The Concept of Ethical Consumerism - Coursework Example

Table of contents Executive summary 2 Introduction 2 Ethical consumerism 2 Google Inc 4 Results from the opinion survey 6 Conclusion 7 Recommendations 8 References 9 Appendix 11 Executive summary This report focuses on the concept of ethical consumerism, what it is, and what it involves. The report also focuses on one company, which, in this case, is the Google Company. On the company, section the paper talks about the approaches adopted by the company that are ethical and that relate to the concept of ethical consumerism. From there the paper focuses on the key findings of primary research conducted in relation to the concept of ethical consumerism. Basically, the main conclusion is that many consumers do not adopt ethical consumerism concept even with the unending benefits from it Introduction Recently, many companies and organizations try to position themselves in the principled moral and ethical organizations. Many have tried producing products that are ethical, in that products that do not have impacts on the consumers, the general society, and the environment. At the same time the understanding about ethical consumerism has grown wider, the term means different things to different people (Lewis, 2011). However even with the different meanings the term involves a concept under which consumers of products have knowledge on the products they use in relation to the negative impacts the product has on them, the environment, and the society. In these, the companies mainly focus on environmental impacts, and the impacts the products have on the consumers (Carrier, 2012). This drastic changes in corporation becoming ethical shows that awareness among consumers about ethical issues has increased, and the corporations must now produce products that are ethical and dont have any negative impacts. Ethical consumerism Ethical consumerism, also known as ethical purchasing, ethical consumption, moral purchasing, or ethical shopping is a consumer activism concepts based on dollar voting. Ethical consumerism involves ‘positive buying in that favourism only falls on the ethical products. Ethical consumerism involves buying things made ethically, in that buying products that have no harm to either human, natural environment or animals. The ethical products can take the form of either positive buying or moral boycott; positive buying is the favoring of ethical products and all the businesses operating on the principles based on the benefits of the greater rather than those of self-interests (Harrison, 2005). Moral boycott, on the other hand, is the company based purchasing or negative purchasing, ethical consumerism revolves around consumer activism, in that in this concept the customers take responsibility for the decision they make when purchasing goods and services. Rapid and significant progress ad spread of communication and information technologies have contributed the development of ethical consumerism. This progress in communication and information technologies are mainly internet based, and the role the media plays in exposing all the bad practices when it comes to the global supply chains of products and services (Carrier, 2012). The concept is commonly known and understood by the people due to the many charities, trade unions, and civil society organizations who run campaigns with the aim of informing customers of how the goods and services they use are manufactured, and produces (Healey, 2007). The main aim of the organization is to expose and highlight the profits made by different companies. Ethical consumerism concept applies to the international purchases made by consumers of different products and services. The concept is about the purchasing of goods made under all the necessary ethical conditions by companies, companies that tend to behave in a socially and ethical manner. Ethical consumerism also involves the practices involved in purchasing of goods and services in a method under which environmental risks are prevented and at the same time, avoiding the products and services believed to have negative impacts on the general environment and the society, in that the concept minimizes and at the same tie avoids. In case the products already exist, then the concept minimizes the risks, at the same time the concept avoids the production of services that may have impacts on the environment and the society. Ethical consumerism brings rise to another concept, the concept if an ethical consumer, the two concepts work hand in hand, and an ethical consumer is the person who purchases the goods and services produce ethically. In that, he or she considers the possible negative impacts a product may have on him or her, animals and the environment. When a consumer purchases a product that does not have negative impacts on the society and the environment, and then he or she is an ethical consumer. The concept involves consumers knowing what they buy and at the same time understand that ‘not knowing may lead to exploitation and abuse. Ethical consumers revolve around the consumption levels and are usually not anti-consumerists. Google Inc. The Google Company does adapt to some approaches that help it run and operate ethically; the company adapts some approaches that enable it runs in a socially conscious manner. In the past few years, the company has been rated among the best company in the word. The main products from the company fall under several categories, this includes, the web, mobile, business, geo, media, home and office and social. Many people all around the world depend greatly on these products from Google, for example, the web is used in almost all corners of the world in the search for information. Referring to ethical consumerism, the main approaches the Google Company uses in relation to ethics and values are trust, choice, and privacy (Ten things we know to be true). This is the main approaches help the company in becoming a business that is more socially conscious. The company, in the year 2014, was ranked the best company operating ethically in the computer services category. The company management understands that earning trust is hard, and it is almost impossible to win trust back once it a business loses it. It also understands that in the changing and advancing world of technology it is difficult to ensure the regulation of information technology. Many consumers tend to choose to trust different companies with their private information, the company on the other hand exchanges this trust with the services used on daily basis. To some extent, the companys approaches that tend to guide the company convince the consumers to use their product despite the fact that the company collects and stores a lot of information about these customers. With the many customers in using the services and the products of the company, it is evident that the company does use some ethical approaches in its management. The company has a privacy policy that results to the many consumers having trust in the company The Google Companys motto says it all; their motto ‘dont be evil shows that the company focuses towards ensuring good and not evil. Since the company promotes good and not evil, then so does its product, even with a lot of information the company holds about its users, it is still among the most ethical companies. The Google Company mainly generates its revenues from the advertisements displayed on the site and the other sites across the Google web. To maintain that these adverts are ethical and that consumers can use the products, and then the company follows some ethical steps. These steps include the failure to display adverts that are not relevant and those that violate the companys code of conduct. Through this, the company aims at ensuring that they follow their policy and that the customers receive the most ethical products. Since many of the services from the company are internet based, then the company believes that with privacy, then comes trust (Ten things we know to be true). Another method they use to ensure this is by treating their employees well, the company believes that when the employees are satisfied, and then so will be the consumers. The employees are trained to work ethically and approach their consumers ethically at the same time. Also, many consumers believe that those companies that treat their employees well, and then they can be trusted. Results of the opinion survey The opinion survey conducted was to gather information about what influences consumer buying behaviors. The sample size was 15 students at the GSM London; from the sample, many of the students gave the same answers on what influences their buying behaviors. From the survey, I gathered that the main factors that influence buying behaviors are the psychological factors, the personal factors, the social factors, and finally the cultural factors. Many of the answers from the student sample followed that order; to them psychological factors are the main factors that guide what they buy and the buying patterns. Under the psychological factors, there are motivation beliefs and attitudes, perception and learning. The motivation being the main driving factor to what they purchase, this involves the need that later becomes a pressing factor that leads to the purchase of that particular product. Motivation is difficult to measure as once the need for something comes then it keeps on increasing. Perception is the idea that one possesses about a particular product, if one thinks a reading, a certain book will lead to better grades then the person goes ahead to purchase it. Purchasing in relation to perception depends on the students experiences, personal characteristics and the beliefs. Different students from the sample had different perceptions as to why they purchase certain products, but many were influenced by the believes they hold The personal factors also influence the reasons people purchase certain products, with many of the behaviors influenced by different characteristics of the consumers. Under this, there is the revenue and the lifestyle, purchasing a particular product after the psychological factors is then influenced by the revenue that is how much money does one have. People tend to purchase products that they can afford. The lifestyle includes the interest and the value that is does one have, and interest in a certain product and how much he or she values it. The cultural factors are influenced by the societal factors, information from the sample showed that culture does influence buying behaviors related to cultural environments and the culture that the consumer belongs (Harrison, 2005). The sample stated that friends family and even the society influence their buying behaviors. For example, in order to purchase a certain brand, one takes no considerations the cultural factors revolving around the product and the buyer him/herself. When buying products, the consumers also consider the origin of the product. Conclusions As per the results from the primary research, it is evident that buying behaviors are rarely influenced by the ethics of the producers of the goods. It is evident that many consumers purchase goods on what to satisfy their needs and not based on moral consumerism. As seen ethical consumerism involves buying products that are ethical, in that they do not have adverse impacts on the buyer, the environment, and the society in general. Well, in many cases it is obvious that many consumers purchase products that are ethical in relation to personal impacts but not in the general society and the environment. In the survey, it is evident that purchases are influenced by what the consumer wants and what class and revenue he or she has, no one in the sample mentioned that they take the environment or the society, in general, when purchasing their preferred products (Lewis, 2011). However, the environment may fall into the cultural factors where some cultures promote environmental conservation and promote the purchasing of products that are environmental friendly. In this case, it is evident that, even with the understanding that ethical consumption is good, people still buy products which satisfy their personal needs. Recommendations From the study, in order to promote the concept of ethical consumption then the company must ensure that their products are ethical and observe all the business ethics. Even with the positive claims about the Google Company, there are still flaws that show that the company at times fails to meet the business ethics (Quastel). Some of the adverts in the sites are not good in that they do not observe ethics, for example at times, there are pornographic popups. In this case then the company should ensure that all their services in the different categories observe ethics and follow their code of conduct. References Carrier, J. (2012). Ethical Consumption. Berghahn Books. Carrier, J. (2012). Ethical consumption: Social value and economic practice. New York: Berghahn Books. Carter, C., & Tempe, A. (2007). Ethical issues in global buyer-supplier relationships. Tempe, Ariz.: Center for Advanced Purchasing Studies. Code of Conduct – Investor Relations – Google. (n.d.). Retrieved April 15, 2015, from https://investor.google.com/corporate/code-of-conduct.html Ethical Consumerism - IGD. (n.d.). Retrieved April 15, 2015, from http://www.igd.com/our-expertise/Sustainability/Ethical-social-issues/3429/Ethical-Consumerism/ Ethical Consumerism - Knowmore.org. (n.d.). Retrieved April 15, 2015, from http://www.knowmore.org/wiki/index.php?title=Ethical_Consumerism Harrison, R. (2005). The ethical consumer. London: SAGE. Healey, J. (2007). Consumerism. Thirroul, N.S.W.: Spinney Press. Healey, J. (n.d.). Ethical consumerism. Henn, W. (n.d.). Consumerism: A challenge for ethical guidelines. Journal of Ethics, 444-446. Kelly, J. (2003). Consumerism. Cambridge [England: Grove Books. Lewis, T. (2011). Ethical consumption: A critical introduction. Milton Park, Abingdon, Oxon: Routledge. Quastel, N. (n.d.). Ethical Consumption, Consumer Self-Governance, and the Later Foucault. Dialogue, 25-25. Ten things we know to be true – Company – Google. (n.d.). Retrieved April 15, 2015, from http://www.google.com/about/company/philosophy/ What does ethical consumerism mean? - Definitions.net. (n.d.). Retrieved April 15, 2015, from http://www.definitions.net/definition/ethical consumerism Appendices Opinion survey questions Opinion survey on consumer buying behaviors 1. What is your name and age? 2. Where do you come from? 3. How many times do you go shopping? a) Once a week b) More than once a week 4. do you understand about buying behaviors? a) Yes b) No 5. Do you believe in ethical buying? a) Yes b) No 6. How would rate ethical production a) Excellent b) Good c) Fair d) Poor e) None Appendix 1: Question 1 Response Chart Percentage Count 18-21 63.7% 8 22-25 36.3% 4 Total Responses 12 Appendix 2 :Question 2 Response Chart Percentage Count United States 80.4% 9 Foreign 19.6% 3 Total Responses 12 Appendix 3 :Question 3 Response Chart Percentage Count Once a week 82.4% 9 More than once a week 17.6% 3 Total Responses 12 Appendix 4 :Question 4 Response Chart Percentage Count Yes 90.4% 10 No 0.6% 2 Total Responses 12 Appendix 5 :Question 5 Response Chart Percentage Count Yes 80.4% 9 No 19.6% 3 Total Responses 12 Appendix 6: Question 6 Response Chart Percentage Count Excellent 24.7% 2 Good 34.9% 5 Fair 30.3% 3 Poor 10.2% 2 None 0% 0 Total Responses 12 Read More