Consumer Ethics

Consumer ethics deals with issues pertaining to moral behavior in consumer markets. Because consumers are an integral part of the business process, it is imperative to understand both the underlying motivations for their propensities for buying ethical products and the reasons why some engage in unethical practices, which may be helpful in curtailing many questionable practices. Consumer ethics deals with a variety of issues such as willingness to benefit from questionable actions, consumer reaction to ethical transgressions by sellers, the perception of company ethics and product purchase, willingness of consumers to pay for socially acceptable products, and the emergence of reasons for consumer boycotts of business organizations. In addition, research has also investigated responsible consumer behavior, attitudes, and intentions to purchase specific ethical products, such as environmentally safe products, to name a few. Consumer ethics has also been shown to be deeply intertwined with marketing ethics.

Although there are inconsistencies in research findings, there are a few generalities that can be safely assumed. First, there is evidence that there are more ethically oriented consumers than those who are not. However, in one study, as many as 39 percent of the respondents indicated no ethical concerns, and more interestingly, there was very little variance related to demographic variables. Second, studies examining consumer choice of products with socially embedded messages (e.g., avoiding child labor in producing goods) found that clusters of “responsible” consumers do exist, yet “ex ante,” it was difficult to predict who was in these clusters based on just demographic factors such as age, gender, ethnicity, education, and so on. Third, the most significant predictor of future ethical behavior is one's past behavior relating to social causes, such as being involved in associations like Greenpeace or Amnesty International. Fourth, the actual behaviors of consumers are unrelated to the general attitude surveys or surveys measuring consumption ethics. Finally, ethical behavior can be affected by the nature of the product and the price that is charged. For low-priced and low-involvement products (e.g., bath soaps), more price-sensitive consumers were shown to be less ethically inclined, whereas for high-priced, high-involvement products (e.g., televisions), there was no relationship between price sensitivity and ethical attribute sensitivity.