Concluding Case

ORE EARTH SKIN CARE TRIES TO STAY NATURAL

Alyssia Franklin is a marketing manager for Or Earth Skin Care. Four years ago, when she was hired to help with promotional campaigns, she was thrilled because she loved Or Earth's products. Above all else, Or Earth products spoke to Alyssia's values: promising all natural ingredients, using only sustainable, environmentally friendly practices.

For Alyssia, going to work was like carrying out a mission, promoting both beauty and concern for the planet's well-being. No doubt, her commitment and enthusiasm helped pave the way for her promotion to marketing manager.

Currently, Alyssia and her team are preparing a promotional campaign for a new product line, Or Essentials, which includes lipsticks, foundation, and eye shadows tinted with a plant extract called orellana. The exciting feature of Or Essentials is that orellana is harvested deep in the Amazon rain for-est, and because of its sustainable practices, Or Earth will obtain this special ingredient in a socially responsible manner.

The company set up a contract with a tribe living in a remote village. The people of the tribe are supposed to grow and harvest the orellana, which is part of the area's

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ecosystem, and Or Earth has promised to pay a fair price to the whole tribe so the people can maintain their village and their way of life. Consumers will get a beautiful product and the pleasure of knowing that they are helping preserve an endangered rain forest ecology and its people.

But when Alyssia sat down for a meeting with the photography crew that traveled to the village, some concerns began to surface. She was looking at stunning photos of tribe members arrayed in grass skirts as they stood behind a pile of fruit from the orellana tree. As she was selecting her favorite shots, one of the photographers commented that the translator had made some surprising remarks on the return trip from the vil-lage. Apparently the pile of orellana fruit had been gathered just for the photo shoot. The tribe doesn't really bother with growing and harvesting orellana; the people of this area aren't primarily farmers, and there aren't actually many orellana trees within a day's walk of the village. The first year the tribe had tried selling orellana to Or Earth, it grew only enough to earn a few hundred dollars. Confused, Alyssia decided to take a closer look at the financials for this product line.

She found purchasing transactions for "orellana/annatto," and after a little research learned that under either name, the product is just an inexpensive dye. In fact, under the latter name, it is used as a common food coloring. It turns out that Or Earth made most of its purchases from a mainstream supplier, which is far cheaper than persuading remote villagers to provide orellana. Alyssia felt betrayed and upset.

The next day she asked her boss, the divisional vice president, why the company pretended to care about a remote village if it was just a front for a brand. Her boss replied, "But we do care! We send them tens of thousands of dollars every year. Sure, they don't actually grow that stuff for us, but they could, and we'll buy it if they do. Anyway, our aid has provided a school and a health clinic, not to mention food and clothing. We've helped the tribe members stay healthy and preserve their lanquage and culture."

Alyssia considered what her boss said. She thought about the traditional designs the marketing department had copied from the tribe as decorations for the Or Essentials packaging. "So," Alyssia asked, "does this mean we're using their culture to build an image for our brand, and, in exchange, they get money to keep their culture alive?"

Her boss nodded encouragingly. "That's exactly what I'm saying. It's a win-win situation." Alyssia felt somewhat bet-ter, but she left the office unsure still of what to make of this revelation.

Copy and paste the following questions and type your answers below each one: 1. What ethical issues is Alyssa facing in this situation? What possible marketing claims about the company's relationship with the Amazonian tribe would cross a line in to unethical territory? What claims could it make ethically? 2. How could Ore Earth create an ethical climate that would help managers such as Alyssa ensure that they are behaving ethically? (Hint - who is responsible for creating an ethical climate? What tools are at their disposal to create an ethical climate?) 3. How effectively do you think Ore Earth is practicing corporate social responsibility in this situation? Explain the reasoning behind your evaluation. (See page 143 in the textbook)