1 Introduction This chapter discusses the literature found relevant to the research. This secondary research was conducted by addressing main themes such as the basis and importance of CSR, and how it affects and is affected by buyer behaviour. The other theme of the literature review is the Body Shop’s CSR, the history of it providing information regarding their campaigns, their CSR activity, and their allegations and challenges faced. 2.2 A little about Corporate Social Responsibility The Green Paper on CSR presented by the European Commission (2002) defines CSR as ‘a concept that companies function by, whereby they incorporate environmental and societal concerns within their business operations, and make direct involvement in a charitable basis. Companies today are aware of the relations between responsible behaviour and sustainable success. Papafloratos (N.d.) In his paper, Papafloratos also describes it as an umbrella that covers all the theories that link to CSR such as social policy, stakeholder theory, and corporate citizenship. Quite often, companies see one theory link or be a continuation of the other, as activities merge under the umbrella of CSR. Idowu and Towler (2004) in Papafloratos (N.d.) Clarify that some European governments put CSR as a high priority, much like the UK where a CSR Minister was appointed March 2000. Similarly, retracted from ICSSR website (2003) is another meaning to CSR that defines it as dealing with a businesses’ attention towards issues such social responsibility with production, being involved within communities, and having socially responsible relations between all stakeholders. Bowen (1995) in Papafloratos (N.d.) Argues that corporations operate in a socially responsible manner when their honest aim is to make profits, whilst acting respectfully to human and individual rights, good ethics and justice. Corporations have awoken to the fact that having ‘transparent operations’ and being Corporately Socially responsible will give them a raise in profits. (Entine 2007)
  • 13. 13 2.3.1 Importance of CSR & Surviving it Entine (2007) points out and lists several examples of strong recent influences of CSR. Oil companies now discuss which of them is leading and advancing in the cause of using alternative and clean energy. Marks & Spencer have been widely praised for their CSR plan to decrease their carbon footprint and reduce their overall damage to the environment. Cadbury Schweppes is recognised as committed to take action against climate change. Tesco promotes themselves as socially responsible by providing carbon labels on everything they produce and sell. In her 2007 article, Entine tries to show a pattern to us where green marketing and green operations have merged and blurred lines. These green initiatives have been argued to achieve their ideas and inspiration of green promotions by the Body Shop’s founder Anita Roddick. An example of the massive influence of CSR is Nike’s large consumer boycott in the early 1990s. They faced trouble with the public after the New York Times and various other mass media outlets reported that they had abusive labour practices at some of their Indonesian suppliers. (Porter & Kramer, 2006) Activists have and will target the most visible and successful companies to draw them to environmental issues. Perhaps it is that they have the finances to truly make a change, even if the corporations have little impact on the problem addressed. Porter & Kramer (2006) give another example of Nestle, which only consume 0.0008% of the world’s fresh water supply, yet are a major target in the global debate for access to fresh water. We have seen a massive growth in green marketers benefiting from –exploiting- idealistic consumers. (Porter & Kramer, 2006) This ‘cause-related marketing’ is being criticised as to whether green practices are a way to gain an ethical shopper. Arguably, green marketing is not necessarily a soul-less capitalist strategy as some organisations must have genuine initiative and intention to be helpful and responsible within and outside the organisation. In her article in 1995, Entine perceives a socially responsible business as one that is honest, fair, and provides good quality products and services, and not one that strives to be known as the kindest most generous corporation. She also agrees that many organisations are becoming involved in campaigns to protect the environment.
  • 14. 14 2.4 About the Body Shop’s CSR NBS has shown research by Avram & Kuhne in their 2008 article from the Journal of Business Ethics, whereby there are three suggested interconnected sustainability strategies which help firms build a competitive advantage. Firstly, this is pollution prevention by which emissions and waste are reduced in a continuous process of improvement towards the set goal. Secondly is product stewardship: when a product’s life cycle and impacts are analysed they can be reduced and made less harmful to everyone as well as the environment. The third strategy is sustainable development. By achieving and maintaining a strong frame of ethics and social and environmental purpose, an organisation will be more successful with the public. (NBS, 2011) 2.4.1 CSR Activity Marati (2012) writes that long before it became fashionable to be ethical and have strong CSR, Roddick and the Body Shop acted as leaders in the ethical world of business, as they were the first natural beauty products shop in the UK. Roddick founded it in 1976, even though L’Oréal –who are ethically questionable- later acquired the Body Shop, who still remain to work under their 5 core values: “Support Community Trade, Defend Human Rights, Against Animal Testing, Activate Self- Esteem, and Protect Our Planet”. http://www.thebodyshop.com/values/index.aspx The Body Shop launched the first Against Animal Testing public awareness campaign that was then followed by many more. In 1996, they presented the European Union (E.U.) with a petition signed by four million people calling on the E.U. to stop the sale of animal tested products. Marati (2012) goes on to highlight in 1998, the U.K banned animal testing on products and ingredients, and this was seen as a victory very much attributed to the Body Shop and their founder Anita Roddick. The E.U. banned animal testing for finished cosmetic products in 2004, and then for cosmetic ingredients in 2009. Today, the only products sold and made by the Body Shop are animal cruelty free, and vegetarian friendly. They follow animal protection principles that commit to guaranteeing no raw ingredients or products are tested on animals, clearly communicating their policies to customers and suppliers, whilst supporting ongoing research into alternatives to stop all animal testing. (Marati, 2012)
  • 15. 15 As listed on their official website, The Body Shop Foundation was established in 1990 as a charity funding human rights and environmental protection groups. In 2001, they continued their CSR practices by switching their head offices in Watersmead to ‘Ecotricity’ which provides them with renewable energy. As well as this, they had converted many of their shops to green electricity. Aside from their biggest success with the four-million signature petition for the Against Animal Testing campaign in 1998, the Body Shop is also the first international cosmetics company that signed up to Humane Cosmetics Standard, known to be recognised and supported by important animal protection groups. (The Body Shop, 2014) http://www.thebodyshop.com/services/aboutus_history.aspx Another ethical operation the Body Shop work under is its community trade programmes. They run a number of community-bettering orientated projects in places like Somalia and Nicaragua. They also support sustainable development as they source their ingredients from less fortunate and disadvantaged communities in the world, providing them with good working conditions, decent wages, working under a general fair-trade principle. Despite their activities, some critics still doubt the claims made by the Body Shop about their products but lack real evidence. http://www.lencd.org/files/casestory/Corporate_social_responsibility_at_the_body_sh op/225-Bk3PartB_GLOBAL_body_shop.pdf 2.4.2 L’Oréal The Body Shop was purchased by L’Oréal for $1.1 billion in 2006. Due to this, animal welfare activists such as Naturewatch and Uncaged were outraged, calling for boycotts and accusing Roddick of being a sell-out. Marati (2012) quotes the Independent’s claim that the Body Shop’s image was tarnished and business and customer satisfaction were hurt. Mike Brady, a coordinator of activist group Baby Milk Action, which protested Nestlé practices said the Body Shop linked themselves to the world’s ‘Least responsible company’. Booth (2006) states that L’Oréal has not tested its cosmetic products on animals since 1990 but did continue to test new ingredients on animals, as required under European
  • 16. 16 law until otherwise in 2009. However, the British Union for the Abolition of Vivisection was set to question the Body Shop and how it expects to run under its cruelty-free status with their new ownership, despite L’Oréal insisting that the Body Shop’s policies would be strictly applied across their entire range of products. (BBC, 2006) 2.4.3 Anita Roddick Anita Roddick has previously been addressed as ‘Queen Green’. Entine (2007) describes her at her prime time in 1992 to be an international legend too. She then argues this title by criticising Roddick’s claims. One of which was that she disliked advertising and capitalism, and followed by implementing a promotional stunt. In her PR campaign, Roddick went out to Ixmiquilpan, Mexico where she spoke and listened to Nanhu Indian villagers. She was seen taking down several unusual and unrealistic requests such as a new tortilla machine and allegedly guaranteed them £12,500 that was never received. Entine (2007) questions whether Roddick is an honest and ethical business woman. In her article in 1995, Entine exposes Roddick as a liar who told stories about how when she first started up the Body Shop she sourced ingredients from ‘bare-breasted natives’. Anita was in an interview for Shareguide held by Hughes (N.d.) where she was asked what she would say to environmentalists that believe remote, undiscovered indigenous tribes should be left alone and shouldn’t be traded with. Anita replied by telling them to “dream on” as she believes the livelihood of the indigenous people is to trade, and if there is no form of abuse then trading with them is good business, as all tribes have been discovered, so there’s no harm done. 2.4.4 Activists The Body Shop faced a boycott in 2006.This boycott, called by Naturewatch and backed up by Uncaged was opposing L’Oréal’s policy on testing ingredients on animals. The Body Shop initially was on Naturewatch’s list of approved chains for three years until L’Oréal bought it, after which the director of Naturewatch urged
  • 17. 17 everyone to boycott them, Booth (2006) continues to directly quote the director of Naturewatch, John Ruane, in his concerns that if people spent their money at the Body Shop it could go to animal testing. 2.5 CSR affecting buyer behaviour CSR has shifted towards responsible competition; being the most responsible and ethical business. The movement of CSR has grown and transitioned due to all the environmental activism and regulations that have changed over time, and governmental and legal requirements have become very serious. (Saeed & Arshad, 2012) Porter & Kramer (2006) suggest that if a corporation analysed their prospects for CSR the same way they do their core business choices, that framework would allow them to discover the real cost of CSR, whether a constraint or a charitable investment. When planned accordingly, good CSR can source good opportunity, innovation and competitive advantage. As a competitive advantage, CSR is most commonly seen as a cosmetic response in the sense of media and public relation campaigns, enabling companies to showcase good CSR reports and along with that, a good image. Statistically speaking, out of the 250 largest multinational corporations, 64% published CSR reports in 2005, and by doing this began a movement of report writing. (Porter & Kramer, 2006) CSR has strategic, marketing and technological implications and impacts that work as competitive advantages. Militaru & Ionescu (2006) simplify the need for companies to engage in CSR activity, as it depends on the extent and concentration of competition in the market, and how much consumers are willing to pay for socially responsible products and services. The more competition the company faces, the lower the margins and along with that, less opportunity to provide social activity and benefits. In opposition, the less the competition, the more potential for higher margins and with that higher ability for CSR activity. It is clear that there is a relationship between CSR and advertising. Companies will receive recognisable attention and benefits of bettering their reputation for their ethical and responsible activity. Militaru & Ionescu (2006) say to distinguish between persuasive CSR and informative CSR advertisements in order to build a personal opinion on the company. Technologically speaking, the increase in concern of the
  • 18. 18 environment has shifted production to the end-of-life disassembly of products. This means that products can now be created, then recreated once their life cycle has ran out for recycling and reusing processes, thus decreasing wastage. 2.5.1 Exploiting consumer’s idealism Hughes (N.d.) voices in the interview with Roddick that consumer awareness is growing immaculately; for example when Levi’s publically admitted to production in China, their sales plummeted. Consumer opinions are crucial in how businesses run. Roddick replied by recognising that companies fear for their corporate reputation and consumer revolt. Businesses are more likely to focus on reputation management, where CSR will come into a strategic plan. Exxon, Shell, and Nike all employ many Public Relation companies to help repaint their image to the public. This will of course, not work with the entire public as we are able to access truths via the internet and all the activists keeping companies in check. (Hughes, N.d.) Generally, the Body Shop’s main purpose like all multinational organisations is to maximise profits for their stakeholders. They have over 1,500 stores in 47 countries and various other expansion plans. There is a sense of feeling like a better person when shopping at the Body Shop, when in truth shopping cannot help better the planet. They have been called out to be misleading the public by http://www.mcspotlight.org/beyond/companies/bs_ref.html about their claims of products being natural. This is untrue because like all large cosmetic companies they use non-renewable petrochemicals, synthetic colours, and preservatives, and experts have warned the public about potential side effects to the skin from some of the synthetic ingredients. They have also been known to irradiate chemicals to kill microbes, this radiation is generated from harmful uranium which then cannot be disposed of in a safe manner. The Body Shop are widely known for being against animal testing, yet they fail to clarify that many of the ingredients they use have been tested on animals by other companies. They also accept ingredients tested on animals before and since 1991. And as a company that aims to eliminate animal cruelty, some of their products contain gelatine. As an ethical organisation, they only pay store staff low wages, near
  • 19. 19 the expected minimum, and under the official European decency threshold. By opposing trade unions, they have found a way to keep labour costs down. None of the employees are unionised, meaning that they would have to channel concerns by the company. http://www.mcspotlight.org/beyond/companies/bs_ref.html 2.6 Summary In conclusion, it is argued that CSR is a front for businesses to appear giving and compassionate, gaining consumer loyalty and trust. The review also highlighted cases where companies have suffered due to the reaction of the public to any unethical operations. The Body Shop have done many CSR related activities and are very ethically engaged in campaigning for social and environmental issues, however there was a gap in the literature of any recorded documents about consumer’s perceptions of the Body Shop’s CSR activity.
  • 20. 20 3.0 Methodology 3.1 Introduction In this chapter all the methodology used in the research is listed. The research is clarified in terms of what philosophy, approach, design and procedures the researcher has chosen, what data collection and analysis methods were implemented and how it was conducted ethically. Primary and secondary data are both information gained to obtain a conclusion on a topic. Stokes (2011) Defines both. Primary data collection involves the researcher planning where the data will be obtained from and how it will be collected from the source, being the survey groups in this research. Secondary data are already existent and put together for another specific research, providing the new researcher with a different interpretation of a topic. (Stokes, 2011) In this research the comparative secondary data was gathered for the literature review. This research was conducted as a basic research. According to Hedrick et al. (1993) an explanatory basic research’s purpose is to expand on knowledge that is already existent, whilst discovering new findings. This can be implemented by observing social behaviour and attitudes (Hedrick et al., 1993), suitable for this research when seeking out patterns and shaping the study. 3.2 Research Philosophy Cryer (2006) defines the interpretivist research paradigm as a philosophy that involves variables that cannot be acknowledged with ease and creates a verdict out of quality of data rather than statistical information in a scientific paradigm. Hackley (2003) simplifies it as the theoretical way in which sources of data are interpreted. Interpretive approaches give the opportunity to make almost a segmented overview of results without speaking statistically. This was suitable for this research as it involved interpreting the qualitative data from participants in the focus groups, and then analysing it in a quantitative style, thus being best suited under the interpretivist philosophy.
  • 21. 21 3.3 Approach An inductive approach was chosen. It is a methodological approach for research where data is collected from a small sample in relation to the research topic. With inductivism, ontology –what is real, how is it determined- and subjectivity play a big role in determining what is truth by considering how respondents answer; the quality of their answers. (Stokes, 2011) The Body Shop and CSR are very large topics, and the exact data required by the researcher would be the opinions and quality of answers of two small groups of six. The inductive and deductive approach can sometimes be used together, but have differences. Lee & Lings (2008) show a cyclical graph that breaks down the deductive approach as discovering and researching a theory, after which a hypotheses is generated about the topic, and then data is gathered to test the educated guess. Inductivism, or induction, has the reverse pattern. It has no hypothesis as firstly the researcher collects and gathers their data, after which a generalisation is made from the data analysed, and only then a theory is formed. (Lee & Lings, 2008) This research followed a very similar structure, whereby there was no initial hypothesis - only an interest in the research topic- and then data was collected, analysed, after which a generalisation and theory was made. 3.4 Research Strategy Saunders et al. (2009) says the research strategy must be suitable to the approach, and researchers must consider whether it will help you best in answering the research question. Survey based strategy can be used in the inductive approach. It’s a regularly used strategy for business research as it allows room to collect a large amount of different data in one sitting, and to help answer queries of what respondents say, who and where about (Saunders et al. (2009). This strategy suited because the focus groups would not be conducted in hope of achieving one type of data, but on the contrary needed to collect a large different amount of data to try and determine a theory on how consumers really do behave with the Body Shop. Jankowicz (2005) calls it the survey method, but method in this context means what approach will be taken to collect data and analyse it, which in this case is survey
  • 22. 22 based. This is used for larger groups of people who represent a population for the purpose of investigating present issues. This study is descripto-explanatory in the nature that it is a descriptive and explanatory study. Robson (2002) in Saunders et al. (2009) define descriptive research to form a clear image of people’s actions, or a certain situation. Saunders et al. (2009) also defines explanatory studies as trying to help understand the cause between an event, or explain a relationship between variables. Therefore, all the methods used were aimed to achieve an understanding of the Body Shop’s consumers’ behaviour and psychology, and the relationship between their CSR and brand image to consumers. 3.4 Research design The research design was chosen to be a mono method design. Mono method means that only one method of research is used. This choice means the data was collected using a single qualitative technique along with qualitative data analysis procedures. Data analysis procedures were utilised to quantify the qualitative data into numerical systematic coding and themes, so that it could be analysed in a statistical manner. (Saunders et al. 2009) The primary data could be collected using only one method, being a survey group. This way the planning and formulating of the focus groups were detailed and concentrated on only that, decreasing the time and cost constraints of perhaps a questionnaire. Surveys are an interpretive approach under which focus groups can fall under, therefore a mono-method design was used of focus groups only. Fisher (2007) says you can do a questionnaire-based survey in that the questions you ask are the same and a constant, having the answers as variables. This made coding and analysing more effective later. There must be a time horizon that a research project goes by. This research fell under the cross-sectional time horizon. Payne & Payne (2004) address it as a study that only collects data once and in a short period of time. Cross-sectional focus groups will collect data to form a conclusion about a specific population at a specific point in time; the focus group will enquire about the consumer behaviour of the Body Shop customers and their beliefs towards CSR in a one hour long session per focus group.
  • 23. 23 Cross-sectional surveys have been described as snapshots of the populations which data is gathered about. (Lavrakas, 2008) Cross-sectional research may be repeated periodically; however, in this case it will be repeated in order to acquire enough data. 3.5 Research procedures The research procedures and techniques provide a step-by-step on how to achieve the data required in a survey based strategy. Janowicz (2005) has also grouped the techniques into three, the category this research fell under was “semi-structured and open ended techniques” (Janowicz, 2005, p.221), due to the nature of holding a focus group. There is a structure and main themes are fixed, but not a fully structured and planned set of answers to choose from. Focus groups are a means of achieving qualitative data in a sitting, according to Lee & Lings (2008) consisting of usually five to eight respondents. The entire discussion was focused around one topic with a semi-structured plan for questions (Lee & Ling, 2008); the questions were planned but answers were entirely qualitative. The answers of these questions were then transcribed and coded in order to focus on reliability and validity of the research. Sapsford (1999) in Gray (2004) describes a survey as a semi-structured systematic data collection method, by which researchers may identify a behaviour or set of opinions of a population affected by the topic of investigation. Marshall (1999) explains that focus groups are usually between four to twelve unfamiliar participants, therefore, the researcher decided to have two groups of 6 each, brought together because of a common characteristic of being a Body Shop customer. Krueger & Kacey (2014) and Marshall (1999) all justify this choice by saying that having more than one research focus group can help the researcher identify trends and themes within the qualitative opinions brought forward. Therefore the focus groups were set up in two groups, one aged 20 to 25 and one 25 to 30. The point of conducting two focus groups was to have more answers for a more thorough analysis when quantifying the data. The age variable between the two groups was to investigate if age as a demographic could have an effect, yet this was not the purpose behind the layout of the focus groups. Focus groups worked to an advantage as participants could be interviewed directly, and good participant observation was implemented. It was economic and easy to set up and record.
  • 24. 24 The research was descriptive in the sense that it took in the characteristics of the participants at a fixed point in time. Gray (2004) discusses descriptive surveys and how they are often used for market research and discovering public opinion. In this case, the focus groups took a descriptive approach and were analytical, in the sense that the data gathered about participants was then compared to the age variable set, the research aims and to the secondary data already collected to help test and answer the theory in the sector. (Gray, 2004) 3.5.1 Collection and Analysis Data carries information that then needs to be interpreted and analysed. (Ghauri & Gronhaug, 2010) A method of qualitative analysis is filtering irrelevant information from the data that helps build the case. This research analysis was semi structured and focused on understanding the data itself and then categorising it. The data collected was audio recorded during the focus groups held, and then transcribed by only including conversation directly relevant to the questions structured for the study. Miles & Huberman (1994) in Ghauri & Gronhaug (2010) present an interactive model that shows the components and stages of analysing data which begins with collecting the data, followed by data reduction, data display and then drawing out the conclusions. In this study, data was collected via focus groups, reduced in the transcripts, displayed in the findings within the set themes coded, and the conclusions were drawn through the analysis stage and finally in the conclusions. 3.5.2 Sampling process Stokes (2011) introduced cluster sampling, whereby the researcher can identify a specific situation linked to the research like a social group, and then choose respondents that are connected to the social group. As well as this, there is convenience sampling (Stokes, 2011) involving choosing a known population for the sample such as relatives and friends. The researcher followed these processes in that cluster sampling was used when understanding the need for a social group of the Body Shop shoppers, and then convenience sampling was used to find direct acquaintances and ask them to participate in the focus groups. Having access to a non-scientific and subjective snowball sampling frame, meant that the researcher was familiar with one or more contacts, called upon to carry out the surveys, and then had them contact anybody that had the same characteristics to
  • 25. 25 participate and so forming the ‘snowball effect’ (Brewerton, 2001). Due to the constraints of being in one place during the research, this approach was appropriate for smaller populaces and therefore required non-probability sampling. The sampling was not random. It was deliberate sampling as some characteristics had to be shared amongst all participants of the focus groups. It was haphazard in the sense that it was chosen due to convenience. (Kumar, 2008) 3.5.3 Pilot process The Pilot process is crucial in order to collect data effectively. Once the method is selected, having a practice study will help in determining the flaws and gaps existent. (McBurney & White, 2009) In this case the survey questions were practiced in a pilot study and feedback was received whereby for example, the survey did not inquire why participants behaved in a certain way but simply if they had or not. After this pilot was done, the question’s specificity was modified. 3.6 Ethical considerations Ethical issues mainly involved how appropriate the researcher and the research was, in terms of behaviour and respect to rights. Most importantly, to consider the contributors and ensure they’re not negatively affected any way by this research. This meant guaranteeing consideration and that there was privacy to the degree required, to avoid the participants feeling anxious, embarrassed or threatened. Saunders et al. (2009) The participants of the survey groups delivered what Stokes (2011) explains as informed consent. I provided a verbal agreement to confidentiality and the partakers gave verbal and physical signs demonstrating consent. Confidentiality is in regards to “not disclosing information obtained by a particular person or source to a third party” (Stokes, 2011, p.21) Most often it will incur the participant’s name and personal details not be disclosed along with the information they give. Due to the nature of the methodological approach, subjectivity is hard to measure and bias must be considered as a variable. (Stokes, 2011) Bias is not an issue in this research as the personal views and answers given will base the primary research results in a coded system.
  • 26. 26 3.7 Summary The primary methods used proved to be useful, and enabled the researcher to take the question and turn it into a viable, comprehendible research. The mono-method research design chosen was good for this research because it meant that all the analysis and time spent was focused on one method’s findings. The population and sampling methods adopted allowed the researcher to guarantee that the participants were in fact buyers of the Body Shop’s products and were relevant to the study. Initially, the design would have involved an interview with a member of the Body Shop. The methods were chosen as opposed to interviews or questionnaires due to limitations to interview the appropriate candidate, and the results of a questionnaire would be the equivalent of a focus group except in this case, take more time. All ethical considerations have been addressed, and a verbal contract of anonymity was made when conducting the focus groups.
  • 27. 27 4.0 Findings 4.1 Introduction As previously mentioned there were two focus groups carried out; one with six participants aged 20 to 25, and another a week later with six participants aged 25 to 30. This chapter presents the findings for all the questions asked to all the respondents of the focus groups. 4.2 Findings for each research question Question 1: Do you feel strongly about Corporate Social Responsibility (CSR), and organisations giving back to communities? Why? 75% of participants said ‘Yes’ that they agreed to feeling strongly about CSR delivered by organisations. The thought of giving back to communities is comforting to participants and makes them feel good about themselves and society. 25% said ‘No’, they haven’t been exposed to it and know not much of it, and will not act strongly towards it. A participant from each group mentioned the fact that it’s not as simple as making CSR campaigns. One mentioned that it is “widely used as a PR tool” and the other that “it would be good if companies made it clearer what they are doing for the planet, but it’s not easy.” Question 2: Do you consider yourself an ethical shopper? 25% of participants responded with the answer ‘No’. 33% said ‘Yes’, they shop ethically, and 42% said only to an extent, not fully. Question 3: What is the main driver to your decision making process to purchase any health and beauty product? The respondents answered with a combination between 6 factors. Table 1 shows which factors were mentioned, and how many participants had said these determine buying a health and beauty product. Table 1. Factors that determine purchasing a cosmetic product Number of participants
  • 28. 28 Necessity 1 Recommendations & reviews 3 Price of product 3 Brand and product quality 4 Natural & less harmful ingredients 3 Ethical business practice & against animal testing 3 Question 4: Did you know that L’Oréal bought the Body Shop for $1.1 billion in 2006? Only 17% were aware of the takeover of L’Oréal on the Body Shop, and 83% of participants were unaware and shocked despite being regular customers. Question 5: Do you consider L’Oréal to be ethical and uphold good CSR? 41% answered with yes, a participant explained that in their opinion, if nothing bad has been heard about the company, it must therefore mean they’re good. One participant claimed the reason behind all CSR activity is to create an advertisement and guilt customers into purchasing their products. 25% believed that L’Oréal was not an ethical organisation, one participant mentioned that they have tested on animals at a point in the past. 34% were entirely unaware of any of L’Oréal’s CSR. Question 6: How often do you shop at the Body Shop? Categorised and grouped into yearly, monthly and on occasion, 6 out of 12 participants shop at the Body Shop once to four times a year. 3 out of 12 shop there once to four times a month, 5 participants also said to visit the Body Shop during season offers such as Christmas time, when certain products run out and need refilling, and in order to buy gifts and birthday presents for friends. Question 7: Are you aware of any of their CSR activity? The remaining participants listed a few being no animal testing, fair trade, protecting the planet, sustainable sourcing of ingredients, and promotion of human rights of
  • 29. 29 native suppliers. A participant pointed out they have strong links with Greenpeace, and held campaigns for human rights and against animal cruelty. Question 8: Do you know about their 7 core values? 75% of participants said ‘No’. One participant said they were only aware of ethical sourcing, one mentioned the company valuing their customers, and one that they were an environmentally friendly business. Other CSR activity was mentioned that did not address the 7 core values in exactitude but still showcased their practices. These were fair trade, defending human rights, protecting the planet, and being against animal testing. Question 9: What do you know about the Body Shop’s business ethics? 5 out of 12 of partakers knew nothing about their ethics. The remaining listed very few points individually. These ethical facts were their commitment to human rights, being a ‘green’ company, ensuring of ethical and fair trade, not testing on animals and sustainability with resources. One participants recalled that they disclose all ingredients in their products on the packaging which supports something they called ‘informed consumer decision making’. Question 10: What do you most commonly purchase at the Body Shop & why? Table 2. Shows the products most commonly bought by the partakers of the focus groups, and the main reason behind their purchase. Table 2. Product most commonly purchased Reason for favoured purchase Body butters 60% said they buy these most because they’re moisturising and smell good UV Protective lotion Hydrates and protects skin well Bath lily, Bath gloves, Bath body scrub Product, packaging, appearance and good smell Soaps and body washes Smell good and are reasonably priced Make up, make up brushes 4 out of 12 participants like that all ingredients are listed, and the quality,
  • 30. 30 durability and shades provided are not found elsewhere Seaweed facemasks Because of effectivity and ingredients Banana shampoo and conditioner Because of effectivity and ingredients Question 11: Has your degree of knowledge of the Body Shop’s CSR affected your choice in buying their products? How? 83% said their CSR has had an effect to a certain degree on whether or not they purchase products from the Body Shop. 4 out of 12 confidently said ‘Yes’. The Body Shop’s brand image is seen as a good healthy and clean one, and one participant said it doesn’t make them feel like the product’s bad for them or the environment. One participant likes their values in terms of giving back to communities, the environment and the health and beauty industry. One partaker of the focus group prefers their products due to the prices being more affordable as opposed to costlier brands with the same degree of CSR if not less. The participants that answered by saying them buying the Body Shop’s products was only partially due to their CSR activity gave reason for it. Two explained that it makes them feel better as consumers, and like their purchases are making a positive difference to society. Two voiced that they purchase from the Body Shop because it is known to be ethical and a good company. One participant argued ‘Yes’ and ‘No’; the Body Shop was viewed by the participant as too “braggy”, like lush, “too in your face” suggestive of it being a marketing tool. 2 out of 12 said the Body Shop’s CSR has had no real influence on their decision making process when they have purchased their products. One participant said the main drivers are price and fragrance. 4.4 Summary This chapter listed all key primary data gathered from both focus groups undertaken for the purpose of this research. The full transcripts of the focus groups are available in Appendix B and Appendix B (1). The focus group recordings were transcribed, including every relevant piece of data during the research being conducted.
  • 31. 31 Focus groups were chosen by the benefits backed up by Krueger & Casey (2000) in (Onwuegbuzie et al, 2009) in that it’s an economical and efficient method to collect data from multiple partakers in one sitting. In the next chapter these findings will be analysed using keywords-in-context analysis whereby significant or repeated words within the text are coded and then grouped. (Onwuegbuzie et al, 2009)
  • 32. 32 5.0 Analysis & Conclusions 5.1 Introduction Stokes (2011) explains coding as a process that leads to categorisation and classifying data so that an understanding from qualitative data can be made. The findings and data were coded and looked over several times to establish any patterns, recurring words or statements, language, and metaphors. Every occurrence found is described as a code that indicates that this particular pattern shows it belongs to a certain category of response. In this research for example, links between buyer behaviour and a company’s CSR activities were coded and made. This chapter analyses the data in findings in comparison and in accordance with the literature used for secondary research, and consists of several links such as CSR being argued to be a competitive advantage tool, and ethical shoppers being customers at the Body Shop. Following that, conclusions are drawn summarising the relationship between findings, the research aims and an overall conclusion in regards to the research question. 5.2 Analysis/conclusions about findings and literature review CSR and SCA As seen in the findings, a participant highlighted the importance of being well known and well-advertised for CSR activity in order to increase sales. Entine (2007) did mention that organisations are well aware that being public and open about their CSR activities will increase their profitability. Another participant said that companies that actually achieve change and improvement and are successful in their CSR are more appealing than companies that just adopt CSR out of necessity and norm. This suggests that by advertising and campaigning, and having the target market very aware of the Body Shop’s ethical activities, they will gain a bigger market share and sales will rise.
  • 33. 33 CSR as a PR tool Examples are seen in the literature by Entine (2007) of companies such as Marks and Spencer, Cadbury Schweppes and Tesco showcasing large CSR plans described as green marketing and green operations. A participant of the focus group commented that CSR is “widely used as a PR tool” and another that when companies showcase CSR they are simply implementing an advertising campaign, and are attempting to guilt customers into buying from them. Public image is highlighted to be of big importance to consumers and their buyer behaviour towards cosmetic brands. When discussing the Body Shop, a participant said that as long as they haven’t heard bad activity from them, they cannot be a majorly bad business. When discussing L’Oréal, the same theme continued arguing that as long as negative feedback had not been heard of, they must be a company that hold their standards high, and if they hadn’t upheld good CSR, they wouldn’t be a big company. These are strong statements made that suggest a very strong influence of the media, public knowledge and image of a brand will determine the likeability of it. ‘Exploiting consumer idealism’ A strong theme was noted throughout the primary data collected in regards to customers feeling emotionally invested in bettering the planet, and the Body Shop showcasing that as important to them. According to the findings, customers feel as though they are doing more than just purchasing a product for selfish use. They feel as though they are standing against animal testing and for fair trade. One participant admit that the Body Shop’s CSR has stopped her from using products from any other company that is equally as involved in CSR, nor using anything that mistreated people or animals. Porter and Kramer (2006) have explained the vast growth of companies benefiting from being green marketers and taking advantage of consumers’ idealisms. It is argued that ‘cause-related marketing’ and green practices are used to gain customers and win over loyalty.
  • 34. 34 Participants highlighted the link between a company being viewed as ‘good’ and how much positive publicity it receives. Links are made in regards to the power of activists, as well and the power of the consumer’s preferences. A participant in the study commented on brands having bad images, and how that decreases the want for a product or association with that brand. To the participant, the Body Shop is seen as a good and healthy brand with a clean image, therefore they like it. Determining factors of their decision making process An important part of this investigation was to understand what all the factors were in a customer deciding to buy from the Body Shop, in order to help understand if their CSR is one of them. Customers have shown to be influenced by reviews and recommendations. A participant confidently said they would not buy from a band they hadn’t heard much of. Another argued the same point, that a company’s reputation is an important theme of attraction for customers. Good reviews and the public’s acceptance are drivers to their decision making process. There were other noted variables that determined a purchase within the focus groups. These were price, quality of product and scent, ensuring the brand is against animal testing, and making sure the ingredients are healthy and less harmful. The research question addresses the Body Shop consumer’s decision making process, therefore research was conducted for it and data was collected on what specifically customers consider when buying their products. The Body Shop’s CSR The Body Shop is a ‘green company’ as mentioned earlier, this means they practice CSR such as changing their head offices to a system that provides them with renewable energy, and running sustainable development and community-improving projects. Also mentioned in the literature was their large success of the 4 million signatures on the petition to stop testing on animals.
  • 35. 35 Findings of the primary research found that participant shoppers did not know entirely all their CSR related activity, but mostly good practices. The mentioned values and practices were their links with Greenpeace, their campaigns for human rights and against animal cruelty, their sustainable sourcing of ingredients, promotion of rights of native suppliers, aims to be a green company and decrease impact on the environment, fair trade, full disclosure of ingredients and not testing products themselves on animals. However, participants were unaware that as stated in the literature, they pay staff low wages, accept ingredients tested before 1991, and contain synthetic ingredients in their natural products. Another coded analysis in the findings was that only 17% knew that L’Oréal bought the Body Shop in 2006. They received bad publicity and difficult response from activists, as well as this, there was enough information available regarding this case. In conclusion, the Body Shop have actively promoted favourable activity and withheld any excessive promotion of scandalous news. 5.3 Analysis/conclusions about research aims Aim 1: To have read all relevant literature in order to have full insight on CSR, the Body Shop’s business ethics, their CSR activity and any major crisis or successes they faced. This aim was successfully met with the vast amount of literature regarding green marketing and buyer behaviour. The Body Shop have a large amount of coverage and studies conducted about their business strategy available, that provided the researcher with good insight on how as a company, the Body Shop has successfully engaged in CSR. Aim 2: To conduct, analyse and evaluate primary research of a sample of the Body Shop customers’ views and opinions on whether CSR is a determining factor in their decision making process.
  • 36. 36 The research was successful in achieving this aim in the sense that the data and answers did include CSR as a determining factor for the Body Shop buyers, and exposed other factors too such as the scents of their products. Aim 3: To gain broad knowledge about the importance and power of CSR engagement and activity by linking literature to current practice conducted by the Body Shop, and how aware their target market is of it. There were various examples in the literature highlighting the power of good or bad publicity for a famous organisation. Findings showed participants on the topic of publicity and good image and how it impacts how they feel about the brand. Avram & Kuhne (2008) suggested the three sustainability strategies that help a firm build a competitive advantage. These three are pollution prevention, product stewardship, and sustainable development. The literature and findings both indicate that having a strong CSR strategy will improve the firm’s relationship with the public. A conclusion from the analysis can be drawn that having good CSR, leads to having a good brand image, which then leads to obtaining a good customer base. Aim 4: To form a strong opinion backed up by the information gained from aims 1, 2 and 3 in order to draw a conclusion on whether CSR does in fact affect the Body Shop customers. The findings revealed that there is a strong percentage of customers that are invested in CSR and are shopping at the Body Shop due to their CSR practice. The data has also shown that people who shop at the Body Shop are mostly ethical, compassionate buyers and have an emotional investment towards benefitting the planet with CSR practice. Some participants felt that by shopping there, they are more helpful in bettering the planet as opposed to shopping elsewhere.
  • 37. 37 5.5 Overall conclusions When comparing focus groups in terms of the age variable, the findings suggested that the focus group of participants aged 25 to 30 provided information regarding the topics discussed, whilst the focus group aged 20 to 25 were less aware of CSR, and the Body Shop. The results suggested they were less involved and less aware of exact CSR activity within organisations. To an extent, the research agrees with another that discusses how companies are investing, acting upon and publishing CSR and sustainability reports, however research has shown that customers are not usually aware of companies that do in fact practice CSR actively, nor are they certain of fair or ethical trade. (Anonymous, 2010) Arguably, it is evident that it’s found to be greatly important to incorporate CSR into a business strategy, and throughout this research the data has suggested that with a good strategy comes good image and good customer base. The research question asked whether or not the Body Shop’s CSR had an impact on their consumers’ buyer behaviour, their favouritism, loyalty and decision making processes. The research findings answered the question by showing the participants that actively purchased from the Body Shop to be invested in ethical shopping, and enjoyed purchasing their products due to certain practices such as being against animal testing. 5.5.1 Limitations of the study The researcher would have liked to carry on the research and address a different sample, one with a wider age group, and conduct 3 to 4 focus groups to test any correlation over a wider spectrum of age, however due to location and time constraints the right candidates were not presentable. An interview would have been conducted with a member of management at the Body Shop, however due to their busy schedules and lack of availability the interview was reviewed and removed.
  • 38. 38 5.7 Opportunities for further research This research shows opportunities to further it by investigating different aspects of CSR, looking at the topic from a different point of view; how companies decide what activity to practice and what to invest in. The further research could also interview the CSR manager of the Body Shop in regards to their PR and brand image strategies, and CSR strategies.
  • 39. 39 References 1. Anonymous. (2010). CSR & Sustainability: How the Beauty Industry is Cleaning up. Retrieved from: http://www.organicmonitor.com/r1805.htm 2. BBC. (2006). Body Shop Row Over Animal Testing. Retrieved from: http://news.bbc.co.uk/1/hi/england/southern_counties/5114976.stm 3. Bichta, C. (2003) Corporate Social Responsibility: A Role in Government Policy and Regulation? United Kingdom: University of Bath, School of Management. Retrieved from: http://www.bath.ac.uk/management/cri/pubpdf/Research_Reports/16_Bichta.p df 4. The Body Shop. (2014). Our History. Retrieved from: http://www.thebodyshop.com/services/aboutus_history.aspx 5. Booth, R. (2006). Activists Call Body Shop Boycott. The Guardian. Retrieved from: http://www.theguardian.com/business/2006/mar/17/retail.animalrights 6. Brewerton, P. M., Millward, L. J. (2001). Organisational Research Methods: A Guide for Students and Researchers. London, United Kingdom: Sage. 7. BusinessCaseStudies. (2015). Business Ethics and Corporate Social Responsibility: An Anglo American case study. Retrieved from: http://businesscasestudies.co.uk/anglo-american/business-ethics-and- corporate-social-responsibility/what-are-business- ethics.html#axzz3Z1WmJqVp 8. Cryer, P. (2006). The Research Student’s Guide to Success. (3rd Ed.). Open University Press. UK. 9. Entine J. (1995). Exploiting Idealism, Jon Entine on how The Body Shop betrayed its customers. UTNE Reader. Retrieved from: http://www.jonentine.com/articles/utne_exploiting_idealism_02.htm 10. Entine, J. (2007). Queen of Green Roddick’s ‘Unfair Trade’ Started when She Copied Body Shop Formula. The Daily Mail Online. Retrieved from: http://www.dailymail.co.uk/femail/article-482012/Queen-Green-Roddicks- unfair-trade-started-copied-Body-Shop-formula.html 11. Fisher, C. (2007). Researching and Writing a Dissertation: A Guidebook for Business Students. United Kingdom: Pearson Education. 12. Ghauri, P., & Gronhaug, K. (2010). Research Methods in Business Studies: A Practical Guide. (4th Ed.). United Kingdom: FT-Pearson.
  • 40. 40 13. Gray, D. E. (2004). Doing Research in the Real World. London, United Kingdom: Sage Publications. 14. Hackley, C. (2003). Doing Research Projects in Marketing, Management and Consumer Research. London, United Kingdom: Routledge. 15. Hughes, D., Hughes, J. (N.d.). An Interview with Anita Roddick Founder of The Body Shop and author of Business as Unusual. Share Guide. Retrieved from: http://www.shareguide.com/Roddick.html 16. Jankowicz, A. D. (2005). Business Research Projects. (4th Ed.). United Kingdom: Thomson. 17. Khan, M. (2008). Consumer Behaviour. New Delhi, India: New Age International Publishers. 18. Krueger, R. A., Casey, M. A. (2014). Focus Groups: A Practical Guide for Applied Research. 5th Ed. London, United Kingdom: Sage Publications. 19. DR. Kumar, R. C. (2008). Research Methodology. New Delhi, India: APH Publishing Corporation. 20. Lavrakas, P. J. (2008). Encyclopedia of Survey Research Methods. United Kingdom: Sage. 21. LenCD (N.d.). Global: Corporate Social Responsibility at the Body Shop. Retrieved from: http://www.lencd.org/files/casestory/Corporate_social_responsibility_at_the_b ody_shop/225-Bk3PartB_GLOBAL_body_shop.pdf 22. Litosseliti, L. (2003). Using Focus Groups in Research. London, United Kingdom: Continuum. 23. Marati, J. (2012). Behind the Label: The Body Shop’s ‘Against Animal Testing’ Campaign. Ecosalon. Retrieved from: http://ecosalon.com/behind- the-label-the-body-shop-against-animal-testing-campaign/ 24. Marshall, C., Rossman, G. B. (1999). Designing Qualitative Research. (3rd Ed.). London, United Kingdom: Sage Publications. 25. McBurney, D. H., White, T. L. (2009). Research Methods. (8th Ed.). Wadsworth, USA: Cengage Learning. 26. Militaru, GH. & Ionescu S. (2006). The Competitive Advantage of Corporate Social Responsibility. U.P.B. Sci. Bull., Series D, 68(2). Romania: University “Politehnica” of Bucharest. Retrieved from: http://www.scientificbulletin.upb.ro/rev_docs_arhiva/full38584.pdf
  • 41. 41 27. NBS (2011) Strategic CSR Can Create Competitive Advantage for Small Firms. Ontario, Canada: Network for Business Sustainability. Retrieved from: http://nbs.net/knowledge/strategic-csr-can-create-competitive-advantage-for- small-firms/ 28. Onwuegbuzie, A. J., Dickinson, W. B., Leech, N. L., Zoran, A. G. (2009) A Qualitative Framework for Collecting and Analyzing Data in Focus Group Research. International Journal of Qualitative Methods. 8(3). Retrieved from: http://socialiststudies.com/index.php/IJQM/article/viewFile/4554/5593 29. Papafloratos, T. (N.d.). Do Corporate Social Responsibility Initiatives Influence the Consumers? Athens, Greece: Panteion University of Political and Social Sciences. Retrieved from: http://www.lse.ac.uk/europeanInstitute/research/hellenicObservatory/pdf/4th_ %20Symposium/PAPERS_PPS/POLITICAL%20ECONOMY/PAPAFLORA TOS.pdf 30. Payne, G., Payne, J. (2004). Key Concepts in Social Research. United Kingdom: Sage. 31. Porter, M. E., Kramer, M. R. (2006). Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility. Harvard Business Review: Social Enterprise. Retrieved from: https://hbr.org/2006/12/strategy-and-society-the-link-between-competitive- advantage-and-corporate-social-responsibility 32. Saeed, M. M., Arshad, F., (2012). Corporate social responsibility as a source of competitive advantage: The Mediating Role of Social Capital and Reputational Capital. Database Marketing & Customer Strategy Management. 19(4), pp.219 – 232 Retrieved from: http://www.palgrave- journals.com/dbm/journal/v19/n4/pdf/dbm201219a.pdf 33. Saunders, M., Lewis, P., Thornhill, A. (2009). Research Methods for Business Students. (5th Ed.). United Kingdom: Pearson Education Limited. 34. Stokes, P. (2011). Key Concepts in Business and Management Research Methods. United Kingdom: Palgrave Macmillan. 35. Strydom, J. (2004). Introduction to Marketing. (3rd Ed.). Cape Town, South Africa: Juta and Co.
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  • 47. 47 Appendix B. Focus Group 1 Transcript Focus Group 1(20-25) Mediator: This focus group’s aim is to investigate whether or not, you, as the Body Shop customers are affected in your decision to buy their products because of their corporate social responsibility activities. All the responses from this focus group will remain anonymous and your personal details will remain confidential. I’ll repeat each question to you individually as many times as you need me to; take your time to answer, speak freely and honestly. 1. Do you feel strongly about Corporate Social Responsibility (CSR), and organisations giving back to communities? Why? a) I wouldn’t say I felt strongly about it but it kind of makes you think that you’re giving something back when you buy something. And that maybe they are making a stand against animal testing and fair trade. b) Well yes, and that’s because I feel that big organisations can do a whole lot more for the community than one singular person ever could. c) Yes and no, I know it is an important issue but I wouldn’t go out of my way to only buy from organisations that give back. I do feel strongly about the situation, global warming, cutting down trees like these are all issues I actively want to do something about and it would be good if companies made it clearer what they are doing for the planet, but it’s not that easy. d) Yes. Because it’s important for the communities and environment in which the business operates? I want less pollution - does that fall under the CSR? I don’t know. e) Umm, no I don’t know what they are really. Like being pro- environment? I don’t have an opinion on it. f) Yeah I do I think it’s important. Because it’s nice to know that companies are doing their bit for the world and it means that also, were working towards saving our planet. If everyone gave something back and cared then there would be a way out. End of the day it is all up to us to each do our bit. 2. Do you consider yourself an ethical shopper? a) No I don’t think I’m an ethical shopper, but I wouldn’t knowingly buy a product if I knew they tested on animals. b) To a certain extent. Maybe not entirely.
  • 48. 48 c) No, I don’t go out of my way just because I don’t have time and I have a very small disposable income and in my mind, I feel as though these companies are more expensive. d) Yeah. e) Not particularly, I’m not very aware, but if I am aware of like animal testing and stuff I won’t buy it. f) Not really, but if I had the money to buy completely Fairtrade I’d definitely do it. Being a student kind of hinders my options though. 3. What is the main driver to your decision making process to purchase any health and beauty product? a) I usually think ‘do I need it? Is it going to make a difference to my skin or face?’ Or I check recommendations. b) Making sure that the brand is against animal testing and that it’s suitable for me. c) Quality. Price isn’t really a big deal because products that you’re putting on your face should be good quality and that comes at a price... Big name brands do drive my decisions too, I wouldn’t really buy a brand that I’ve never heard of. d) Reviews on Makeupalley, and if there are any bad chemicals that might give me a bad reaction I don’t want it. Usually if a product smells good and is popular, I’ll just read a review and if they are mostly good and do what they say, I get it. Price shouldn’t be over the top either. e) The smell if it’s scented, the quality and price. f) For me, quality. If a product is good quality and does what it says then I’ll buy it. I like to try new products and see if they work and if they do, then I’ll keep buying them. 4. Did you know that L’Oréal bought the Body Shop for $1.1 billion in 2006? a) No I did not know that. b) Did not know that.
  • 49. 49 c) No. d) No. e) I did not. f) No I didn’t, that’s kind of a shock actually. 5. Do you consider L’Oréal to be ethical and uphold good CSR? a) No I wouldn’t think they would be ethical like the Body Shop are. b) Yeah. c) I don’t really know a lot about the brand and I don’t use their products. d) I have no idea, I don’t really buy L’Oréal products. e) Haven’t a clue, won’t without looking into it. f) Not at all. I’m pretty sure that they used to test on animals at some point. 6. How often do you shop at the Body Shop? a) I used to buy all my face routine products from the Body Shop; cleansers, moisturisers. I do still use their make-up brushes but I possibly go in once or twice a year to actually purchase something. b) I would say that half of my products that I use on a daily basis are from Body Shop so maybe 1 or 2 times a month. c) Twice a year but their stuff lasts me all year round. d) Whenever I walk by it and something catches my eye – or during different seasons like Christmas when they come out with limited editions… Or! When I run out of body butter and want to restock. e) Used to be monthly but now like once every few months, I tend to get their stuff as gifts now. f) Every now and then, probably about once a month? It depends on whether something I really like of theirs has run out and I need a new one, but I won’t go out of my way to buy it, just the next time I’m near a shop I’ll go in and get whatever it is I need.
  • 50. 50 7. Are you aware of any of their CSR activity? a) Against animal testing, fair trade, protecting the planet stuff. b) I know that they’re against animal testing, they’re committed to protecting the planet and they ensure ethical trading. c) Kind of. I am aware they do a lot of things but not sure exactly what. d) Nope. e) Nope. Not off the top of my head. f) I don’t know about it, but I’m aware that they give back to communities. I don’t think it’s advertised very well and I think they should focus on it more because I’m sure more people would buy their products if they did. 8. Do you know about their 7 core values? a) Never heard of it, ha. b) I don’t know all of it, can’t remember off the top of my head. c) No, no idea. d) Not all of them, they are against animal testing and they want to protect the planet and that’s great. e) Umm, no. f) I know that their products are all ethically sourced. I enjoy reading the packaging on their products, it gives me a kind of reassurance that I’m doing some good. 9. What do you know about the Body Shop’s business ethics? a) Sorry I don’t know anything about the business ethics? b) They have a commitment to human rights and therefore ensure ethical trading in the business process. c) Fair trade maybe? I don’t know much about their ethics but, I would make the presumption that they are better than others. d) Nothing.
  • 51. 51 e) Nothing. f) Absolutely nothing, I’m definitely going to give it a look later to see what they get up to. 10. What do you most commonly purchase at the Body Shop & Why? a) Make up brushes. I find them the best brushes on the market, they’re soft and long lasting and very durable. b) Their body butter, eye makeup, lip butter, brushes and this seaweed mask because they all work like magic. c) BB cream because it’s really good quality and I can’t get that shade anywhere else. Oh and lip liners. d) Body butters. Because they are moisturising, good quality, and have loads of smells to choose from which all smell really nice. I also liked their banana shampoo and conditioner but I remember it wasn’t always available. e) Their Moringa body butter because it makes my skin soft and it smells amazing. f) I buy their body butter and lip balms because their products actually work and smell amazing. I’d like to buy more but it can be expensive and in reality I don’t have a high disposable income. 11. Has your degree of knowledge of the Body Shop’s CSR affected your choice in buying their products? How? a) I guess to a degree my choice to shop at the Body Shop was maybe because it’s well known for being ethical and makes you feel like maybe, my purchase is maybe making a difference. b) Their visible campaign has definitely influenced my decision to buy their products - the first time, afterwards I continued to do so mainly because their products are great. c) Yes, other brands like Maxfactor and Collection 2000 I wouldn’t buy from because the image their brands have makes me feel like they’re bad for me or the environment. But the Body Shop has a good healthy, clean image and that’s what I like. d) Not really, I think they are a good company and I’ll still keep buying their products because I haven’t found anything bad about them really.
  • 52. 52 e) No because I know nothing about it and still shop there. f) It’s probably influenced a bit. Like, I like the Soap and Glory products and would buy them, but also like to opt for the Body Shop because it makes me feel like I’m doing something to help the world. KEY: No or negative response Yes or positive response Key word repeated within the question’s answers Showing personal investment and influence of good CSR Points repeated throughout focus group in regards to publicity Body Shop CSR activities and operations
  • 53. 53 Appendix B. (1) Focus Group 2 Transcript Focus Group 2 (25 – 30) Mediator: This focus group’s aim is to investigate whether or not, you, as the Body Shop customers are affected in your decision to buy their products because of their corporate social responsibility activities. All the responses from this focus group will remain anonymous and your personal details will remain confidential. I’ll repeat each question to you individually as many times as you need me to; take your time to answer, speak freely and honestly. 1. Do you feel strongly about Corporate Social Responsibility (CSR), and organisations giving back to communities? Why? a) In all honesty, growing up and living in Bahrain I don’t think that we’re much aware of CSR to be able to have any strong feelings towards it. Personally I am not. But, the thought that some organisations could be giving back to the community gives me a bit of hope. b) I think organisations that go beyond just profit and business practices are ideal for bettering society both economically and socially. By being involved with the community they strengthen the ties, and they aren’t just selling a product, it brings humanity to business and retail. c) Yes I do, because I feel that it’s important that organisations give something back as this will help out other people. If they don’t do this then it will be them getting richer and not doing any good for their customers or the communities that helped them become successful. The world should help each other so that everyone is always getting something back for the work they do and the help they give. d) Yes, I would much prefer a company that takes care of the environment and the people around them; I strongly believe it’s their responsibility. e) Yes... I am a strong believer in looking after the environment, helping the unemployed and believe in resources being used meaningfully. f) I feel strongly about corporations giving back to the communities for ethical reasons; the purpose of corporations cannot be sustainably achieved without people and resources. I don’t feel like CSR is the most effective way to achieve that as from what I know, it’s widely used as a PR tool. You know, feel good VS real good. Companies based on shared value who achieve ‘real good’ are more appealing to me than companies that just adopt CSR.
  • 54. 54 2. Do you consider yourself an ethical shopper? a) It depends. I mean if I knew for sure that a human being or animal could’ve been negatively affected in the process of making the product I won’t buy it. Still sometimes I just don’t bother asking why a product is cheaper because who doesn’t love a bargain. b) Mostly I only shop and endorse organisations and retailers that give back with job placements for groups and help with charitable donations to better the planet. And that don't discriminate against groups of people around the world. c) I do consider myself to be an ethical shopper. I would never shop at a place knowing that they mistreat their staff or underpay workers. I believe that everyone should be treated well, so if a company doesn’t comply with this then I won’t associate myself with them or pump money into that company. It’s the same with make-up companies that test on animals, I don’t want to associate with a company that thinks this is okay so I would never buy their products, I would feel too guilty and as if I was supporting them. d) I wouldn’t say I go out of my way to do so but given the chance I would much rather purchase a product from a brand which practices “fairly”. e) Yes, I regularly buy fair trade products. f) Mostly, yes. I try to choose ethically from the products that are available to me. 3. What is the main driver to your decision making process to purchase any health and beauty product? a) Mainly, the price. b) I have a more personal lifestyle due to my brush with cancer. I look at how a product’s made and what the research shows, actual medical studies, to base my decision, and how it betters my body if I use it. c) The main aspect would be the ethics behind them, like I said I won’t buy anything that mistreats people or animals. I don’t feel this is right. They can definitely afford to find other ways to test ingredients and pay their workers properly. Another driver would be reviews on the product, if I heard that the product is good then I will be more likely to buy the product
  • 55. 55 than if I have heard nothing about it. A company’s reputation is massively important. d) I buy mostly baby products like wipes and creams because they contain less chemicals, at least I think? e) That the products have not been tested on animals, I’m an animal cruelty activist. f) Price and ingredients. I shop for products that use the least amount of harmful chemicals within my budget. I’m not against paying slightly more for a less harmful health and beauty product. 4. Did you know that L’Oréal bought the Body Shop for $1.1 billion in 2006? a) No. b) No I was unaware. c) I didn’t know that, but I haven’t really heard anything bad about L’Oréal so I like this news. As long as a company’s good then merging them is always a bonus, right? d) I knew L’Oréal took over Body Shop but didn’t know how much for. e) No, I did not know this. Despite, being a regular customer of body shop. f) Yes. 5. Do you consider L’Oréal to be ethical and uphold good CSR? a) Sure. But sometimes I believe that companies showcasing that they hold good CSR are just creating another advertising campaign to guilt trip consumers into buying their products. b) Through social media and news maybe I’d think so, I haven't heard any negative feedback so I would have to say so far they must hold their standards pretty high. The way they give explanations of the products benefits to the public, they hold positive and responsible feed back to the consumer too.
  • 56. 56 c) As far as I know they are ethical. I mean I never really looked into it, but if they were that bad then everyone would know about it surely. So they must uphold good CSR as far as I’m concerned. d) L’Oréal wouldn’t be the first on my list in terms of ethics, they must uphold good CSR otherwise they wouldn’t be so big. e) I am not sure, don’t know much about L’Oréal as an organisation - I don’t use their products. f) No. 6. How often do you shop at the Body Shop? a) Well, I haven’t shopped there since probably 2013. b) About twice a month. c) I tend to go to the Body Shop whenever I run out of a certain product; I’m quite a loyal shopper so, if I find a product that I like I’ll keep buying that product every time it runs out. I will also then buy this product for my friends for when it’s their birthdays because I love their products that much. d) Once in a while, like a few times in a year. e) Several times a month, it’s mainly to buys gifts for others. f) 3 or 4 times a year. 7. Are you aware of any of their CSR activity? a) No. b) Not really, I heard of American Express making deals and offers when you shop at the Body Shop. c) I’m not really aware of their specific activities, I don’t keep up to date with these things. But I know they’re all about loving the planet, and I love the body shop, I can’t imagine there will be anything bad. d) I know Body Shop have strong links with Greenpeace & campaign for human rights and against animal cruelty. e) I know they don’t test their products on animals that’s why I shop there. f) Some. They do sustainable sourcing of some ingredients and promotion of rights of their native suppliers.
  • 57. 57 8. Do you know about their 7 core values? a) No. b) No. c) I don’t know about their 7 core values. But I assume they would be the standard values that involve like, looking after customers and being kind to the environment. Most big companies that are good tend to have these core values. d) Fair trade, defend human rights, protect the planet and against animal testing- that’s all I’m aware of. e) No, I do not know about their 7 core values. However I do know they value customers and doing the best they can in terms of being CSR. f) Some. No animal testing. Fairtrade sourcing. 9. What do you know about the Body Shop’s business ethics? a) I only know that they don’t test on animals. b) The company is a Green company, has less of a bad impact on the environment and human rights especially where they outsource their labour for the making of products deemed healthy and good for us. c) I don’t know anything really about their ethics, all I know is they haven’t done anything majorly bad because if they had then I would have known about it. I see them as being a nice, caring, giving company. d) Body Shop is all about ethical trade. e) I know they like to be sustainable with their resources they take from around the world. f) Well I’ve already listed some things I know. They also disclose full ingredients on their products, which supports informed customer decision making. 10. What do you most commonly purchase at the Body Shop & Why? a) I used to buy their body butter because it smelt good, but then I found a better alternative for myself.
  • 58. 58 b) Lotion with UV protection, I’ve tried other alternatives for a cream that hydrates my skin and protects it well and they have a non-clogging formula. c) I buy the strawberry body butter because I like the smell of it and I feel it’s the most moisturising body butter that I have tried- my skin stays smooth and it leaves it smelling nice. d) Always buy their bath lily, bath gloves & occasionally their body scrub. The bath lily & gloves in my opinion are the best and come in cute colours. The creams and scrubs smell good. e) I buy soaps and body washes because they smell good and make my skin feel nice. They are also reasonably priced, I find the brand very reliable. f) Make up. Because all the ingredients are listed. 11. Has your degree of knowledge of the Body Shop’s CSR affected your choice in buying their products? How? a) No not really, just the fragrance and price of their products. b) Yes, I’ll always buy things from the body shop. And as a future business owner I now want to look into eco-friendly ways of running a company. c) I don’t really have much knowledge so I can’t say that it has affected it. But if I knew that it was bad then it probably would affect my purchases and I would avoid the company. Now I just like them more. d) Yes and no- It’s nice that the company has strong ethics I’m just not into how braggy they are about it, & lush too; to me it’s a little bit of a turn off, too in your face. e) Yes, because I like their values in terms of giving back to communities, giving back to the environment and the beauty and health industry. It has actually stopped me from using other products from companies that don’t promote or conform to CSR views. f) Yes. I prefer products from the body shop to costlier brands that don’t exercise the same degree of care.
  • 59. 59 KEY: No or negative response. Yes or positive response Key word repeated within the question’s answers Showing personal investment and influence of good CSR Points repeated throughout focus group in regards to publicity Body Shop CSR activities and operations
  • 60. 60 Appendix C. Research Proposal BU6001/BU6301 - Project Proposal ----------------------------------------------------------------------------------------------------------------- The applicant 1.1. StudentAssessmentNumber:J09600 1.2. StudentID Number:1222374 2. Name ofcollaborating establishments: The Body Shop 3. The programme of research 3.1. Title of the proposeddissertation: Aninvestigationintothe impactof Corporate Social Responsibility onthe BodyShop’sconsumers’decisionmakingprocess and buyerbehaviourinthe UK. 3.2. Research questionbackground Corporate Social Responsibility(CSR)isamanagementthatorganisationsemployin theircorporate strategy,whichinvolvesthemoperatingandmonitoringall actionsinan ethical,legal mannerthatcreatesor promotessocial and environmental good. Thisresearchpaperwill explorehow The BodyShop,as a healthandbeautyproducts retailer,utilisesitsgoodethicsandCSRand inwhichwaysthisinfluencestheir market’sbuyerbehaviouranddecisionmakingprocesswhenpurchasing productsfrom them.Thispaperwill analyse thisqueryviathe resultsgathered fromthe bodyshopconsumersinthe northwestof England. 3.3. Research aim(s) (Objectivesofthe study) 1. To understandthe relevantterminologyandtheoryinvolvedinthe topicsincluded for myresearch. 2. To have readall relevantliteratureinordertofullycomprehendthe wayinwhicha retailercompanyaimstosatisfy theircustomers’demandandexpectationsinan ethical andresponsible approach. 3. To conduct,analyse andevaluate primary research of asample of the BodyShop customers’viewsandopinionsonwhetherCSRisa determiningfactorintheir decisionmakingprocess. 4. To gainstrongknowledge aboutthe importance andpowerof CSRengagementand activity bylinkingtheoryto currentpractice intermsof the BodyShop’s policies and protocol whenengagingtheirtargetmarket.
  • 61. 61 5. To forma strongopinionbackedupbyfacts,usingthe informationgainedinaims1 2 and 3 in orderto draw a conclusiononwhetherCSRdoesinfact affect consumerpurchasesand The Body Shop as a businessornot. 4. Initial literature review ‘The qualitative continuum’ meansthatonthe one endare the highlyqualitative, reflectivetypesof analysiswhenanalysingresearchdata.Whereasonthe otherend are typeswhichtreatthe qualitative datainaquantitative manner.Thiscouldmean conductinganalysisbycountingandcoding. Dawson(2009) “A strategiccompetitiveadvantage canbe existedwhenafirmhasa product whichis considered bycustomersasbetterthanof its competitors.Forthatto happena firm mustcare about social responsibility. The globalizationof business andindustry, politicsandthe mediabringsfarmore attentiontobear oncorporate social responsibility.The relationshipbetweenpoliticsandeconomicsischanging. Globalizationhas engenderednew opportunitiesforenterprises;atthe same time as complexityincreases enterprises’activitiesencompassmanycountries.Enterprises face entirelynewchallenges, especiallyincountriesoutsidethe affluentpartof the world.Teimouri etal.”(2011) *Inserthere howglobalisationwasutilisedbythe BodyShopto engage inCSR activity* “Roddick'svisionencompassesvariousaspectsof the worldcommunity.Itstatesthat The Body Shop'ssuccessisdependentuponitsrelationshipswithall itsstakeholders: employees,franchisees,customers,communities,suppliers,shareholdersandNGOs.” 5. Outline Methodology: Thisresearchprojectisbeingdone forexploratoryandexplanatorypurposes.The research strategiestobe usedare groundedtheoryandarchival researchforsecondaryresearch.For primary,the designwill be actionresearch forconductingprimaryresearch.(Saunders, Lewis,Thornhill.2009) A realistresearchapproachmeansthe researchwill identifytheoriesandacademic knowledge andevaluatesoptionsforactions.Inthiscase the researchdesignischosenin orderto identifywhetherCSRinfluencesthe BodyShop’stargetmarket’sbuyerbehaviour. Thiswouldinclude researchingreadilyavailable informationandthenconducting questionnairestotheirconsumersinordertounderstandwhetherthe hypothesissetisin fact correct. Fisher&Buglear(2007) Observational designtofocusgroups:prospective orretrospective dependingonthe way answersor data iscollected. Populationisall the individuals,organisationsanddocumentsneededtoconductthe research. Sample Size:(Dawson,2009)
  • 62. 62 Primaryresearchwill consistof handingoutquestionnairestothe BodyShopshoppers,after askinga wide range of queries,aspecificconsensus/hypothesisorgapwill arise thatcan be focusedon. Data analysisandrationale: Qualitative dataanalysismeans enoughtimemustbe dedicated for data processing.Itworksbasedontheoretical principlessuchasSocial Interactionism, Hermeneutics,andPhenomenology.Adamsetal (2014) Inorder to aidthe analysis,afocus groupsummarywill be producedtobe completedstraightafterthe focusgroups.Dawson (2009) As well asthis,there isSoftware available foruse onthe Universityof Chester Moodle page. The evidence gatheredfromresearchwill be documentaryanddemonstrativeevidence in that itas documentary,itisclassedasreal evidence thatwill require authenticationi.e.a questionnaire asthe answersare notguaranteedtobe accurate or correct.As demonstrative,Iwill be usingdiagramslikegraphstoback upmy resultsconclusions.Adams et al (2014) Beingethical throughoutthe entire researchbydoingnostakeholdersoranyindividuals involvedanyharm,havingfull integrityevenwithsecondarydataanditsreliability throughoutthe entire dissertationresearch.The workwill be referencedcorrectly throughoutinorderto avoidplagiarism.Quinlan(2011) Accordingto Quinlan,Validityis verifiedbasedonhow“logical,truthful,robust,sound,reasonable,meaningful anduseful”is the research.Transparencyisimportantinethicstoo,so anyindividual involvedinthis researchwill have full transparencyof myobjectives,the purposesandaimsof everyfocus groupand all researchmethodsused. Adamset al (2014) clarifiesthata mandatorystepof beingethical whenconductingresearch isto provide everyresearchsubjectorindividualwithaconsentformwherebytheysignthat theyare aware of everythingtheyshouldbe andagree tothe termsof the researchset. 6. Proposedplan of work: o Readacademicbooksand journalsaboutfindingaresearchtopicandresearch methodology.e.g.(Saunders,Lewis,Thornhill,2012) to understandandapply researchapproachesandmethodsanddecide the dissertationquestionby February 6th 2015. o Researchthroughand readacademicjournalsandreportsabout CSR in the retail sector,andin specificThe BodyShop’sCSRandbusinessethics. February - March 2015.
  • 63. 63 o Readacademicbooks about CSR,itsinfluencesandcustomersatisfactionin the retail sector. February - March 2015 o Readand revise academicbooksandjournalsonhow to correctlyconduct questionnaires. February2015 o Write out and planall questionsforquestionnaires. February2015 o Conductinterviews,gatherresultstoformcorrelationstothenanalyse them and identifygapsinmydatawhere furtherresearchisrequired. February2015 o Use the stagesinthe planof work againstthe researchaimsto make sure all objectivesare beingmet. February- March 2015 o Write and finishthe remainingchaptersof dissertation usingall primaryand secondaryresearchdataacquired. March 2015 o Finalise,proof-readandsubmitthe completeddissertation. April 2015 7. References:(APA layout) 1. Dawson,C. (2009). Introduction to Research Methods:A Practical Guide forAnyoneUndertaking a Research Project.4thed.England:How To Books. P.116 2. Saunders,M. Lewis,P.Thornhill,A. (2009). Research Methodsfor Business Students.5thed.England:PearsonEducation. 3. Fisher, C., & Buglear, J. (2007). Researching and writing a dissertation: A guidebook for business students. Harlow: Prentice Hall/Financial Times. 4. Quinlan, C., (2011). Business Research Methods. Andover: Cengage Learning. Retrieved from: https://www.dawsonera.com/abstract/9781408055502 5. Adams, J., Khan, H., Raeside, R. (2014). Research methods for business and social science students. 2nd ed. London: Sage.