Environment, sustainability and development: Ethical or moral dimensions of consumption
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Environment, sustainability and development: Ethical or moral dimensions of consumption
Even if there is lots of buzz with regard to the notion of ethical consumption, the realism of actual ethical consumption is depressing at best. For instance, the share of the market that green products hold is terribly low. In the past 20 or so years, the role played by ethical considerations in shaping the behaviour of consumers has become more and more significant. The economic significance of the increase in ethical purchasing for corporate strategy, policymakers, and retailing is well established and expected to rise. Even so, what actually constitutes ethical consumption is itself debatable. According to Popke (2006), consumption as a social practice could have ethical or moral dimensions.[1] Using a commodity case study example, this paper discusses what is really meant by this statement.
Ethical consumption, on one hand, may be understood in relation to certain objects of ethical or moral concern. In this sense, various issues can be defined as ethical such as safety and health risks, environmental sustainability, human rights, labour conditions, fair trade, as well as animal welfare. Alternatively, this focus on consumption as a way of acting ethically or morally towards certain objects of concern extends throughout various types of practice such as investment decisions, pensions, personal banking, and shopping.[2] The diversity of practices and objects which may constitute ethical consumption is underlined by taking into consideration the diversity of organizational forms which may be defined within this category. These include lobby groups such as the Soil Association; ethical trading associations such as Body Shop, Traidcraft, and Oxfam; fair trade campaign organizations such as Christian Aid and Oxfam; consumer boycott campaigns such as Stop Esso and anti-Nestle; co-operative movements such as the Co-Op in the United Kingdom; as well as no-logo anti-globalization campaigns for instance against McDonalds, Gap, and Nike. Even this short listing illustrates the high level of overlap between different organizations, the variety of issues and strategies taken up, as well as the variability of scales at which activities of ethical consumption operate.
Sustainable consumption is understood as the consumption of services and goods which have least environmental impact, are financially viable and socially equitable, while satisfying the fundamental needs of humans all over the world.[3] It is notable that sustainable consumption basically targets everybody worldwide in all sectors, from governments to individuals to multinational corporations. In the past 5 decades, people worldwide have consumed more services and goods compared to the combined total of all the earlier generations.[4] In essence, this considerable increase in consumption has served to foster economic growth and improved the quality of life for millions of people. It has also fostered degradation of the environmental. Nonetheless, the patterns of consumption vary considerably between developing and developed countries. The poorest 1/5 of the world account for roughly 1% of consumption whereas the richest 1/5 account for an estimated 86% of consumption.[5] At present, the unsustainable and unethical patterns of consumption are in fact depleting the stocks of natural resources; destroying the environment; distributing resources in a manner that is inequitable; hindering sustainable development efforts; and contributing to social problems for instance poverty. Sustainable consumption serves to compliment sustainable production practices as well as achievements.
Ethical or moral consumers are understood as consumers who when shopping, take into consideration ethical, animal, and environmental issues, including oppressive regimes as well as armaments.[6] Also known as ethical consumerism, ethical consumption behaviours include decision-making, acquisitions, and/or other consumption patterns that are affected by the ethical concerns of the consumer. Ethical consumption is essentially about withdrawing support from bad, unethical companies and supporting those companies that are good and ethical.
There are 4 sorts of ethical consumerism. These are negative ethical purchase behaviour; positive ethical purchase behaviour; lobbying or consumer action; and fully-screened approach. (i) Negative ethical purchase behaviour entails avoiding or boycotting goods that have unethical traits. This may entail the consumer shunning products which he or she disapproves of, such as gas-guzzling cars or battery eggs. (ii) Positive ethical purchase entails purchasing goods that have ethical traits. This may entail, for instance, preferring certain ethical products like energy saving bulbs. (iii) Company-based purchasing or consumer action involves activities for instance direct action regarding an issue, or even lobbying.[7] In this form of ethical consumption, the consumers target a corporate organization as a whole and avoid each product made by that specific organization. In the United Kingdom for instance, the Nestle boycott targeted all the subsidiaries and brands of Nestle in protest so as to get Nestle change how it markets its baby milk formula worldwide. (iv) Fully-screened approach – this is when a consumer looks at products and at organizations and evaluates the product that is the most ethical.[8] Whereas consumers who assume ethical behaviour could be seen as ethical consumers, the reverse is not essentially true. For instance, a company or an individual who does not buy a fair trade product cannot be essentially seen as being unethical.
Ethical concerns of consumers have resulted in the growing popularity of organic food, and have increased consumer concerns as regards farming practices and environmental damage. Ethical consumption can also be defined as the deliberate and conscious choice to make particular consumption choices due to moral or personal beliefs. The phrase ethical consumption is broadly utilized and has in fact resulted in the emergence of marketing practices targeting the ethical consumers. These include the market for organic produce; growing supplier power and corporate responsibility; emergence of market for fair trade goods; media interest in issues pertaining to fair trade; and market for ethical investment products.[9]
Ethical consumers are commonly influenced by ethical or environmental considerations when they choose services or products to purchase for consumption. According to Devinney, Auger and Eckhardt, what is commonly seen as ethical consumer behaviour is actually in flux. Some people may ask themselves: is boycotting Chinese products as a way of protesting unethical employment practices really good when the boycott might lead to less jobs for the Chinese people who do not have job alternative? If one looks at the marketplace from the point of view of thinkers like Baudrillard and Karl Marx, even though shoppers might claim that they desire to alter the marketplace through their behaviours, in the end, they are blinded by the seduction of consumer goods. In essence, this implies that ethical consumers and green consumers are both myths.[10] Even though surveys have shown that shoppers describe themselves as being all caring, they in fact continue ignoring social issues given that they repeat their usual product purchases and preferences in the marketplace. This results in a substantially lower level of socially responsible consumption than would be anticipated basing on data from research surveys.[11]
Ethical products are turning out to be more extensively available, and a lot of items have just appeared in recent times in retail outlets. This might be helpful in explaining why concerns with regard to availability – and thus purchasing effort – might not be very pertinent any longer for lots of products. In the study by Bray, Johns and Kilburn, the study subjects complained about having inadequate information to pick products consistent with their ethical standards and attitudes. These authors stated that it became apparent that there is an essential need for more information in point of sale merchandising, and that the growing interest and awareness in such issues over the past 10 years might have increased the appetites of consumers to be informed.[12] According to the study by Bray, Johns, and Kilburn, a vital aspect of ethical consumption appeared to be post-purchase dissonance in the form of guiltiness at not selecting the ethical option. For the study subjects, price was a vital impediment to consuming ethically. The respondents believed that the benefactor from their ethical decisions has to be the underpaid labourer or producer, although they resentfully thought that a lot of companies profit from such goods.[13] In addition, the consumers questioned the quality of ethical products except local food produce, and lots of Fair Trade goods were believed to be of poor quality. Bray, Johns, and Kilburn found that the common view was that if a corporate organization focuses largely on sustaining ethical standards, the quality of its goods may be lower. Furthermore, the consumers, who were the respondents in the study, demonstrated great image consciousness as well as brand loyalty in such a way that when other factors for instance price were disregarded, purchasing inertia and brand loyalty still prevented these consumers from purchasing an ethical alternative.[14]
Although the scope of the study by Bray, Johns and Kilburn is limited by scope, it offers insight into the main factors that hamper or prevent consumers from engaging in ethical consumption. Whereas a range of consumption choices may be made, studies have given emphasis to the rising occurrence of ethical consumption, with shoppers choosing goods that are marketed as Organic or Fair-Trade. Likewise, other researchers have underscored the significance of boycotts that corporate organizations have suffered due to the stories which emerge that question the ethical aspects in their supply chain.[15] Researchers have also reported that some consumers seek ethical alternatives in some instances and avoid certain brands and products in other cases in which they have reason to question the ethical credibility of the companies. Nevertheless, it is acknowledged that most buying decisions are not really subjected to such scrutiny and decisions in most cases being based upon self-interest. Where this is the case, many consumers describe post-purchase feelings of guiltiness if they were aware that they had actually not made the choice that was ethically optimal.[16]
Case study: Buying Fair Trade coffee commodity
An estimated 125 million people across the globe rely on coffee farming for their employment and source of revenue. Coffee is the most commonly traded and costly tropical agricultural product and about 24.9 million farmers produce roughly 80 percent of the world’s coffee.[17] Nonetheless, a lot of these farmers fail to earn a reliable livelihood from the farming of coffee.[18] Coffee is understood as a boom and bust commodity. Globally, the production of coffee differs each year depending on factors such as disease and weather conditions leading to a coffee market which is unstable and typified by wide price fluctuations. It is worth mentioning that this price volatility has major effects for the coffee farmers as well as those people relying on coffee for their living. This makes it hard for coffee farmers to predict their proceeds for the next season and budget for the needs of their farming and households.[19]
The supply chain of coffee is complex given that coffee beans pass many hands from farmers, traders, coffee processors, coffee exporters, coffee roasters, coffee retailers, and at last the end user. A lot of growers do not have any idea regarding where their commodity goes or the price their commodity will end up selling for.[20] In general, the more profitable export of green coffee – coffee beans which have already been processed and are ready to be exported and roasted – is simply an option for coffee growers if they can create co-operatives, buy equipment for processing, and organize export or employ a contractor for perform these services.[21]
Fair-trade was founded in response to the awful struggles that coffee growers in Mexico underwent after the world coffee prices collapsed during the late ‘80s. It is notable that certified coffee producer organizations, with fair-trade, are assured to get at least the Fair-trade Minimum Price for their commodity, which is aimed at covering their production costs and serve as a safety net whenever coffee prices in the marketplace drop below a sustainable level.[22] Coffee growers, through their producer organizations, can also get the extra Fair Trade Premium which they can utilize in investing in community or business improvements and have to utilize no less than 25% of it in enhancing quality and productivity, for instance by spending in processing facilities. According to Fair trade Foundation, certified growers of coffee in 2011-12 earned about £30 million in premiums which were spent in community projects as well as farmer services.[23]
Fair trade coffee is essentially coffee that has been produced consistent with fair trade standards. Fair trade practices forbid forced or child labor. It is notable that fair trade organizations such as Starbucks establish trading partnerships basing upon respect, transparency, and dialogue, which seek greater equity in global trade. In essence, these partnerships offer better trading conditions to farmers of coffee bean and in so doing contributing to sustainable development.[24] Fair trade organizations actively support producers. They are also involved actively in supporting sustainable environmental farming practices.
When a consumer chooses to buy fair-trade coffee, it means that the consumer is actually helping farmers of coffee worldwide to get a fair deal. These coffee farmers will be able to get a fair price for their beans as well as an extra premium to invest on various things such as agricultural improvements, reforestation, and schools. This implies that these farmers can actually improve their community and social lives, their working, and protect the environment in which they are living in.[25] Given that every coffee bean could be traced back to the co-operative of the farmer which produced it, the consumer is able to get a great cup of coffee which he or she knows has been produced to high standards of ethics.[26]
Some of the organizations that sell fair trade coffee include AMT coffee, Aspretto, Cafedirect, Cafeology, Cool Earth coffee, The Co-operative, Eros coffee, Equal exchange, Grumpy mule, Esquires coffee, M&S, Matthew Algie, Pergol, Revolver, Sainsbury’s, Starbucks, Taylors of Harrogate, Tchibo Coffee International, Tesco, Tim Peaks, Waitrose, and Traidcraft. One of these fair trade organizations, Starbucks, takes an all-inclusive approach to ethical sourcing and uses responsible practices to purchase coffee from growers; farmer support; environmental, monetary, and social standards; community development programs and industry collaboration. Starbucks is truly dedicated to 100 percent ethically sourced coffee.[27] The foundation of Starbucks’ approach is Coffee and Farmer Equity (CAFE) Practices, which is currently one of the first set of sustainability standards in the coffee industry. The CAFE Practices, which were developed together with Conservation International, have helped Starbucks in creating a lasting supply of premium and excellent coffee and positively impact both the livelihoods and lives of growers and their communities. In essence, the CAFE Practices include guidelines in 4 main areas: financial accountability and transparency, quality, environmental leadership, and social responsibility. When these 4 areas are taken together, the stands assist coffee growers in a manner that is better not just for people, but to the plant as well.[28]
According to Fair Trade USA, a consumer choosing to buy Fair Trade Coffee could actually help coffee growers to escape poverty. The majority of small-scale family growers are living in isolated locations and do not have access to credit and they are therefore susceptible to middlemen who offer them cash money for the commodity at a fraction of the coffee’s value.[29] Fair Trade promises coffee growers minimum prices and connects coffee growers directly with coffee importers thereby creating lasting sustainability. In essence, Fair Trade allows growers to earn better earnings so that they can be able to invest in quality. In 2009, the average price paid to coffee growers per pound was $1.69 for Fair Trade Certified Coffee, which is much higher than the average market price of $1.25.[30]
When a consumer buys fair trade coffee, he or she will not pay exorbitant amounts of money since fair trade ensures that both the consumer and the producer of the coffee are not ripped off. Purchasing fair trade coffee ensures that the consumers’ money creates goodness and integrity all the way around. A lot of coffee growers in developing countries such as Malawi, India, Costa Rica, Uganda, Guatemala, Colombia, Peru, Honduras, Nicaragua, Vietnam, Mexico, Ethiopia, Papua New Guinea, Bolivia and Tanzania make little money for their toil. Through fair trade, growers who are working hard in producing the coveted drink of coffee that consumers enjoy daily are making a livelihood from their work and are paid fairly for their work. In general, a happy coffee grower will create a better commodity. Consumer want to know that when they buy coffee which makes their day better, the coffee commodity is also helping to provide a living for the people who brought that coffee to existence for the consumer to enjoy. When one spends his or her money on fair trade coffee product, that is precisely what the consumer is doing: ensuring that those who produced that coffee are actually being treated fairly, and this is ethical or moral consumption of coffee commodity.
Conclusion
In conclusion, this paper has provided an in-depth discussion of what Popke meant when he stated that consumption as a social practice could have ethical or moral dimensions. Ethical or moral consumers are basically those consumers who when they go out to shop, they take into account ethical, animal, and environmental issues. Ethical consumption behaviours comprise purchases, decision-making, in addition to other consumption patterns which are actually affected by the ethical concerns of the shopper. The 3 kinds of ethical consumption are as follows: negative ethical purchase behaviour; positive ethical purchase behaviour; and lobbying or consumer action. The commodity case study of fair trade coffee has been used in the discussion. With fair trade, coffee producer organizations worldwide are assured to get at least the Fair-trade Minimum Price for their coffee produce, which is aimed at covering their production costs. It also acts as a safety net every time coffee prices in the marketplace drop lower than a sustainable level. Fair trade organizations support coffee growers and are involved actively in supporting sustainable environmental farming practices. When one buys fair-trade coffee, it basically implies that he or she is helping farmers of coffee to get a fair deal. In other words, purchasing fair trade coffee commodity ensures that coffee growers in developing countries where the coffee was sourced are in fact being treated justly; this is ethical consumption of coffee.
References
Barnett, Clive., Cloke, Paul., Clarke, Nick., & Malpass, Alice. 2012. Articulating Ethics and Consumption. Oxford, England: Oxford University Press.
Bateman, C. 2012. Framing effects within the ethical decision making processes of consumers. Journal of Business Ethics (36): 119-140.
Bray, Jeffery., Nick, Johns., & Kilburn, Johns. 2010. An exploratory study into the factors impeding ethical consumption. Journal of Business Ethics.
Devinney, T. M., Auger., P, & Eckhardt, G. 2010. The Myth of the Ethical Consumer. Cambridge University Press: Cambridge.
Burke, Paul F., Christine Eckert, and Stacey Davis. 2014. “Segmenting consumers’ reasons for and against ethical consumption.” European Journal Of Marketing 48, no. 11/12: 2237-2261. Business Source Complete, EBSCOhost (accessed May 14, 2015).
Fair Trade Foundation. 2015. Coffee. Retrieved from http://www.fairtrade.org.uk/en/buying-fairtrade/coffee
Fair Trade USA. Fair Trade: Coffee. 2015. Retrieved from http://fairtradeusa.org/products-partners/coffee
Gregory-Smith, Diana, Andrew Smith, and Heidi Winklhofer. 2013. “Emotions and dissonance in ‘ethical’ consumption choices.” Journal Of Marketing Management 29, no. 11/12: 1201-1223. Business Source Complete, EBSCOhost (accessed May 14, 2015).
Long, Michael, and Douglas Murray. 2013. “Ethical Consumption, Values Convergence/Divergence and Community Development.” Journal Of Agricultural & Environmental Ethics 26, no. 2: 351-375. Business Source Complete, EBSCOhost (accessed May 14, 2015).
Oh, Jong-Chul, and Sung-Joon Yoon. 2014. “Theory-based approach to factors affecting ethical consumption.” International Journal Of Consumer Studies 38, no. 3: 278-288. Business Source Complete, EBSCOhost (accessed May 14, 2015).
Popke, J. 2006. “Geography and ethics: everyday mediations through care and consumption.” Progress in Human Geography, 30(4), 504-512.
Robbins, Richard H. 2013. “Coffee, Fair Trade, and the Commodification of Morality.” Reviews In Anthropology 42, no. 4: 243-263. Academic Search Premier, EBSCOhost (accessed May 14, 2015).
Schuler, Douglas A., and Petra Christmann. 2011. “The Effectiveness of Market-Based Social Governance Schemes: The Case of Fair Trade Coffee.” Business Ethics Quarterly 21, no. 1: 133-156. Business Source Complete, EBSCOhost (accessed May 14, 2015).
Starbucks Corporation. Ethical Sourcing: Coffee. Retrieved from http://www.starbucks.com/responsibility/sourcing/coffee
Valkila, Joni, Pertti Haaparanta, and Niina Niemi. 2010. “Empowering Coffee Traders? The Coffee Value Chain from Nicaraguan Fair Trade Farmers to Finnish Consumers.” Journal Of Business Ethics 97, no. 2: 257-270. Business Source Complete, EBSCOhost (accessed May 14, 2015).
[1] J. Popke 2006. “Geography and ethics: everyday mediations through care and consumption.” (Progress in Human Geography, 30(4)) p. 506.
[2] Jeffery Bray., Nick, Johns., & Kilburn, Johns. 2010. An exploratory study into the factors impeding ethical consumption. (Journal of Business Ethics), p. 12
[3] C. Bateman. 2012. Framing effects within the ethical decision making processes of consumers. (Journal of Business Ethics (36)), p. 119.
[4] Ibid, 120
[5] Dian Gregory-Smith., Andrew Smith, and Heidi Winklhofer. 2013. “Emotions and dissonance in ‘ethical’ consumption choices.” (Journal Of Marketing Management 29, no. 11/12: 1201-1223. Business Source Complete, EBSCOhost), p. 1211.
[6] Michael Long, and Douglas Murray. 2013. “Ethical Consumption, Values Convergence/Divergence and Community Development.” (Journal Of Agricultural & Environmental Ethics 26, no. 2: 351-375. Business Source Complete, EBSCOhost), p. 362.
[7] Jong-Chul Oh., and Sung-Joon Yoon. 2014. “Theory-based approach to factors affecting ethical consumption.” International Journal Of Consumer Studies 38, no. 3: 278-288. Business Source Complete, EBSCOhost), p. 281.
[8] Ibid
[9] Ibid., 282
[10] Devinney, T. M., Auger., P, and Eckhardt, G. 2010. The Myth of the Ethical Consumer. (Cambridge University Press: Cambridge), p. 46.
[11] Ibid., 52
[12] Jeffery Bray., Nick, Johns., & Kilburn, Johns. 2010. An exploratory study into the factors impeding ethical consumption. (Journal of Business Ethics), p. 15
[13] Ibid., 16
[14] Ibid., 17
[15] C. Bateman. 2012. Framing effects within the ethical decision making processes of consumers. (Journal of Business Ethics (36)), p. 119.
[16] Clive Barnett., Cloke, Paul., Clarke, Nick., & Malpass, Alice. 2012. Articulating Ethics and Consumption. (Oxford, England: Oxford University Press), p. 45.
[17] Richard Robbins. 2013. “Coffee, Fair Trade, and the Commodification of Morality.” (Reviews In Anthropology 42, no. 4: 243-263. Academic Search Premier, EBSCOhost), p. 252.
[18] Ibid.
[19] Fair Trade Foundation. 2015. Coffee. Retrieved from http://www.fairtrade.org.uk/en/buying-fairtrade/coffee
[20] Joni Valkila., Pertti Haaparanta, and Niina Niemi. 2010. “Empowering Coffee Traders? The Coffee Value Chain from Nicaraguan Fair Trade Farmers to Finnish Consumers.” (Journal Of Business Ethics 97, no. 2: 257-270. Business Source Complete, EBSCOhost), p. 262.
[21] Fair Trade Foundation. 2015. Coffee. Retrieved from http://www.fairtrade.org.uk/en/buying-fairtrade/coffee
[22] Ibid
[23] Ibid
[24] Paul F. Burke., Christine Eckert, and Stacey Davis. 2014. “Segmenting consumers’ reasons for and against ethical consumption.” European Journal Of Marketing 48, no. 11/12: 2237-2261. Business Source Complete, EBSCOhost (accessed May 14, 2015)., p. 2241
[25] Fair Trade Foundation. 2015. Coffee. Retrieved from http://www.fairtrade.org.uk/en/buying-fairtrade/coffee
[26] Douglas A. Schuler, and Petra Christmann. 2011. “The Effectiveness of Market-Based Social Governance Schemes: The Case of Fair Trade Coffee.” (Business Ethics Quarterly 21, no. 1: 133-156. Business Source Complete, EBSCOhost), p. 144.
[27] Starbucks Corporation. Ethical Sourcing: Coffee. 2015. Retrieved from http://www.starbucks.com/responsibility/sourcing/coffee
[28] Ibid.
[29] Fair Trade USA. Fair Trade: Coffee. 2015. Retrieved from http://fairtradeusa.org/products-partners/coffee
[30] Ibid
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