Consumer Ethics

Published online; 2nd December, 2011

ACADEMIC STUDY
Author: Catherine McCann


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Consumer ethics may be described as 'the moral principles and standards that guide
the behaviour oI individuals or groups as they obtain, use and dispose oI goods and
services (Vitell, 1992).

Once a niche market, ethical products and ethical brands are now competing with
mainstream brands. Ethical products have arisen due to inIormation being more Ireely
available via the Internet, television and newspapers; consumers now have a greater
awareness oI social & environmental issues. Shoppers are increasingly demanding
more than just competitive pricing. Ethical shoppers 'consume with sensitivity
(Carrigan, 2006) and consume with a conscience. ThereIore, to attract Ethical
Shoppers`, it is essential Ior a brand to portray attributes relating to corporate social
responsibility and Ior the company to implement ethical practices and policies. For
consumers, this lengthens the buying decision-making process as original choice
criteria, such as price, and additional criteria such as environmental Iactors, country oI
origin, distribution, workers rights and conditions must all be considered. For
marketers, this inIluences product design, uniqueness, positioning, packaging,
branding, liIe cycle and portIolio planning. This essay shall Iocus on the examples oI
Primark, McDonald`s, The Body Shop and Starbucks. All oI which, shall be
illustrated though the Product Acquisition Process, as proposed by Baines et al (2008)
and the corporate social initiatives acknowledged by Kotler (2005).

Firstly, when seeking a product to satisIy their needs, a customer gathers inIormation.
'A mans ethical behaviour should be based effectually on sympathy, education and
social ties and needs (Einstein, 1930). Potential customers actively seek out
inIormation via product packaging, websites, advertisements, inIormation available
in-store and the media oI television and newspapers. It is expected that inIormation be
readily available and easily accessible, promoting ethical credentials in a clear, honest
and concise manner. Ethical credentials are an important part oI a brand`s attributes,
giving the consumer a 'Ieel-good Iactor and encouraging the consumer to associate
with the brand. According to the ethical consumerism report (ethical consumer
magazine, 2010), 'the market for ethical goods in the UK was worth 43.2bn. In
order to appeal to this market eIIectively, McDonald`s and Starbucks clearly convey
their commitment to corporate social responsibility on their packaging, websites and
advertising campaigns. McDonald`s outlets in the UK and Ireland have recently

extended their product portIolio and are now selling '#ainforest Alliance Certified
Coffee (McDonald`s Corporate Responsibility, 2011), meaning that McDonald`s
suppliers meet certain social and environmental standards. The marketing
implications oI this can be seen on the coIIee cups, which display the inIamous
golden arches with a lime green background to attract green consumer`s and green is
oIten associated positively with the environment. Thus, adding value and a means oI
diIIerentiation to McDonald`s competitively priced coIIee. Alongside this,
McDonald`s applies socially responsible corporate practices across their product
portIolio as all packaging and bags are made Irom recycled paper and they are
steadily working with Greenpeace and Conservation International (McDonald`s
Corporate Responsibility, 2011). McDonald`s coIIee, in particular, is advertised as
high quality, sustainable and aIIordable and is perceived as contributing to a good
cause, adding to their leadership position in the market place. An ethical consumer
equipped with this knowledge may be inIluenced to buy the product as it may give
them a 'Ieel good Iactor in knowing that suppliers oI the ingredients are treated
Iairly and meet a high quality standard. On the other hand, Starbucks in comparison to
McDonald`s is perceived as a premium and indulgent product and thereIore,
Starbucks market their ethical credentials diIIerently. Starbuck`s participate in cause-
related marketing and corporate cause promotion. Starbucks have aligned themselves
with Product Red, helping to Iight AIDS in AIrica and promoting how customers and
employees can contribute to this cause via their corporate website, Twitter and
YouTube. Additionally, Starbucks partners, employees and customers are encouraged
to engage in community volunteering; 'making the world a better place (Starbucks
2011). Furthermore, all coIIee packaging displays a green Starbuck`s logo, linking
with green marketing, Fairtrade, quality and simplicity. LeaIlets are available in store
with added inIormation about suppliers, nutrition and Fairtrade. A consumer who
shares Starbuck`s ethical brand values and is inIormed through advertising whether
in-store or via YouTube is more likely to choose Starbucks coIIee over McDonald`s.
Through inIormation the consumer can learn about a company and then conduct an
evaluation between brands.

Secondly, a potential customer evaluates the product and makes a selection. Various
choice criteria inIluence a customer`s decision when evaluating an evoked set oI
products. The decision can also be rational or irrational and highly emotive when

ethical shopping. A product may be selected on its ethical credentials alone especially
when purchasing low-involvement goods. A study carried out by Davis (2007)
discovered that 'people aged 55-64 show the strongest commitment to ethical brands
across all categories.women are also consistently more likely to buy ethical brands
than men in all categories, particularly health and beauty. The Body Shop skincare
brand primarily targets Iemales by marketing themselves ethically through corporate
cause promotions, corporate social philanthropy and community volunteering. A
'Helping Hands hand cream was launched whereby a portion oI money made Irom a
purchase was donated to assist the Iunding oI campaigns against child traIIicking in
the UK (The Body Shop, 2011). In store and On-line petitions were also introduced.
A customer who regularly buys Ior instance Superdrug`s own brand oI hand cream on
the basis that it is relatively inexpensive, convenient and satisIies the purpose Ior
which it was intended, may decide to purchase The Body Shop hand cream instead,
having carried out an evaluation oI the two brands as they Ieel they are making a real
diIIerence by contributing to a good cause. The unique selling point oI the hand cream
is that oI helping combat a prevalent and important issue. The implications oI buying
this hand cream are slightly diIIerent than purchasing an every day, normal hand
cream. Thus, it presents added values and the price is a representation oI this.
Furthermore, customer`s that routinely purchase ethical brands have a greater chance
oI purchasing ethical brands in other product categories also. Thus, The Body Shop`s
marketing material emphasises its ethical brand values consistently across their
product portIolio, helping to extend product liIecycles. It is evident that corporate
social responsibility sells, making it a viable marketing segment; 'Spending on
ethical food and drink has increased by 27 per cent in the last two years, from 5.1
billion to 6.5 billion` (Brightwell, 2010).

Thirdly, a product is acquired Iollowed by a post purchase evaluation. Cognitive
dissonance suggests 'we are motivated to re-evaluate our beliefs, attitudes, opinions
or values if the position we hold on them at one point in time is not the same as the
position we held at an earlier period (Festinger, 1957). Cognitive dissonance can
occur having made a decision to purchase based on the trust oI authenticity oI
inIormation provided by a company. For instance, purchasing a Starbuck`s coIIee on
the assumption that you are doing goodwill and contributing to better wages Ior
workers` when it is discovered that approximately '6 of Starbucks coffee is certified

airtrade (Hickman, 2008). This impacts the perceptions, attitudes and Iuture
purchase behaviour oI ethically conscious consumers. Consumers are willing to pay a
premium Ior the 'Ieel good Iactor. However, statistics such as the one above may
reduce brand loyalty due to credibility oI ethical credentials. In my opinion, Starbucks
had to rebrand their logo in order to rebuild trust, improve credibility, to promote their
green and ethical credentials as well as allowing them to extend into other product
categories. However, marketing implications will be costly in the short-term but will
beneIit the Starbucks ethos in the long term. The consequences oI cognitive
dissonance and corporations not abiding by corporate social responsible practices may
result in consumer boycotts, campaigns and lobbying. One example is Primark who
have been victim to multiple boycotts through magazines such as Cosmopolitan and
social network sites such as Facebook. Additionally, Primark was Ieatured on BBC
Panorama in 2008 Ior the unhealthy working conditions oI workers in the slums oI
India, generating cheap high Iashion quickly. ThereIore, unethical practices can
damage a company`s image and reputation.

In conclusion, ethical consumers are a rapidly growing market. Companies need to
ensure that they incorporate social responsible practices within their marketing
strategy. BeneIits to the brand include; positive image, greater recognition, attraction
oI a variety oI market segments, promotion oI greater customer loyalty and trust.
Ethical marketing needs to be sensitive, accessible, promote tangible beneIits and
match the attitudes, values, liIestyle and belieIs oI the ethical consumer. For a brand
to constitute as ethical, it must treat employees with dignity, provide good working
conditions, contribute to society and employ Kotler`s (2005) social initiatives.
However, 'business social responsibility should not be coerced, it is voluntary
decision that every company must make on its own (Mackey, 2011).