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New Clicks Group Limited: The Body Shop. The Body Shop is a member of the New Clicks Holdings Group Limited which is a health and beauty focused retail and supply group listed on the JSE limited. The group has over 500 stores across South Africa. Clicks Group is committed to the principles and practice of good corporate governance. The group follows the rulings of the King II report and listings requirements of the JSE limited. All these aspects of Clicks group Limited applies to all businesses that fall under this industry such The Body Shop. The Body Shop itself is very involved in corporate governance and corporate social responsibility. The Body Shop is involved in many socio-economic problems and help to better these problems such as child trafficking, stopping HIV, and stopping violence at home. The Body Shop is truly concerned with having good ethics and corporate governance.
Famous Brands Limited: Wimpy
Wimpy is part of Famous Brands Limited, Africa`s leading quick service and dining restaurant franchisor. Wimpy is very involved in corporate governance and corporate social responsibility. They feel a strong need to give back to South Africa. They are one of South Africa's leading restaurant franchisor brands and a leading brand in the economy. Wimpy has involved itself in many projects such as creating the Wimpy Charitable Trust and raising R250Â 000 for the Star Seaside Fund. The trust helps to feed and clothe hundreds of underprivileged children. Wimpy is dedicated to improving South Africa and helping the nation.
Introduction into the Micro Environment of The Body Shop
The micro environment includes internal factors that have a direct impact on the business such as the vision, mission and Board of Directors.
The Body Shop`s Vision/Values with Clicks Group Limited:
Truly passionate about customers
They believe in integrity, honesty and openness.
They cultivate understanding through respect and dialogue
They are disciplined in their approach
They deliver on their goals
Being truly South African
The Body Shop Mission:
The Body Shop follows the King II Report which recommends that they work for social, economic and environmental change.
To create a balance between the financial and human needs of their stakeholders
To prevent animal testing
To support community trade
To make sure business is ecologically sustainable
To take on a code of conduct which will ensure that there is honesty, fairness and respect within the micro environment
Activate the self-esteem of the consumer
To defend the human rights of all people
To protect the planet by all means necessary
To protest the planet and customers by using natural ingredients in products that are effective while protecting the environment
The soul of beauty, evoking our customers into feeling beautiful, not just looking beautiful and having a positive attitude.
Our incredible planet, protecting and using the planets resources wisely.
Using natural materials and ingredients in our products.
The community of people, The Body Shop to protect their customers and the community they operate in. They wish to respect and value all people. They are passionate about social justice and human rights.
The Body Shop Organizational Structure:
The Body Shop uses the Line and Staff Organizational Structure.
The Body Shop has a board of directors with a CEO who gives orders to the managers who then give orders to the staff.
The Body Shop`s organizational culture is the business`s personality and attitude. The Body Shop is focused on protecting the well being of all people and the planet with respect and integrity.
Corporate Social Responsibility:
Corporate Social Responsibility is the businesses ability to recognize and act on or take responsibility for the impact of their activities on the environment, consumers, employees, communities and stakeholders. They must also ensure they adhere to certain ethical standards, the law and be proactive about promoting public interest.
The Body Shop follows the King II Report with triple bottom line reporting. Protecting the economy, environment and social aspects of corporate governance.
The Body Shop has five core values:
Supporting Community Trade
Defending Human Rights
Against Animal Testing
Protect the Planet
The Body Shop is active in being involved in many projects to help these values as well as sustain these projects
The Body Shop-"The Business of business should not be about money, it should be about responsibility, it should be about public good, not private greed" (Anita Roddick)
The Body Shop Campaigns and Projects:
Stop Sex Trafficking
The Body Shop joined the ECPAT charity which campaigns to stop sex trafficking
The Body Shop has a sustainable project where their product the 'soft hands kind heart hand cream', which are sold in all stores, proceedings from the project go the ECPTAT to stop and create awareness for sex trafficking.
The campaign aims to raise awareness of the scale of the issue, raise funds and inspire change
Stop HIV Changing Attitudes
The Body shop has been campaigning in raising awareness of HIV since 1993 showing that the project has been sustained up to 2010
The Body Shop has raised since 2008 1,1 million pounds for the Staying Alive Foundation, a project which educates against the risk of HIV and aids and safe sex.
Violence in the Home
The Body Shop is focused on promoting human rights and protecting people
They have since 1994 up and over 2004 raised funds against domestic violence which shows its sustainability
The funds are donated to partners who fund the prevention and support of the victims of domestic violence.
Protecting the Planet
They feel strongly about being proactive in the battle against climate change
They constantly look for ways to reduce their carbon footprint
They work to improve their energy efficiency
They have introduced energy-awareness training to staff
65% of their stores in the UK are on renewable energy contracts
They have also reduced their air travel
Corporate Governance as under Clicks Group:
Committed to principles and practice of good corporate governance
Acknowledges the relationship between high quality governance and long-term equity performance
They endorse the Code of Corporate Practices and Conduct(King II)
The Governance Committee of the board is responsible for ensuring compliance with King II for the benefit of all stakeholders
Protecting the Planet: Reducing Environmental Impact
The Body Shop is very aware of being of being a green, friendly business. They have many strategies to reduce their impact on the environment. The founder Anita Roddick was very concerned with preserving the environment and protecting the people. The Body Shop is a global business that has always been concerned with battling climate change.
Strategies the Body Shop is taking:
Constantly seek ways to reduce carbon footprints
New lighting reduces their energy use
Introducing energy-awareness training for all the staff
They have reduced their air travel
They are converting their car fleet to lower fuel emission models
65% of UK stores are on renewable energy contracts
For all the prodicts they are introducing plastic bottles made from 100% recycled materials
They are also replacing all carrier bags with 100% recycled and recyclable paper bags.
Code of Ethics
The Body Shop is committed and proactive when it comes to acting in an ethical manner to protect human rights of all people.
The Body Shop ensures that all their outlets actively follow human rights irrespective of their local, cultural or political differences.
The wish their impacts, direct or indirect, to follow human rights legislation and have a positive outcome on their stakeholders and society.
The Body Shop benchmarks their employee policies to make sure that they provide good working conditions which abide by International Human Rights Standards.
The Body Shop continually checks that all franchises abide by this code and create a good business image.
All suppliers must comply with the "Ethical Trading" initiatives Base Code.
They monitor impacts by reporting on their performance to ensure the impact is positive.
Ethical trade improves conditions of workers in the supply chain.
The Body Shop ensures that they are proactive in Human rights by:
Raising money to stop sex trafficking, animal testing, raise HIV awareness and reduce climate change.
Franchise Fast Food Industry
Introduction to Microenvironment
The microenvironment includes interest factors that have a direct impact on the business such as the vision and mission of the enterprise.
Wimpy under Famous Brands
Famous Brands Limited is focused on the growth and development of the best in class food services franchise brands, supported by a unique backward intergration model which maximizes stakeholder value creation.
To be by any measure the most admired food services company by 2010.
Things we care about:
People, customers, Innovation, Brands, Quality, Winning.
Success is achieved with a smile.
Our bun logo symbolizes our need for quality, cleanliness, service, value and friendliness.
They want their customers to feel comfortable and at home.
They want their customers to have delicious food that is delivered swiftly.
They want their customers to enjoy every moment.
To appeal to both the younger and older generation
Enjoy every moment, Wimpy hopes to create an environment their customers will enjoy.
Wimpy falls under Famous Brands Limited which is run by a board of directors.
This board of directors gives orders to the managers/owners of each business and they then give the orders to the staff making it a Line and Staff Organisational Structure.
The Organisational culture is the corporate personality of the business, the culture supports ethical decisions and actions.
Wimpy's organization culture is that of good corporate governance, ethical behavior and good corporate social responsibility.
Wimpy campaigns for children in need and for racial equality.
Corporate Social Responsibility
CSR is the businesses ability to recognize and act on or take responsibility for the impact of their activities on the environment, consumers, employees, communities and stakeholders, as well as adhering to certain ethical standards.
Wimpy follows the JSE Ltd Social Responsibility Index which recognizes their contribution to social and economic improvement.
Wimpy follows King II Report on Corporate Governance on triple bottom line reporting which is their contribution to economic, environmental and social aspects of their business environment.
Projects by Wimpy
Wimpy has been involved in many different projects throughout the years
In 1999 Wimpy raised R250,000 for the Star Seaside Fund
They established the Wimpy Charitable Trust, which focuses on childrens needs
This charity raises funds to donate to other charities across South Africa.
They aim to help underprivileged children.
Sustainability of Project
Wimpy through Wimpy Charitable Trusts wants to help uplift organizations and people to sustain themselves
They hope to build on their tradition to help more children.
Wimpy helps fund charitable organizations and assists in their crucial work.
The sustainability of these projects does not seem evident.
Wimpy has not since 1999 raised more money for the Star Seaside Fund.
Wimpy's assistance of other orgainisations limits their own direct input into the communities.
They also only focus on underprivileged children and no other issues in South Africa.
Socio- Economic Issues
Aiding starving children in South Africa
Wimpy puts emphasis on their efforts to help underprivileged children in South Africa. The business has not listed many strategies to help this issue other than funding other organizations.
Wimpy could create its own charity for underprivileged children that they interact directly with.
Wimpy could create meals that advertise a certain issue and use the proceedings from the meal to donate to a charity.
Wimpy can once a month donate food and clothing to a children's charity.
Once a month Wimpy could personally go into communities to communicate with children.
Wimpy can organize a buddy system and sponsor school fees to underprivileged children.
Code of Ethics
(Wimpy has no code of Ethics or it is not evident)
A code of Ethics they could apply in their business is :
A code with an aspirational section; the aspirations of the business and what the want to achieve.
A principles section; of which the members of the organization are expected to adhere to.
These aspects should usually be listed in order of importance
Analysis of Information
Comparison and Analysis
The Body Shop vs. Wimpy
It is obvious that The Body Shop has better Corporate Governance and Corporate Social Responsibility.
The Body Shop clearly lays out its mission, vision, values and passionate beliefs so that it is easy for the customer to identify with the business.
Wimpy does not have as many sustainable projects as that of the Body Shop.
The Body Shop addresses many more socio-economic problems and are very involved in reducing these issues.
The Wimpy has weak CSR and have only participated in two projects.
The Body Shop has over 5 sustainable projects that they are openly active with.
The Body Shop has a clear mission and vision of protecting the planet and people.
Wimpy's mission is vague and concentrates more on the product than giving back to the community.
The Body Shop gives many benefits to their customers such as discount cards and free gifts.
The Wimpy is soley concerned with producing quality food.
This research shows that both the Body Shop and Wimpy participate in corporate governance and corporate social responsibility. The Body Shop however has better corporate governance and CSR. Wimpy has no evident code of conduct which reflects negatively on the business. The research shows that the Body is very passionate about being an eco-friendly business involving itself in nearly 100% recyclable products. Wimpy is very concerned with supporting the community. It is also evident that these businesses need to make this information more accessible to the public. Corporate Governance and CSR are very important for businesses to connect to their consumer and gain their trust and support.