What Ethical Consumerism Means for Co-operative Bank Plc - Research Paper Example

August 14, Executive summary Ethics consumerism focuses on s’ preference for ethics- compliant companies. Co-operative Bank Plc- prioritises adherence to ethical (moral) standards. The same banks’ ethical standards include adherence to human rights benchmarks, implements customer-based products and services, reduce war casualties, enhances free trade, and other social responsibility duties. The survey indicates consumers prefer companies offering high quality products and services as well as implements ethical standards. Evidently, ethical consumerism proves clients desire companies that put into practice ethical standards. Brief Ethical Consumerism overview analysis The ethical consumerism concept is characterised by customers’ patronising products that are sold by society-friendly companies (Berman, 2011). The same concept includes the customers’ buying services that are sold by environment-friendly. Likewise, the concept emphasises shying away from products that wreak damage or unfavourable effects on the environment or on society (Langen, 2012). For example, the ethical customers must avoid lead-tainted canned food products. Lead contaminates the canned products. The contaminated canned products may trigger unhealthy effects on the uninformed current and future customers (Bertagni et al., 2010). Further, ethical consumerism is grounded on morality (Devinney et al., 2010). Morality is the object of ethical standards. Consequently, ethical consumerism can be described as consumers incorporating their own ethical standards in the purchasing or using of certain products or services. For example, companies should not intentionally sell defective products to customers. The consumers include both the current and future customers of the companies. Ethical consumerism may include the implementation of fair trade processes. Fair trade is synonymous with the laissez faire economy. Under this type of economy, all entities and individuals can freely join their chosen market segments. All competitors in the same market segment are given equal opportunities. Policies that favor one entity or group should be prevented. Furthermore, equal opportunities include equal possibilities to be the top net profit performer in the same market segment. Equal opportunities may include giving all entities the same sustainability chances. All entities and individuals are given the same chances to achieve one’s prescribed goals, objectives, missions, visions, and other previously defined targets (Guido, 2009). Consequently, the ethical consumers act responsibly in their use or purchase of certain products and services. The ethical consumer can avoid products made from illegal cut timber. The same consumer can avoid household products produced by companies throwing their factory waste products into the nearby pristine river or emits unhealthy factory smoke into the community air. The same consumer does not patronise accessory products sold by companies found violating the labor and other related laws (Guido, 2009). The detailed review of Co-operative Bank Plc The United Kingdom located Co-operative Bank Plc offers biodegradable visa cards. The cards are environment-friendly. On the other hand, the other visa cards are made of plastic, a non-biodegradable object. The bank complies with environment ethics (Reynolds & Lancaste, 2013). Further, Co-operative Bank Plc offers its services to an estimated five percent of the entire United Kingdom bank customer market segment. Such percent is quantified at a meager 1.98 million bank clients. The bank prioritises the implementation of United Kingdom society’s ethical standards (Reynolds & Lancaste, 2013). Just as the bank’s name states, Co-operative Bank Plc, the company goes out its normal way to cooperate with its current and future customers (Wetherly & Otter, 2011). The bank officers listen to the specific needs of each visiting prospective customer. Next, the bank officers tailor a plan that snugly fits the present and future customers’ bank-related requirements (Reynolds & Lancaste, 2013). As proof, the Co-operative Bank Plc prioritises a customer-based strategic management program. First, the bank seeks the current and future customers’ inputs. Next, the bank incorporates the various customers’ inputs into the proposed bank strategies. Third, the bank appraises and reappraises the customers’ continually changing inputs. Finally, the bank inserts the required ethics principles into each approved bank strategic plan (Reynolds & Lancaste, 2013). First, the Co-operative Bank Plc implements human rights ethics issues. The bank does not help provide financial services to clients who violate the citizens’ human rights. Next, the Co-operative Bank Plc does not help companies manufacture equipments that are used to violate human rights. By doing so, the bank helps reduce the number of human rights abuses within United Kingdom society (Reynolds & Lancaste, 2013). Second, Co-operative Bank Plc does not help increase the unnecessary casualties of avoidable war. The bank will not finance oppressive regimes. The bank will not help finance the construction of factories used to manufacture guns and other armaments for the oppressive governments. By doing so, oppressive government leaders will be discouraged from implementing terroristic attacks on its ill fated innocent civilian residents (Reynolds & Lancaste, 2013). Third, Co-operative Bank Plc helps increase free trade. The bank finance organisations engaged in laissez faire (free economy) trade. The bank will not finance money laundering activities. The bank will no finance any entities’ desire to engage in the trafficking of illegal drugs like cocaine. The bank will not finance entities engaged in the manufacture, distribution, and sale of smoking products, including tobacco. Finally, the bank will not finance activities that will help derail the currency exchange rate speculation (Reynolds & Lancaste, 2013). Fourth, Co-operative Bank Plc helps its current and future customers to take favourable stances on environment issues (Hanna, 2010). The bank will not finance companies that will throw its factory waste products into the crystal clear nearby river. Such activities will pollute the environment, killing the fish, water plants, and other aquatic living things within the vicinity of the factories’ rivers. The bank will not finance the companies that are engaged in activities that unfavourably lead to disastrous effects of climate change. Lastly, the bank will not fund the activities of organisations prioritising cutting down of our virgin forests (Reynolds & Lancaste, 2013). Fifth, Co-operative Bank Plc will not fund activities other unethical activities. The bank does not fund companies engaged in animal testing. Some companies used animals to test the effectiveness of new drugs. The bank refuses to help companies that are engaged exploitative farming procedures. The bank will not finance the activities of companies dealing with fu Co-operative Bank Plc r farming. Likewise, the bank will not deliver money to entities that are engaged in the blood sports (Reynolds & Lancaste, 2013). Sixth, Co-operative Bank Plc established its ground-breaking ethics policies during 1992. The bank inherited the Rochdale Pioneers’ ethical principles during 2007. The company’s original name is United Co-operatives. From 2010 to 2012, the bank’s ethics-based policies propped up its status as Europe’s most sustainable entity within the banking industry. The bank increased its ethics-based programs during 2011. The program is classified on the United Kingdom’s most radical program implemented on a continuing basis. During 2013, an estimated 12.98 million United Kingdom residents joined cooperatives. During 1999, the bank launched its internet-based banking system to serve the online needs of current and future bank customers. During 1998, Co-operative Bank Plc implemented its very popular “sustainability Report” (Polyp, 2012). During 1999, Co-operative Bank Plc implemented the warts and all ethics program. The program focuses on the bank’s implementation of all ethics standards. The program incorporates the social responsibility activities. The activities include ensuring all product labels are honestly described. The social responsibility acts include implementing the fair trade requirements. The bank spearheads the presentation of ethics-compliant financial reports (Reynolds & Lancaste, 2013). Further, Co-operative Bank Plc reports incorporate the social responsibility principles. The social responsibility activities include ethics development of ethics principles. Social responsibility includes implementation of ethics standards. The same social responsibility incorporates the current and future customers’ inputs or feedbacks into the bank’s marketing and management strategies. The same responsibility ensures the health and safety of all internal and external bank parties. Lastly, the banks’ social responsibility requires involvement in beneficial community activities (OECD, 2002). Furthermore, the Co-operative Bank Plc implements a three pronged social responsibility program. First, the bank focuses on generating profits. Next, the bank prioritises satisfying the current and future customers’ needs and wants. Third, the bank satisfy’s the bank line and staff employees’ salary as well as benefit issues. Lastly, the bank strengthens the bank-supplier supply chain relationship (OECD, 2002). According, Co-operative Bank Plc ethically implements different customer-based distribution procedures. One such procedure is maximising the physical supply chain factors. Another similarly effective entity uses remote channels to deliver the customers’ required products and services (Jeucken, 2010). Short student survey Table 1 Consumer Buying Behaviour Consumer buying Mean Correlation Behaviour Mean Rank Correlation Interpretation Service quality 4.05 3rd (0.0) No correlation Product quality 4.20 2nd 0.2 low positive correlation Ethics –compliance 4.85 1st A brief opinion survey was conducted among 20 students. The students were composed of eight male and twelve female students. The students were asked to pick from 1 (lowest) to 5 (highest) for each of the three consumer buying behavior factors. The findings indicate the mean (average) for the service quality factor is 4.05. This clearly shows that the students prefer companies with high service quality (Buglear, 2010). Next, the consumer behavior findings indicate the mean (average) for the product quality factor is 4.20 (Kardes et al., 2010). This vividly proves that the students prefer companies delivering high product quality. Lastly, the findings point out the mean (average) for the service quality factor is 4.85. This clearly clarifies that the students pick companies implementing ethical standards (Buglear, 2010). Further, the same table indicates the rank of the three factors. The ethics compliance factor ranks first. Next, the product quality factor ranks second. Finally, the service quality ranks third (Buglear, 2010). Evidently, ethics compliance is the most important among the three factors. Furthermore, the above table provides the correlation outputs of the three factors. In terms of correlation between ethics compliance and service quality, the correlation is 0.0. The result specifies there is no correlation between service quality and ethics compliance. This means that the increase or decrease in the service quality does not affect the increase or decrease in the ethics compliance. The correlation between product quality and ethics compliance is 0.2. There is low positive correlation between product quality and ethics compliance. This indicates that both product quality and ethics compliance will increase at the same time (Buglear, 2010). Conclusion Based on the above research, ethical consumerism is characterised by the customers’ preference for certain products or services. Current and future customers prefer environment-friendly products and services. Co-operative Bank Plc favourably implements ethics standards in all its internal and external business dealings. Consequently, many clients prefer the services of the ethics-based Co-operative Bank. Further, statistics indicates consumer behaviour prioritises high quality products and services. The same statistics indicate consumers prefer ethics-compliant companies. Co-operative Bank Plc offers environment-friendly biodegradable visa cards, implements customer-based programs, ensures human rights are upheld, reduces war casualties, increases free trade, and adheres to all environmental, ethical, and societal standards. The company complies with social responsibility doctrines. Evidently, ethical consumerism indicates customers prefer companies that implement ethical standards. References: Bertagnie et al., 2010. Ethics and Business. London: Franco Angeli. Buglear, J., 2010. Stats Means Business. London: Routledge Press. Devinney et al., 2010. The Myth of the Ethical Consumer. Cambridge: Cambridge University Press. Guido, G., 2009. Behind Ethical Consumption. London: Peter Lang Press. Buglear, J., 2010. Stats Means Business. London: Routledge Press. Kardes et al., 2010. Consumer Behaviour. London: Cengage Learning. Langen, N., 2012. Ethics in Consumer Choice. London: Springer Press. OECD., 2002. Governance for Sustainable Development . London: OECD Press. Polyp, U., 2012. The Co-operative Revolution. London: New Internationalist . Reynolds, P., Lancaste, G., 2013. Marketing. London: Taylor & Francis. Wetherly, P., Otter, D., 2011. The Business Environment: Themes and Issues. Oxford: Oxford University Press. Read More