Consumerism vs. Ethical Issue (part1)

Over time, consumers particularly in Western societies, change their consumption habits and perceptions as they progress along Maslow’s Hierarchy of Needs. Utilitarian needs are taken over by pursuit for upward mobility. In response to such changes, organizations have been accused to driving materialistic behavior and deceiving consumers, and resorting to unethical practices in their pursuit for greater profits at the expense of the environment, fair trade, animal welfare and so forth. Research find that as organizations adopt genuine ethical and consumer-centred business practices, and consumers in turn develop trust in organizations, there could be a positive outcome for both ends. An organization’s gain would be long-term competitive advantage and a sustainable business achieved through ethical integrity.

The two concepts are now widely adopted by organizations, particularly multinationals, tobacco and oil companies, and research has revealed that consumers, using aspirations as a basis of reference, favor organizations that engage in consumerism and ethics. However, further research into this topic also uncovered a number of issues against the affirmative argument, largely related to consumer attitudes, perceptions and motivations.

(daisy, taken from My Buyer Behaviour Report, 2008. Acknowledgement: Joanie)