The return of ethical consumers - Scot Case
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Transcript of The return of ethical consumers - Scot Case
UL and the UL logo are trademarks of UL LLC © 2014
February 6, 2014
The Rise of Ethical Consumers
Scot CaseUL [email protected]@scotcase
International Symposium on Ethical PurchasingSapporo, Japan
Overview
Define Ethical Consumerism
Identify Ethical Concerns
Discuss Information Sharing
Describe Transition from Voluntary to Legal Requirements
Defining Ethical Consumerism
Ethical consumerism is the intentional practice of buying goods and services that generate human health, environmental, and social benefit and that are produced in ways that minimize human health, environmental, and social damage.
Defining Ethical Consumerism
Buying better products and services from better companies.
Will it last?
How much is it?
Does it work?
Traditional Concerns
Price, Performance, and Quality
Do I like & trust the people who make it?Do I need this
product?
Is the purchase consistent with my values?
What do others think about it?
The Ethical Consumer
???
The Ethical Consumer
World
Country
Prefecture
Village
Neighborhood
???
??? ???
???
The Ethical Consumer
Operating Theory
1. Every purchase has hidden human health, environmental, and social implications throughout every supply chain.
Ethical Consumer Concerns Vary
Operating Theory
1. Every purchase has hidden human health, environmental, and social implications throughout every supply chain.
2. And those hidden impacts are increasingly visible to customers.
12
Nothing is Secret
Nothing is Secret – The Triple ThreatMiniature Cameras:
Social Media:
Smart Phones:
Two Cups of Coffee a Day•34 gallons of coffee a year.•18 pounds of coffee beans•12 pounds of fertilizer•A few ounces of highly toxic pesticides•43 pounds of coffee pulp•Clear cutting of forests to grow even more coffee•Bird species disappearing•More erosion•More pesticides
Ethical Consumer Issues
Human Health
Environmental
Social
Carcinogens, Mutagens, Reproductive Toxins
Endocrine disruptors
Global warming Air and water pollution Resource depletion Habitat destruction
Worker safety Worker rights Women’s rights Child labor
Forced labor Fair Wage
Energy & Water efficiency Recycled content Zero waste Renewable resources
Volatile Organic Compounds Hazardous ingredients
World
Country
Prefecture
Village
Neighborhood
???
??? ???
???
The Ethical Consumer
Information
Consum
er’s Ethical Purchasing Be
havior
Consumer’s Proximity to Manufacturer
Low
High
Close Distant
The Ethical Consumer
World
Country
Prefecture
Village
Neighborhood
The Ethical Consumer
Information Information
Information
Inform
ation
19
Information Sharing
There are more than 400 labels addressing some aspect of ethical purchasing.
Seven Sins of Greenwashing
Source: http://www.ethicalconsumer.org/printmagazine/currentissue.aspx ,1/24/2014
Information Sharing
Founded in 1989
Publishes buying guides, company ratings, and boycott lists.
Has extensive website and mobile apps
www.ethicalconsumer.org
“Ethical” means different things to different customers
Fair Trade Certified
No child labor
Low-Toxicity
Recycled Content
Made by “green” company with strong Corporate Social Responsibility practices.
Available Products
There are an infinite variety of possible definitions for “ethical.”
Information Sharing
24
Information Sharing
25
Data Platform (API)
UL Transparency Platform
UL Data
The Wercs, GoodGuide
Data
Retailer Data
Supplier Data
OtherData
B2B tools
B2C tools
Multiple Data Sources
26
Information Sharing
From Questions to Requirements
Question Desire
Request Requirement
What are the impacts?
Is it possible to …. ?
Please respond to …
You are required to…
Ethical Purchasing PoliciesStates:CaliforniaConnecticutGeorgiaIllinoisIndianaIowaMassachusettsMissouriMinnesotaNew JerseyNew YorkNorth CarolinaOregonPennsylvaniaVermontWashington
Counties:Chatham County, NCKalamazoo County, WIKing County, WAKitsap County, WAMultnomah County, ORSan Mateo County, CASanta Cruz County, CASarasota County, FL
Cities:Boulder, COCincinnati, OHKansas City, MOPortland, ORPhoenix, AZSan Francisco, CASanta Monica, CASeattle, WA
Many governments, colleges and universities, and large companies are adopting ethical purchasing
policies.
SEC. 1502. CONFLICT MINERALS.(a) SENSE OF CONGRESS ON EXPLOITATION AND TRADE OF CONFLICTMINERALS ORIGINATING IN THE DEMOCRATIC REPUBLIC OF THE CONGO.—It is the sense of Congress that the exploitation and trade of conflict minerals originating in the Democratic Republic of the Congo is helping to finance conflict characterized by extreme levels of violence in the eastern Democratic Republic of the Congo, particularly sexual- and gender-based violence, and contributing to an emergency humanitarian situation therein, warranting the provisions of section 13(p) of the Securities Exchange Act of 1934, as added by subsection (b).
USA: Dodd-Frank Legislation on Conflict Minerals
…the products that do not contain minerals that directly or indirectly finance or benefit armed groups in the Democratic Republic of the Congo or an adjoining country),
30Source: http://www.proskauer.com/publications/client-alert/navigating-the-secs-recently-finalized-conflict-mineral-rules/
USA: Dodd-Frank Legislation on Conflict Minerals
Publically traded companies in the United States must disclose if their product contains any:
Tantalum Tin Tungsten Gold
All affected companies must conduct a “reasonable country of origin” inquiry.
Summary
Ethical consumerism is not new; it is just re-emerging.
Product quality, performance, and value will always be important.
Consumers want information about the human health, environmental, and social impacts of their purchases.
Consumers have access to information and expect companies to provide it.
Be prepared.
Recommendations
Know your supply chain. Optimize your supply chains for ethical
considerations.1
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Recommendations
Understand the current, emerging, and potential risks throughout your supply chain.
Share information proactively; don’t become a victim of someone else telling your story.
Validate critical human health, environmental, and social aspects of your story.
Ask questions; ask questions; ask questions.
UL and the UL logo are trademarks of UL LLC © 2014
February 6, 2014
Thank you
Scot CaseUL [email protected]@scotcase