The Business Ethics Blog

BusinessWeek Online reports today that Body Shop agrees to L’Oreal takeover deal.

Here is an opportunity for a natural experiment in corporate values.

The Body Shop was built on a very clear — and very well-publicized — set of values (including a commitment to the environment, to fair trade, and to avoiding testing products on animals). L’Oreal‘s public image, at least, includes no such commitment. (I’ve read conflicting reports about L’Oreal and animal testing. This story claims that the company eliminated animal testing — at least testing of products (as opposed to ingredients) as far back as 1989. The company does still face criticism for continuing animal testing. There are signs, however, that L’Oreal has been interested in reducing, if not eliminating, testing on animals.)

The experiment is this: let’s all watch BOTH the Body Shop and L’Oreal over the next, say, 3 years, to see whether the merger results in significant changes in either a) their stated values, or b) the values implied by their behaviour.