Complaints and change in ownership raise concerns
- The Body Shop is at risk of losing its B Corp status
- B Lab is reviewing the company’s rating following complaints
- The Body Shop must recertify within two years of the change in ownership
- Natura &Co’s B Corp ranking may also be impacted
- The Body Shop fell into administration after being sold to private equity owners
- The chain collapsed due to a lack of new funding
The Body Shop, one of the largest global B Corps and the biggest beauty chain with a B Corp rating outside Latin America, is in danger of losing its B Corp status. The certification, granted in 2019 under previous owner Natura &Co, is now under review by B Lab following complaints and concerns about the company’s compliance. When there is a change of ownership, a certified B Corp must notify B Lab and recertify within two years to maintain their certification. The Body Shop’s eligibility for continued B Corp certification is being evaluated in light of the change in ownership and the company’s administration. There is speculation that Natura &Co’s B Corp ranking may also be affected due to how it managed the sale of The Body Shop. The chain fell into administration three months after being sold to private equity owners, as it failed to secure new funding when HSBC withdrew its line of credit.
Factuality Level: 8
Factuality Justification: The article provides a detailed account of The Body Shop’s risk of losing its B Corp status, including the reasons behind the review, the complaints received, and the timeline of events leading to the current situation. The information is sourced from B Lab and an insider close to the situation, adding credibility to the report. There are no obvious signs of sensationalism, bias, or inaccuracies in the article.
Noise Level: 3
Noise Justification: The article provides relevant information about The Body Shop’s risk of losing its B Corp status, the reasons behind it, and the process involved in maintaining B Corp certification. It includes quotes from B Lab spokesperson and an insider close to the situation, offering insights into the situation. The article stays on topic and does not contain irrelevant information or filler content. However, it could benefit from more in-depth analysis and exploration of the consequences of losing B Corp status.
Financial Relevance: Yes
Financial Markets Impacted: The article does not provide information on specific financial markets or companies impacted.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the risk of The Body Shop losing its B Corp status and the potential impact on Natura &Co’s B Corp ranking. However, there is no mention of any extreme event or its impact.
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