ORGANICS - THE ETHICS: The company \"PURE OORGANIX\" makes products that are pac
ID: 3496278 • Letter: O
Question
ORGANICS - THE ETHICS:
The company "PURE OORGANIX" makes products that are packaged in rounded, solid-color bottles with gold or black text describing signature ingredients, such as Brazilian keratin therapy, Moroccan argan oil, teatree mint shampoo. The shampoos and conditioners generally sell for between $15 and $20. In 2017, the brand generated $450 million in revenue with a Net Operating Income of $30 million. Despite the brand name, none of the products are organic—the company doesn’t claim they are. The parent company wants to sell it, but large beauty companies like Procter & Gamble and L’Oréal, which seem like obvious buyers, are not at all interested.
DISCUSS:
Do you think the company could be facing an ethical issue? Why or why not?
If you were in charge of acquisitions at a beauty company, would you consider purchasing PURE OORGANIX? Why or why not?
Explanation / Answer
The company may be facing an ethical issue . The name of the company potrays that the products are organic, where as they are not . The brand name is a lisleading name leading to wrong consumer belief . Although one may claim that since we are not claiming that we are organic this does not stand true, but the fact is when you call a product oorganix you dont have to claim it to be organic . There is a definite legal issue .
I would have invested in this company , as it has some ineteresting products and is a profit making firm . Looking at the revenue of the firm , the brand would have added to my exiting strength. Also by changing the ingredients , this product could have been easily created a segment of the organic products for me , which is a very promising line of products . In my opinion it makes a lot od sense to invest in this firm .
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