The Body Shop and Green Business
The interaction between business and the environment is in the use of natural resources at each stage of activities such as production, distribution, marketing and final consumption of goods and services. This interaction can be seen as a symbiosis that will benefit both parties if positive activities are carried out, namely activities that not only exploit the environment but also think about ways to manage environmental impacts arising from business activities. (www.menlh.go.id)
The business world needs to respond to the problem of handling and managing the environment as a serious matter because, the environment is a challenge for the business world, where by ensuring that the company already has a certificate stating that this company has a low risk to the environment it will make investors will be attracted to invest their capital in the company. Besides caring for the environment can be used as a competitive advantage for companies. (www.menlh.go.id)
To maintain environmental sustainability and at the same time to gain competitive advantage, the Body Shop, a health products retail company operating in Indonesia, is fully aware of this Greening business strategy. This strategy is an integrated environmental management which includes the development of organizational structures, systems and cultivation in a green competency by implementing and obeying all regulations on environmental management, including management of raw materials, waste management, effective use of natural resources, use of production technology that is generate minimal waste and implement environmental awareness commitments for all employees in the organization. (www.menlh.go.id)
The Body Shop has four reasons for placing environmental issues as an important aspect of its business. First, by being aware of the limitations of natural resources, it is as much as possible to reduce the use of existing natural resources. Therefore the industry must strive for recycling and efficiency in the use of every material and energy in the production process, which will cause a reduction in production costs. Secondly, having a positive attitude towards the environment is a good thing to be able to grow a brand image that is both in the community and subsequently will increase market share. Third, seeing the needs of consumers for the concern of business people towards the environment and subsequently developed into granting ISO 14001 certification, this has a positive impact on the business world. Fourth, although law enforcement carried out by the government is still weak but if there is a violation in environmental management or public complaints due to the impact of an industrial activity, it will have a negative impact on the company's reputation. (www.menlh.go.id)
The advantages of "green business include reducing operating costs, creating competitive advantages and being able to maintain customer loyalty, helping companies to expand into global markets, enhancing corporate image, minimising environmental risks in the long run, and providing benefits to the ecosystems and communities where the company operates. (www.menlh.go.id)
In order to be able to use existing resources efficiently, the company does this by modifying marketing processes or using products that can prevent environmental damage, encouraging contractors and suppliers to develop environmentally sound businesses using recycling technology and making efficient use of each material. In a study conducted by the company, they found that they could reuse plastic wrappers obtained from the results of post-consumer recycle of our bottles.
Since 2003 the use of recyclable plastic bottles has reduced the use of plastic bottles by around 4 billion bottles each year. In every shop, The Body Shop provides a place to dispose of used product packaging from consumers and encourage consumers to return the used packaging to their stores so that they can recycle again, besides that the company is also working with local parties in each country in terms of recycling. the used packaging. The Body Shop uses plastic bags made from plastic materials around 15% -25% recyclable plastic. As well as using FCS material as wrapping paper and as an alternative it is also used biodegradable material as wrapping paper, and energy in the production process, and will have a direct impact on reducing production costs. This form of efficient use of resources utilise by the company is realized by replacing electricity usage with renewable resources and applying it to all of his retail and business operations they own. This was also done in the use of transportation equipment. This included the use of transportation equipment for distribution purposes that would produce high levels of carbon dioxide, so this company modified its distribution system to be more efficient, namely by making deliveries from distribution centers in each city. so it is more efficient than done from the distribution center in each country. This includes the provision of office inventory vehicles that are only given to employees who really need them in carrying out their duties. In the case of the use of air conditioners this company applies a special rule that the air conditioners used are those that do not cause damage to the ozone layer. (www.the-body-shop.com)
To create an image of companies that care about the environment, The Body Shop does this by promoting the importance of consuming health products for public health and environmentally friendly products after the community becomes aware of the need for green products, so people will be encouraged to have a healthy lifestyle. by consuming products that are good for health and environmentally friendly. In addition, The Body Shop also fosters commitment to each of its employees to be responsible for the environment, this is also supported by the company's high consistency of environmental values which includes all aspects that exist in terms of product development, production, energy and waste management, consumer protection and environmental and social policies and making awareness of environmental protection and environmental sustainability an important part of the company's mission and vision. And do not forget also as an embodiment of his concern for the environment The Body Shop diverted some of the company's profits into social environmental programs (www.the-body-shop.com)
With a business trend that provides market opportunities in terms of environmental stewardship, the company then follows it up by using packaging from recyclable materials and using simple technology that uses renewable resources. this has a direct impact on reducing production costs for packaging. In addition this company also applies an environmental management system that is a system that manages waste treatment, air pollution control equipment, and environmental recycling technology as a requirement for obtaining ISO 14001, this hard work is not in vain because in 2001 The Body Shop obtained ISO 14001. (www.the-body-shop.com)
The Body Shop's adherence to regulations on environmental management, namely law No. 23 of 1997 concerning environmental management, especially article 6 paragraph 1 which states that everyone has an obligation to maintain the preservation of environmental functions and prevent and mitigate pollution and damage, avoiding companies This is from complaints and even demands from the community. This compliance is realized through certification of ISO 14001 regarding environmental management systems and the use of integrated input, process and output systems to enable the achievement of a green company as a whole. So that makes this company has a good reputation in the community so that it can expand its market scope and can increase customer satisfaction because it can meet the needs and desires of customers for environmentally friendly products. (www.the-body-shop.com)
Having a concern in terms of environmental management has indirectly provided many benefits for the business world, especially in terms of gaining a competitive advantage because by looking at consumers' needs for clean products, in the sense of being healthy for consumption and friendly to the environment, by doing what which is called greening business, the company can indirectly meet the needs of these consumers so as to increase market coverage and have a good image in the eyes of consumers. And also helps preserve the environment around the company.