Ethical Consumerism: Ethically Labeled Products, Ethical Retailers - Assignment Example

Ethical Consumerism a) Using TWO categories of individual responses to ethical issues (ethical neutrality and ethical awareness) discuss possible approaches of consumers when deciding whether or not to buy ethically labelled products. Consumerism being the “movement seeking to protect and inform consumers by requiring such practices as honest packaging and advertising, product guarantees, and improved safety standards” (The Free Dictionary). This simply means that you cannot separate the product or service from the process of how it was made or the means or material used to make it available. In fact it is the growing trend that “an increasing number of people make their consumption decisions on the basis of ethical values, such as environmentally friendly products and production methods, labour standards (wage rates and working conditions), and human rights” (Tallontire, Rentsendorj and Blowfield 2001). Moreover “Ethical Consumerism “conceptualises ethics as part of the product augmentation process” (Brenton and Hacken 2006) and it has becomes an influential economic force that moves markets, industries and even economies in many nations. Essentially ethical consumerism like anything that is characterized by ethics is based on choice. Choices of consumers are analysed based on whether such choices are consistent with ethics particularly a higher set of values aside from cost and product satisfaction. In this context there are two distinct consumers, the ethically aware and the ethically neutral. A better understanding of how consumers approach ethical issues would be characterized as ethically aware or ethically neutral. Which would be more likely to be adapted will depend on the underlying circumstances. Despite the results of the a recent con consumerism report that provides that “ethical spend in the UK reached £35.5 billion in 2007” (Co-operative Bank 2008) this does not necessarily mean that consumers have adopted ethical choices in their purchases purely because they are ethical. In fact in 2007 there has been a – 2% growth in purchases from farmer market (Co-operative Bank 2008) which is an obvious ethical choice. Hence we arrive at the conclusion that the rise of ethical consumerism is not purely ethical but includes other factors. Among the considered forces at work in this context is fair trade but “There is little accurate data available on total fair-trade sales, the most accurate being the sales of fair-trade marked goods (Tallontire, Rentsendorj and Blowfield 2001). Another factor is information and it has been argued that that negative information is generally considered more informative and diagnostic than positive information, because negative information is more unique and unexpected. Negative information also has a residual effect as it is more memorable than positive information and negativity bias remains even after some of the specific facts are either forgotten or refuted (Henard 2002). A perhaps more viable factor would be awareness. It was pointed out that a significant underlying factor is awareness and it was stated that “Whilst there has been a small but positive consumer response to fair-trade products and an increasing awareness of fair-trade labels, fair-trade organizations do not understand what motivates consumers to choose their products or the underlying meaning of fair-trade for consumers” (Tallontire, Rentsendorj and Blowfield 2001). If a consumer knows or is aware that a product is made in “sweat shops” with child labour or is tainted with Western victimization of developing countries there is likelihood that they will not purchase the product. In this sense we can easily assert that a ethically aware consumer know or is aware of the circumstances surrounding a product. Thus his judgment will be based not purely on the cost or the product’s appeal but on “environmentally friendly products and production methods, labour standards (wage rates and working conditions), and human rights” (Tallontire, Rentsendorj and Blowfield 2001). Therefore an ethically neutral consumer is not necessarily against the new trend of ethical consumerism but is likely less informed and less knowledgeable of the circumstanced of the product. After all a person will be less likely choose what is right and turn away from wrong if these two things are not apparent and pronounced in his choices. b) Explain the ethical issues that might influence the TWO individual responses from the question a). Use relevant data and examples. To better delve into what influences ethical consumerism or non – adherence to such we will have to go beyond the prime factor of awareness as cited previously and go into the underlying influences. In short to better understand the impact of awareness or knowing we have to explore that which is known or not or the very circumstance that pertain to the product. This can range from its source, to how it was produced or the consequence of its consumption. After all individuals often underscore the consequences of their actions and choices – purchase and consumption included. Since they do not find a significant attachment to these consequences it is easy to set aside their ramifications in a manner that reflective of the “ignorance is bliss” attitude. It was identified that among the main considerations in ethical consumerism are: environmentally preferable products may not meet consumer criteria of price, performance, quality and easy access, the information about environmental benefits of products is insufficient, on-pack information lacks credibility with consumers, there are not enough environmentally good products on the market, the depth of knowledge about environmental issues is limited, people do not have the time to look for products that are kinder to the environment, people feel they cannot make much difference and many people have little inclination to pay a premium” (Tallontire, Rentsendorj and Blowfield 2001). This enumeration best encapsulate the factors that affect ethical consumerism both those found in the consumer and those that spring forth from the product. Furthermore upon looking at the ethical consumer sector we see that this enumeration is given validation in the sense that in 2008 “Supported local shops/suppliers – 83%, Chose product/service on basis of company’s reputation – 57%, Bought primarily for ethical reasons – 51%, Felt guilty about unethical purchase – 38%, Actively sought information on company’s reputation – 36%, Actively campaigned on environmental/social issues – 26% and Talked to friends/ family about a company’s behaviour – 59%. These figures validate significantly the stated factors, such as information on the environmental benefits of products is reflected by choosing a product due to its reputation as environment friendly or not or not being inclined to pay the premium as reflected by the buying due to support for the suppliers or shops. Another avenue that may be explored is the characterization of ethical consumers. After all the extent of whether a consumer is ethical is pegged on the circumstances of the consumer. Unlike the factor awareness this refers more to the total understanding of what the consumer is. It has been forwarded that there are 4 kinds of consumers who vary in terms of ethical conduct they are the “activists – core supporters, regular consumers who also act as ‘persuaders’; they wish to know the actions, in addition to consumption of the products, that they can undertake, ethicals – regular consumers; they wish to know more about the producers and semiethicals – infrequent purchasers of ethical goods who may be persuaded to buy more if the goods were made more attractive or more easily available to them” (Tallontire, Rentsendorj and Blowfield 2001). The first two would fit the category of ethically aware while the last being sort of ethically neutral but an occasional purchaser of ethical good. With this characterization we see the variance among customers and this variance all dictate their role in ethical consumerism. Last but not the least the governing attitudes and practices in ethical consumerism and they are “Positive ethical purchase behaviour – Buying goods with ethical characteristics, Negative ethical purchase behaviour – Boycotts, avoiding goods with unethical characteristics and Consumer action – Lobbying, direct action,etc.” (Tallontire, Rentsendorj and Blowfield 2001). Each also plays a significant part in ethical consumerism. Positive behaviour pertain to an active conduct of a ethically aware consumer to avail of ethical goods, Negative behaviour is refraining from availing of unethical goods and Consumer action is simply the active contribution to inculcate ethical consumerism to other consumers. These attitudes or rather how prevalent are they would also determine the responses to ethical consumerism. What is however common among all explored major factors are all are limited by economic realities. Shared reality of economics also plays a significant role in ethical consumerism. A well of consumer in a developed economy will be more likely have ethical consumerist inclinations as compared to a consumer in the context of a developing economy. In fact ethical consumerism has been at time criticized as a luxury that may only be indulged in a developed economy and not in a lesser economic context. c) Assess how ethical retailers might encourage consumers to buy their products in spite of economic constraints? In most cases ethical products tend to be high cost and usually unattractive to consumers especially in the developing world. But this should not be a barrier to proliferating ethical goods. In part the solution lies in incentivising consumers who do purchase or adding more value to the goods that are purchased via promos and the like. Most if not all solutions are marketing ones. Another dimension to this is more of part mind – set and part social involvement. In fact it was asserted that ” Much of the consumerist literature seems to rest on a linear understanding of motivation, i.e. awareness leads to concern which leads to action. Similarly work on consumer ethical awareness has tried to explain awareness and action in relation to socio-demographic indicators or has tended to concentrate on single issues” (Tallontire, Rentsendorj and Blowfield 2001). From this we can conclude that before ethical consumerism even those championed equally by both consumer and retailers most evolve to meet and overcome economic realities. All socio – economic trends have done so in the past and so will ethical consumerism. Economically speaking this sector expands so will the economy built around it thus doing away more of the economic constraints it is faced. After all more increased in demand decreases price ,which would later make ethical products as accessible and affordable as other products. References: The Free Dictionary. Consumerism. Available at: http://www.thefreedictionary.com/consumerism. [Accessed May 4, 2010]. Brenton, Scott, Hacken Lotte ten 2006 “Ethical Consumerism: Are Unethical Labour Practices Important to Consumers?”. Available at:http://www.jrconsumers.com/academic_articles/issue_11,_2006?f=8840 [Accessed 4 May 2010]. Co-operative Bank 2008. The Ethical Consumerism Report 2008. Available at: http://www.nri.org/publications/policyseries/PolicySeriesNo12.pdf [Accessed 4 May 2010]. Henard, David H. (2002), “Negative Publicity: What Companies Need to Know About Public Relations,” Public Relations Quarterly, 47 (4), 8-12. Tallontire, Anne, Rentsendorj, Erdenechimeg and Blowfield 2001, Mick. “Ethical Consumers and Ethical Trade: A Review of Current Literature”.Natural Resources Institute. University of Greenwich. http://www.nri.org/publications/policyseries/PolicySeriesNo12.pdf [Accessed May 4, 2010] Read More