At Indochine Natural where we strive to
produce all-natural ethical products under Fair Trade (WFTO) conditions, we
often wonder if the average consumer is aware of an interesting trend in recent
years.......a number of iconic green and natural product companies have been
bought out by large multinationals. For example, Clorox (they manufacture
bleach and other chemical products) purchased the privately owned Burt’s Bees
(handmade natural soap etc). Then there was the purchase of Body Shop by
L'oreal, and other examples include the sale of Rachel's Organic and Tom's of
Maine which was purchased by Colgate-Palmolive for $100 million. All of these
started as small companies selling natural products, much the same as our
company Indochine Natural.
The BIG question of course is whether
these companies can keep their ethical principles after being absorbed into
corporations not sharing the same set of values?
It seems the answer is NO!!! The
Ethical Consumer magazine in the USA rates companies and their products on
their ethical credentials. They have dropped Body Shop's rating from 11 (out of
20) to 2.5 since the sell-out. Tom's of Maine has fallen from 16 to just 5
because of Colgate-Palmolive's poor reputation.
These purchases are a big win
these large multinationals because they are buying a ready-made package of
values and history of trust.
Many consumers don't know who
owns their favourite brands ethical brands, and others just don't care.
Should we be concerned? The
profits that Colgate earns from Tom's of Maine, or that Clorox earns from
Burt’s Bees, are being poured directly into companies with reputations for
ecologically unsound products and practices. If this is of concern, then the
answer is obviously yes.
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