Introduction of rights theories. Trevino and Nelson refer



“Law concerns what we must do,
ethics concerns what we should do” (Habert & Inguli 2008) Business Ethics are set of beliefs that a
company operates by. In today’s world, successful business institutes hold
their Ethical reputation in high regard. Ethical practices are driven by trust,
and honesty. A business that has a reputation of being unethical tend to
suffer, It is believed that ethical practices are extremely important for any
business, big or small.

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0.1 The Cosmetic Market in Animal


One of the leading trades in the
world today is the cosmetic industry. Global cosmetic sales are expected to
reach $675 billion, the highest it has ever been in 2020. The sales in the UK
have increased significantly, landing the  £4 billion mark for the first time in 2016 (Raconteurnet, 2018) Beauty trends, such as fuller looking eyebrows, face-contouring,
and eye-shadow palettes have all been worldwide trends which boosted the
cosmetic industries popularity, therefore increasing its sales dramatically.


Ethical Theories


The idea behind ethical theories
is to systemize and define the concepts of what is right and wrong. Regarding
the ethical issue of animal testing in the cosmetic industry, one can say it
falls under the ethics of duty and ethics of rights theories. Trevino and
Nelson refer to it where “values
conflict.” Why? It’s about morality. Morality is concerned with norms, values
and beliefs embedded in social processes, which define right from wrong.
Animals are a part of nature, they belong to this world just as much as humans
– and they are being taken for granted. Thankfully, people have been made aware
of animal abuse issues from all around the world, and organizations like PETA, World Society for the Protection of Animals,
and Paws exist to help fight for voiceless abused animals. This cause plays
into the utilitarianism theory of ethics, which stands for social consequences,
asking the question ‘What would a good person do?’ Most people are taught as
children to be kind to all living things,







L’Oreal is a
cosmetic firm that was founded in 1909, its headquarters in France. L’Oreal was
the first cosmetic firm globally which now owns 27 international brands in over
130 countries. “L’Oreal positions itself as an inherently socially responsible
company because it claims to be “committed to fulfilling their mission
ethically and responsibly”.”(Nikita Van Roermund, 2013. RESPONSIBLE BEAUTY) The
firm has an ethical and social responsibility to market its product truthfully
and give a full picture of what goes into the making of the product. The brand
is on the PETA list which is a list of organizations which are cruelty free,
which means that they do not use animals in the making of products (Petaorg, 2018). However, for certain health board approvals, they may need
to test the products on animals to legitimize human safety. What the company is
intending to say is that they are not actively incorporating animal testing in
the manufacturing of their project but they do test on animals if the health
board requires it to do so. Obviously, it is important for a company like
L’oreal to get approved by the every department of health in the countries they
have markets in. It is a matter of either satisfying the departments of health
by testing on animals or satisfying their consumers by not doing so 10.



Roles and Responsibility

A stakeholder
is someone who is affected by the decisions and actions of a business.
Stakeholders are not necessarily equity shareholders, they can also be an
employee who has a stake in a firm as an incentive for the firm’s products to
be successful. On the other hand they can be business partners which depend on
the firms progress to maintain the supply chain. Stakeholders are directly
affected by a service or a product of a business. People that are indirectly
affected by a service or a product can also be considered as stakeholders. For
example, the environmental effects of a factory can be hazardous on its
surrounding residents.


Each firm chooses
an alternative route to stakeholders, their roles vary from business to
business, depending on the responsibilities and rules which are outlined at the
foundation of the firm. Stakeholders have a responsibility with the choices
they make due to the fact that what they chose can alter the firm’s decisions
towards the better or worse.”The most used definition of a stakeholder is a
large investor that has the clout to hold a viable “stake in your company”.(Businessdictionarycom, 2018)




 Registered on the PETAs website as one of the countries that
pay for tests on animals in China (Petaorg,
2018) Estée Lauder is a cosmetics company that practises
animal testing, one of the few left. By doing so it is going against the tide
since the market is shifting towards cruelty free products. Even though it
officially claims that it is no longer taking part in animal testing, there has
been several allegations of using third party labs to do the testing for them.
This is an attempt to deviate the blame from Estée Lauder and so that the
company can officially say that they don’t practice animal testing anymore (Estee lauder, 2018).

Marketing Strategies


Firms in the cosmetics industry
have various strategies and use multiple tactics to acquire goals set. Makeup
Art Cosmetics, is the world’s leading makeup company. MAC had a lot of
speculation about the company not being a cruelty free organization – as it
claims to be. While the testing of animals in the making of products is illegal
in most countries, but not in China. There have been countless allegations and
protests against  MAC claiming that they pay for the use of animal testing
during the production of prototype products. MAC released an official statement
on their website addressing the issue saying “MAC
does not test on animals. We do not own any animal testing facilities and we
never ask others to test on animals for us. To this end, we are proud to
partner with IIVS (Institute for in Vitro
Sciences) to expand the
use and acceptance of non-animal testing methods worldwide.” (Mac, 2018)


China is one of
the only countries left where it is legal to conduct animal testing in order to
ensure safety before selling the final product. Unfortunately, saying that it
is “one of the only countries left” isn’t enough to depict the act of animal
testing as a miniscule offense. China is known for having almost a fifth of the
world’s population and is commonly associated with cheap labor, which makes it
a financial attraction for some of the worlds biggest companies. Cheap labor,
minimized regulations on animal testing and a large consumer base, are enough
reasons for a multinational cosmetic company to operate its manufacturing


MAC uses multiple means to
acquire its enormous market share, they consist social media, content
marketing, public relations, mobile marketing and multichannel marketing via
direct mail and QR codes. MAC has 30.47 million followers combined on all
social media platforms which allows them to reach out to millions of people,
they use various campaigns to promote new products. (Dsimin, 2018)







0.2 The Cosmetic Market in Animal


With the market changing rapidly
almost none of the industry giants nor rising independants ignored signs of
changes happening to the market. Marc Rey president and CEO of Shiseido
Americas – a leading
Japanese multinational personal care company stated that “traditional makeup
was down 1.3% and that independant brands were up 42.7%” this is a reflection
of how much independant brands were now the change in consumer taste. (Richard kestenbaum, 2018)



animal testing is extremely frowned upon and has been gaining more awareness
over the years, is it considered enough to stop a consumer from engaging in
business with a company that incorporates animal testing in its research
stages? Fortunately, the cosmetic industry, is not a monopoly and consists of
several competitors that provide similar products. A consumer looking to buy
cosmetic products is not limited to one company and should be able to
understand not only the monterey cost of buying these products but also the
ethical costs. Purchasing cosmetic products from such companies doesn’t
necessarily mean the consumer is directly supporting the act of animal testing
but it funds the company to carry out even more animal testings procedures on
future products. Although things may have operated
differently in previous time periods when technology wasn’t present and
companies didn’t have the advantage of being transparent with its clients to
prove their integrity, today people are able to voice their concerns when
stumbling upon something unethical through a wide variety of methods. These can
be petitions, law suits, protests, awareness groups and last but not least,
raising concerns on social media.