:
ETHICAL DILEMMAS IN VARIOUS BUSSINESS AREAS –
A CASE STUDY OF COMPANY LAKME
submitted to :
Dr. Rozy
[Assistant professor]
Submitted by:
Simran.(MBA 1st sem)
Executive Summary
Lakme, a subsidiary of Hindustan Unilever, is a leading cosmetics brand in India known for its extensive
product range, market dominance, and commitment to sustainability. With a strong brand image,
Lakme aims for continued growth in both the Indian and international beauty markets.
Introduction
Lakme is an iconic Indian beauty and cosmetic brand that has been a prominent presence in the
beauty industry for decades. Established in 1952, it has consistently catered to the diverse and
evolving beauty needs of women across India. With a wide range of skincare, makeup, and grooming
products, Lakme has become a trusted name, known for its innovation, quality, and commitment to
enhancing the natural beauty of individuals. Over the years, Lakme has not only transformed the
beauty landscape in India but has also been at the forefront of various fashion and beauty events,
making it a symbol of elegance and sophistication.
Company overview
Lakme, often spelled as Lakme without the accent, is a renowned Indian beauty and cosmetic
company. Founded in 1952, it has become one of India's leading brands in the beauty and skincare
industry. Lakme offers a wide range of products, including skincare, makeup, and grooming
essentials. The brand is known for its commitment to enhancing the natural beauty of individuals and
is a staple in many Indian households. Over the years, Lakme has been associated with various
fashion and beauty events, making it a significant influence in the beauty and fashion landscape in
India. The brand continues to innovate and introduce new products to cater to the evolving beauty
needs of its customers.
Ethical dilemmas in finance
Lakme is a popular beauty brand, and ethical dilemmas in finance related to it may include:
1. Animal Testing: If the brand were to engage in animal testing for its products, this could raise
ethical concerns in terms of animal welfare and consumer values.
2. Supply Chain Ethics: Ensuring that all suppliers and manufacturers in the supply chain follow
ethical labour practices and environmental standards can be a challenge.
3. Pricing and Accessibility: Determining fair pricing for products while ensuring accessibility to a
wide range of consumers can lead to dilemmas.
4. Ingredient Sourcing: Ethical questions may arise around the sourcing of ingredients, especially if
they are derived from endangered plants or exploited communities.
5. Environmental Impact: Decisions related to sustainable packaging, waste reduction, and carbon
footprint reduction can be ethical challenges in the beauty industry.
6. Advertising and Body Image: Promoting products with realistic representations of beauty and
avoiding body image issues can be a concern.
Managing these ethical dilemmas is crucial for a beauty brand like Lakme to maintain a positive
brand image and consumer trust. Transparency, ethical sourcing, and adherence to industry
standards can help address these concerns.
Ethical dilemmas in Human Resource Management (HRM)
Ethical dilemmas in human resource management at a beauty brand like Lakme may include:
1. Diversity and Inclusion: Balancing the need for diversity and inclusion in the workforce with
traditional beauty industry standards can be a dilemma.
2. Fair Labor Practices: Ensuring fair wages and safe working conditions, especially in the supply chain
and manufacturing, is an ongoing concern.
3.
Beauty Standards and Discrimination: Avoiding discrimination based on physical appearance
and beauty standards in hiring and promotions can be challenging.
4. Employee Privacy: Respecting employee privacy while monitoring performance and
behaviour in the workplace is a delicate balance.
5. Whistleblower Protection: Encouraging employees to report ethical violations while
protecting them from retaliation is a significant HR dilemma.
6. Compensation Equity: Ensuring equal pay for equal work and addressing gender or
racebased pay gaps is an ethical issue in HR.
7. Employee Well-being: Balancing productivity and employee well-being, especially in a
highdemand industry, is a recurring ethical challenge.
Addressing these dilemmas in human resource management requires clear policies, ethical
guidelines, training, and a commitment to fostering a positive workplace culture that values diversity,
fairness, and the well-being of employees.
4.
Ethical dilemmas in marketing
Ethical dilemmas in the marketing of a beauty brand like Lakme can include:
1. Beauty Standards: Promoting products in a way that aligns with societal beauty standards
while avoiding unrealistic portrayals and body image issues.
2. False Advertising: Ensuring that marketing materials accurately represent the benefits and
limitations of products to avoid misleading consumers.
3. Ingredient Transparency: Being transparent about product ingredients, especially if some
components are controversial or harmful.
Cultural Sensitivity: Avoiding cultural appropriation and insensitivity in marketing campaigns,
particularly when targeting diverse markets.
5. Environmental Claims: Ensuring that any claims related to eco-friendliness and sustainability
are accurate and not "greenwashing."
6. Influencer Partnerships: Ethical concerns can arise when partnering with influencers, such as
disclosing sponsored content and authenticity.
7. Data Privacy: Respecting consumer privacy and ensuring data protection in marketing efforts,
particularly in the digital space.
5.
To address these dilemmas, beauty brands like Lakme should adopt ethical marketing practices,
adhere to industry guidelines, and prioritize transparency and authenticity in their campaigns to
maintain consumer trust and brand reputation.
6.
Ethical dilemmas in international business
Ethical dilemmas in the international business operations of the Lakme beauty brand may include:
1. Supply Chain Ethics: Ensuring that suppliers in various countries adhere to ethical labour and
environmental standards can be challenging.
7.
2. Cultural Sensitivity: Navigating different cultural norms and values when marketing and
selling products in diverse international markets can be an ethical concern.
3. Fair Trade and Local Communities: Balancing profit motives with the need to support local
communities and fair trade practices in the countries of operation.
4. Corruption and Bribery: Resisting demands for bribery and unethical practices in regions
where corruption is prevalent.
Environmental Impact: Addressing the environmental impact of operations, including carbon
footprint, waste, and sustainable sourcing of ingredients.
6. Intellectual Property Rights: Respecting intellectual property laws and preventing
counterfeiting and piracy in international markets.
7. Human Rights: Upholding human rights, especially in regions where human rights violations
are a concern.
Lakme and similar brands need to develop a strong code of ethics, conduct thorough due diligence,
and work with international partners who share their commitment to ethical practices in order to
navigate these dilemmas and uphold their brand reputation.
8.
Impact and consequences
Lakme is a well-known Indian cosmetics and beauty brand. Its impacts and consequences can be
understood from various perspectives:
1. Economic Impact: Lakme has made significant contributions to the Indian economy by
creating jobs, stimulating the beauty and cosmetics industry, and contributing to tax revenue.
2. Beauty Industry: It has played a pivotal role in shaping the Indian beauty industry. Lakme has
popularized makeup and skincare products, setting trends and standards for cosmetics.
3. Women's Empowerment: The brand has empowered women by promoting self-expression
and confidence through its products and advertising campaigns.
4. Competitive Landscape: Lakme has influenced the competitive landscape by competion with
international brands and encouraging other domestic companies to improve their product quality
and marketing strategies.
5. Societal Impact: It has contributed to changing beauty standards in India and has been part
of discussions related to body image and self-esteem.
6. Environmental Impact: The cosmetics industry, in general, raises concerns about
environmental impact due to packaging and product ingredients. Lakme, like other brands, has faced
scrutiny in this regard.
7.Consumer Health: The ingredients in cosmetics can have health consequences. There have been
discussions about the safety and quality of Lakme products.
8. Global Reach: Lakme has expanded its reach beyond India and influenced beauty markets in
other countries.
9. Cultural Influence: Lakme's marketing and product range reflect Indian culture and traditions,
influencing how beauty is perceived in the country.
10. Brand Image: The success and reputation of Lakme have led to consequences for other
brands, as they strive to meet or surpass the brand's standards.
It's important to note that the impacts and consequences of Lakme as a company can vary
depending on individual experiences, perceptions, and regional differences.
Ethical framework and solutions
Lakme is a well-known cosmetics brand in India, and discussing its ethical framework and solutions
would generally revolve around corporate responsibility and sustainability. Please note that I don't
have specific, real-time information about Lakme beyond my knowledge cutoff date in January 2022,
so I can provide some general considerations:
Ethical Framework:
1. Product Safety: Lakme should ensure the safety and quality of its products, conducting
thorough testing and adhering to relevant regulations to protect consumers.
2. Environmental Responsibility: The company should adopt eco-friendly practices, such as
reducing packaging waste and minimizing the environmental impact of its products.
3. Fair Labor Practices: Lakme should uphold fair labour standards, ensuring that workers in its
supply chain are treated ethically and paid fairly.
4. Community Engagement: Engaging with and giving back to the communities in which it
operates can be part of its ethical framework, which may include support for social causes.
Solutions:
1. Sustainable Sourcing: Lakmé can source ingredients responsibly, favoring sustainable and
ethically sourced raw materials.
2. Transparent Labeling : Clear and transparent labeling on products, especially concerning
ingredients and their sources, can build trust with consumers.
3. Cruelty-Free Products: Developing and promoting cruelty-free products to appeal to
consumers concerned about animal welfare.
4. Reduced Packaging: Efforts to reduce packaging waste can include eco-friendly packaging
materials and promoting refilling options.
5. Ethical Marketing: Ensure advertising and marketing campaigns are truthful and do not
promote unrealistic beauty standards.
6. Community Initiatives: Invest in social and community initiatives to give back to society, such
as supporting women's empowerment programs.
7. Diversity and Inclusion: Promote diversity and inclusion in its workforce, reflecting the
diversity of its customer base.
8. Monitoring and Reporting: Establish mechanisms for monitoring and reporting on ethical and
sustainability efforts to maintain accountability.
It's important to note that these suggestions are general and should be adapted based on the
specific practices and needs of the company as of your current date in 2023. For the most up-to-date
information on Lakmé's ethical practices and sustainability initiatives, you may need to refer to their
latest corporate responsibility reports or news releases.
Conclusion
In conclusion, Lakme, like many other companies, faces ethical dilemmas in various aspects of its
operations, including finance, marketing, and international business. These dilemmas are a reflection
of the complex and challenging decisions that businesses must make in the modern world. While
there may not be a one-size-fits-all solution to these dilemmas, it is essential for Lakme and similar
companies to prioritize ethical principles, transparency, and responsible business practices in all their
endeavors. By doing so, they can build trust with their customers, partners, and stakeholders,
ultimately fostering long-term success while maintaining a positive reputation in an increasingly
ethically conscious global business environment.
