The article in the link below questions the assumption of many CSR advocates that consumers care sufficiently about business ethics and CSR to sustain a fundamental shift in economic model (Issues: Ethics, p227). In essence, consumers will say one thing in response to survey questions about CSR, then turnaround and make their purchase decisions based on different principles:
“For most people to choose an “ethical” product over a regular product, that product must not cost any more than an ordinary one, it must come from a reputed brand, require no special effort to buy or use, and it must be at least as good as its alternative.”
In spite of a rise in availability of ethical products and producers willing to sell them:
“For the majority of consumers, cheap products of decent quality remain the popular choice.”
If true, then:
“… what incentives do businesses have in maintaining responsible or ethical standards?”
While the article addresses the issue of reputation risk for firms, it is at its most convincing in arguing that the threat of regulation represents the strongest incentive for firms to reform ahead of consumer demands that they do so (Chapter 1: The Rational Argument for CSR, p17). Because consumers are unlikely to voluntarily sacrifice their current standard of living for a future, uncertain benefit (the article argues), governments will eventually be forced to act on their behalf:
“… because the future will have to be one in which governments and regulators will have to take a much tougher line on the way externalities are priced by business.”
It is not the most forceful (or uplifting) argument for sustainable change, but it might be the best one that we have got!
Happy Thanksgiving!
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
Ethical consumers – Cop-out at the checkout
Consumers have shown that they will not push companies to be responsible
Chandran Nair
September 8, 2008
http://www.ethicalcorp.com/content.asp?ContentID=6074
