Just because a company wraps itself in good intentions does not mean it will succeed.
Trying to have a priority that's not just making money can distract a company from its mission. Additionally, in a society that has become polarized around politics, having a green, a diversity, or even a charitable message can push a company into the "woke" basket where right-wing customers might be skeptical.
That's not simply a right-wing phenomenon. Left-leaning customers might avoid companies like Hobby Lobby and Chick-fil-A that support right-wing customers.
Related: Chapter 11 bankruptcy forces popular retailer to close all stores
Doing the right thing has simply become less clear. Starbucks, for example, has been a leader in getting rid of plastic straws. Eliminating waste from landfills shouldn't be a political issue, but it is, and adopting causes like this has arguably hurt the chain more than it has helped it.
Walt Disney and other entertainment companies have faced similar issues when it comes to showing diverse populations in their films and television shows. That's not something that should be inherently controversial, but it has most certainly become so.
Pushing ethics, tolerance. and diversity inherently means that a company is making a political statement even if that's not the intention. That's not the only reason a popular global retailer has collapsed, but it probably did not help.
Image source: Hanna Lassen/Getty Images
The Body Shop files bankruptcy, abruptly shuts down
Fans of The Body Shop in the United States have been worried since the chain shared plans to close about half of its locations in its native United Kingdom. That move did not impact its operations in any other country, but now, more shoes have begun to drop.
"The Canadian subsidiary of the global beauty and cosmetics brand announced it has started restructuring proceedings by filing a Notice of Intention (NOI) to Make a Proposal pursuant to the Bankruptcy and Insolvency Act (Canada). In the same release, the company said that, as of March 1, 2024, The Body Shop US Limited has ceased operations. (No other information about the U.S. operation was given.," Chain Store Age reported.
A message on the company's U.S. website shared a simple message that does not appear to be the entire story.
"We're currently undergoing planned maintenance, but don't worry we're due to be back online soon."
A link on its homepage that says it takes customers to an email support form actually brings people to an FAQ page which appears to be outdated as it still contains info related to covid.
The Body Shop had a noble mission
The Body Shop began its existence roughly 50 years ago in Brighton, England. Founder Anita Roddick built the brand around not testing on animals while trying to be an ethical and inclusive company.
That was something The Body Shop celebrated as recently as January.
"Millions of eyes will roll around the world today as The Body Shop announces that it has become the world's first global beauty brand* to achieve 100% vegan product formulations across all ranges including skincare, body care, haircare, makeup and fragrance. The entire product formulations portfolio has been certified by the Vegan Society," the company shared in a press release.
The Body Shop has remained committed to fighting against testing on animals and pushing its rivals to adopt the same policy.
Never as large a player in the U.S. as it was in Canada and the UK, The Body Shop had 63 locations nationwide as of the end of 2023. Those stores shut down on March 4 as has the company's website.
Being an ethical company alone was not enough for The Body Shop to survive, according to Stephen Kahn of The Conversation.
"Being perceived as an ethical brand over five decades is not easy. A selling point which once made The Body Shop stand out can lose its sparkle when it does not evolve in line with changing market conditions and consumer expectations," he wrote.
Kahn noted that other brands had embraced the ethical space while also doing a better job at evolving their product lines.
