Introduction “Law concerns what we must do,ethics concerns what we should do” (Habert & Inguli 2008) Business Ethics are set of beliefs that acompany operates by.
In today’s world, successful business institutes holdtheir Ethical reputation in high regard. Ethical practices are driven by trust,and honesty. A business that has a reputation of being unethical tend tosuffer, It is believed that ethical practices are extremely important for anybusiness, big or small. 0.
1 The Cosmetic Market in AnimalTesting One of the leading trades in theworld today is the cosmetic industry. Global cosmetic sales are expected toreach $675 billion, the highest it has ever been in 2020. The sales in the UKhave increased significantly, landing the £4 billion mark for the first time in 2016 (Raconteurnet, 2018) Beauty trends, such as fuller looking eyebrows, face-contouring,and eye-shadow palettes have all been worldwide trends which boosted thecosmetic industries popularity, therefore increasing its sales dramatically. Ethical Theories The idea behind ethical theoriesis to systemize and define the concepts of what is right and wrong.
Regardingthe ethical issue of animal testing in the cosmetic industry, one can say itfalls under the ethics of duty and ethics of rights theories. Trevino andNelson refer to it where “valuesconflict.” Why? It’s about morality. Morality is concerned with norms, valuesand beliefs embedded in social processes, which define right from wrong.Animals are a part of nature, they belong to this world just as much as humans- and they are being taken for granted. Thankfully, people have been made awareof animal abuse issues from all around the world, and organizations like PETA, World Society for the Protection of Animals,and Paws exist to help fight for voiceless abused animals.
This cause playsinto the utilitarianism theory of ethics, which stands for social consequences,asking the question ‘What would a good person do?’ Most people are taught aschildren to be kind to all living things, L’Oreal L’Oreal is acosmetic firm that was founded in 1909, its headquarters in France. L’Oreal wasthe first cosmetic firm globally which now owns 27 international brands in over130 countries. “L’Oreal positions itself as an inherently socially responsiblecompany because it claims to be “committed to fulfilling their missionethically and responsibly”.”(Nikita Van Roermund, 2013. RESPONSIBLE BEAUTY) Thefirm has an ethical and social responsibility to market its product truthfullyand give a full picture of what goes into the making of the product. The brandis on the PETA list which is a list of organizations which are cruelty free,which means that they do not use animals in the making of products (Petaorg, 2018). However, for certain health board approvals, they may needto test the products on animals to legitimize human safety.
What the company isintending to say is that they are not actively incorporating animal testing inthe manufacturing of their project but they do test on animals if the healthboard requires it to do so. Obviously, it is important for a company likeL’oreal to get approved by the every department of health in the countries theyhave markets in. It is a matter of either satisfying the departments of healthby testing on animals or satisfying their consumers by not doing so 10.
Roles and ResponsibilityA stakeholderis someone who is affected by the decisions and actions of a business.Stakeholders are not necessarily equity shareholders, they can also be anemployee who has a stake in a firm as an incentive for the firm’s products tobe successful. On the other hand they can be business partners which depend onthe firms progress to maintain the supply chain. Stakeholders are directlyaffected by a service or a product of a business. People that are indirectlyaffected by a service or a product can also be considered as stakeholders.
Forexample, the environmental effects of a factory can be hazardous on itssurrounding residents. Each firm choosesan alternative route to stakeholders, their roles vary from business tobusiness, depending on the responsibilities and rules which are outlined at thefoundation of the firm. Stakeholders have a responsibility with the choicesthey make due to the fact that what they chose can alter the firm’s decisionstowards the better or worse.
“The most used definition of a stakeholder is alarge investor that has the clout to hold a viable “stake in your company”.(Businessdictionarycom, 2018) EstéeLauder Registered on the PETAs website as one of the countries thatpay for tests on animals in China (Petaorg,2018) Estée Lauder is a cosmetics company that practisesanimal testing, one of the few left. By doing so it is going against the tidesince the market is shifting towards cruelty free products. Even though itofficially claims that it is no longer taking part in animal testing, there hasbeen several allegations of using third party labs to do the testing for them.This is an attempt to deviate the blame from Estée Lauder and so that thecompany can officially say that they don’t practice animal testing anymore (Estee lauder, 2018).
Marketing Strategies Firms in the cosmetics industryhave various strategies and use multiple tactics to acquire goals set. MakeupArt Cosmetics, is the world’s leading makeup company. MAC had a lot ofspeculation about the company not being a cruelty free organization – as itclaims to be. While the testing of animals in the making of products is illegalin most countries, but not in China. There have been countless allegations andprotests against MAC claiming that they pay for the use of animal testingduring the production of prototype products. MAC released an official statementon their website addressing the issue saying “MACdoes not test on animals. We do not own any animal testing facilities and wenever ask others to test on animals for us. To this end, we are proud topartner with IIVS (Institute for in VitroSciences) to expand theuse and acceptance of non-animal testing methods worldwide.
” (Mac, 2018) China is one ofthe only countries left where it is legal to conduct animal testing in order toensure safety before selling the final product. Unfortunately, saying that itis “one of the only countries left” isn’t enough to depict the act of animaltesting as a miniscule offense. China is known for having almost a fifth of theworld’s population and is commonly associated with cheap labor, which makes ita financial attraction for some of the worlds biggest companies. Cheap labor,minimized regulations on animal testing and a large consumer base, are enoughreasons for a multinational cosmetic company to operate its manufacturing MAC uses multiple means toacquire its enormous market share, they consist social media, contentmarketing, public relations, mobile marketing and multichannel marketing viadirect mail and QR codes. MAC has 30.47 million followers combined on allsocial media platforms which allows them to reach out to millions of people,they use various campaigns to promote new products.
(Dsimin, 2018) 0.2 The Cosmetic Market in AnimalTesting With the market changing rapidlyalmost none of the industry giants nor rising independants ignored signs ofchanges happening to the market. Marc Rey president and CEO of ShiseidoAmericas – a leadingJapanese multinational personal care company stated that “traditional makeupwas down 1.3% and that independant brands were up 42.7%” this is a reflectionof how much independant brands were now the change in consumer taste. (Richard kestenbaum, 2018)Conclusion Althoughanimal testing is extremely frowned upon and has been gaining more awarenessover the years, is it considered enough to stop a consumer from engaging inbusiness with a company that incorporates animal testing in its researchstages? Fortunately, the cosmetic industry, is not a monopoly and consists ofseveral competitors that provide similar products. A consumer looking to buycosmetic products is not limited to one company and should be able tounderstand not only the monterey cost of buying these products but also theethical costs.
Purchasing cosmetic products from such companies doesn’tnecessarily mean the consumer is directly supporting the act of animal testingbut it funds the company to carry out even more animal testings procedures onfuture products. Although things may have operateddifferently in previous time periods when technology wasn’t present andcompanies didn’t have the advantage of being transparent with its clients toprove their integrity, today people are able to voice their concerns whenstumbling upon something unethical through a wide variety of methods. These canbe petitions, law suits, protests, awareness groups and last but not least,raising concerns on social media.