Ethical Consumerism

7
With the emergence of new concepts in business like social responsibility and ethical practices, consumers and organizations, both are becoming more and more concerned in making ethics a part of business. Consumers, across the globe, are becoming more socially concerned and ethically conscious. They are the main factor towards the success or profitability of businesses and they have started looking forward to the ethical and clean practices and honest attitude of businesses towards society (Hamelin, Harcar, & Benhari, 2013)So, the Ethical consumerism can be defined as an ethical attitude or socially justified behavior of consumers towards the products and practices of the firms, when they choose to go for a product that fulfill certain ethical criteria or standards and reject all those products that don’t meet those standards.Thus ‘ethical’ does not only include environmental concerns, but it covers all matters from animal rights to labor rights from health issues to trade issues (Cho & Krasser, 2011). The intention of this discussion is to unveil the views of different writers about this very issue, the challenges which organizations face in applying these ethical practices, and the strategies that businesses are using successfully to deal with this concern. Many studies have been done on ethical consumerism challenges and possible opportunities and strategies in dealing with these challenges in global market. In current years, it is gradually becoming an important trait of consumers to utilize their choices and preferences in the marketplace to deal with various issues

Transcript of Ethical Consumerism

With the emergence of new concepts in business like social responsibility and ethical practices, consumers and organizations, both are becoming more and more concerned in making ethics a part of business. Consumers, across the globe, are becoming more socially concerned and ethically conscious. They are the main factor towards the success or profitability of businesses and they have started looking forward to the ethical and clean practices and honest attitude of businesses towards society (Hamelin, Harcar, & Benhari, 2013)So, the Ethical consumerism can be defined as an ethical attitude or socially justified behavior of consumers towards the products and practices of the firms, when they choose to go for a product that fulfill certain ethical criteria or standards and reject all those products that dont meet those standards.Thus ethical does not only include environmental concerns, but it covers all matters from animal rights to labor rights from health issues to trade issues (Cho & Krasser, 2011). The intention of this discussion is to unveil the views of different writers about this very issue, the challenges which organizations face in applying these ethical practices, and the strategies that businesses are using successfully to deal with this concern.Many studies have been done on ethical consumerism challenges and possible opportunities and strategies in dealing with these challenges in global market. In current years, it is gradually becoming an important trait of consumers to utilize their choices and preferences in the marketplace to deal with various issues such as environmental, trade, and labor (Hussain, 2012).Human trafficking, forced labor, child soldiers slavery, child prostitution are the human rights issues which are gaining more and more concern of organization, firms and consumers while producing and purchasing of products (Lusk & Lucas, 2009). Correspondingly, businesses have to move in accordance to the concerns of consumers if they want to get profit. Ethical concerns of consumers are forcing the companies to introduce ethical strategies in their practices. Fair prices, environmental concerns, workers rights are those issues which are gaining attention of current consumers (Shaw, Hogg, & Wilson, 2006).So if the businesses want the heart and money of customers they are bound to introduce ethical practices.There are numerous challenges related to ethical consumerism, but two of these are incongruence between consumer purchasing intentions and buying behavior, and the challenges in the fair trade. Studies prove that consumers increasingly want to buy and use those products that exhibit social and environmental concern. But this want not necessarily means that they actually buy these products. It has been observed that consumers with ethical purchasing intentions rarely purchase ethical products because the consumers intentions to buy never justify the proxy for consumers actual purchasing behavior. Consumer actual purchasing decision depends on complex mental procedure which is based on different factors not only upon ethical concern (Carrington, Neville, & Whitwell, 2010) This incongruence in purchasing intentions and behaviors of ethical products may be due to the higher prices of these products or lack of information, trust, or choices in these products (Hamelin, Harcar, & Benhari, 2013).Studies prove that Fair trade, which helps in promoting justified trading agreements through implementing fair and honest practices, like fair prices, good working environment, avoidance of child labor, consideration of workers rights etc, is gaining growth in many industries but this concern is been neglected in other industries related to fashion. Consumers surely give high concern to the ethical issues in fashion industry but not at the cost of other important factors like quality and availability of products and fashion trend. So in clothing industry researches reveal consumer give more importance to fashion and availability of product than ethical concerns. This concern has been ignored by marketing research. Again its been found the variance in purchasing intentions and buying behavior of fashion victim consumers (Shaw, Hogg, & Wilson, 2006).Despite all of these challenges to ethical consumerism, there are many strategies or solutions that can be applied by individuals and organizations. Information availability and consistency can become possible through educating consumers about the ethics importance. Government can also play a pivotal role in making consumers more aware of business ethics. It can force businesses to follow the ethical practices and code of conduct through imposing sanctions on unfair practices. Corporate revelation, environmental concerns, and information availability to general consumers should be implemented by the firms. Firms should also justify the prices of ethical products through not raising too high prices for their product (Hamelin, Harcar, & Benhari, 2013).To deal with fair trading issues different legal approaches can be used through enforcing international law and domestic law. Consumer boycotts, visa reforms, public education can also play a pivotal role towards fair trading concern (Lusk & Lucas, 2009).There are many organizations that have made successful efforts to ensure that ethical consumerism is developed and applied. One of them is Manchesters Unicorn Grocery store. It is renowned for making ethical practices its pivotal part of business model. When supermarkets were notorious for involving in unethical sourcing, substandard food, below average wages, Unicorn Grocery emerged as a benchmark for other supermarket store through practicing exceptionally good ethical practices. It grows fresh fruit vegetables in Unicorns Glebelands market farm. Pays fair prices for the stocks. Provide job security to the employees. Trade preferably in products which fulfill the "Fair Trade" criteria and make customers aware to the dilemma of cash crop. Deal in products which themselves and their packaging, impact minimum on the environment because the store is very concerned about the day by day large amount of disposal or inorganic waste. Wherever possible the use of reusable packaging strategy is being followed. Bread is brought from local bakeries instead of baking in-house five days a week. Thus Unicorn grocery store is trying to use every possible mean of ethical practices ranging from environmental concerns to consumers and workers right issues. (Unicorn manchester's co-operating grocery).The other organization which is playing its part towards ethical consumerism is Anti-Slavery International. This is founded in 1839. It is the world's oldest human rights organization working at international level to eliminate slavery all around the globe. It is working on two grounds: one is to make difference in real life of people living under slavery conditions while other is to work for the elimination of the root cause of slavery. This organization is working in different areas like international advocacy, education, public information, campaigns, empowerment of non-government organization to eradicate the root cause of slavery etc. It is involve in building public awareness through campaigning, media engagement, educating the people in schools, publishing researches on slavery and on its different types, advocating for the changes in codes and conducts. On the whole its activities are covering as many aspects of human slavery as from child labor to domestic child labor, from human trafficking to bounded labor, from forced labor to slavery on the high street. (Anti-Slavery) Both organizations are contributing towards the ethical consumerism in its own way. One prominently exhibits environmental concern while other is contributing towards the human rights issues. But the purpose of both seems similar. The welfare of society in both cases is dominant concern of both either through creating awareness in public for anti slavery or through making people attentive to promote ethically or socially responsively produced food products.In conclusion, it can be said that with the emergence of these concepts of social responsibility and ethical practices, consumers are becoming more and more conscious in buying ethical products and their buying behavior is seems effected by these concerns and issues. But many studies have revealed that despite all of these growing concerns, incongruence in purchasing intentions and purchasing behavior of consumers in ethical products have been found. This variance in walk and talk of consumers is the result of many issues ranging from high prices of goods to the information lack about the products or businesses. No proper government restriction on unethical practices, loose sanctions on using unfair means further aggravate the problems like human trafficking, child labor, bounded labor, slavery ,unfair wage, violation of human rights, unhealthy working environment etc. All these issues can be dealt with public awareness, through making strict laws regarding international and domestic human rights and through rigid intervention by the government in all these matters. Consumers should be made aware of ethical concerns through different campaigns and research publications. In the writers opinion ethical consumerism is very complex although it seems a very hot topic in todays concerns however somehow it lacks in consumers purchasing actions. Consumer intentions to purchase can never justify the actual behavior of purchasing .purchasing behavior depends on complete thinking procedure. That is based on different factors like price consideration, availability of product, awareness of social concern etc. Consumer give priorities to these factors according to their thinking .So the need is to make consumer aware of the social responsibility and ethical products concerns. Because these are the consumers who can only force the firms to produce ethical products if they want to compete in this Go green era.