UK-based cosmetics maker and retailer Lush Cosmetics Ltd. (Lush), founded by Mark Constantine in 1995, was built on sustainable business practices like ethical procurement, community development, environment friendly practices, etc. Its stance helped Lush differentiate itself from other cosmetic giants. Lush went out of its way to adhere to the values and standards it believed in. This highly innovative company came up with products made of ethically procured organic ingredients that would have a minimal impact on the environment. These included shampoo bars that eliminated the need for plastic packaging and water; products without packaging; and chemical free products made totally out of vegetarian ingredients. While procuring the raw materials, it associated with small farmers’ cooperatives across the world; it associated with suppliers whose practices were in tandem with its beliefs.

Taking its involvement with communities a notch higher, in 2007, Lush introduced Charity Pot, a hand and body lotion. The unique aspect of this product was that 100% of its retail price went to grassroots groups that were working on several causes that Lush believed in. The Charity Pot container featured an image of the organization to which Lush was lending support along with its mission. Organizations could apply to Lush directly for funding, which ranged from £1,000 to £10,000. These were organizations that were run by volunteers and were out of the purview of funding and CSR activities of big organizations. Apart from the money, Lush also helped the organizations further their cause by writing about them in the company’s blogs and social media pages and providing them dedicated space at its retail outlets. Over the years, Lush gave away £19 million through Charity Pot to more than 1400 organizations. The association proved beneficial for the organizations as their cause got recognition across several countries, and they found new followers and patrons. It was beneficial for Lush too, which gained huge mileage from being a responsible company. Moreover, Charity Pot went on to become one of Lush’s best-selling products. Unlike other activities, Charity Pot was an ongoing program that has been going on for a decade.

In an age where customers were giving a huge thumbs-up for companies that cared for the planet and people more than for profit, Lush seems to be headed in the right direction. At the same time, consumers were not comfortable with some of the causes it supported through Charity Pot. Will that lead to Lush losing some of its loyal customers?

Business Ethics Case Studies | Case Study in Management, Operations, Strategies, Business Environment, Case Studies

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Issues

The case is structured to achieve the following teaching objectives:

	Understand the factors that contribute to managing organizational sustainability.
	Evaluate the Performance Drivers of a Sustainability Leader
	Analyze sustainability as a branding strategy

Contents

SUSTAINABILITY IN A POT

BUILDING AN ETHICAL COMPANY

THE ETHOS…

ENVIRONMENTALLY RESPONSIBLE INGREDIENTS

‘AGAINST ANIMAL TESTING’

MINIMAL OR NO PACKAGING

Keywords

Lush,Charity Pot,Sustainable giving,Responsible Leadership,Charitable giving,Sustainability leader,Sustainability branding,Sustainability as a strategy,CSR,Philanthropy ,Corporate giving,Grassroots organizations

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