Impact of social and ethical factors on L’Oréal

ESSAY

TABLE OF CONTENTS
MAIN BODY...................................................................................................................................3
Impact of social and ethical factors over current situation faced by L’Oréal........................3
Organizational culture of the Body Shop and L’Oréal and challenges or benefits faced by
them........................................................................................................................................4
Factors considered by L’Oréal before acquiring Body Shop.................................................5
Factors which impacted the acquisition of Body Shop resulting in failure............................6
Reflection on experience of writing the report.......................................................................7
REFERENCES................................................................................................................................9

MAIN BODY
Impact of social and ethical factors over current situation faced by L’Oréal
L’Oréal is one of the largest companies in the world in the field of cosmetic and is a
brand which provide its services in more than 130 countries. But then also the company is not
gaining the position which they deserve (The Body Shop: What went wrong? 2017). This is
majorly because of the reason that the company is accused of using many unethical proactice3s
within the operations and working of the company. this impact the goodwill of the company to a
great extent. This is majorly because of the fact that due to modernization and upgradation of the
society it is very necessary for the company to have great impact over the social and ethical
factors of macro environment.
The macro environment refers to as the environment which is external to the company
and which are out of the control of the company. There are many external factors impacts the
company such as technology, legal, environment, social and many others. The study of the
business environment is very necessary because of the reason that the business exist in the
environment which is very dynamic and ever changing. Many new changes and differences come
in the actual practices being used by the company and what is currently going on in the market
(Grizane and Jurgelane, 2017). Thus, it is very necessary for the company to analyse those
changes and make the relevant changes within the company.
In this modern world the consumers are more advanced and more concern towards the
development of the society and protecting and safeguarding the environment. This is majorly
because of the reason that with the increase in globalization the trend of societal development
and ethical business practices has increased. The ethical business practices are the ones which
are correct morally and does not harm the society. For L’Oréal also, it is very necessary to have
the use of ethical practices and which do not harm the society. This is majorly because of the
reason that if the company do not follow this then the consumers will not like the products of the
company and this will result in the loss for the company.
There is a huge impact of social and ethical practices over the business of L’Oréal. Like
for instance the company use the tactic of airbrushing advertisement. Under this type of
advertising the company use the existing photos and then make changes in that photo only and
advertise it in the market (Epstein and Yuthas, 2017). This is an unethical practice because the
photo is already being used and this will have a negative impact over the business of L’Oréal.