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E88 is an innovative company run on the principles of its entrepreneurial owner. The company has a diverse range of operations including a carbon neutral package distribution service, 'responsibly' sourced clothing for children, mobile telephones and soft drinks made from natural ingredients. E88’s approach of ethical trading, and 'delivering quality products and services at affordable prices and doing it all with a sense of fun' is well known. E88 does not pay for advertising in traditional media but still enjoys high brand awareness particularly for those in the 18-30 age group, thanks to the 'visibility' and new ideas of its inspirational owner, E.
E is currently considering the potential of social networking sites to the company. In addition, she has announced an intention to launch an 'E88 cosmetic care' range of 88 ethically produced natural beauty products including skin care, make-up, hair care and lotions, etc. The range will be competitively priced against high street brands and packaging will display the distinctive E88 logo. These products will not be available in shops but instead will be sold both online and at cosmetic parties.
Cosmetic parties will be organised by 'E88 associates'. Anyone can apply to be considered as an associate but successful applicants will need to undertake initial training and then buy a basic stock of the entire cosmetic range. Associates will then use these products as samples and 'testers' when organising parties at the homes of relatives, friends and other acquaintances. Orders for products will be charged at a 'list price' and associates will receive a commission based on sales.
Describe the ethical and human resource (HR) considerations associated with the proposed use of cosmetic associates by E88.
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