Understanding the importance of ETHICAL BUSINESS STRATEGY


According to me Ethics mean Moral values and Natural rules, which we follow unintentionally. Because these rules we learn from our community and our religion, to love each other and respect of humanity these are the basic lecture which every child be given.

Ethics actually is a branch of Philosophy, which describe the difference between good and evil in world, between right and wrong human actions.


Business is an occupation, Profession or Trade where sale and purchase of goods in attempt to make a profit. In other word making the profit in barter of things or money or services.


Strategy is that which top management does that is of best importance to the organization. In other word we can say the basic direction for the sake of achieving purpose and goals of a business.

Henry Mintzberg, in his 1994 book, The Rise and Fall of Strategic Planning [3], points out that people use "strategy" in several different ways, the most common being these four:

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Strategy is a plan, a "how," a means of getting from here to there.

Strategy is a pattern in actions over time; for example, a company that regularly markets very expensive products is using a "high end" strategy.

Strategy is position; that is, it reflects decisions to offer particular products or services in particular markets.

Strategy is perspective, that is, vision and direction.

After the detail study of our basic theme now we are moving to apply the statement ETHICAL BUSINESS STRATEGY on BODY SHOP business, which has been run by Anita Roddick.

According to her, "you change your values when you change your behavior".

This video might be describe the Purposes/reasons of the foundation of body shop:-


http://www.youtube.com/watch?v=LZ1eQWsCOHEHYPERLINK "http://www.youtube.com/watch?v=LZ1eQWsCOHE&feature=PlayList&p=14B78806DD623F27&index=51"&HYPERLINK "http://www.youtube.com/watch?v=LZ1eQWsCOHE&feature=PlayList&p=14B78806DD623F27&index=51"feature=PlayListHYPERLINK "http://www.youtube.com/watch?v=LZ1eQWsCOHE&feature=PlayList&p=14B78806DD623F27&index=51"&HYPERLINK "http://www.youtube.com/watch?v=LZ1eQWsCOHE&feature=PlayList&p=14B78806DD623F27&index=51"p=14B78806DD623F27HYPERLINK "http://www.youtube.com/watch?v=LZ1eQWsCOHE&feature=PlayList&p=14B78806DD623F27&index=51"&HYPERLINK "http://www.youtube.com/watch?v=LZ1eQWsCOHE&feature=PlayList&p=14B78806DD623F27&index=51"index=51

That's mean values reflects from the behavior and behavior are your relation and attitude and your thinking about the other people. That basic idea which she developed that she is not doing business like cosmetic brand to show the dream of unachievable things. She base her business on care, honesty, fairness and respect. She introduce the Natural cosmetic which prepared by her in his on place not by the chemical but with natural things that's never be harmful for the human body. Ethical firms' duties and responsibilities to CSR, have led to the examination of the role of values-led leaders and their pro-activity in communicating their worth in the marketplace. In such companies, a fundamental part of a leader's role should be to promote corporate citizenship and the active demonstration of organizational values by individuals employed by the organization. While these are evident in The Body Shop, to an exemplary degree, they also create a tension, between the company's entrepreneurial leadership, its strongly embedded organizational values and its commercial development.

As she said that she spent her six month such a people who use some different unethical behave with body this video clearly describe that things:-


http://www.youtube.com/watch?v=9fVpOrodlu0HYPERLINK "http://www.youtube.com/watch?v=9fVpOrodlu0&feature=related"&HYPERLINK "http://www.youtube.com/watch?v=9fVpOrodlu0&feature=related"feature=related

This was the reason that Anita that the word Beauty never been use at all then she decide to made the things with the natural things and packed them in a simple and nature friendly stuff. In early stage shop have not budget for advertisement they not even have any plan to expend the business at high level. They just put the small lines on the front of shop that was only ethical message.

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If we see the other cosmetic company they produce the product and make experiment on the animals that was totally unethical after the notification of body shop loads of organization protest on this kind of matters.

The body shop is large, multi local business. It is not a one woman show, but a global operation with franchisees running their own businesses and thousands of people working towards common goals. It is curious committed and passionate work in progress. We want it to be obvious for any one to see why we do what we do and how we do it. This applies to every level of our business, from the manufacture and company. The company believes that business has a moral responsibility to tell the truth about itself and face up to things that need to change. The body shop is a high profile advocate of social and environmental causes, Sometimes this kind of advocacy upsets people, so if a company wants the license to campaign on public issues it most demonstrate its own commitment to reflection and self improvement on issues like natural protection, animal protection and human rights.

Here are some thing from The body shop web their values planet and campaigns etc.


We believe there only one way to beautiful, nature's way. We have believed this for years and still do. We constantly seek out wonderful natural ingredients from all four corners of the world, and we bring you products bursting with effectiveness to enhance your natural beauty. Whilst we are doing this we always strive to protect this beautiful planet and the people who depend on it. We don't do this way because it's fashionable. We do it because, it's the only way.


Our commitment to seeking and looking natural materials and ingredients, and using all our planet's resources wisely, guides our approach to business. We set challenging environmental goals/targets, which we detail in our bi-annual Values Reports. We were one of the first to make a stand against animal testing in the cosmetics industry, and through The Body Shop Foundation," we continue to fund organizations campaigning to end the needless suffering of animals".


We've always seen ourselves a lot more than just a beauty company. For years we've campaigned against injustices, stood up for the vulnerable and spoken for those without a voice of their own.

This is the place to find out how we stand for others, and how you can do it too.



What is Mission Statement

A mission statement is a statement, which defines the essence or purpose of a company. What it stands for e.g. what broad products, or services it intends to offer customers.

Normally, the Mission Statement should show the broadest perspective/image of the enterprise's mission. When you create your Mission Statement consider including some or all of the following concepts/ideas.

The ethical position of the enterprise

The desired customer image

The key strategic influence for the business

A description of target market

A description of the products or services

The geographic domain

Expectations of profitability

Mission statement ensures some transparency for investors and employees alike so they can have some confidence as to any potential use of their resources be they capital investment or labour.

Anita Roddick


The Body Shop Mission Statement 

Our Reason For Being:


Dedication to our business to the pursuit of social and environmental change.

      To creatively balance the financial and human needs of our stakeholders: employees, customers, franchisees, suppliers and shareholders.

       To courageously ensure that our business is ecologically sustainable, meeting the needs of the present without compromising the future.

       To meaningfully contribute to local, national and international communities in which we trade, by adopting a code of conduct, which ensures care, honesty, fairness and respect.


       To passionately campaign for the 

protection of the environment and human and civil rights, and against animal testing within the cosmetics and toiletries industry.

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        To tirelessly work to narrow the gap between principle and practice, while making fun, passion and care part of our daily lives Body Shop's U.S. headquarters is located in Raleigh, North Carolina.  In 1993, the Body Shop teamed up with architects, Design Harmony to renovate an existing building into a ecologically sensitive workplace for Body Shop's U.S. staff..  The 153,700sf headquarters encompasses a 112,000sf warehouse and 41,700sf office space.  For a company that sells environmentally sensitive cosmetics and bath products, the concept of recycling an older building was a conscious socially driven choice.  A healthy and well-lighted workplace drove the design of the building.   Elements such as day lighting, indoor air quality, high-quality ventilations were of the highest priority.  Years after the project has been completed, employees express their appreciation for the open work environment, the abundant presence of natural light, and the visual connection from workspaces to the outside

The Coca-Cola Company Mission Statement


Our Mission

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.

To refresh the world...

To inspire moments of optimism and happiness...

To create value and make a difference.

As I coded two-mission statements body shop and Coca Cola, both these runs different business and their emissions should be different but by through out reading I draw some the similar things from above statements, which I was supposing different. Anita focus in her statement on Financial condition and Sustainability and honesty and care etc. these was the thing which she adopted. And Coca Cola does business in Drinks and their mission are refresh the world that sound like a marketing sentence but have a deeply link with their business in other words they want to provide such a quality of drink to world that they never think and which create pleasure and happiness in their life and make every movement of life memorable. Coca cola also focusing on that their brand name should be develop on such a level that every one make Coca cola their habit and never think to go somewhere else. There is much in our world to celebrate, refresh, strengthen and protect. The Coca-Cola Company is a vibrant network of people, in more than 200 countries, putting citizenship into action. Through our actions as local citizens, we strive every day to refresh the marketplace, the workplace, protect the environment and strengthen our communities.

They are a local employer, with a responsibility to enable our people to tap into their full potential/energy; working at their innovative best and representing the diversity of the world they serve.

They are an investor in local economies and a driver of marketplace innovation, with a responsibility to act as a good steward of their natural environment.

Learn more about our beliefs and how they guide our actions every day, around the world. Coca-Cola wants to satisfy people around the world with the best branded. They must first start from the inside to become more successful company. All employees are treated equally and are encouraged to contribute their ideas to the company. Teamwork within the company contributes to great customer service. Outside of company, Coca-Cola works with side with local leaders to establish closeness as community. Coca-Cola becomes a part of a community to contribute in education, health, wellness, and diversity.

Coca-Cola goes by the statement "Think local, act local". Customers' tastes are always changing therefore Coca-Cola keeps on making new and different products to satisfy their needs. Coca-Cola is a local company in over 200 countries.

Quality is a huge factor to serving people. All products going out are checked thoroughly by employees before reaching to the consumer. Every employee is well educated and informed on how important quality is for the company. Coca-Cola wants to make sure that the consumer enjoys its product.

Inside and outside help contribute to Coca-Cola staying on top of the marketplace. Employees work their hardest to produce the best product. While expanding into the world, Coca-Cola makes sure that the community is being treated to the greatest extent.


101 Mission Statement from top companies By Jeffrey Abrahams 2007 Ben and Jerry

"Whenever and wherever men and woman have endeavoured to achieve something purposefully, a statement of mission or purpose is pronounced. It precedes the first step in a long march. People, by their very nature, seem to ennoble a task by endowing it with stated mission.

Shaping the identity of a corporation really begins with defining its mission. Its reason for being. Its purpose focus and goal.

Every company no matter big or small, needs a mission statement as a source of direction, a kind of compass, that lets its employees, its customers, and even and even its stockholders know what it stands for and where it's headed."


A D V A N T A G E S : -

Increasingly research in the field of business and society suggests that ethics and corporate social responsibility can be profitable. Yet this work raises a troubling question: Is it ethical to use ethics and social responsibility in a strategic way? Is it possible to be ethical or socially responsible for the wrong reason? In this article, we define a strategy concept in order to situate the different approaches to the strategic use of ethics and social responsibility found in the current literature. We then analyze the ethics of such approaches using both utilitarianism and deontology and end by defining limits to the strategic use of ethics.

Social welfare

Ethical standard are set by society not by a business or organisation. Business mans try to show Social welfare elements in their business because business always directly relate to public and public likes to be ethical and social welfare. Now a day Social contract between business and public are not more than Fashion. Social contribution give confidence to people that the major company and business are not for only concern to their profit but they also think about them. In some countries Governments give relaxation to company in tax or other benefits if the companies participate in social welfare works.

Values Practice with Region

Values strategy be different in different region of the world, in UK good social values may be contribution in animal welfare organisation, in Pakistan to support the families who are affected by International politics and interferes in the country etc.

A multinational company have different values practice in different part of the world and they make it flexible to be change according the need of time.

CEO's Tone

Its good that a company have good values but if the CEO not consider the values of the company, than there is no mean of that. If a company is earning good and don't want to contribute to social activities than the perception of the company got heart.

Return on Values

As a business man every one will think, if he is investing in some thing than he want return from that and this is the major think which nearly every business think before go for a strategy for social elements in a business.

Principle and clear rotes

By adopting a Ethical strategy lops hoops in a business nearly finished and every one comes to know the basic principle to do a business and by which rotes they have to struggle to achieve their goals. Element of maximisation nearly go to end and every have feeling of human and welfare to human.

Human rights

I think there is a much greater understanding of corporate responsibilities with respect to human rights now than there was even four years ago, but that understanding is probably still limited to a small circle of businesses, NGOs, governments, and organizations that have been active participants in the debate. Trying to figure out who all the different players are, and what role they can play in an international community where there is no one single system of governance is really interesting.


Body shop is an organization that believes in ethical business, in making an honest profit and in having fun doing it all. Social activities are being adopt now a days only for their marketing tool.

Profit Maximisation

Because of contribution in social welfare activities and Ethical business strategies companies normally grown up and their profit go up with passage of time and reputation of company goodwill increase day by day in public.

D I S A D V A N T A G E S : -

Emotional Decisions

The ability to recognize and understand your moods, emotions and drives as

well as their effect on others. It is difficult to imagine that leaders who possess these qualities could make the same decisions that resulted in the demise of their organizations. Should avoid to do emotional decisions because these often gone wrong.

Extra Expense

Some time companies come in competition for social welfare and that take them to loss due extra expense. The companies go out of their budget that effect the company hardly.

Less Profit

If some company is doing ethical business than it should earn lessor profit,not try to create monopoly in market for higher prices and than profit. If we goes for ethics than obviously we have to reduce our profit margin, which is major element of a business.

Lower Labour Turnover

Labour turnover is example of good economy and it means that everyone's got choice and have the rights to go for the place of work which is most suitable for him/her.

But in this businesses atmosphere labour don't want to go for other place and try to be on the same place that is not good for this concept.

Difficult to raise Capital

Capital raising is some time become difficult because every one look for profit not for ethic in business because in business no ethic just profits. That mean investor avoid to invest in such a company.

Below are other some advantages which are difficult to define in such a limited word calculation.

.Return on Values

….Goodwill not concern

…......Hurdle in Strategy operations

…...........Business and Welfare

…................Diversion of attention

….....................Mission Track diversion