The American cosmetics company Ulta Beauty has faced controversy over its stance on Israel. Ulta and other companies are confronted with complicated geopolitical matters because consumers have grown aware of the social and political influence of the products they buy. Ulta Beauty has not issued an official policy indicating that the company supports or opposes the act of Israel. That silence is deafening during the time of corporate social responsibility matters. This does not necessarily mean that Ulta is not concerned with the Israeli-Palestinian issue.
Boycott against Ulta
The Boycott, Divestment, and Sanctions (BDS) is a global movement that aims at subjecting Israel to political and economic pressure to cease the occupation of Palestinian land. The movement has experienced massive expansion in recent years, with so many people, groups, and governments across the world backing its objectives.
Ulta claims to work in a socially responsible way and enhance a culture of integrity and respect as stipulated in its corporate social responsibility policy. The best thing is that even though these principles are noble, they do not provide clear guidelines on how the business is to conduct itself in case of international conflict.
This uncertainty invites interpretation and feeds conjecture on Ulta’s actual position on Israel. Businesses like Ulta must have a clear position on global conflicts in the wake of rising tensions and boycotts, guaranteeing responsibility and transparency.
There have been heated discussions concerning the role of corporations in international conflicts as a result of the BDS movement. Ulta is not exempt from examination because of its varied supply chain. Supporters of BDS are concerned about the company’s sourcing of goods from Israel and other nations. Based on some of Ulta’s critics, Ulta is de facto supporting the Israeli occupation of Palestinian land by doing business with Israeli companies. Boycotts and divestment from Ulta’s operations in Israel have stemmed from this.
What is the reaction of Ulta to the boycott campaign?
Ulta has reacted to the BDS movement in numerous ways. The company has been criticized both for and against the argument, despite not explicitly supporting or opposing the BDS movement. Ulta’s business model and product procurement processes have also been in the firing line, particularly in terms of their relationship with Israeli partners and suppliers.
Ulta, a credible beauty retailer, imports Israeli and other countries’ products. Arguments over the morality of doing business with Israeli companies, especially ones that operate in the Occupied Territories, have been started by the ongoing war.
For instance, others argue that it maintains human rights violations and supports the occupation by doing business with Israeli companies.
What are the sources of Ulta in Israel?
The sourcing processes in Israel by Ulta have been criticized on the grounds of the treatment of workers, particularly in the Occupied Territories. Although Ulta states that ethical sourcing is one of the top priorities, its due diligence processes have been questioned.
Ulta is one of the global companies that has faced numerous scandals and complaints. The company has been the source of various problems over recent years, which have risen to controversial debates among the activists, customers, and human rights groups. Two of the most popular issues related to the organization are the alleged support of Israeli settlements and concerns about human rights in Israel.
Allegations against Ulta for supporting Israel
Critics argue that by doing business with Israeli companies, Ulta is inadvertently promoting the occupation of Palestinian land and the settlements, which, according to international law, is not allowed.
Activists claim that the supply chain of Ulta is not fully transparent, even though the company insists that it does not conduct business with those that operate in occupied territories. Lack of transparency has led to Ulta being accused of aiding the settlement business either knowingly or unknowingly.
The Israeli-Palestinian conflict has been based on human rights problems. Ulta is a transnational corporation with operations in Israel that has raised concerns around the issue of human rights. The reaction that the company has had towards alleged human rights violations has been questioned, more so about the occupation.
Indicatively, certain activists argue that the commercial operations of Ulta in Israel may contribute to the extension of the occupation unwillingly, hence contribute towards the oppression of the human rights of Palestinians. Others claim that the business must stand up to human rights abuses for moral reasons, even if doing so costs money.
Claims that Ulta’s activities encourage the Israeli occupation of Palestinian territory have stoked boycott movements. Concerns over the company’s sourcing methods have also been raised by some clients, who allege that they support human rights abuses in the area. Although Ulta has not publicly addressed these claims, the brand is now in the public eye as a result of the online criticism.
Why are people supporting Ulta?
The stand by Ulta on Israel has not affected all its consumers negatively. Most consumers have gone to the extent of supporting the company and commending its decision to maintain operations with Israeli suppliers. The boycotting of Israeli goods, as some may see it, would be unfairly punishing Israelis, who are not responsible for the actions of the government. These customers have resorted to social media through the use of such hashtags as #StandWithUlta and #SupportIsrael to express their support for Ulta.
Others have even praised Ulta due to its commitment to health and beauty by giving personal stories of how their products have added value to their lives. The backing of Israel by customers has been quite robust, and even boycotts of firms that have pledged to boycott Israel have been held by some of the supporters.
Ulta Beauty recently revealed earnings and sales numbers that exceeded expectations. Except for the 53rd week of fiscal 2017, sales rose 9.7% or 16.2% in the fourth quarter of 2018. The quarter saw a 9.4% increase in comparable sales. Net sales rose 14.1% to $6.7 billion for the entire year. Net sales rose 16.3% when the $108.8 million in sales from the 53rd week of fiscal 2017 were excluded.
Both the quantity of customers shopping and their average purchase had a favorable effect on comparable sales, which rose 8.1% for the fiscal year. Transaction increase and average ticket growth drove 5.3% and 2.8% of the growth, respectively. Salon growth was 3.6%, while retail comparable sales grew 5.1%.
Personalization is emphasized in both digital developments and colleagues’ interactions with clients. It is business policy to refer to consumers as “wanted guests” since management understands how crucial it is that they feel at ease and welcomed. This endeavor is bolstered by pertinent personal advice and reminders. All of this fosters trust, which in turn promotes more spending.
The stance of Ulta concerning Israel has been the topic of a discussion, and it has gone to social media. The firm’s critics have gone to Twitter, Facebook, and Instagram to vent their frustrations, using hashtags to be heard. Others have gone as far as boycotting to force Ulta to reconsider its stance. The hashtag #BoycottUlta has gone viral on Twitter, and many customers have used their individual stories to switch to other cosmetic stores. There has been a great deal of online criticism, with some consumers even taking videos of themselves discarding products that they had purchased from Ulta.
