Beruflich Dokumente
Kultur Dokumente
v/s Sustainability
Debate on Consumer Ethics and
Innovative Practices Promoting Sustainable Business
BSM302 CSR+SD
Carlos Fierro
K1042263
MA Design for Development
31:04:2011
Content
Executive Summary
Introduction
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1.4 Summary
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3.2 Corporate Initiatives
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V. Conclusion
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VI. Recommendations
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VII. References
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Executive Summary
This report aims to explore ethical issues related to consumerism in a global context, to
identify the agents of consumerism and their participation in production and consumption, to
explore the role of marketing communications in businesses and its ethical social responsibilities,
to explore global and corporate initiatives relevant to the issue and to examine socially
responsible and sustainable business approaches to consumption.
Research shows that consumerism includes not only individuals, but also organizations
and governments and all agents that participate in production and consumption. The ethical
debate surrounding consumerism is framed by applying the perspectives of the theory of ethics
and duties, stakeholder theory and from the egoist perspective. A theoretical analysis illustrates
that all the agents that participate in production and consumption have the duty to make ethical
decisions supporting the preservation of the environment and social responsibility. To empower
the decision makers to make ethical decisions, it is fundamental that organizations and
governments provide and reinforce the decision-making process with the necessary information.
The Stakeholder analysis shows that consumers should be considered the most important
stakeholders in any business, and maintains that marketing plays an important role in that matter.
Marketing communications is one area that has the power to build relationships of exchange, to
understand needs, and generate fair communicational strategies. From the utilitarian perspective,
consumer behavior based on an egotistic ethical approach to production and consumption might
be unethical since the decisions made based on short-term outcomes can harm the environment
and be socially irresponsible.
It is important that companies are aware of the conventions and laws that have evolved
over time to protect consumers and the environment and that they adjust their business practices
accordingly. Moreover, the development of green marketing and other alternatives of ethical
consumption might assist consumers in making better informed decisions to choose more
sustainable products and services. To embrace this challenge it is essential to educate the public
about the social and environmental impact of consumption while considering cultural differences
in the delivery and acquisition of knowledge.
This report recommends that businesses consider new innovative modalities of
collaborative trading and that they should endeavour to learn more about consumer needs and
desires, and consider how the consumer organically participates in patterns of exchange. The
rapid development of new technologies and consumer dynamics makes this recommendation
possible and cost effective for businesses. Moreover, companies should consider new value
systems in trading and consumption for the development of more sustainable businesses and
products; considering for example the durability, exchange, cooperation, recycling and the
evolving life of products.
Introduction
Consumerism is one of the most influential social phenomena that have impacted the
social, economic and environmental characteristics of western cultures in the last 70 years.
Moreover, in the last 30 years the world has experienced an incremental globalization of
businesses and market places; countries, societies and cultures from diverse regions of the
planet have become more engaged in massive production, commercialization and consumption
of goods on the premise of economic growth, social development and wealth accumulation.
The relationship between companies and customers is defined by marketing, which
provides companies with product policies, marketing communications, pricing approaches and
distribution practices. Marketing generally has been criticized for encouraging consumerism and
materialism. Consequentially, marketing influences not only individuals but also the economic,
social and cultural dimensions of societies and their environments. In addition, the role of
marketing communications is to develop communication strategies to inform and persuade
customers about the selection and consumption of products and services.
The aim of this report is to explore the ethical debates on the subjects of consumerism
versus sustainability and innovative global and local approaches towards sustainable business
practices from a responsive corporate angle. The debate involves exploring the theoretical the
framework that provides ethical perspectives on the issues of marketing communications,
consumer behavior and their social and cultural impact on society and the environment.. The
report will then examine relevant global and corporate initiatives developed to address the issues
of consumerism and sustainability. Finally, a case study will be used to illustrate innovative
practices for sustainable businesses.
(The state of human development, United Nations Human Development Report 1998)
Consumer behaviour and consumer ethics model. Source: Johannes Brinkmann (2008)
A typology of primary ethical shopping motives (source: Etisk forbrug..., 2003, p. 21; authors table construction and transl.
from Danish).
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The current debate on sustainability and social responsibility has grown louder as it has
become widely accepted that the planet does not have enough resources to sustain the existing
economic models of consumerism,. The current lifestyle patterns of convenience and a
throwaway mindset have contributed to the degradation of the earths ecosystem by 60 percent in
the last 50 years (UNEP, 2010). Currently 90 percent of raw materials extracted from the earth
become waste within 90 days (Chapman, 2005).
Consumerism is seen as the foundation of western economic strength, and has been
rapidly adopted as a role model by developing countries like China. However, analysts such as
Jonathon Porrit (2007) emphasize that consumerism is a behavioral factor that contradicts
sustainability.. Porrit argues that the application of current economic western models to emergent
markets like China, with a population over 1.3 billion (Wikipedia, 2010), will be impossible to
sustain in the next 10 years since the planet does not have enough resources to supply the
production of products for those markets.
1.4 Summary
Consumerism is a cultural outcome produced by a complex set of economic social and
political decisions, actions and interactions. Such decisions involve several actors, which in their
particular contexts are responsible for making decisions on either side of the production and
trading chain. Those decisions can be influenced by communicational strategies used by
marketing management. As a consequence, those decisions provide a parameter for future
actions and policy development in local and global businesses and markets with the subsequent
environmental, social and economic impact.
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being intrusive, perpetuating social stereotypes, and creating insecurity and perpetual
dissatisfaction.
In addition, the corporate effect principle implicit in the stakeholder theory means that
companies are responsible for the effects of their performance on others. In the case of mass
marketing of products and brands, in the context of a globalized economy, an unethical practice
on a global scale can endanger the survival of local cultures and ultimately lead to an increase in
cultural homogenization. (Baughn and Buchanan, 2001).
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The United Nations guideline on consumer protection, (Source: Business and Ethics, Crate and Matten, 2010)
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Currently, global and local policies, self-regulations and business ethics support the
development of an ethical approach to marketing. Green marketing, the development of ethical
brands, third party sources and investment in promoting community relations are some of the
marketing initiatives developed to respond to CSR criteria and business ethics. Nevertheless, a
recent research by Du, Bhattacharya and Sen (2007) indicates that not all CSR initiatives are
developed equal, consumers react positively to a brand that relate itself on CSR, than to brands
that only engage in CSR for convenience. If CSR strategy is integrated with core business
strategy, consumers are more likely to hold positive beliefs towards the brand, have greater
purchase likelihood, be more loyal and engage in advocacy behaviour (DallOlmo Riley, 2011).
3.1.1 Ethical Consumption
Third party sources, ethical organizations working in social responsibility or
environmental issues, are important marketing factors that can influence ethical consumption.
The choice of purchasing becomes a voting behavior; the consumer evaluates the product
beyond its physical condition by considering the products social impact before its acquisition.
Information and awareness are key elements for ethical decision-making. For example, when a
consumer chooses to buy Fair Trade products like coffee or chocolate bars because the
consumer understands, and buys into, the long-term social impacts promised by the Fair Trade
label.
3.1.2 Collaborative consumption
Collaborative consumption is a social-economic phenomenon that is spreading full-speed
around the world. The defining characteristic of this business model is the use of the Internet as a
vehicle for locating and trading goods, services and collaborations. The business has grown
organically with the development of Internet and digital technologies that support international
transactions and online banking. The collaboration arises in all imaginable areas of human
development, from Wikipedia, to eBay to Couch Sharing around the world.
Botsman and Rogers (2011) identify four underlying common principles across
collaborative consumption practices: critical mass, idling capacity, belief in the commons, and
trust between strangers. Critical mass is a sociological term used to describe the existence of
enough momentum to make a system self-sustained. Idling capacity refers to the resting time our
possessions have between uses. Belief in the commons comes from Roman times when certain
property and space was defined as res- publica, meaning that they were set aside for public use.
Trust between strangers is perhaps one of the most interesting phenomena to arise from the
Internet which has allowed unacquainted users to enter into exchanges that require trust..
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V. Conclusions
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Markets and technology are developing at a speed never before seen, and generating
rapid transactions and the overwhelming production of new goods and new global markets. From
a corporate social responsibility perspective, it is key for individuals, organizations and
governments to recognize the impact of consumerism on the environment and society and to
explore the issues with the public through an open discussion. The development of green
marketing and other ethical consumption alternatives could encourage consumers to make better
informed decisions and choose more sustainable business products and services.
Furthermore, innovative businesses premised on collaborative consumption break with
the traditional forms of marketing and bring a fresh dynamic to business practices. Collaborative
consumption demonstrates that markets have changed and the customer has become more
savvy than the marketer.. Collaborative consumption has revived the interactions familiar to small
village economies , demonstrating that technology can help us to be more human and reconsider
values like trust and sharing as part of common business practices.
VI. Recommendations
In our global market, behavioural consumption is changing, technology is becoming more
ubiquitous and business practices are recognizing that the active participation of stakeholders in
the marketing process results in a more successful business.
New business should consider new innovative modalities of collaborative trading, and
should learn more about consumer wants and how the consumer organically participates in the
flux of exchange. Moreover, companies should place higher value on trading in the development
of more sustainable businesses and products; considering for example the durability, exchange,
cooperation, recycling and the evolving life of products.
On behalf of promoting CSR, companies, organizations and governments might use all
available media to learn and advocate for more innovative practices towards sustainable
businesses. To embrace this challenge it is essential to educate the public about the social and
environmental impact of consumption while considering cultural differences on the delivery and
acquisition of knowledge.
VII. References
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Crane, A. and Matten, D. (2010), Business Ethics. 3rd. edn. Oxford University Press Inc., New
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Botsman,R. and Rogers, R. (2011), Whats Mine is Yours. Revised Updated. edn.
HarperCollinsPublishers, London, UK.
Chapman, J. (2005), Emotional durable Design: Object, Experiences & Empathy. Trowbridge:
Cromwell Press
DallOlmo Riley, F. (2011), Lecture 9 CSR in a Marketing Context. [Online]. Available at:
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Brinkmann, V and Peattie, K. (2008), Consumer Ethics Research: Reframing the Debate about
Consumption for Good. [Online]. Available at: http://ejbo.jyu.fi/pdf/ejbo_vol13_no1_pages_2231.pdf (Accessed: 24 February 2011).
Porrit, J. (2007), Consumerism vs. Sustainability. [Online]. Available at:
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Thake, S. (2008), Individualism and consumerism: reframing the debate. [Online]. Available at:
http://www.jrf.org.uk/publications/individualism-and-consumerism-reframing-debate (Accessed: 24
February 2011).
Veblen, T. (1899), The Theory of the Leisure Class. [Online]. Available at:
www2.hn.psu.edu/faculty/jmanis/veblen/theory-leisure-class.pdf (Accessed: 24 February 2011).
United Nations Development Program, UNDP. (2008), Annual Report. [Online]. Available at:
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Wikipedia. (2010), Demographics of the People's Republic of China. [Online]. Available at:
http://en.wikipedia.org/wiki/Chinese_population(Accessed: 24 February 2011).
Zaho, D. (2010), Zipcar's Acquisition of Streetcar Accelerates Carsharing Growth. Frost &
Sullivan's Automotive Practice. [Online]. Available at: http://www.frost.com/prod/servlet/marketinsight-top.pag?docid=190795176/ (Accessed: 24 February 2011).
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