2009 was a toughie, with the freak snow storms in February, the banking crisis, mass redundancies, right through to the closure of our local Woolies. Somehow I feel we have come out of it stronger – we have survived, granted some better than others, and consumers are still consuming. We see from one of the news items on the Co-op’s research this is even more prevalent in the ethical sector.
The market is still growing, the revolution has permanence and if you haven’t already, I would suggest its time to take it seriously.
It offers growth opportunities through new products, new markets, new consumers; it provides cost savings through resource efficiency and improves employee and consumer brand loyalty.
Businesses can introduce new product ranges (think Gap’s Organic Baby clothing range) or certify a traditional brand (both Dairy Milk and KitKat are now Fairtrade). You could even take a holistic approach and work throughout your business to improve your entire supply chain operations – improving the credentials of your whole product mix. Walmart, for example, is committed to selling only Marine Stewardship Council (MSC) certified fish in its 3,700 US stores, and was halfway towards meeting that goal in January 2009. Businesses aren’t doing this only because it makes them feel good – it’s a true commercial opportunity.
The market is here to stay and it’s up to businesses to ensure they make the right ethical business decisions – what works for their consumers, fits with their brand and their core business; ideally with transparent communications into the rest of their business. The evidence shows it doesn’t just make ethical sense – it makes good business sense too.
Kate is a senior consultant at Corporate Citizenship.
Ethical sales grow 3-fold in decade says the Co-operative Bank
Expenditure on ethical goods and services has grown almost three-fold in the past 10 years according to The Co-operative Bank’s Ethical Consumerism Report published on December 30. The report shows that overall the ethical market in the UK was worth £36 billion in 2008 compared to £13.5 billion in 1999. Sales of Fairtrade goods were just £22m back in 1999 but last year that figure had grown to £635m and it is expected that during 2010, Fairtrade purchases will break the £1 billion barrier for the first time.
The data also shows that sales of energy efficient electrical appliances and boilers, which have grown 12 fold and nine times respectively, have also seen exceptional growth while the mature financial services market has seen ethical banking and investments triple over the course of the decade.
Food miles’ mantra can be ‘miles worse’ for climate and communities
Western consumer concern over climate change can do more harm than good if it cuts demand for food produced in developing nations, warns a new book by Oxfam and the International Institute for Environment and Development (IIED). The authors say locally produced food can actually cause greater emissions of greenhouse gases, and that consumers can harm the livelihoods of poor farmers in developing nations if they stop buying their produce. The book was launched on 11 December at the UN climate change conference in Copenhagen. It has been produced in response to growing calls for consumers to ‘eat local’ to help tackle climate change – calls that the book’s authors say do not tell the full story.
According to new research of supermarket shoppers, released on January 7, by NewcastleBusinessSchool, 72% of consumers want carbon labels on their food. A total of 432 shoppers across all of the UK’s major supermarkets were questioned on their demand for carbon labelling, their knowledge of their personal carbon footprints, whether they think climate change is an important issue when buying food, and whether current carbon labels are easily understood. The report found that 83% of shoppers do not know their own personal carbon footprint, but almost three quarters of respondents said that clearer carbon labelling on food products would help them to think ‘green’. The Carbon Trust is currently working with the food industry, including big brands like Boots and Innocent to help manufacturers determine and display the carbon footprint of different items.
Blackwashing: do NGO tactics risk long term public trust?
A report published recently in the Journal of Tropical Biology and Conservation analysed the publicity tactics used by both NGOs and palm oil companies on the issue of tropical deforestation. It is openly critical of groups, including Friends of the Earth and Rainforest Action Network (RAN), for making, ‘exaggerated claims in their campaigns…misleading and unverified accusations of avoidable environmental degradation by corporations.’ For example, RAN has claimed that ‘orangutans are predicted to become extinct as early as 2011’. This claim is untrue and is evidence of what the report terms ‘blackwashing’, a word used to describe environmental scaremongering and propaganda. The report argues that greenwashing by some corporations and blackwashing by some environmental activists could hinder conservation outcomes through the erosion of positive public perception and the creation of consumer apathy.
Contact: The Association for Tropical Biology and Conservation
One in three Brits believe climate change cannot be solved
Almost a third of British shoppers are worried that we will be unable to reverse the impact of climate change, whatever we do, according to a poll by food and grocery retail analysts IGD, released on December 16. Joanne Denney-Finch, chief executive of IGD, said: ‘It is easy to polarise the debate about climate change between believers and disbelievers, but as our research shows, shoppers tend to split at least three ways between being dismissive, believing it is irreversible, and believing it can be solved.’ When asked what they feel they can positively influence through their shopping habits, 57% of consumers said personal health, 41% of consumers said British farmers, 38% said the way animals are treated, 26% said farmers and workers in poorer nations, 23% said the environment, whilst only 11% of consumers cited global warming. Joanne continued: ‘At the moment, the environment and global warming do not feature high up in the list of areas that shoppers feel they can influence through their purchase decisions. This is an area that many companies are working on to make environmental choices clearer and simpler in the future.’
Rise and fall of consumer interest in ethical business
A research report conducted by Ipsos MORI for business labelling organisation See What You Are Buying Into, titled ‘Tough Choices in Tough Times – the decline of consumer interest in ethical business’ was published 22 December. Comparative studies were carried out in 2005, 2007 and 2009 and show that whilst social, environmental and ethical issues remained mainstream for the British public in 2009, there has been a decline from the 2007 peak, and priorities have changed. The report outlines how 56% of people are currently prepared to pay a little extra for products which meet higher ethical standards (compared to 63% in 2005 and 68% in 2007); whilst 71% think that it’s difficult to know which products meet such standards. Furthermore, people remain sceptical of business motives: 73% of people believe that many companies pretend to be ethical just to sell more products. Breakdowns by age, sex, social class and geographical region show significant variation. For example, while men are more prepared to pay extra for ethical products, women place more importance on working for a responsible company.
New influential report places culture at the heart of commercial practice
Arts & Business commissioned Joseph Pine & James Gilmore, the authors of ‘The Experience Economy’ and ‘Authenticity’ to explore the driving changes in cultural consumption and prove how brands and businesses can rebuild relationships with their markets through dynamic and innovative associations with culture and the arts. ‘Beyond Experience: culture, consumer & brand’ explores how culture can be placed at the heart of commercial practice. The writers investigate the changing nature of consumers, and their increasing need for authentic experiences and meaningful transformations. The report shows that businesses still want to invest in the arts, but are looking for new ways to engage. The publication goes on to track the move away from contracts of pure sponsorship and towards more sustained and collaborative partnerships.
According to a survey commissioned by fashion and textile trade association Skillfast and released on December 23, 75% of consumers think there should be a ‘green’ label, so that they can tell if clothing has been produced in a sustainable way – though far fewer said they would be persuaded to buy clothes simply because they wore that ethical standard on their sleeve. 3,000 consumers were quizzed on their views, with 82% saying they thought fashion and textile students should be taught about ethical and sustainable manufacturing – an area employers say is not being addressed by universities and colleges. In answer to the question ‘do you think that the government should do more to encourage companies to manufacture fashion clothing in the UK? 81% of consumers agreed.
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