To what extent do you feel that The Body Shop has successful in meeting the expectations of its stakeholders? Stakeholders are individuals or groups who have some form of interest in the organisation and some power to influence, to a greater or lesser extent, the organisation’s decision making. These groups can be part of the organisation, and yet they are also part of the environment in which the organisation operates. External stakeholders include bankers, customers, suppliers, shareholders, trade unions, professional association, consumer groups and governments.
We could also consider society as a whole as a stakeholder in an organisation. Internal stakeholders include all owners, employees and salaried managers. Stakeholders determine much about an organisation what it can do, and the directions. It can take in response to changes within its immediate competitive and more general environment. The implementation of any corporate strategy including competitive strategies is governed by stakeholders’ values decision and action.
The Body Shop Values Report 1997 is the second Values Report, a detailed statement of performance on social, environment and animal protection issues. In the social audit, a company is required to assess its performance on social policies; internal management systems; improvement targets; external benchmarks, and most importantly, the expectation of its stakeholder groups. By dedicating a chapter to each stakeholder group, Body Shop hope to demonstrate its holistic approach to monitoring, auditing and reporting on the company’s performance against its stated targets and ethical policies in a cohesive way.
Through examining the Body Shop value report 1997 and other relevant material, in my opinion, Body Shop hope to achieve a high level of success to meet the expectation of its stakeholders and it has made many improvement in performance. However, it still needs some improvements. I have concluded in three main points in the best performance. Firstly, Stakeholder perception of performance against core values of The Body Shop Mission Statement and Trading Charter. These core values are essentially defined by the organization itself.
Each stakeholder group is consulted to establish their perception of how closely the organization’s performance matches its stated aspirations. In Mission Statement, one reason for being in business is to creatively balance the financial and human needs of their stakeholders: employees, franchisees, customers, suppliers and shareholders. In the Trading Charter, the Body Shop’s aim to achieve commercial success by meeting their customers’ needs though the provision of high quality, good value products with exceptional service and relevant information that enables customers to make informed and responsible choices.
Their trading relationships of every kind with customers, franchisees and suppliers will be commercially viable, mutually beneficial and based on trust and respect. Secondly, Body Shop has performed many improvements to satisfy most of the stakeholders’ needs. Employees would like more time to enjoy increased opportunities for learning and development. . A pilot scheme called LOVE (Learning of Value to Everyone) was used by the Body Shop, The scheme supports personal rather than professional staff development initiatives.
Employees care about their pension investment. Improvement in pension arrangements and training for personal development was introduced in 1996, and the update pension scheme has been broadened to offer employees’ needs. An Employee Advocacy System was launched in 1997 to improve employee consultation and representation. More and more improvement will be established by the Body Shop to satisfy their employees’ expectations. To improve customer service to international Head Franchisees, A Sales Operations Department was established.
The Franchisee Advisory Board established partly in response to the first social audit, was consulted when the 1997 franchisee survey was designed. The improvement progress has been made in more actively seeking and encouraging UK franchisees involvement in decision-making through working parties. Most Customers satisfied by the Body Shop’s product as being environmentally sensible. EMAS (The ES eco-management and audit scheme is launched in the UK, Registration under EMAS will promote corporate reputation enhance customer relations and improve profitability.