The Ongoing Unethical Practices

What? Unethical?

Ongoing unethical practices in the cosmetic industry are evident and debatable. Currently, the most widely reported and notable unethical practice would probably be the unethical animal testing practices on the pre-supplier, research end of the business chain. Despite current Food and Drug Administration’s open regulations, not requiring the testing of products on animals before commercial release, many companies still choose to test their products on rabbits and rats. Although there are many other alternatives to unethical animal testing, such as human tissue cultures and sophisticated computer technology, companies still choose these unethical practices out of convenience and lowered budgets.

According to activist organization People for the Ethical Treatment of Animals, better known as, PETA there are actually many positive companies in need of ethical consumer support. PETA also keeps a list of the numerous ethical questionable companies that do, in fact, incorporate animal testing into their product research. However, the Harvard Business Review reports that despite the questionable ethics behind animal testing, some countries, such as China, still require “cosmetics to be tested on animals” (Jones 145). Companies such as Brazilian based 4Natura, known for its emphasis on all natural products and ethical practices, opted to not enter the competitive Chinese market due to these unethical regulations. 

Yes..and We Actually Have More…

Other than these practices of animal cruelty in China, according to The Economist, “Quality, cleanliness and safety, for instance, are still rare in a country where stories abound of fake baby milk and washed diapers sold as new.” Geoffrey Jones also asserts how “Avon’s recent problems in China – where allegations of bribery of local officials have tarnished its brand, damaged relations with sales representatives, and made possible a takeover bid by Coty” (145). Avon’s ethical problems in the Chinese market are reflected in its drastically lowered RNOA rate, or profitability ratings, though their business sales remain undisputed.

Other than animal testing debates and problematic developing markets, the cosmetic industry also faces other ethical challenges with the growing awareness of the general population. The Internet has also become both a blessing and problem for these developing cosmetic companies because of the many discussions on ethical and unethical business practices. Also, the popularity of the Internet has also resulted in a demand for higher emphasis on customer reviews and knowledge.

  

Guideline? Or Worse?

As early as 2006, Helena Spongenberg reports how the UN passed the “new Brussels guidelines,” forcing cosmetic firms to “disclose any reports they might have received of a product – ranging from perfumes to lipsticks – causing allergic reactions or irritant effects.” These new guidelines set in 2006 also force cosmetic companies to list their complete ingredients upon costumer request, reflecting the importance of complete consumer knowledge transparency as an ethical practice. Consumer complaints are also one of the most prominent ways the government can regulate companies and company marketing practices. As in the case of cosmetics, in which the overall industry that encourages costumers to spend more and look younger, medical and purely external cosmetics are often blurred. During these instances of dispute, the government often relies on populations such as doctors or in-the-know customers to make complaints to regulate companies.

However, according to Robert Mendick, exclusive discount offers that group medical procedures with cosmetic discounts are actually “not legally enforceable.” This was brought to light when discounts offered by a cosmetic company called Transform “have been criticized as unethical by senior surgeons who accuse.

Transform of encouraging women to undergo combinations of procedures that could increase the risk of complications.” These reports of unethical company behavior not only bring company ethics to the forefront, it also highlights consumer complaints as a real force in enforcing public judgments towards unethical practices.

However, despite these continuous calls for ethical behavior by the consuming public and activist organizations such as PETA, lawful regulations are still slow on the global scale. Other than the widely publicized and debated animal rights regarding cosmetic product testing in the research stages, there are actually still many underlining problems in the cosmetic industry that were only suggested and have yet to be put to the forefront.

Many of these problems regard developing countries and their various practices regarding cosmetic regulations. While countries like China still uphold unethical regulations demanding animal testing, more problematic is the local economy structure and the corrupt business and governmental relations. Such business practices are not only detrimental to a company in the long run, they are also negative press and associations in the present.

Furthermore, these practices would also reflect to the knowledgeable consumer about the core objectives of a company, suggesting that these companies are actually more in favor of business revenue than the overall benefit of society. When a cosmetic company has such a reputation in the industry and among customers, this can be a large obstacle for its company sustainability and growth in the long run. 

References:

Jones, Geoffrey. “The Growth Opportunity that Lies Next Door.” Harvard Business Review:

July-August 2012. p141-6. Print.

“Retailing in China.” The Economist. May 19 2011. Web.

            http://www.economist.com/node/7246087

Spongenberg, Helena. “Cosmetics Firms to Give Customers Info.” Aug 28, 2006.

Bloomberg Businessweek: Global Economics. Web. http://beta.fool.com/gibbstom13/2012/02/15/avon-beat-not-broken/2046/