Ethical consumerism
Ethical consumerism (alternatively called ethical consumption, ethical purchasing, moral purchasing, ethical sourcing, or ethical shopping and also associated with sustainable and green consumerism) is a type of consumer activism based on the concept of dollar voting.[1] People practice it by buying ethically made products that support small-scale manufacturers or local artisans and protect animals and the environment, while boycotting products that exploit children as workers, are tested on animals, or damage the environment.
The term "ethical consumer", now used generically, was first popularised by the UK magazine Ethical Consumer, first published in 1989.[2] Ethical Consumer magazine's key innovation was to produce "ratings tables", inspired by the criteria-based approach of the then-emerging ethical investment movement. Ethical Consumer's ratings tables awarded companies negative marks (and overall scores, starting in 2005) across a range of ethical and environmental categories such as "animal rights", "human rights", and "pollution and toxics", empowering consumers to make ethically informed consumption choices and providing campaigners with reliable information on corporate behaviour. Such criteria-based ethical and environmental ratings have subsequently become commonplace both in providing consumer information and in business-to-business corporate social responsibility and sustainability ratings such as those provided by Innovest, Calvert Foundation, Domini, IRRC, TIAA–CREF, and KLD Analytics. Today, Bloomberg and Reuters provide "environmental, social, and governance" ratings directly to the financial data screens of hundreds of thousands of stock market traders.[3] The nonprofit Ethical Consumer Research Association continues to publish Ethical Consumer and its associated website, which provides free access to ethical rating tables.
Although single-source ethical consumerism guides such as Ethical Consumer, Shop Ethical,[4] and the Good Shopping Guide[5] are popular, they suffer from incomplete coverage. User-generated ethical reviews are more likely, long-term, to provide democratic, in-depth coverage of a wider range of products and businesses.[6] The Green Stars Project[7] promotes the idea of including ethical ratings (on a scale of one to five green stars) alongside conventional ratings on retail sites such as Amazon or review sites such as Yelp.
The term "political consumerism", first used in a study titled "The Gender Gap Reversed: Political Consumerism as a Women-Friendly Form of Civic and Political Engagement" from authors Dietlind Stolle and Michele Micheletti (2003), is identical to the idea of ethical consumerism. However, in this study, the authors found that political consumerism as a form of social participation often went overlooked at the time of writing and needed to be accounted for in future studies of social participation.[8] However, in "From Ethical Consumerism to Political Consumption", author Nick Clarke argues that political consumerism allows for marginalized groups, such as women, to participate in political advocacy in non-bureaucratic ways that draw attention to governmental weaknesses. [9] Political consumerism has also been criticised on the basis that "it cannot work", or that it displays class bias.[10] The widespread development of political consumerism is hampered by substantial mundane consumption, which does not afford reflective choice, along with complexities of everyday life, which demand negotiations between conflicting moral and ethical considerations.[11]
Consumer groups[edit]
In the late 19th and early 20th centuries, people in industrialized countries began formal consumer movements to ensure that they would get value for their money in terms of the things they purchased. These movements focused on the unfair labor practices of the companies, and on labelling requirements of food, cosmetics, drugs, etc. Examples of the consumer movements were the Consumer League which was established in New York, US in 1891, National Consumers League created in US in 1898, and Consumers Council which was established during World War I in Great Britain. During this time workers were neither well-paid nor did they have secure employment with benefit of social protection; similarly, working conditions were decent and the Irish Trade Union movement focused the ILO policy of campaigning for decent work wherever there was an opportunity for job improvement or job creation.[12]
Research[edit]
GfK NOP, the market research group, made a five-country study of consumer beliefs about the ethics of large companies. The countries surveyed were Germany, the United States, Britain, France, and Spain. More than half of respondents in Germany and the US believed there is a serious deterioration in standards of corporate practice. Almost half of those surveyed in Britain, France, and Spain held similar beliefs.[29]
About a third of respondents told researchers they would pay higher prices for ethical brands, though the perception of various companies' ethical or unethical status varied considerably from country to country.
The most ethically perceived brands were The Co-op (in the UK), Coca-Cola (in the US), Danone (in France), Adidas (in Germany), and Nestlé (in Spain). Coca-Cola, Danone, Adidas, and Nestlé did not appear anywhere in the UK's list of 15 most ethical companies. Nike appeared in the lists of the other four countries but not in the UK's list.
In the UK, The Co-operative Bank has produced an Ethical Consumerism Report[30] (formerly the Ethical Purchasing Index) since 2001. The report measures the market size and growth of a basket of 'ethical' products and services, and valued UK ethical consumerism at GBP36.0 billion (~USD54.4 billion) in 2008, and GBP47.2 billion (USD72.5 billion) in 2012.
A number of organizations provide research-based evaluations of the behavior of companies around the world, assessing them along ethical dimensions such as human rights, the environment, animal welfare, and politics. Green America is a not-for-profit membership organization founded in 1982 that provides the Green American Seal of Approval and produces a "Responsible Shopper" guide to "alert consumers and investors to problems with companies that they may shop with or invest in."[31] The Ethical Consumer Research Association is a not-for-profit workers' co-operative founded in the UK in 1988 to "provide information on the companies behind the brand names and to promote the ethical use of consumer power."[32] They provide an online searchable database under the name Corporate Critic[33] or Ethiscore.[34] The Ethiscore is a weightable numerical rating designed as a quick guide to the ethical status of companies, or brands in a particular area, and is linked to a more detailed ethical assessment. "Alonovo" is an online shopping portal that provides similar weightable ethical ratings termed the "Corporate Social Behavior Index".[35]
Related concepts[edit]
Conscientious consumption[edit]
Conscientious consumerism is when people make a habit of buying goods from ethical companies and avoid impulsive buying from unethical ones, in order to contribute positively in political, social, and environmental ways. Such a consumer rationalizes unnecessary and even unwanted consumption by saying that "it's for a good cause."[36] As a result, the consumer buys pink ribbons during National Breast Cancer Awareness Month, green products to support the environment, candy and popcorn from school children, greeting cards and gift wrap from charities, and other such often-unwanted objects. The consumer avoids considering whether the price offered is fair, whether a small cash donation would be more effective with far less work, or even whether selling the item is consistent with the ostensible mission, such as when sports teams sell candy.
Some of these efforts are based on concept brands: the consumer is buying an association with women's health or environmental concerns as much as they are buying a tangible product.[36]
Conscientious consumption involves people who are "more focused on real needs than artificially created craves," such as not continually following trend cycles in consumer industries.[37]
Conscientious consumerism has become more popular in recent years, with consumers becoming more aware of the impact of their purchases on society and the environment. This trend has led to the growth of companies that prioritize corporate social responsibility and ethical practices in their operations to reinforce customer loyalty.[38] However, some companies have taken note of this shift towards conscientious consumerism and started deceptive marketing to convey a false impression that their product is environmentally friendly. This green marketing tactic is called greenwashing, which is prevalent in the cosmetic industry. Greenwashing has a negative impact on consumer trust with brands and cosmetic products that are marketed as green.