In 1976, a determined Anita Roddick opened a tiny shop in Brighton, England, to sell beauty products like Peppermint Foot Lotion and White Musk fragrance. The Body Shop spread quickly throughout Europe, and the first U.S. shop opened in New York City in 1988. Roddick, who can now boast of more than 1,500 Body Shop franchises, says that the secret of her success is two-fold: first, she trusts in fate; and second, the company bucks those industry trends that enforce impossible beauty ideals for women.

In spite of Roddick's claims, recent products like Lip Scuff and an extensive line of aromatherapy products have shown The Body Shop to be in tune with market trends. However, some of Roddick's riskier initiatives - including the placement of a major manufacturing plant in a high-crime area of Glasgow and the establishment of a company payroll to compensate community volunteer workers - revealed that the company was prepared to take chances. Longstanding alliances with Amnesty International and Greenpeace, along with newer programs like the Brazilian Healthcare Project and Children on the Edge, have helped to foster a corporate environment with a genuine social conscience.

Anita relinquishes her throne

In 1998, Anita Roddick stepped down from her CEO pedestal. In the same year, the company turned over U.S. management responsibilities to a joint venture with the Bellamy Retail Group. In other startling news, Patrick Gournay, new chief executive, announced that the company would undergo some major restructuring. (Prior to this appointment, Gournay worked for France's largest food manufacturer, Danone. Stockbrokers fondly refer to him as "Mr. Yogurt.") Saddled with poor sales in both the U.S. and British markets, The Body Shop planned to drop its manufacturing and wholesaling sides. It also cut a quarter of its product line and bought out franchises that were not sufficiently invested in individual stores; and it began a customer loyalty program.

Now co-chairperson, Roddick described the restructuring as "a 180 degree shift." The Body Shop aimed to become a far more conventional retailer. The changes did not ride well with Roddick; in fact, an insider revealed: "There will be friction ahead between Patrick and Anita, who is still very much on the scene." It seemed to be a conflict between humanitarianism and the not-always-merciful demands of Big Business. Many admired Roddick's good intentions, but industry experts complained about her unrealistic business sense. One broker from William De Broe divulged: "The company used to be unique. Now 101 other people make the same products and make them cheaper."

Wanna get high?

In other controversy, the marijuana-paranoid resisted The Body Shop's 1998 decision to launch a "hemp revival" in Canada - even though it was for the sake of promoting "skin survival" and not drug addiction. Not surprisingly, the ever-outspoken Roddick had something to say about the matter: "You'd need to smoke a joint the size of a telephone pole to get any kind of buzz off hemp. You would die of carbon monoxide poisoning first."

Modernizing