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214
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
copy 2004 Blackwell Publishing Ltd
Blackwell Science LtdOxford UKIJCInternational Journal of Consumer Studies1470-6431Blackwell Publishing Ltd 200328
3214221
Original Article
Ethical consumerismO
Uusitalo and R Oksanen
Correspondence
Outi Uusitalo School of Business and Economics PO Box 35 FIN ndash 40014 University of Jyvaumlskylauml Finland E-mail uusitaloeconjyufi
Ethical consumerism a view from Finland
Outi Uusitalo and Reetta Oksanen
School of Business and Economics University of Jyvaumlskylauml Jyvaumlskylauml Finland
Abstract
Business ethics and corporate social responsibility have
gained more attention in recent years However the consum-
ersrsquo perspective on ethics is still a little researched area This
study reports a survey (
n
= 713) on the views of Finnish
consumers about ethics in trade Consumersrsquo willingness to
promote business ethics as well as the obstacles to ethical
consumption are investigated The results of the study show
that while the majority of the respondents regard business
ethics as important this attitude does not translate into their
choice behaviour Consumers are uncertain about which
products and firms follow ethical rules and which do not
The most important obstacles to ethical consumption were
difficulties in obtaining information problems in product
availability and high prices of ethical products
Keywords
Ethical consumerism
ethics in trade
consumer
behaviour
information processing
Introduction
Social responsibility has become an important corpo-rate goal It is no longer enough that shareholdersrsquo goalsare attained corporations are also increasingly beingevaluated on the basis of how they meet societyrsquos ethicaland moral values
1
The trend towards globalizationplaces a new emphasis on the responsibility of the indi-vidual consumer Consumers require social responsibil-ity from corporations Ethical consumerism addressesthe social and environmental consequences of globaltrade Ethical consumer choices are also becoming afactor in consumersrsquo lifestyles
Ethical and sustainable business practices imply thatneither consumers nor corporations can ignore the con-sequences of their actions Corporations have to accept
responsibility for how they do business so that consum-ers can make ethically sustainable decisions Today con-sumers can choose from a wide variety of products andmanufacturers An active and knowledgeable consumercan effectively make use of goods and services accord-ing to her or his own interests As a result of globalcompetition consumers may prefer also locally manu-factured or traditional products because of their safetyand familiarity Ethical and sustainable business prac-tices are an important competitive advantage whereconsumers value and rely on them
Interest in ethical trade is on the increase as this issuehas recently been discussed and debated widely in theFinnish media At the same time ethical consumptionand the purchase of ethical products has not become acommon practice The purpose of this paper is to inves-tigate ethical consumerism from the perspective ofFinnish consumers We focus on the problems that con-sumers might encounter when they are pursuing ethicalchoices The research question is
bull How do Finnish consumers perceive ethical trade
This can be subdivided into
bull How well do the different information sources per-form in transmitting information about ethicaltrade
bull What is the role of ethics in consumer decision mak-ing
bull What are the obstacles to ethical consumption andpurchasing
This paper focuses on examining consumer percep-tions and decision-making processes as well as purchas-ing intentions rather than actual ethical purchasingbehaviour In order to understand ethical consumerismwe have to get deep insights into the antecedents toethical purchasing By studying consumer perceptionsof and attitudes towards ethical trade the concerns anddifficulties that consumers face when trying to makeethical choices will be highlighted
copy 2004 Blackwell Publishing Ltd
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
215
O Uusitalo and R Oksanen
bull
Ethical consumerism
The ethical consumer
The concept of green consumption is already establishedin the field of consumer behaviour
23
The ethical con-sumption concept broadens this view by including theethical and moral aspects present in production anddelivery of goods for example the use of child laboursuppressing or preventing labour unions and testing onanimals Ethical consumer practices aim at the fulfilmentof the objectives of socially responsible trade The eth-ical consumer ideal implies that individual consumerscan have a significant role through their daily purchas-ing decisions in promoting ethical corporate practicesCorrespondingly ethical trade refers to internationaltrade that aims at preventing the injustices of globaltrade such as child and low-paid labour pollution of theenvironment infringement of human rights and the ine-qualities in development caused by globalization
A visible aspect of ethical consumerism is that theconsumer considers not only individual but also socialgoals ideals and ideologies Sometimes a conflict maybe perceived between personal and collective benefits
4
On the other hand consumers may gain personal ben-efits from the fulfilment of collective goals Ethical con-sumption is thus also a form of symbolic consumptionIn this view a consumer pursues an ethical lifestyle oridentity or other social values
3
The previous studies in this field indicate that con-sumersrsquo attitudes towards ethical consumption havebecome more positive but that this attitude shift has notbeen reflected in behaviour The attitudendashbehaviourgap
56
is visible in many purchasing situations Althoughconsumers are concerned with the surrounding societyand they feel they should act in a socially responsibleway other issues such as price value quality and brandare often more important choice criteria than ethics
78
This discrepancy may be owing to variety seeking oreconomic and social factors that intervene in the choicesituation
2
Especially in conducting daily purchaseswhere involvement is low consumers are not willing todevote additional effort in order to make a pro-ethicalchoice
7
Consumers take ethical considerations intoaccount provided that they do not have to compromisetheir other choice criteria or principles It is for thisreason that the role of the store is critical Retail storescould better assist consumers and source their supply of
goods as well as design their displays so that ethicalchoices are quick and easy to make
Today consumers are more informed and educatedand aware of what is required of products as well astheir rights and responsibilities as consumers Howeverthis awareness does not necessarily imply better con-sumption decisions or more ethical choices
7
Many con-sumers are uncertain about which firms conduct ethicalpractices and which do not
8
Moreover consumers maynot know which products are ethically produced andwhich are not and why
9
Consumers seem to prefer to follow a selective ratherthan totally ethical pattern of the consumption Theselective ethical consumer aims at opposing specificethical injustices such as child labour environmentalpollution or testing on animals
7
Consumers may findit difficult to consider several ethical aspects simulta-neously Interest in ethical consumption is highest whenconsumers find they can influence their own livesthrough their choices
7
In order to make ethical choices consumers needinformation Currently because of the proliferation ofbrands and images consumers may find it difficult toform an accurate picture of the ethical conduct of cor-porations Of crucial importance here will be the devel-opment of governmental regulation of corporatedisclosure environmental claims and general informa-tion availability
10
Consumer opportunities to supportethical world trade have improved over the last fewyears For example the Association for Fair Tradewhich was founded in Finland in 1998 imported the FairTrade label into Finland This label is granted to prod-ucts whose raw materials and production processes arein accordance with certain ethical principles
11
Consumer decision making and choice is ethical consumerism possible
The purchase and consumption of ethical productsrequire that a large amount of effort be invested ininformation acquisition and decision making In addi-tion consumers have to be willing to pay higher pricesfor these products Some of the obstacles to makingethical choices may lie in the consumer decision-makingprocess In their daily shopping consumers engage inroutine problem solving
12
In this situation consumers
Ethical consumerism
bull
O Uusitalo and R Oksanen
216
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
copy 2004 Blackwell Publishing Ltd
do not devote time to searching external information orevaluating the alternatives Instead purchase intentionand choice remain unchanged However consumersmay conduct more complicated choice processes espe-cially when they buy a given product category for thefirst time For example consumers buying Fair Tradeproducts for the first time may engage in extended prob-lem solving She or he is motivated to take the troubleto select an ethical product and pay a premium for itOver time this ethical decision will become routine andsatisfaction can reinforce intentions and strengthen thelikelihood of continued response
12
Consumers need up-to-date and accurate informationin order to make ethical choices Information aboutfirmsrsquo ethics should be conveyed to consumers in sucha form that it easily reaches them and does not causethem any inconvenience
1314
Seeking information willbring benefits but it also causes costs to consumers Thepossible costs include time money effort and delayingthe decision benefits of information include satisfactionwith the choice cost savings and the feeling that thechoice was worthwhile
1215
Consumers often use severalinformation sources simultaneously the differentsources complement each other varying in significanceaccording to the choice situation
16
Some consumerslook for comprehensive information while others maketheir choices on the basis of rather scanty information
12
Scanty information seeking may be explained by thetendency of consumers to reduce the effort involved inmaking judgements
17
According to this theory consum-ers are not maximizing their utility but make a choiceas soon as they find a satisfactory alternative Consum-ersrsquo information gathering resources of time money andeffort tend to be restricted An ethical decision does notalways entail that the consumer is completely informedabout all the aspects that affect purchasing and consum-ing the product
Publicity about unethical conduct is noticed moreoften than publicity concerning ethical conduct
7
Con-sumers tend to impose a sanction on an unethical firmby refusing to buy its products but will not reward anethical firm by buying its products Even though acquir-ing information helps some consumers make an ethicalchoice others may feel that this additional informationis confusing and it increases their sense of uncertaintyThus making decisions becomes even more difficult
when ethical issues have to be considered in addition toprice quality and other criteria
Todayrsquos informed and aware consumer may then beconfused about the information circulating on ethicaltrading and ethical product alternatives
18
Too much ofthis information may be false or not enough of it accu-rate Such confusion may be increased by the fact thatsome of a given firmrsquos products are ethically producedwhereas other products made by the same firm are notproduced according to ethical criteria
19
Moreover theglobalization of retail trade has led to wide ranges ofnew products Country-of-origin labels are not compul-sory The ethical consumer is forced to make her or hisdecisions on the basis of guesswork and fragmentedinformation
Methods and data
A postal survey was carried out in spring 2002 in orderto find out how Finnish consumers view a number ofimportant issues concerning ethical consumerism Thesurvey method was selected because the aim of thestudy was to obtain insights about the obstacles anddifficulties that Finnish consumers currently face Thesample of 2000 individuals representing the Finnishpopulation over 18 years of age was randomly selectedfrom the national Population Register Participantswere selected proportionally to the population densitiesof the six administrative regions in Finland
The questionnaire consisted of three sections respon-dentsrsquo background information perceptions of and atti-tudes towards ethical trade and opinions about FairTrade products This article reports the results of thefirst two parts Almost all the questions were structuredonly few open-ended questions were included A fol-low-up letter explaining the purpose of the survey wasattached to the questionnaire The addressee of the let-ter was asked to respond The concept of ethical tradewas defined in the questionnaire as follows lsquoIn this con-text ethical trade means that a firm follows the princi-ples of social responsibility in all activities from thesupplying of raw-materials to production These princi-ples include avoiding child labour protection of envi-ronment and fair play for workersrsquo
The response rate was 357 (
n
= 713) Table 1 sum-marizes the demographic profile of the respondents
copy 2004 Blackwell Publishing Ltd
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
217
O Uusitalo and R Oksanen
bull
Ethical consumerism
They represent the demographic and geographical dis-tribution of the whole population in most respects
20
However women as well as those with higher educationand income are slightly over-represented
Results
The influence of ethics in consumer choice
Table 2 displays the results of the questions concerningethics and consumer decision making Finnish consum-ers seem to consider ethics to be important in business911 of the respondents shared this opinion Consum-
ers need reliable and accurate information about thebusiness-related ethical issues in order to make deci-sions While 606 of the respondents regarded theinformation given by firms as rather reliable only 21of them viewed it as highly reliable Moreover morethan one-third of them viewed this information asrather unreliable (353) or very unreliable (20)This suggests that one important condition of ethicalconsumerism ndash availability of accurate information ndash isstill insufficient
The perceived importance of ethics does not auto-matically translate into consumersrsquo decision makingThe majority of the respondents stated that a firmrsquosbusiness ethics influence their purchasing behaviour17 said that ethics have a strong influence and 525said that ethics have some influence on their choicesThe remainder of the respondents (30) reported thatethics have either a small influence (232) or no influ-ence at all (73)
Consumersrsquo ability to promote ethical trade
The majority of the respondents (618) were of theopinion that consumersrsquo ability to promote ethical tradewere poor Only 382 of the respondents stated thatconsumers have enough opportunities for ethicalconsumerism
Table 1
Demographic profile of the sample
Variable
n
GenderFemale 398 561Male 312 439Total 710 1000
Age (years)18ndash25 115 16226ndash35 153 21636ndash45 153 21646ndash55 166 23456ndash65 122 172Total 709 1000
EducationElementarycomprehensive school 147 207Vocationaltechnical school 169 237High school graduate 92 129College graduate 168 236Polytechnic 49 69University graduate 87 122Total 712 1000
Income (
euro
)Under 8500 85 1238501ndash21 000 142 20521 001ndash42 000 287 41542 001ndash67 500 153 221Over 67 500 25 36Total 692 1000
RegionThe capital region 155 220A city of over 100 000 inhabitants 89 126A city of over 30 000 inhabitants 143 203A city of under 30 000 inhabitants 117 166A rural region 202 285Total 706 1000
Table 2
Ethics and consumer decision making
lsquoHow important do you think is that firms follow an ethicalcode of practicersquo
Very important 443Rather important 468Rather unimportant 81Very unimportant 08
lsquoHow reliable do you think is the information that firms giveabout their business ethicsrsquo
Very reliable 21Rather reliable 606Rather unreliable 353Very unreliable 20
lsquoHow much influence does a firmrsquos business ethics haveon your purchasing decisionsrsquo
Significant influence 170Some influence 525Little influence 232No influence at all 73
Ethical consumerism
bull
O Uusitalo and R Oksanen
218
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
copy 2004 Blackwell Publishing Ltd
The respondents were asked to give their views aboutvarious obstacles to ethical consumerism Table 3 showshow consumers perceived the various aspects of theirability to promote ethical trade
The most important obstacles to increasing ethicalconsumption are the difficulty of finding informationabout ethical products the lack of any guarantee thelack of ethical product alternatives and too few retailoutlets selling ethical products The high price of ethicalproducts is an obstacle for some consumers With regardto the question that consumers feel that they cannotaffect business ethics by their purchasing decisions therespondents were divided one half feeling that theirdecisions do not matter and one-third feeling that theiropinions do have an impact
Information sources
We wanted to know how consumers viewed the variousinformation sources in particular how various sourcesperform in conveying information about firmsrsquo ethicalconduct Table 4 displays the results
The respondents regarded magazinesliterature con-sumer authorities trade marklabel and brochures asgood sources of information about the ethical aspectsof trade Storesin-store staff importers other peoplefriends and television were considered the worst sourcesof ethical information It is also noteworthy that theshare of lsquodonrsquot knowrsquo answers is quite high for all of thesources This indicates that many consumers are con-fused and unaware of which sources they should usewhen searching information about ethical products Anotice that a product has been ethically produced couldbe visibly displayed on the label which 614 of therespondents viewed as good information sources How-
ever 184 of the respondents viewed labels as poorsources and 202 of them stated that they do notknow if labels are good or bad sources
We also asked the respondentsrsquo opinion about whoshould supply information about firmsrsquo ethical conductThis duty seems to devolve upon stores (596 of therespondents were of that opinion) manufacturers(519) and the media (439)
Ethical and unethical firms
The respondents were asked to list separately firms thatthey consider ethical and those that they consider uneth-ical This proved to be a difficult task about one half ofthe respondents skipped it Those who responded men-tioned more examples of unethical firms than ethicalones The lists of unethical firms included more namesof companies while ethical firms were named at a moregeneral level Of the respondents who listed unethicalfirms (
n
= 360) 192 mentioned Hennes amp Mauritz
Table 4
The performance of various sources in conveying information about firmsrsquo ethics
Goodsource ()
Donrsquotknow ()
Poorsource ()
Trademarklabel 614 202 184Storesin-store staff 319 366 315Magazinesliterature 709 219 72Internet 396 518 86Other peoplefriends 437 344 219Brochures 561 294 145Television 456 328 216Consumer authorities 625 293 82Importers 256 517 227
Table 3
Respondentsrsquo opinions of consumersrsquo ability to promote ethical trade
Strongly agree () Agree () Donrsquot know () Disagree () Strongly disagree ()
There are not enough ethical product alternatives 239 427 228 88 18There is no guarantee of ethics 227 505 170 88 10I feel that my choices do not matter 145 371 145 291 48Information gathering about ethics is difficult 285 458 156 91 10Ethical choices are expensive 174 361 254 170 41Ethical products are available in very few stores 274 422 203 91 10
copy 2004 Blackwell Publishing Ltd
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
219
O Uusitalo and R Oksanen
bull
Ethical consumerism
Other firms viewed as unethical were Nike (81) Ikea(78) Nestle (75) Shell (61) and McDonaldrsquos(56) Clothing and textile industry was consideredunethical by 81 of those who listed unethical firmsThe lists of ethical firms included Finnish grocery retailgroups methods of production and industry sectors Twoleading Finnish grocery retail groups were most oftenmentioned as ethical firms Of those who listed ethicalfirms (
n
= 325) 108 mentioned K-group as ethicaland 73 of them mentioned S-group as ethical Domes-tic production was regarded as ethical by 83 of thosewho mentioned ethical firms Organic products (71)as well as regional and local production (55) werealso considered ethical Few names of firms were men-tioned among them the Body Shop (65) and Nokia(28) Moreover some respondents viewed the major-ity of firms as unethical and some took the view thatethical firms do not exist at all
Discussion
The results of this study indicate that Finnish consumersregard ethical practices in production and trade asimportant The majority of respondents state that afirmrsquos business ethics influence their decision makingWhile the overall attitude seems extremely positive withregard to the importance of ethics this does not alwaystranslate into actual behaviour The attitudendashbehaviourgap refers to a difference between supporting the ideaof making ethical purchases and actually carrying it outin practice
78
This study could not identify the gapbecause actual purchasing behaviour was not studiedHowever it is likely that the lack of reliable informationabout ethical products and ethical trade is one factorbehind the gap
Only a minority of the respondents (382) felt thatthey have an opportunity to promote ethics in trade Inorder to decrease consumersrsquo uncertainty more guaran-tees about the ethics of products are needed Consum-ers are often critical of the claims that firms makeconcerning their ethical conduct The guarantees suchas the Fair Trade label are important means in assuringconsumers that the claims about trade ethics can betrusted
The respondents considered stores manufacturersand importers to have a very important role in inform-
ing the public about the ethics of firms and productsStores can affect consumersrsquo decisions at the momentof purchase They can also supply the stimuli thatencourage consumers to make impulse purchases andtry new products Manufacturers and importers can pro-vide consumers with important information in productlabels at the point of purchase Manufacturers whorefine raw materials imported from developing coun-tries should be responsible and aware of the conditionsunder which raw materials are produced Magazinesand the media provide information to consumers beforethey go shopping and provided that the message isstrong enough consumers recall that information at themoment of purchase
There seems to be a discrepancy between consumersrsquoviews of the sources that they regard as performing wellin providing ethical information and the parties thathave a duty to convey that information One-third ofthe respondents regarded store and sales staff as poorsources of information Stores are expected to do moreto provide reliable information about the origin andproduction conditions of the goods they sell In orderto achieve this sales staff need educating so that theyare able to inform consumers
Consumers are often uncertain about which firms actethically and which act unethically Nike Hennes ampMauritz as well as the textile and clothing industry ingeneral were mentioned as unethical They are almoststereotypically unethical firms It may be difficult forsuch firms to change consumersrsquo attitudes Converselythe Body Shop is stereotypically ethical The earlierstudies suggest that negative information about unethi-cal actions has a stronger effect on consumersrsquo attitudesthan positive information about ethical actions
718
Theattention of media towards unethical incidents may fur-ther strengthen consumersrsquo attitudes Consumers tendto be sceptical and cynical of ethical claims and find iteasier to believe that firms are unethical rather than thatthey are ethical The role of image is important Anethical image seems to polarize a firm is viewed aseither ethical or unethical A firm seeking to convey animage of ethical conduct thus needs to invest heavily inbuilding this image whereas images of unethical firmsmay arise merely on the basis of occasional rumoursFurthermore many firms do not have any ethical imageat all Some consumers perceive business as an amoral
Ethical consumerism
bull
O Uusitalo and R Oksanen
220
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
copy 2004 Blackwell Publishing Ltd
activity they consider business beyond moral judge-ments and judge it only based on the profit it makes
Conclusion
Ethical consumerism has recently become an idealwhich is pursued by groups of consumers especially inthe Western countries Both firms and consumers havea significant role in promoting ethics in production andtrade The most important barriers to ethical consumer-ism appear to be difficulties in obtaining informationthe availability of ethical products and the high pricesof these products
Consumersrsquo consciousness about ethics should beenhanced by educating them and providing them withreliable information Ethics in consumption shouldbecome a norm in society which is followed in the sameway as other moral principles or invisible rules
4
Con-sumers may find it difficult to make a trade-off betweenconvenience or low prices and ethics even when theyregard ethics as important But if neglecting ethics wasto become unacceptable and immoral behaviour posi-tive attitudes towards ethics might be realized in pur-chasing decisions
Public policy makers and firms interested in ethicalconsumerism should pay attention to consumersrsquo con-fusion and uncertainty Consumers find it problematicthat firms carry both unethical and ethical products intheir ranges It remains a future challenge for firms tofind ways to present ethical product alternatives visiblyand convey reliable information about ethics in orderto justify why a given product meets ethical standardsand why that product may cost more than otherproducts
One future opportunity open to firms in marketingethical products is the practice of selective ethics Forexample the Body Shop concept is famous for a singleethical claim no products are tested on animals Whileconsumers find it difficult to consider several ethicalcriteria simultaneously selective ethics only require thatthey take into account one or two important ethicalissues
Opportunities for socially responsible and ethicalconsumerism continue to be little known among con-sumers Firms need to show more clearly that they arepursuing ethical codes of conduct They could develop
greater competence in using ethics as a resource or thebasis for differentiation and competitive advantageHowever there is a danger that ethics will be used onlyas a marketing trick or image which has no substancein the firmrsquos actions Firms using ethics in this way notonly damage their own business but also affect thetrustworthiness of other firms that pursue ethics as agoal in itself
The role of consumers as promoters of ethical tradeshould also be stressed If consumers do not demandfirms to provide ethical products firms are likely toremove ethical products from their ranges Socialresponsibility cannot exclude profit making If socialresponsibility turns out to be unprofitable it will bedifficult for firms to contribute to reducing ethical injus-tices in global trade
References
1 Takala T (1991)
Managerial Beliefs Concerning Social Responsibility of the Firm Jyvaumlskylauml Studies in Computer Science Economics and Statistics 16
University of Jyvaumlskylauml Jyvaumlskylauml
2 Uusitalo L (1990) Are environmental attitudes and behaviour inconsistent Findings from a Finnish study
Scandinavian Political Studies
13
211ndash2263 Moisander J (2001)
Representation of Green Consumerism A Constructionist Critique
Helsinki School of Economics Helsinki A185
4 Uusitalo L (1986)
Suomalaiset ja ympaumlristouml Tutkimus taloudellisen kaumlyttaumlytymisen rationaalisuudesta [Finns and the Environment ndash A Study in the Rationality of Economic Behaviour]
Helsinki School of Economics Helsinki A49
5 Roberts JA (1996) Will the socially responsible consumer please step forward
Business Horizons
39
79ndash84
6 Simon FL (1995) Global corporate philanthropy a strategic framework
International Marketing Review
12
20ndash377 Carrigan M amp Attalla A (2001) The myth of the ethical
consumer ndash do ethics matter in purchase behavior
Journal of Consumer Marketing
7
560ndash5748 Boulstridge E amp Carrigan M (2000) Do consumers
really care about corporate responsibility Highlighting the attitude-behaviour gap
Journal of Communication Management
4
355ndash3689 Zadek S Lingayah S amp Forstater M (1998) Social
labels tools for ethical trade executive summary
copy 2004 Blackwell Publishing Ltd
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
221
O Uusitalo and R Oksanen
bull
Ethical consumerism
European Commission Directorate-General for Employment Industrial Relations and Social Affairs Directorate VD1
Office for Official Publications for the European Communities Luxembourg
10 Irving S Harrison R amp Rayner M (2002) Ethical Consumerism ndash Democracy through the Wallet
JRConsumerscom
issue 3 URL httpwwwjrconsumerscom
11 Fair Trade Label (2002) [WWW document] URL httpwwwklakcomreilukauppasivutindexphp
12 Engel J Blackwell R amp Miniard P (1986)
Consumer Behavior
The Dryden Press Saunders College Publishing Chicago IL
13 Dickson PR amp Wilkie W (1985)
Consumer Information Search and Shopping Behaviour
Working paper University of Florida Gainsville FL
14 Dickson PR amp Sawyer A (1990) The price knowledge and search of supermarket shoppers
Journal of Marketing
54
42ndash53
15 Bettman J (1979)
An Information Processing Theory of Consumer Choice
Addison-Wesley Publishing Co Inc Reading MA
16 Solomon M (1999)
Consumer Behaviour ndash Buying Having and Being
Prentice Hall Upper Saddle River NJ17 Newell A amp Simon HA (1972)
Human Problem Solving
Prentice Hall Englewood-Cliffs NJ18 Mohr LA Webb DJ amp Harris KE (2001) Do
consumers expect companies to be socially responsible The impact of corporate social responsibility on buying behavior
Journal of Consumer Affairs
35
45ndash7219 Titus PA amp Bradford JL (1996) Reflections on
consumer sophistication and its impact on ethical business practice
Journal of Consumer Affairs
30
170ndash19520 Statistical Yearbook of Finland (2001)
Statistics centrum of Finland
Otavan Kirjapaino Oy Keuruu
copy 2004 Blackwell Publishing Ltd
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
215
O Uusitalo and R Oksanen
bull
Ethical consumerism
The ethical consumer
The concept of green consumption is already establishedin the field of consumer behaviour
23
The ethical con-sumption concept broadens this view by including theethical and moral aspects present in production anddelivery of goods for example the use of child laboursuppressing or preventing labour unions and testing onanimals Ethical consumer practices aim at the fulfilmentof the objectives of socially responsible trade The eth-ical consumer ideal implies that individual consumerscan have a significant role through their daily purchas-ing decisions in promoting ethical corporate practicesCorrespondingly ethical trade refers to internationaltrade that aims at preventing the injustices of globaltrade such as child and low-paid labour pollution of theenvironment infringement of human rights and the ine-qualities in development caused by globalization
A visible aspect of ethical consumerism is that theconsumer considers not only individual but also socialgoals ideals and ideologies Sometimes a conflict maybe perceived between personal and collective benefits
4
On the other hand consumers may gain personal ben-efits from the fulfilment of collective goals Ethical con-sumption is thus also a form of symbolic consumptionIn this view a consumer pursues an ethical lifestyle oridentity or other social values
3
The previous studies in this field indicate that con-sumersrsquo attitudes towards ethical consumption havebecome more positive but that this attitude shift has notbeen reflected in behaviour The attitudendashbehaviourgap
56
is visible in many purchasing situations Althoughconsumers are concerned with the surrounding societyand they feel they should act in a socially responsibleway other issues such as price value quality and brandare often more important choice criteria than ethics
78
This discrepancy may be owing to variety seeking oreconomic and social factors that intervene in the choicesituation
2
Especially in conducting daily purchaseswhere involvement is low consumers are not willing todevote additional effort in order to make a pro-ethicalchoice
7
Consumers take ethical considerations intoaccount provided that they do not have to compromisetheir other choice criteria or principles It is for thisreason that the role of the store is critical Retail storescould better assist consumers and source their supply of
goods as well as design their displays so that ethicalchoices are quick and easy to make
Today consumers are more informed and educatedand aware of what is required of products as well astheir rights and responsibilities as consumers Howeverthis awareness does not necessarily imply better con-sumption decisions or more ethical choices
7
Many con-sumers are uncertain about which firms conduct ethicalpractices and which do not
8
Moreover consumers maynot know which products are ethically produced andwhich are not and why
9
Consumers seem to prefer to follow a selective ratherthan totally ethical pattern of the consumption Theselective ethical consumer aims at opposing specificethical injustices such as child labour environmentalpollution or testing on animals
7
Consumers may findit difficult to consider several ethical aspects simulta-neously Interest in ethical consumption is highest whenconsumers find they can influence their own livesthrough their choices
7
In order to make ethical choices consumers needinformation Currently because of the proliferation ofbrands and images consumers may find it difficult toform an accurate picture of the ethical conduct of cor-porations Of crucial importance here will be the devel-opment of governmental regulation of corporatedisclosure environmental claims and general informa-tion availability
10
Consumer opportunities to supportethical world trade have improved over the last fewyears For example the Association for Fair Tradewhich was founded in Finland in 1998 imported the FairTrade label into Finland This label is granted to prod-ucts whose raw materials and production processes arein accordance with certain ethical principles
11
Consumer decision making and choice is ethical consumerism possible
The purchase and consumption of ethical productsrequire that a large amount of effort be invested ininformation acquisition and decision making In addi-tion consumers have to be willing to pay higher pricesfor these products Some of the obstacles to makingethical choices may lie in the consumer decision-makingprocess In their daily shopping consumers engage inroutine problem solving
12
In this situation consumers
Ethical consumerism
bull
O Uusitalo and R Oksanen
216
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
copy 2004 Blackwell Publishing Ltd
do not devote time to searching external information orevaluating the alternatives Instead purchase intentionand choice remain unchanged However consumersmay conduct more complicated choice processes espe-cially when they buy a given product category for thefirst time For example consumers buying Fair Tradeproducts for the first time may engage in extended prob-lem solving She or he is motivated to take the troubleto select an ethical product and pay a premium for itOver time this ethical decision will become routine andsatisfaction can reinforce intentions and strengthen thelikelihood of continued response
12
Consumers need up-to-date and accurate informationin order to make ethical choices Information aboutfirmsrsquo ethics should be conveyed to consumers in sucha form that it easily reaches them and does not causethem any inconvenience
1314
Seeking information willbring benefits but it also causes costs to consumers Thepossible costs include time money effort and delayingthe decision benefits of information include satisfactionwith the choice cost savings and the feeling that thechoice was worthwhile
1215
Consumers often use severalinformation sources simultaneously the differentsources complement each other varying in significanceaccording to the choice situation
16
Some consumerslook for comprehensive information while others maketheir choices on the basis of rather scanty information
12
Scanty information seeking may be explained by thetendency of consumers to reduce the effort involved inmaking judgements
17
According to this theory consum-ers are not maximizing their utility but make a choiceas soon as they find a satisfactory alternative Consum-ersrsquo information gathering resources of time money andeffort tend to be restricted An ethical decision does notalways entail that the consumer is completely informedabout all the aspects that affect purchasing and consum-ing the product
Publicity about unethical conduct is noticed moreoften than publicity concerning ethical conduct
7
Con-sumers tend to impose a sanction on an unethical firmby refusing to buy its products but will not reward anethical firm by buying its products Even though acquir-ing information helps some consumers make an ethicalchoice others may feel that this additional informationis confusing and it increases their sense of uncertaintyThus making decisions becomes even more difficult
when ethical issues have to be considered in addition toprice quality and other criteria
Todayrsquos informed and aware consumer may then beconfused about the information circulating on ethicaltrading and ethical product alternatives
18
Too much ofthis information may be false or not enough of it accu-rate Such confusion may be increased by the fact thatsome of a given firmrsquos products are ethically producedwhereas other products made by the same firm are notproduced according to ethical criteria
19
Moreover theglobalization of retail trade has led to wide ranges ofnew products Country-of-origin labels are not compul-sory The ethical consumer is forced to make her or hisdecisions on the basis of guesswork and fragmentedinformation
Methods and data
A postal survey was carried out in spring 2002 in orderto find out how Finnish consumers view a number ofimportant issues concerning ethical consumerism Thesurvey method was selected because the aim of thestudy was to obtain insights about the obstacles anddifficulties that Finnish consumers currently face Thesample of 2000 individuals representing the Finnishpopulation over 18 years of age was randomly selectedfrom the national Population Register Participantswere selected proportionally to the population densitiesof the six administrative regions in Finland
The questionnaire consisted of three sections respon-dentsrsquo background information perceptions of and atti-tudes towards ethical trade and opinions about FairTrade products This article reports the results of thefirst two parts Almost all the questions were structuredonly few open-ended questions were included A fol-low-up letter explaining the purpose of the survey wasattached to the questionnaire The addressee of the let-ter was asked to respond The concept of ethical tradewas defined in the questionnaire as follows lsquoIn this con-text ethical trade means that a firm follows the princi-ples of social responsibility in all activities from thesupplying of raw-materials to production These princi-ples include avoiding child labour protection of envi-ronment and fair play for workersrsquo
The response rate was 357 (
n
= 713) Table 1 sum-marizes the demographic profile of the respondents
copy 2004 Blackwell Publishing Ltd
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
217
O Uusitalo and R Oksanen
bull
Ethical consumerism
They represent the demographic and geographical dis-tribution of the whole population in most respects
20
However women as well as those with higher educationand income are slightly over-represented
Results
The influence of ethics in consumer choice
Table 2 displays the results of the questions concerningethics and consumer decision making Finnish consum-ers seem to consider ethics to be important in business911 of the respondents shared this opinion Consum-
ers need reliable and accurate information about thebusiness-related ethical issues in order to make deci-sions While 606 of the respondents regarded theinformation given by firms as rather reliable only 21of them viewed it as highly reliable Moreover morethan one-third of them viewed this information asrather unreliable (353) or very unreliable (20)This suggests that one important condition of ethicalconsumerism ndash availability of accurate information ndash isstill insufficient
The perceived importance of ethics does not auto-matically translate into consumersrsquo decision makingThe majority of the respondents stated that a firmrsquosbusiness ethics influence their purchasing behaviour17 said that ethics have a strong influence and 525said that ethics have some influence on their choicesThe remainder of the respondents (30) reported thatethics have either a small influence (232) or no influ-ence at all (73)
Consumersrsquo ability to promote ethical trade
The majority of the respondents (618) were of theopinion that consumersrsquo ability to promote ethical tradewere poor Only 382 of the respondents stated thatconsumers have enough opportunities for ethicalconsumerism
Table 1
Demographic profile of the sample
Variable
n
GenderFemale 398 561Male 312 439Total 710 1000
Age (years)18ndash25 115 16226ndash35 153 21636ndash45 153 21646ndash55 166 23456ndash65 122 172Total 709 1000
EducationElementarycomprehensive school 147 207Vocationaltechnical school 169 237High school graduate 92 129College graduate 168 236Polytechnic 49 69University graduate 87 122Total 712 1000
Income (
euro
)Under 8500 85 1238501ndash21 000 142 20521 001ndash42 000 287 41542 001ndash67 500 153 221Over 67 500 25 36Total 692 1000
RegionThe capital region 155 220A city of over 100 000 inhabitants 89 126A city of over 30 000 inhabitants 143 203A city of under 30 000 inhabitants 117 166A rural region 202 285Total 706 1000
Table 2
Ethics and consumer decision making
lsquoHow important do you think is that firms follow an ethicalcode of practicersquo
Very important 443Rather important 468Rather unimportant 81Very unimportant 08
lsquoHow reliable do you think is the information that firms giveabout their business ethicsrsquo
Very reliable 21Rather reliable 606Rather unreliable 353Very unreliable 20
lsquoHow much influence does a firmrsquos business ethics haveon your purchasing decisionsrsquo
Significant influence 170Some influence 525Little influence 232No influence at all 73
Ethical consumerism
bull
O Uusitalo and R Oksanen
218
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
copy 2004 Blackwell Publishing Ltd
The respondents were asked to give their views aboutvarious obstacles to ethical consumerism Table 3 showshow consumers perceived the various aspects of theirability to promote ethical trade
The most important obstacles to increasing ethicalconsumption are the difficulty of finding informationabout ethical products the lack of any guarantee thelack of ethical product alternatives and too few retailoutlets selling ethical products The high price of ethicalproducts is an obstacle for some consumers With regardto the question that consumers feel that they cannotaffect business ethics by their purchasing decisions therespondents were divided one half feeling that theirdecisions do not matter and one-third feeling that theiropinions do have an impact
Information sources
We wanted to know how consumers viewed the variousinformation sources in particular how various sourcesperform in conveying information about firmsrsquo ethicalconduct Table 4 displays the results
The respondents regarded magazinesliterature con-sumer authorities trade marklabel and brochures asgood sources of information about the ethical aspectsof trade Storesin-store staff importers other peoplefriends and television were considered the worst sourcesof ethical information It is also noteworthy that theshare of lsquodonrsquot knowrsquo answers is quite high for all of thesources This indicates that many consumers are con-fused and unaware of which sources they should usewhen searching information about ethical products Anotice that a product has been ethically produced couldbe visibly displayed on the label which 614 of therespondents viewed as good information sources How-
ever 184 of the respondents viewed labels as poorsources and 202 of them stated that they do notknow if labels are good or bad sources
We also asked the respondentsrsquo opinion about whoshould supply information about firmsrsquo ethical conductThis duty seems to devolve upon stores (596 of therespondents were of that opinion) manufacturers(519) and the media (439)
Ethical and unethical firms
The respondents were asked to list separately firms thatthey consider ethical and those that they consider uneth-ical This proved to be a difficult task about one half ofthe respondents skipped it Those who responded men-tioned more examples of unethical firms than ethicalones The lists of unethical firms included more namesof companies while ethical firms were named at a moregeneral level Of the respondents who listed unethicalfirms (
n
= 360) 192 mentioned Hennes amp Mauritz
Table 4
The performance of various sources in conveying information about firmsrsquo ethics
Goodsource ()
Donrsquotknow ()
Poorsource ()
Trademarklabel 614 202 184Storesin-store staff 319 366 315Magazinesliterature 709 219 72Internet 396 518 86Other peoplefriends 437 344 219Brochures 561 294 145Television 456 328 216Consumer authorities 625 293 82Importers 256 517 227
Table 3
Respondentsrsquo opinions of consumersrsquo ability to promote ethical trade
Strongly agree () Agree () Donrsquot know () Disagree () Strongly disagree ()
There are not enough ethical product alternatives 239 427 228 88 18There is no guarantee of ethics 227 505 170 88 10I feel that my choices do not matter 145 371 145 291 48Information gathering about ethics is difficult 285 458 156 91 10Ethical choices are expensive 174 361 254 170 41Ethical products are available in very few stores 274 422 203 91 10
copy 2004 Blackwell Publishing Ltd
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
219
O Uusitalo and R Oksanen
bull
Ethical consumerism
Other firms viewed as unethical were Nike (81) Ikea(78) Nestle (75) Shell (61) and McDonaldrsquos(56) Clothing and textile industry was consideredunethical by 81 of those who listed unethical firmsThe lists of ethical firms included Finnish grocery retailgroups methods of production and industry sectors Twoleading Finnish grocery retail groups were most oftenmentioned as ethical firms Of those who listed ethicalfirms (
n
= 325) 108 mentioned K-group as ethicaland 73 of them mentioned S-group as ethical Domes-tic production was regarded as ethical by 83 of thosewho mentioned ethical firms Organic products (71)as well as regional and local production (55) werealso considered ethical Few names of firms were men-tioned among them the Body Shop (65) and Nokia(28) Moreover some respondents viewed the major-ity of firms as unethical and some took the view thatethical firms do not exist at all
Discussion
The results of this study indicate that Finnish consumersregard ethical practices in production and trade asimportant The majority of respondents state that afirmrsquos business ethics influence their decision makingWhile the overall attitude seems extremely positive withregard to the importance of ethics this does not alwaystranslate into actual behaviour The attitudendashbehaviourgap refers to a difference between supporting the ideaof making ethical purchases and actually carrying it outin practice
78
This study could not identify the gapbecause actual purchasing behaviour was not studiedHowever it is likely that the lack of reliable informationabout ethical products and ethical trade is one factorbehind the gap
Only a minority of the respondents (382) felt thatthey have an opportunity to promote ethics in trade Inorder to decrease consumersrsquo uncertainty more guaran-tees about the ethics of products are needed Consum-ers are often critical of the claims that firms makeconcerning their ethical conduct The guarantees suchas the Fair Trade label are important means in assuringconsumers that the claims about trade ethics can betrusted
The respondents considered stores manufacturersand importers to have a very important role in inform-
ing the public about the ethics of firms and productsStores can affect consumersrsquo decisions at the momentof purchase They can also supply the stimuli thatencourage consumers to make impulse purchases andtry new products Manufacturers and importers can pro-vide consumers with important information in productlabels at the point of purchase Manufacturers whorefine raw materials imported from developing coun-tries should be responsible and aware of the conditionsunder which raw materials are produced Magazinesand the media provide information to consumers beforethey go shopping and provided that the message isstrong enough consumers recall that information at themoment of purchase
There seems to be a discrepancy between consumersrsquoviews of the sources that they regard as performing wellin providing ethical information and the parties thathave a duty to convey that information One-third ofthe respondents regarded store and sales staff as poorsources of information Stores are expected to do moreto provide reliable information about the origin andproduction conditions of the goods they sell In orderto achieve this sales staff need educating so that theyare able to inform consumers
Consumers are often uncertain about which firms actethically and which act unethically Nike Hennes ampMauritz as well as the textile and clothing industry ingeneral were mentioned as unethical They are almoststereotypically unethical firms It may be difficult forsuch firms to change consumersrsquo attitudes Converselythe Body Shop is stereotypically ethical The earlierstudies suggest that negative information about unethi-cal actions has a stronger effect on consumersrsquo attitudesthan positive information about ethical actions
718
Theattention of media towards unethical incidents may fur-ther strengthen consumersrsquo attitudes Consumers tendto be sceptical and cynical of ethical claims and find iteasier to believe that firms are unethical rather than thatthey are ethical The role of image is important Anethical image seems to polarize a firm is viewed aseither ethical or unethical A firm seeking to convey animage of ethical conduct thus needs to invest heavily inbuilding this image whereas images of unethical firmsmay arise merely on the basis of occasional rumoursFurthermore many firms do not have any ethical imageat all Some consumers perceive business as an amoral
Ethical consumerism
bull
O Uusitalo and R Oksanen
220
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
copy 2004 Blackwell Publishing Ltd
activity they consider business beyond moral judge-ments and judge it only based on the profit it makes
Conclusion
Ethical consumerism has recently become an idealwhich is pursued by groups of consumers especially inthe Western countries Both firms and consumers havea significant role in promoting ethics in production andtrade The most important barriers to ethical consumer-ism appear to be difficulties in obtaining informationthe availability of ethical products and the high pricesof these products
Consumersrsquo consciousness about ethics should beenhanced by educating them and providing them withreliable information Ethics in consumption shouldbecome a norm in society which is followed in the sameway as other moral principles or invisible rules
4
Con-sumers may find it difficult to make a trade-off betweenconvenience or low prices and ethics even when theyregard ethics as important But if neglecting ethics wasto become unacceptable and immoral behaviour posi-tive attitudes towards ethics might be realized in pur-chasing decisions
Public policy makers and firms interested in ethicalconsumerism should pay attention to consumersrsquo con-fusion and uncertainty Consumers find it problematicthat firms carry both unethical and ethical products intheir ranges It remains a future challenge for firms tofind ways to present ethical product alternatives visiblyand convey reliable information about ethics in orderto justify why a given product meets ethical standardsand why that product may cost more than otherproducts
One future opportunity open to firms in marketingethical products is the practice of selective ethics Forexample the Body Shop concept is famous for a singleethical claim no products are tested on animals Whileconsumers find it difficult to consider several ethicalcriteria simultaneously selective ethics only require thatthey take into account one or two important ethicalissues
Opportunities for socially responsible and ethicalconsumerism continue to be little known among con-sumers Firms need to show more clearly that they arepursuing ethical codes of conduct They could develop
greater competence in using ethics as a resource or thebasis for differentiation and competitive advantageHowever there is a danger that ethics will be used onlyas a marketing trick or image which has no substancein the firmrsquos actions Firms using ethics in this way notonly damage their own business but also affect thetrustworthiness of other firms that pursue ethics as agoal in itself
The role of consumers as promoters of ethical tradeshould also be stressed If consumers do not demandfirms to provide ethical products firms are likely toremove ethical products from their ranges Socialresponsibility cannot exclude profit making If socialresponsibility turns out to be unprofitable it will bedifficult for firms to contribute to reducing ethical injus-tices in global trade
References
1 Takala T (1991)
Managerial Beliefs Concerning Social Responsibility of the Firm Jyvaumlskylauml Studies in Computer Science Economics and Statistics 16
University of Jyvaumlskylauml Jyvaumlskylauml
2 Uusitalo L (1990) Are environmental attitudes and behaviour inconsistent Findings from a Finnish study
Scandinavian Political Studies
13
211ndash2263 Moisander J (2001)
Representation of Green Consumerism A Constructionist Critique
Helsinki School of Economics Helsinki A185
4 Uusitalo L (1986)
Suomalaiset ja ympaumlristouml Tutkimus taloudellisen kaumlyttaumlytymisen rationaalisuudesta [Finns and the Environment ndash A Study in the Rationality of Economic Behaviour]
Helsinki School of Economics Helsinki A49
5 Roberts JA (1996) Will the socially responsible consumer please step forward
Business Horizons
39
79ndash84
6 Simon FL (1995) Global corporate philanthropy a strategic framework
International Marketing Review
12
20ndash377 Carrigan M amp Attalla A (2001) The myth of the ethical
consumer ndash do ethics matter in purchase behavior
Journal of Consumer Marketing
7
560ndash5748 Boulstridge E amp Carrigan M (2000) Do consumers
really care about corporate responsibility Highlighting the attitude-behaviour gap
Journal of Communication Management
4
355ndash3689 Zadek S Lingayah S amp Forstater M (1998) Social
labels tools for ethical trade executive summary
copy 2004 Blackwell Publishing Ltd
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
221
O Uusitalo and R Oksanen
bull
Ethical consumerism
European Commission Directorate-General for Employment Industrial Relations and Social Affairs Directorate VD1
Office for Official Publications for the European Communities Luxembourg
10 Irving S Harrison R amp Rayner M (2002) Ethical Consumerism ndash Democracy through the Wallet
JRConsumerscom
issue 3 URL httpwwwjrconsumerscom
11 Fair Trade Label (2002) [WWW document] URL httpwwwklakcomreilukauppasivutindexphp
12 Engel J Blackwell R amp Miniard P (1986)
Consumer Behavior
The Dryden Press Saunders College Publishing Chicago IL
13 Dickson PR amp Wilkie W (1985)
Consumer Information Search and Shopping Behaviour
Working paper University of Florida Gainsville FL
14 Dickson PR amp Sawyer A (1990) The price knowledge and search of supermarket shoppers
Journal of Marketing
54
42ndash53
15 Bettman J (1979)
An Information Processing Theory of Consumer Choice
Addison-Wesley Publishing Co Inc Reading MA
16 Solomon M (1999)
Consumer Behaviour ndash Buying Having and Being
Prentice Hall Upper Saddle River NJ17 Newell A amp Simon HA (1972)
Human Problem Solving
Prentice Hall Englewood-Cliffs NJ18 Mohr LA Webb DJ amp Harris KE (2001) Do
consumers expect companies to be socially responsible The impact of corporate social responsibility on buying behavior
Journal of Consumer Affairs
35
45ndash7219 Titus PA amp Bradford JL (1996) Reflections on
consumer sophistication and its impact on ethical business practice
Journal of Consumer Affairs
30
170ndash19520 Statistical Yearbook of Finland (2001)
Statistics centrum of Finland
Otavan Kirjapaino Oy Keuruu
Ethical consumerism
bull
O Uusitalo and R Oksanen
216
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
copy 2004 Blackwell Publishing Ltd
do not devote time to searching external information orevaluating the alternatives Instead purchase intentionand choice remain unchanged However consumersmay conduct more complicated choice processes espe-cially when they buy a given product category for thefirst time For example consumers buying Fair Tradeproducts for the first time may engage in extended prob-lem solving She or he is motivated to take the troubleto select an ethical product and pay a premium for itOver time this ethical decision will become routine andsatisfaction can reinforce intentions and strengthen thelikelihood of continued response
12
Consumers need up-to-date and accurate informationin order to make ethical choices Information aboutfirmsrsquo ethics should be conveyed to consumers in sucha form that it easily reaches them and does not causethem any inconvenience
1314
Seeking information willbring benefits but it also causes costs to consumers Thepossible costs include time money effort and delayingthe decision benefits of information include satisfactionwith the choice cost savings and the feeling that thechoice was worthwhile
1215
Consumers often use severalinformation sources simultaneously the differentsources complement each other varying in significanceaccording to the choice situation
16
Some consumerslook for comprehensive information while others maketheir choices on the basis of rather scanty information
12
Scanty information seeking may be explained by thetendency of consumers to reduce the effort involved inmaking judgements
17
According to this theory consum-ers are not maximizing their utility but make a choiceas soon as they find a satisfactory alternative Consum-ersrsquo information gathering resources of time money andeffort tend to be restricted An ethical decision does notalways entail that the consumer is completely informedabout all the aspects that affect purchasing and consum-ing the product
Publicity about unethical conduct is noticed moreoften than publicity concerning ethical conduct
7
Con-sumers tend to impose a sanction on an unethical firmby refusing to buy its products but will not reward anethical firm by buying its products Even though acquir-ing information helps some consumers make an ethicalchoice others may feel that this additional informationis confusing and it increases their sense of uncertaintyThus making decisions becomes even more difficult
when ethical issues have to be considered in addition toprice quality and other criteria
Todayrsquos informed and aware consumer may then beconfused about the information circulating on ethicaltrading and ethical product alternatives
18
Too much ofthis information may be false or not enough of it accu-rate Such confusion may be increased by the fact thatsome of a given firmrsquos products are ethically producedwhereas other products made by the same firm are notproduced according to ethical criteria
19
Moreover theglobalization of retail trade has led to wide ranges ofnew products Country-of-origin labels are not compul-sory The ethical consumer is forced to make her or hisdecisions on the basis of guesswork and fragmentedinformation
Methods and data
A postal survey was carried out in spring 2002 in orderto find out how Finnish consumers view a number ofimportant issues concerning ethical consumerism Thesurvey method was selected because the aim of thestudy was to obtain insights about the obstacles anddifficulties that Finnish consumers currently face Thesample of 2000 individuals representing the Finnishpopulation over 18 years of age was randomly selectedfrom the national Population Register Participantswere selected proportionally to the population densitiesof the six administrative regions in Finland
The questionnaire consisted of three sections respon-dentsrsquo background information perceptions of and atti-tudes towards ethical trade and opinions about FairTrade products This article reports the results of thefirst two parts Almost all the questions were structuredonly few open-ended questions were included A fol-low-up letter explaining the purpose of the survey wasattached to the questionnaire The addressee of the let-ter was asked to respond The concept of ethical tradewas defined in the questionnaire as follows lsquoIn this con-text ethical trade means that a firm follows the princi-ples of social responsibility in all activities from thesupplying of raw-materials to production These princi-ples include avoiding child labour protection of envi-ronment and fair play for workersrsquo
The response rate was 357 (
n
= 713) Table 1 sum-marizes the demographic profile of the respondents
copy 2004 Blackwell Publishing Ltd
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
217
O Uusitalo and R Oksanen
bull
Ethical consumerism
They represent the demographic and geographical dis-tribution of the whole population in most respects
20
However women as well as those with higher educationand income are slightly over-represented
Results
The influence of ethics in consumer choice
Table 2 displays the results of the questions concerningethics and consumer decision making Finnish consum-ers seem to consider ethics to be important in business911 of the respondents shared this opinion Consum-
ers need reliable and accurate information about thebusiness-related ethical issues in order to make deci-sions While 606 of the respondents regarded theinformation given by firms as rather reliable only 21of them viewed it as highly reliable Moreover morethan one-third of them viewed this information asrather unreliable (353) or very unreliable (20)This suggests that one important condition of ethicalconsumerism ndash availability of accurate information ndash isstill insufficient
The perceived importance of ethics does not auto-matically translate into consumersrsquo decision makingThe majority of the respondents stated that a firmrsquosbusiness ethics influence their purchasing behaviour17 said that ethics have a strong influence and 525said that ethics have some influence on their choicesThe remainder of the respondents (30) reported thatethics have either a small influence (232) or no influ-ence at all (73)
Consumersrsquo ability to promote ethical trade
The majority of the respondents (618) were of theopinion that consumersrsquo ability to promote ethical tradewere poor Only 382 of the respondents stated thatconsumers have enough opportunities for ethicalconsumerism
Table 1
Demographic profile of the sample
Variable
n
GenderFemale 398 561Male 312 439Total 710 1000
Age (years)18ndash25 115 16226ndash35 153 21636ndash45 153 21646ndash55 166 23456ndash65 122 172Total 709 1000
EducationElementarycomprehensive school 147 207Vocationaltechnical school 169 237High school graduate 92 129College graduate 168 236Polytechnic 49 69University graduate 87 122Total 712 1000
Income (
euro
)Under 8500 85 1238501ndash21 000 142 20521 001ndash42 000 287 41542 001ndash67 500 153 221Over 67 500 25 36Total 692 1000
RegionThe capital region 155 220A city of over 100 000 inhabitants 89 126A city of over 30 000 inhabitants 143 203A city of under 30 000 inhabitants 117 166A rural region 202 285Total 706 1000
Table 2
Ethics and consumer decision making
lsquoHow important do you think is that firms follow an ethicalcode of practicersquo
Very important 443Rather important 468Rather unimportant 81Very unimportant 08
lsquoHow reliable do you think is the information that firms giveabout their business ethicsrsquo
Very reliable 21Rather reliable 606Rather unreliable 353Very unreliable 20
lsquoHow much influence does a firmrsquos business ethics haveon your purchasing decisionsrsquo
Significant influence 170Some influence 525Little influence 232No influence at all 73
Ethical consumerism
bull
O Uusitalo and R Oksanen
218
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
copy 2004 Blackwell Publishing Ltd
The respondents were asked to give their views aboutvarious obstacles to ethical consumerism Table 3 showshow consumers perceived the various aspects of theirability to promote ethical trade
The most important obstacles to increasing ethicalconsumption are the difficulty of finding informationabout ethical products the lack of any guarantee thelack of ethical product alternatives and too few retailoutlets selling ethical products The high price of ethicalproducts is an obstacle for some consumers With regardto the question that consumers feel that they cannotaffect business ethics by their purchasing decisions therespondents were divided one half feeling that theirdecisions do not matter and one-third feeling that theiropinions do have an impact
Information sources
We wanted to know how consumers viewed the variousinformation sources in particular how various sourcesperform in conveying information about firmsrsquo ethicalconduct Table 4 displays the results
The respondents regarded magazinesliterature con-sumer authorities trade marklabel and brochures asgood sources of information about the ethical aspectsof trade Storesin-store staff importers other peoplefriends and television were considered the worst sourcesof ethical information It is also noteworthy that theshare of lsquodonrsquot knowrsquo answers is quite high for all of thesources This indicates that many consumers are con-fused and unaware of which sources they should usewhen searching information about ethical products Anotice that a product has been ethically produced couldbe visibly displayed on the label which 614 of therespondents viewed as good information sources How-
ever 184 of the respondents viewed labels as poorsources and 202 of them stated that they do notknow if labels are good or bad sources
We also asked the respondentsrsquo opinion about whoshould supply information about firmsrsquo ethical conductThis duty seems to devolve upon stores (596 of therespondents were of that opinion) manufacturers(519) and the media (439)
Ethical and unethical firms
The respondents were asked to list separately firms thatthey consider ethical and those that they consider uneth-ical This proved to be a difficult task about one half ofthe respondents skipped it Those who responded men-tioned more examples of unethical firms than ethicalones The lists of unethical firms included more namesof companies while ethical firms were named at a moregeneral level Of the respondents who listed unethicalfirms (
n
= 360) 192 mentioned Hennes amp Mauritz
Table 4
The performance of various sources in conveying information about firmsrsquo ethics
Goodsource ()
Donrsquotknow ()
Poorsource ()
Trademarklabel 614 202 184Storesin-store staff 319 366 315Magazinesliterature 709 219 72Internet 396 518 86Other peoplefriends 437 344 219Brochures 561 294 145Television 456 328 216Consumer authorities 625 293 82Importers 256 517 227
Table 3
Respondentsrsquo opinions of consumersrsquo ability to promote ethical trade
Strongly agree () Agree () Donrsquot know () Disagree () Strongly disagree ()
There are not enough ethical product alternatives 239 427 228 88 18There is no guarantee of ethics 227 505 170 88 10I feel that my choices do not matter 145 371 145 291 48Information gathering about ethics is difficult 285 458 156 91 10Ethical choices are expensive 174 361 254 170 41Ethical products are available in very few stores 274 422 203 91 10
copy 2004 Blackwell Publishing Ltd
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
219
O Uusitalo and R Oksanen
bull
Ethical consumerism
Other firms viewed as unethical were Nike (81) Ikea(78) Nestle (75) Shell (61) and McDonaldrsquos(56) Clothing and textile industry was consideredunethical by 81 of those who listed unethical firmsThe lists of ethical firms included Finnish grocery retailgroups methods of production and industry sectors Twoleading Finnish grocery retail groups were most oftenmentioned as ethical firms Of those who listed ethicalfirms (
n
= 325) 108 mentioned K-group as ethicaland 73 of them mentioned S-group as ethical Domes-tic production was regarded as ethical by 83 of thosewho mentioned ethical firms Organic products (71)as well as regional and local production (55) werealso considered ethical Few names of firms were men-tioned among them the Body Shop (65) and Nokia(28) Moreover some respondents viewed the major-ity of firms as unethical and some took the view thatethical firms do not exist at all
Discussion
The results of this study indicate that Finnish consumersregard ethical practices in production and trade asimportant The majority of respondents state that afirmrsquos business ethics influence their decision makingWhile the overall attitude seems extremely positive withregard to the importance of ethics this does not alwaystranslate into actual behaviour The attitudendashbehaviourgap refers to a difference between supporting the ideaof making ethical purchases and actually carrying it outin practice
78
This study could not identify the gapbecause actual purchasing behaviour was not studiedHowever it is likely that the lack of reliable informationabout ethical products and ethical trade is one factorbehind the gap
Only a minority of the respondents (382) felt thatthey have an opportunity to promote ethics in trade Inorder to decrease consumersrsquo uncertainty more guaran-tees about the ethics of products are needed Consum-ers are often critical of the claims that firms makeconcerning their ethical conduct The guarantees suchas the Fair Trade label are important means in assuringconsumers that the claims about trade ethics can betrusted
The respondents considered stores manufacturersand importers to have a very important role in inform-
ing the public about the ethics of firms and productsStores can affect consumersrsquo decisions at the momentof purchase They can also supply the stimuli thatencourage consumers to make impulse purchases andtry new products Manufacturers and importers can pro-vide consumers with important information in productlabels at the point of purchase Manufacturers whorefine raw materials imported from developing coun-tries should be responsible and aware of the conditionsunder which raw materials are produced Magazinesand the media provide information to consumers beforethey go shopping and provided that the message isstrong enough consumers recall that information at themoment of purchase
There seems to be a discrepancy between consumersrsquoviews of the sources that they regard as performing wellin providing ethical information and the parties thathave a duty to convey that information One-third ofthe respondents regarded store and sales staff as poorsources of information Stores are expected to do moreto provide reliable information about the origin andproduction conditions of the goods they sell In orderto achieve this sales staff need educating so that theyare able to inform consumers
Consumers are often uncertain about which firms actethically and which act unethically Nike Hennes ampMauritz as well as the textile and clothing industry ingeneral were mentioned as unethical They are almoststereotypically unethical firms It may be difficult forsuch firms to change consumersrsquo attitudes Converselythe Body Shop is stereotypically ethical The earlierstudies suggest that negative information about unethi-cal actions has a stronger effect on consumersrsquo attitudesthan positive information about ethical actions
718
Theattention of media towards unethical incidents may fur-ther strengthen consumersrsquo attitudes Consumers tendto be sceptical and cynical of ethical claims and find iteasier to believe that firms are unethical rather than thatthey are ethical The role of image is important Anethical image seems to polarize a firm is viewed aseither ethical or unethical A firm seeking to convey animage of ethical conduct thus needs to invest heavily inbuilding this image whereas images of unethical firmsmay arise merely on the basis of occasional rumoursFurthermore many firms do not have any ethical imageat all Some consumers perceive business as an amoral
Ethical consumerism
bull
O Uusitalo and R Oksanen
220
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
copy 2004 Blackwell Publishing Ltd
activity they consider business beyond moral judge-ments and judge it only based on the profit it makes
Conclusion
Ethical consumerism has recently become an idealwhich is pursued by groups of consumers especially inthe Western countries Both firms and consumers havea significant role in promoting ethics in production andtrade The most important barriers to ethical consumer-ism appear to be difficulties in obtaining informationthe availability of ethical products and the high pricesof these products
Consumersrsquo consciousness about ethics should beenhanced by educating them and providing them withreliable information Ethics in consumption shouldbecome a norm in society which is followed in the sameway as other moral principles or invisible rules
4
Con-sumers may find it difficult to make a trade-off betweenconvenience or low prices and ethics even when theyregard ethics as important But if neglecting ethics wasto become unacceptable and immoral behaviour posi-tive attitudes towards ethics might be realized in pur-chasing decisions
Public policy makers and firms interested in ethicalconsumerism should pay attention to consumersrsquo con-fusion and uncertainty Consumers find it problematicthat firms carry both unethical and ethical products intheir ranges It remains a future challenge for firms tofind ways to present ethical product alternatives visiblyand convey reliable information about ethics in orderto justify why a given product meets ethical standardsand why that product may cost more than otherproducts
One future opportunity open to firms in marketingethical products is the practice of selective ethics Forexample the Body Shop concept is famous for a singleethical claim no products are tested on animals Whileconsumers find it difficult to consider several ethicalcriteria simultaneously selective ethics only require thatthey take into account one or two important ethicalissues
Opportunities for socially responsible and ethicalconsumerism continue to be little known among con-sumers Firms need to show more clearly that they arepursuing ethical codes of conduct They could develop
greater competence in using ethics as a resource or thebasis for differentiation and competitive advantageHowever there is a danger that ethics will be used onlyas a marketing trick or image which has no substancein the firmrsquos actions Firms using ethics in this way notonly damage their own business but also affect thetrustworthiness of other firms that pursue ethics as agoal in itself
The role of consumers as promoters of ethical tradeshould also be stressed If consumers do not demandfirms to provide ethical products firms are likely toremove ethical products from their ranges Socialresponsibility cannot exclude profit making If socialresponsibility turns out to be unprofitable it will bedifficult for firms to contribute to reducing ethical injus-tices in global trade
References
1 Takala T (1991)
Managerial Beliefs Concerning Social Responsibility of the Firm Jyvaumlskylauml Studies in Computer Science Economics and Statistics 16
University of Jyvaumlskylauml Jyvaumlskylauml
2 Uusitalo L (1990) Are environmental attitudes and behaviour inconsistent Findings from a Finnish study
Scandinavian Political Studies
13
211ndash2263 Moisander J (2001)
Representation of Green Consumerism A Constructionist Critique
Helsinki School of Economics Helsinki A185
4 Uusitalo L (1986)
Suomalaiset ja ympaumlristouml Tutkimus taloudellisen kaumlyttaumlytymisen rationaalisuudesta [Finns and the Environment ndash A Study in the Rationality of Economic Behaviour]
Helsinki School of Economics Helsinki A49
5 Roberts JA (1996) Will the socially responsible consumer please step forward
Business Horizons
39
79ndash84
6 Simon FL (1995) Global corporate philanthropy a strategic framework
International Marketing Review
12
20ndash377 Carrigan M amp Attalla A (2001) The myth of the ethical
consumer ndash do ethics matter in purchase behavior
Journal of Consumer Marketing
7
560ndash5748 Boulstridge E amp Carrigan M (2000) Do consumers
really care about corporate responsibility Highlighting the attitude-behaviour gap
Journal of Communication Management
4
355ndash3689 Zadek S Lingayah S amp Forstater M (1998) Social
labels tools for ethical trade executive summary
copy 2004 Blackwell Publishing Ltd
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
221
O Uusitalo and R Oksanen
bull
Ethical consumerism
European Commission Directorate-General for Employment Industrial Relations and Social Affairs Directorate VD1
Office for Official Publications for the European Communities Luxembourg
10 Irving S Harrison R amp Rayner M (2002) Ethical Consumerism ndash Democracy through the Wallet
JRConsumerscom
issue 3 URL httpwwwjrconsumerscom
11 Fair Trade Label (2002) [WWW document] URL httpwwwklakcomreilukauppasivutindexphp
12 Engel J Blackwell R amp Miniard P (1986)
Consumer Behavior
The Dryden Press Saunders College Publishing Chicago IL
13 Dickson PR amp Wilkie W (1985)
Consumer Information Search and Shopping Behaviour
Working paper University of Florida Gainsville FL
14 Dickson PR amp Sawyer A (1990) The price knowledge and search of supermarket shoppers
Journal of Marketing
54
42ndash53
15 Bettman J (1979)
An Information Processing Theory of Consumer Choice
Addison-Wesley Publishing Co Inc Reading MA
16 Solomon M (1999)
Consumer Behaviour ndash Buying Having and Being
Prentice Hall Upper Saddle River NJ17 Newell A amp Simon HA (1972)
Human Problem Solving
Prentice Hall Englewood-Cliffs NJ18 Mohr LA Webb DJ amp Harris KE (2001) Do
consumers expect companies to be socially responsible The impact of corporate social responsibility on buying behavior
Journal of Consumer Affairs
35
45ndash7219 Titus PA amp Bradford JL (1996) Reflections on
consumer sophistication and its impact on ethical business practice
Journal of Consumer Affairs
30
170ndash19520 Statistical Yearbook of Finland (2001)
Statistics centrum of Finland
Otavan Kirjapaino Oy Keuruu
copy 2004 Blackwell Publishing Ltd
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
217
O Uusitalo and R Oksanen
bull
Ethical consumerism
They represent the demographic and geographical dis-tribution of the whole population in most respects
20
However women as well as those with higher educationand income are slightly over-represented
Results
The influence of ethics in consumer choice
Table 2 displays the results of the questions concerningethics and consumer decision making Finnish consum-ers seem to consider ethics to be important in business911 of the respondents shared this opinion Consum-
ers need reliable and accurate information about thebusiness-related ethical issues in order to make deci-sions While 606 of the respondents regarded theinformation given by firms as rather reliable only 21of them viewed it as highly reliable Moreover morethan one-third of them viewed this information asrather unreliable (353) or very unreliable (20)This suggests that one important condition of ethicalconsumerism ndash availability of accurate information ndash isstill insufficient
The perceived importance of ethics does not auto-matically translate into consumersrsquo decision makingThe majority of the respondents stated that a firmrsquosbusiness ethics influence their purchasing behaviour17 said that ethics have a strong influence and 525said that ethics have some influence on their choicesThe remainder of the respondents (30) reported thatethics have either a small influence (232) or no influ-ence at all (73)
Consumersrsquo ability to promote ethical trade
The majority of the respondents (618) were of theopinion that consumersrsquo ability to promote ethical tradewere poor Only 382 of the respondents stated thatconsumers have enough opportunities for ethicalconsumerism
Table 1
Demographic profile of the sample
Variable
n
GenderFemale 398 561Male 312 439Total 710 1000
Age (years)18ndash25 115 16226ndash35 153 21636ndash45 153 21646ndash55 166 23456ndash65 122 172Total 709 1000
EducationElementarycomprehensive school 147 207Vocationaltechnical school 169 237High school graduate 92 129College graduate 168 236Polytechnic 49 69University graduate 87 122Total 712 1000
Income (
euro
)Under 8500 85 1238501ndash21 000 142 20521 001ndash42 000 287 41542 001ndash67 500 153 221Over 67 500 25 36Total 692 1000
RegionThe capital region 155 220A city of over 100 000 inhabitants 89 126A city of over 30 000 inhabitants 143 203A city of under 30 000 inhabitants 117 166A rural region 202 285Total 706 1000
Table 2
Ethics and consumer decision making
lsquoHow important do you think is that firms follow an ethicalcode of practicersquo
Very important 443Rather important 468Rather unimportant 81Very unimportant 08
lsquoHow reliable do you think is the information that firms giveabout their business ethicsrsquo
Very reliable 21Rather reliable 606Rather unreliable 353Very unreliable 20
lsquoHow much influence does a firmrsquos business ethics haveon your purchasing decisionsrsquo
Significant influence 170Some influence 525Little influence 232No influence at all 73
Ethical consumerism
bull
O Uusitalo and R Oksanen
218
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
copy 2004 Blackwell Publishing Ltd
The respondents were asked to give their views aboutvarious obstacles to ethical consumerism Table 3 showshow consumers perceived the various aspects of theirability to promote ethical trade
The most important obstacles to increasing ethicalconsumption are the difficulty of finding informationabout ethical products the lack of any guarantee thelack of ethical product alternatives and too few retailoutlets selling ethical products The high price of ethicalproducts is an obstacle for some consumers With regardto the question that consumers feel that they cannotaffect business ethics by their purchasing decisions therespondents were divided one half feeling that theirdecisions do not matter and one-third feeling that theiropinions do have an impact
Information sources
We wanted to know how consumers viewed the variousinformation sources in particular how various sourcesperform in conveying information about firmsrsquo ethicalconduct Table 4 displays the results
The respondents regarded magazinesliterature con-sumer authorities trade marklabel and brochures asgood sources of information about the ethical aspectsof trade Storesin-store staff importers other peoplefriends and television were considered the worst sourcesof ethical information It is also noteworthy that theshare of lsquodonrsquot knowrsquo answers is quite high for all of thesources This indicates that many consumers are con-fused and unaware of which sources they should usewhen searching information about ethical products Anotice that a product has been ethically produced couldbe visibly displayed on the label which 614 of therespondents viewed as good information sources How-
ever 184 of the respondents viewed labels as poorsources and 202 of them stated that they do notknow if labels are good or bad sources
We also asked the respondentsrsquo opinion about whoshould supply information about firmsrsquo ethical conductThis duty seems to devolve upon stores (596 of therespondents were of that opinion) manufacturers(519) and the media (439)
Ethical and unethical firms
The respondents were asked to list separately firms thatthey consider ethical and those that they consider uneth-ical This proved to be a difficult task about one half ofthe respondents skipped it Those who responded men-tioned more examples of unethical firms than ethicalones The lists of unethical firms included more namesof companies while ethical firms were named at a moregeneral level Of the respondents who listed unethicalfirms (
n
= 360) 192 mentioned Hennes amp Mauritz
Table 4
The performance of various sources in conveying information about firmsrsquo ethics
Goodsource ()
Donrsquotknow ()
Poorsource ()
Trademarklabel 614 202 184Storesin-store staff 319 366 315Magazinesliterature 709 219 72Internet 396 518 86Other peoplefriends 437 344 219Brochures 561 294 145Television 456 328 216Consumer authorities 625 293 82Importers 256 517 227
Table 3
Respondentsrsquo opinions of consumersrsquo ability to promote ethical trade
Strongly agree () Agree () Donrsquot know () Disagree () Strongly disagree ()
There are not enough ethical product alternatives 239 427 228 88 18There is no guarantee of ethics 227 505 170 88 10I feel that my choices do not matter 145 371 145 291 48Information gathering about ethics is difficult 285 458 156 91 10Ethical choices are expensive 174 361 254 170 41Ethical products are available in very few stores 274 422 203 91 10
copy 2004 Blackwell Publishing Ltd
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
219
O Uusitalo and R Oksanen
bull
Ethical consumerism
Other firms viewed as unethical were Nike (81) Ikea(78) Nestle (75) Shell (61) and McDonaldrsquos(56) Clothing and textile industry was consideredunethical by 81 of those who listed unethical firmsThe lists of ethical firms included Finnish grocery retailgroups methods of production and industry sectors Twoleading Finnish grocery retail groups were most oftenmentioned as ethical firms Of those who listed ethicalfirms (
n
= 325) 108 mentioned K-group as ethicaland 73 of them mentioned S-group as ethical Domes-tic production was regarded as ethical by 83 of thosewho mentioned ethical firms Organic products (71)as well as regional and local production (55) werealso considered ethical Few names of firms were men-tioned among them the Body Shop (65) and Nokia(28) Moreover some respondents viewed the major-ity of firms as unethical and some took the view thatethical firms do not exist at all
Discussion
The results of this study indicate that Finnish consumersregard ethical practices in production and trade asimportant The majority of respondents state that afirmrsquos business ethics influence their decision makingWhile the overall attitude seems extremely positive withregard to the importance of ethics this does not alwaystranslate into actual behaviour The attitudendashbehaviourgap refers to a difference between supporting the ideaof making ethical purchases and actually carrying it outin practice
78
This study could not identify the gapbecause actual purchasing behaviour was not studiedHowever it is likely that the lack of reliable informationabout ethical products and ethical trade is one factorbehind the gap
Only a minority of the respondents (382) felt thatthey have an opportunity to promote ethics in trade Inorder to decrease consumersrsquo uncertainty more guaran-tees about the ethics of products are needed Consum-ers are often critical of the claims that firms makeconcerning their ethical conduct The guarantees suchas the Fair Trade label are important means in assuringconsumers that the claims about trade ethics can betrusted
The respondents considered stores manufacturersand importers to have a very important role in inform-
ing the public about the ethics of firms and productsStores can affect consumersrsquo decisions at the momentof purchase They can also supply the stimuli thatencourage consumers to make impulse purchases andtry new products Manufacturers and importers can pro-vide consumers with important information in productlabels at the point of purchase Manufacturers whorefine raw materials imported from developing coun-tries should be responsible and aware of the conditionsunder which raw materials are produced Magazinesand the media provide information to consumers beforethey go shopping and provided that the message isstrong enough consumers recall that information at themoment of purchase
There seems to be a discrepancy between consumersrsquoviews of the sources that they regard as performing wellin providing ethical information and the parties thathave a duty to convey that information One-third ofthe respondents regarded store and sales staff as poorsources of information Stores are expected to do moreto provide reliable information about the origin andproduction conditions of the goods they sell In orderto achieve this sales staff need educating so that theyare able to inform consumers
Consumers are often uncertain about which firms actethically and which act unethically Nike Hennes ampMauritz as well as the textile and clothing industry ingeneral were mentioned as unethical They are almoststereotypically unethical firms It may be difficult forsuch firms to change consumersrsquo attitudes Converselythe Body Shop is stereotypically ethical The earlierstudies suggest that negative information about unethi-cal actions has a stronger effect on consumersrsquo attitudesthan positive information about ethical actions
718
Theattention of media towards unethical incidents may fur-ther strengthen consumersrsquo attitudes Consumers tendto be sceptical and cynical of ethical claims and find iteasier to believe that firms are unethical rather than thatthey are ethical The role of image is important Anethical image seems to polarize a firm is viewed aseither ethical or unethical A firm seeking to convey animage of ethical conduct thus needs to invest heavily inbuilding this image whereas images of unethical firmsmay arise merely on the basis of occasional rumoursFurthermore many firms do not have any ethical imageat all Some consumers perceive business as an amoral
Ethical consumerism
bull
O Uusitalo and R Oksanen
220
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
copy 2004 Blackwell Publishing Ltd
activity they consider business beyond moral judge-ments and judge it only based on the profit it makes
Conclusion
Ethical consumerism has recently become an idealwhich is pursued by groups of consumers especially inthe Western countries Both firms and consumers havea significant role in promoting ethics in production andtrade The most important barriers to ethical consumer-ism appear to be difficulties in obtaining informationthe availability of ethical products and the high pricesof these products
Consumersrsquo consciousness about ethics should beenhanced by educating them and providing them withreliable information Ethics in consumption shouldbecome a norm in society which is followed in the sameway as other moral principles or invisible rules
4
Con-sumers may find it difficult to make a trade-off betweenconvenience or low prices and ethics even when theyregard ethics as important But if neglecting ethics wasto become unacceptable and immoral behaviour posi-tive attitudes towards ethics might be realized in pur-chasing decisions
Public policy makers and firms interested in ethicalconsumerism should pay attention to consumersrsquo con-fusion and uncertainty Consumers find it problematicthat firms carry both unethical and ethical products intheir ranges It remains a future challenge for firms tofind ways to present ethical product alternatives visiblyand convey reliable information about ethics in orderto justify why a given product meets ethical standardsand why that product may cost more than otherproducts
One future opportunity open to firms in marketingethical products is the practice of selective ethics Forexample the Body Shop concept is famous for a singleethical claim no products are tested on animals Whileconsumers find it difficult to consider several ethicalcriteria simultaneously selective ethics only require thatthey take into account one or two important ethicalissues
Opportunities for socially responsible and ethicalconsumerism continue to be little known among con-sumers Firms need to show more clearly that they arepursuing ethical codes of conduct They could develop
greater competence in using ethics as a resource or thebasis for differentiation and competitive advantageHowever there is a danger that ethics will be used onlyas a marketing trick or image which has no substancein the firmrsquos actions Firms using ethics in this way notonly damage their own business but also affect thetrustworthiness of other firms that pursue ethics as agoal in itself
The role of consumers as promoters of ethical tradeshould also be stressed If consumers do not demandfirms to provide ethical products firms are likely toremove ethical products from their ranges Socialresponsibility cannot exclude profit making If socialresponsibility turns out to be unprofitable it will bedifficult for firms to contribute to reducing ethical injus-tices in global trade
References
1 Takala T (1991)
Managerial Beliefs Concerning Social Responsibility of the Firm Jyvaumlskylauml Studies in Computer Science Economics and Statistics 16
University of Jyvaumlskylauml Jyvaumlskylauml
2 Uusitalo L (1990) Are environmental attitudes and behaviour inconsistent Findings from a Finnish study
Scandinavian Political Studies
13
211ndash2263 Moisander J (2001)
Representation of Green Consumerism A Constructionist Critique
Helsinki School of Economics Helsinki A185
4 Uusitalo L (1986)
Suomalaiset ja ympaumlristouml Tutkimus taloudellisen kaumlyttaumlytymisen rationaalisuudesta [Finns and the Environment ndash A Study in the Rationality of Economic Behaviour]
Helsinki School of Economics Helsinki A49
5 Roberts JA (1996) Will the socially responsible consumer please step forward
Business Horizons
39
79ndash84
6 Simon FL (1995) Global corporate philanthropy a strategic framework
International Marketing Review
12
20ndash377 Carrigan M amp Attalla A (2001) The myth of the ethical
consumer ndash do ethics matter in purchase behavior
Journal of Consumer Marketing
7
560ndash5748 Boulstridge E amp Carrigan M (2000) Do consumers
really care about corporate responsibility Highlighting the attitude-behaviour gap
Journal of Communication Management
4
355ndash3689 Zadek S Lingayah S amp Forstater M (1998) Social
labels tools for ethical trade executive summary
copy 2004 Blackwell Publishing Ltd
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
221
O Uusitalo and R Oksanen
bull
Ethical consumerism
European Commission Directorate-General for Employment Industrial Relations and Social Affairs Directorate VD1
Office for Official Publications for the European Communities Luxembourg
10 Irving S Harrison R amp Rayner M (2002) Ethical Consumerism ndash Democracy through the Wallet
JRConsumerscom
issue 3 URL httpwwwjrconsumerscom
11 Fair Trade Label (2002) [WWW document] URL httpwwwklakcomreilukauppasivutindexphp
12 Engel J Blackwell R amp Miniard P (1986)
Consumer Behavior
The Dryden Press Saunders College Publishing Chicago IL
13 Dickson PR amp Wilkie W (1985)
Consumer Information Search and Shopping Behaviour
Working paper University of Florida Gainsville FL
14 Dickson PR amp Sawyer A (1990) The price knowledge and search of supermarket shoppers
Journal of Marketing
54
42ndash53
15 Bettman J (1979)
An Information Processing Theory of Consumer Choice
Addison-Wesley Publishing Co Inc Reading MA
16 Solomon M (1999)
Consumer Behaviour ndash Buying Having and Being
Prentice Hall Upper Saddle River NJ17 Newell A amp Simon HA (1972)
Human Problem Solving
Prentice Hall Englewood-Cliffs NJ18 Mohr LA Webb DJ amp Harris KE (2001) Do
consumers expect companies to be socially responsible The impact of corporate social responsibility on buying behavior
Journal of Consumer Affairs
35
45ndash7219 Titus PA amp Bradford JL (1996) Reflections on
consumer sophistication and its impact on ethical business practice
Journal of Consumer Affairs
30
170ndash19520 Statistical Yearbook of Finland (2001)
Statistics centrum of Finland
Otavan Kirjapaino Oy Keuruu
Ethical consumerism
bull
O Uusitalo and R Oksanen
218
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
copy 2004 Blackwell Publishing Ltd
The respondents were asked to give their views aboutvarious obstacles to ethical consumerism Table 3 showshow consumers perceived the various aspects of theirability to promote ethical trade
The most important obstacles to increasing ethicalconsumption are the difficulty of finding informationabout ethical products the lack of any guarantee thelack of ethical product alternatives and too few retailoutlets selling ethical products The high price of ethicalproducts is an obstacle for some consumers With regardto the question that consumers feel that they cannotaffect business ethics by their purchasing decisions therespondents were divided one half feeling that theirdecisions do not matter and one-third feeling that theiropinions do have an impact
Information sources
We wanted to know how consumers viewed the variousinformation sources in particular how various sourcesperform in conveying information about firmsrsquo ethicalconduct Table 4 displays the results
The respondents regarded magazinesliterature con-sumer authorities trade marklabel and brochures asgood sources of information about the ethical aspectsof trade Storesin-store staff importers other peoplefriends and television were considered the worst sourcesof ethical information It is also noteworthy that theshare of lsquodonrsquot knowrsquo answers is quite high for all of thesources This indicates that many consumers are con-fused and unaware of which sources they should usewhen searching information about ethical products Anotice that a product has been ethically produced couldbe visibly displayed on the label which 614 of therespondents viewed as good information sources How-
ever 184 of the respondents viewed labels as poorsources and 202 of them stated that they do notknow if labels are good or bad sources
We also asked the respondentsrsquo opinion about whoshould supply information about firmsrsquo ethical conductThis duty seems to devolve upon stores (596 of therespondents were of that opinion) manufacturers(519) and the media (439)
Ethical and unethical firms
The respondents were asked to list separately firms thatthey consider ethical and those that they consider uneth-ical This proved to be a difficult task about one half ofthe respondents skipped it Those who responded men-tioned more examples of unethical firms than ethicalones The lists of unethical firms included more namesof companies while ethical firms were named at a moregeneral level Of the respondents who listed unethicalfirms (
n
= 360) 192 mentioned Hennes amp Mauritz
Table 4
The performance of various sources in conveying information about firmsrsquo ethics
Goodsource ()
Donrsquotknow ()
Poorsource ()
Trademarklabel 614 202 184Storesin-store staff 319 366 315Magazinesliterature 709 219 72Internet 396 518 86Other peoplefriends 437 344 219Brochures 561 294 145Television 456 328 216Consumer authorities 625 293 82Importers 256 517 227
Table 3
Respondentsrsquo opinions of consumersrsquo ability to promote ethical trade
Strongly agree () Agree () Donrsquot know () Disagree () Strongly disagree ()
There are not enough ethical product alternatives 239 427 228 88 18There is no guarantee of ethics 227 505 170 88 10I feel that my choices do not matter 145 371 145 291 48Information gathering about ethics is difficult 285 458 156 91 10Ethical choices are expensive 174 361 254 170 41Ethical products are available in very few stores 274 422 203 91 10
copy 2004 Blackwell Publishing Ltd
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
219
O Uusitalo and R Oksanen
bull
Ethical consumerism
Other firms viewed as unethical were Nike (81) Ikea(78) Nestle (75) Shell (61) and McDonaldrsquos(56) Clothing and textile industry was consideredunethical by 81 of those who listed unethical firmsThe lists of ethical firms included Finnish grocery retailgroups methods of production and industry sectors Twoleading Finnish grocery retail groups were most oftenmentioned as ethical firms Of those who listed ethicalfirms (
n
= 325) 108 mentioned K-group as ethicaland 73 of them mentioned S-group as ethical Domes-tic production was regarded as ethical by 83 of thosewho mentioned ethical firms Organic products (71)as well as regional and local production (55) werealso considered ethical Few names of firms were men-tioned among them the Body Shop (65) and Nokia(28) Moreover some respondents viewed the major-ity of firms as unethical and some took the view thatethical firms do not exist at all
Discussion
The results of this study indicate that Finnish consumersregard ethical practices in production and trade asimportant The majority of respondents state that afirmrsquos business ethics influence their decision makingWhile the overall attitude seems extremely positive withregard to the importance of ethics this does not alwaystranslate into actual behaviour The attitudendashbehaviourgap refers to a difference between supporting the ideaof making ethical purchases and actually carrying it outin practice
78
This study could not identify the gapbecause actual purchasing behaviour was not studiedHowever it is likely that the lack of reliable informationabout ethical products and ethical trade is one factorbehind the gap
Only a minority of the respondents (382) felt thatthey have an opportunity to promote ethics in trade Inorder to decrease consumersrsquo uncertainty more guaran-tees about the ethics of products are needed Consum-ers are often critical of the claims that firms makeconcerning their ethical conduct The guarantees suchas the Fair Trade label are important means in assuringconsumers that the claims about trade ethics can betrusted
The respondents considered stores manufacturersand importers to have a very important role in inform-
ing the public about the ethics of firms and productsStores can affect consumersrsquo decisions at the momentof purchase They can also supply the stimuli thatencourage consumers to make impulse purchases andtry new products Manufacturers and importers can pro-vide consumers with important information in productlabels at the point of purchase Manufacturers whorefine raw materials imported from developing coun-tries should be responsible and aware of the conditionsunder which raw materials are produced Magazinesand the media provide information to consumers beforethey go shopping and provided that the message isstrong enough consumers recall that information at themoment of purchase
There seems to be a discrepancy between consumersrsquoviews of the sources that they regard as performing wellin providing ethical information and the parties thathave a duty to convey that information One-third ofthe respondents regarded store and sales staff as poorsources of information Stores are expected to do moreto provide reliable information about the origin andproduction conditions of the goods they sell In orderto achieve this sales staff need educating so that theyare able to inform consumers
Consumers are often uncertain about which firms actethically and which act unethically Nike Hennes ampMauritz as well as the textile and clothing industry ingeneral were mentioned as unethical They are almoststereotypically unethical firms It may be difficult forsuch firms to change consumersrsquo attitudes Converselythe Body Shop is stereotypically ethical The earlierstudies suggest that negative information about unethi-cal actions has a stronger effect on consumersrsquo attitudesthan positive information about ethical actions
718
Theattention of media towards unethical incidents may fur-ther strengthen consumersrsquo attitudes Consumers tendto be sceptical and cynical of ethical claims and find iteasier to believe that firms are unethical rather than thatthey are ethical The role of image is important Anethical image seems to polarize a firm is viewed aseither ethical or unethical A firm seeking to convey animage of ethical conduct thus needs to invest heavily inbuilding this image whereas images of unethical firmsmay arise merely on the basis of occasional rumoursFurthermore many firms do not have any ethical imageat all Some consumers perceive business as an amoral
Ethical consumerism
bull
O Uusitalo and R Oksanen
220
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
copy 2004 Blackwell Publishing Ltd
activity they consider business beyond moral judge-ments and judge it only based on the profit it makes
Conclusion
Ethical consumerism has recently become an idealwhich is pursued by groups of consumers especially inthe Western countries Both firms and consumers havea significant role in promoting ethics in production andtrade The most important barriers to ethical consumer-ism appear to be difficulties in obtaining informationthe availability of ethical products and the high pricesof these products
Consumersrsquo consciousness about ethics should beenhanced by educating them and providing them withreliable information Ethics in consumption shouldbecome a norm in society which is followed in the sameway as other moral principles or invisible rules
4
Con-sumers may find it difficult to make a trade-off betweenconvenience or low prices and ethics even when theyregard ethics as important But if neglecting ethics wasto become unacceptable and immoral behaviour posi-tive attitudes towards ethics might be realized in pur-chasing decisions
Public policy makers and firms interested in ethicalconsumerism should pay attention to consumersrsquo con-fusion and uncertainty Consumers find it problematicthat firms carry both unethical and ethical products intheir ranges It remains a future challenge for firms tofind ways to present ethical product alternatives visiblyand convey reliable information about ethics in orderto justify why a given product meets ethical standardsand why that product may cost more than otherproducts
One future opportunity open to firms in marketingethical products is the practice of selective ethics Forexample the Body Shop concept is famous for a singleethical claim no products are tested on animals Whileconsumers find it difficult to consider several ethicalcriteria simultaneously selective ethics only require thatthey take into account one or two important ethicalissues
Opportunities for socially responsible and ethicalconsumerism continue to be little known among con-sumers Firms need to show more clearly that they arepursuing ethical codes of conduct They could develop
greater competence in using ethics as a resource or thebasis for differentiation and competitive advantageHowever there is a danger that ethics will be used onlyas a marketing trick or image which has no substancein the firmrsquos actions Firms using ethics in this way notonly damage their own business but also affect thetrustworthiness of other firms that pursue ethics as agoal in itself
The role of consumers as promoters of ethical tradeshould also be stressed If consumers do not demandfirms to provide ethical products firms are likely toremove ethical products from their ranges Socialresponsibility cannot exclude profit making If socialresponsibility turns out to be unprofitable it will bedifficult for firms to contribute to reducing ethical injus-tices in global trade
References
1 Takala T (1991)
Managerial Beliefs Concerning Social Responsibility of the Firm Jyvaumlskylauml Studies in Computer Science Economics and Statistics 16
University of Jyvaumlskylauml Jyvaumlskylauml
2 Uusitalo L (1990) Are environmental attitudes and behaviour inconsistent Findings from a Finnish study
Scandinavian Political Studies
13
211ndash2263 Moisander J (2001)
Representation of Green Consumerism A Constructionist Critique
Helsinki School of Economics Helsinki A185
4 Uusitalo L (1986)
Suomalaiset ja ympaumlristouml Tutkimus taloudellisen kaumlyttaumlytymisen rationaalisuudesta [Finns and the Environment ndash A Study in the Rationality of Economic Behaviour]
Helsinki School of Economics Helsinki A49
5 Roberts JA (1996) Will the socially responsible consumer please step forward
Business Horizons
39
79ndash84
6 Simon FL (1995) Global corporate philanthropy a strategic framework
International Marketing Review
12
20ndash377 Carrigan M amp Attalla A (2001) The myth of the ethical
consumer ndash do ethics matter in purchase behavior
Journal of Consumer Marketing
7
560ndash5748 Boulstridge E amp Carrigan M (2000) Do consumers
really care about corporate responsibility Highlighting the attitude-behaviour gap
Journal of Communication Management
4
355ndash3689 Zadek S Lingayah S amp Forstater M (1998) Social
labels tools for ethical trade executive summary
copy 2004 Blackwell Publishing Ltd
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
221
O Uusitalo and R Oksanen
bull
Ethical consumerism
European Commission Directorate-General for Employment Industrial Relations and Social Affairs Directorate VD1
Office for Official Publications for the European Communities Luxembourg
10 Irving S Harrison R amp Rayner M (2002) Ethical Consumerism ndash Democracy through the Wallet
JRConsumerscom
issue 3 URL httpwwwjrconsumerscom
11 Fair Trade Label (2002) [WWW document] URL httpwwwklakcomreilukauppasivutindexphp
12 Engel J Blackwell R amp Miniard P (1986)
Consumer Behavior
The Dryden Press Saunders College Publishing Chicago IL
13 Dickson PR amp Wilkie W (1985)
Consumer Information Search and Shopping Behaviour
Working paper University of Florida Gainsville FL
14 Dickson PR amp Sawyer A (1990) The price knowledge and search of supermarket shoppers
Journal of Marketing
54
42ndash53
15 Bettman J (1979)
An Information Processing Theory of Consumer Choice
Addison-Wesley Publishing Co Inc Reading MA
16 Solomon M (1999)
Consumer Behaviour ndash Buying Having and Being
Prentice Hall Upper Saddle River NJ17 Newell A amp Simon HA (1972)
Human Problem Solving
Prentice Hall Englewood-Cliffs NJ18 Mohr LA Webb DJ amp Harris KE (2001) Do
consumers expect companies to be socially responsible The impact of corporate social responsibility on buying behavior
Journal of Consumer Affairs
35
45ndash7219 Titus PA amp Bradford JL (1996) Reflections on
consumer sophistication and its impact on ethical business practice
Journal of Consumer Affairs
30
170ndash19520 Statistical Yearbook of Finland (2001)
Statistics centrum of Finland
Otavan Kirjapaino Oy Keuruu
copy 2004 Blackwell Publishing Ltd
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
219
O Uusitalo and R Oksanen
bull
Ethical consumerism
Other firms viewed as unethical were Nike (81) Ikea(78) Nestle (75) Shell (61) and McDonaldrsquos(56) Clothing and textile industry was consideredunethical by 81 of those who listed unethical firmsThe lists of ethical firms included Finnish grocery retailgroups methods of production and industry sectors Twoleading Finnish grocery retail groups were most oftenmentioned as ethical firms Of those who listed ethicalfirms (
n
= 325) 108 mentioned K-group as ethicaland 73 of them mentioned S-group as ethical Domes-tic production was regarded as ethical by 83 of thosewho mentioned ethical firms Organic products (71)as well as regional and local production (55) werealso considered ethical Few names of firms were men-tioned among them the Body Shop (65) and Nokia(28) Moreover some respondents viewed the major-ity of firms as unethical and some took the view thatethical firms do not exist at all
Discussion
The results of this study indicate that Finnish consumersregard ethical practices in production and trade asimportant The majority of respondents state that afirmrsquos business ethics influence their decision makingWhile the overall attitude seems extremely positive withregard to the importance of ethics this does not alwaystranslate into actual behaviour The attitudendashbehaviourgap refers to a difference between supporting the ideaof making ethical purchases and actually carrying it outin practice
78
This study could not identify the gapbecause actual purchasing behaviour was not studiedHowever it is likely that the lack of reliable informationabout ethical products and ethical trade is one factorbehind the gap
Only a minority of the respondents (382) felt thatthey have an opportunity to promote ethics in trade Inorder to decrease consumersrsquo uncertainty more guaran-tees about the ethics of products are needed Consum-ers are often critical of the claims that firms makeconcerning their ethical conduct The guarantees suchas the Fair Trade label are important means in assuringconsumers that the claims about trade ethics can betrusted
The respondents considered stores manufacturersand importers to have a very important role in inform-
ing the public about the ethics of firms and productsStores can affect consumersrsquo decisions at the momentof purchase They can also supply the stimuli thatencourage consumers to make impulse purchases andtry new products Manufacturers and importers can pro-vide consumers with important information in productlabels at the point of purchase Manufacturers whorefine raw materials imported from developing coun-tries should be responsible and aware of the conditionsunder which raw materials are produced Magazinesand the media provide information to consumers beforethey go shopping and provided that the message isstrong enough consumers recall that information at themoment of purchase
There seems to be a discrepancy between consumersrsquoviews of the sources that they regard as performing wellin providing ethical information and the parties thathave a duty to convey that information One-third ofthe respondents regarded store and sales staff as poorsources of information Stores are expected to do moreto provide reliable information about the origin andproduction conditions of the goods they sell In orderto achieve this sales staff need educating so that theyare able to inform consumers
Consumers are often uncertain about which firms actethically and which act unethically Nike Hennes ampMauritz as well as the textile and clothing industry ingeneral were mentioned as unethical They are almoststereotypically unethical firms It may be difficult forsuch firms to change consumersrsquo attitudes Converselythe Body Shop is stereotypically ethical The earlierstudies suggest that negative information about unethi-cal actions has a stronger effect on consumersrsquo attitudesthan positive information about ethical actions
718
Theattention of media towards unethical incidents may fur-ther strengthen consumersrsquo attitudes Consumers tendto be sceptical and cynical of ethical claims and find iteasier to believe that firms are unethical rather than thatthey are ethical The role of image is important Anethical image seems to polarize a firm is viewed aseither ethical or unethical A firm seeking to convey animage of ethical conduct thus needs to invest heavily inbuilding this image whereas images of unethical firmsmay arise merely on the basis of occasional rumoursFurthermore many firms do not have any ethical imageat all Some consumers perceive business as an amoral
Ethical consumerism
bull
O Uusitalo and R Oksanen
220
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
copy 2004 Blackwell Publishing Ltd
activity they consider business beyond moral judge-ments and judge it only based on the profit it makes
Conclusion
Ethical consumerism has recently become an idealwhich is pursued by groups of consumers especially inthe Western countries Both firms and consumers havea significant role in promoting ethics in production andtrade The most important barriers to ethical consumer-ism appear to be difficulties in obtaining informationthe availability of ethical products and the high pricesof these products
Consumersrsquo consciousness about ethics should beenhanced by educating them and providing them withreliable information Ethics in consumption shouldbecome a norm in society which is followed in the sameway as other moral principles or invisible rules
4
Con-sumers may find it difficult to make a trade-off betweenconvenience or low prices and ethics even when theyregard ethics as important But if neglecting ethics wasto become unacceptable and immoral behaviour posi-tive attitudes towards ethics might be realized in pur-chasing decisions
Public policy makers and firms interested in ethicalconsumerism should pay attention to consumersrsquo con-fusion and uncertainty Consumers find it problematicthat firms carry both unethical and ethical products intheir ranges It remains a future challenge for firms tofind ways to present ethical product alternatives visiblyand convey reliable information about ethics in orderto justify why a given product meets ethical standardsand why that product may cost more than otherproducts
One future opportunity open to firms in marketingethical products is the practice of selective ethics Forexample the Body Shop concept is famous for a singleethical claim no products are tested on animals Whileconsumers find it difficult to consider several ethicalcriteria simultaneously selective ethics only require thatthey take into account one or two important ethicalissues
Opportunities for socially responsible and ethicalconsumerism continue to be little known among con-sumers Firms need to show more clearly that they arepursuing ethical codes of conduct They could develop
greater competence in using ethics as a resource or thebasis for differentiation and competitive advantageHowever there is a danger that ethics will be used onlyas a marketing trick or image which has no substancein the firmrsquos actions Firms using ethics in this way notonly damage their own business but also affect thetrustworthiness of other firms that pursue ethics as agoal in itself
The role of consumers as promoters of ethical tradeshould also be stressed If consumers do not demandfirms to provide ethical products firms are likely toremove ethical products from their ranges Socialresponsibility cannot exclude profit making If socialresponsibility turns out to be unprofitable it will bedifficult for firms to contribute to reducing ethical injus-tices in global trade
References
1 Takala T (1991)
Managerial Beliefs Concerning Social Responsibility of the Firm Jyvaumlskylauml Studies in Computer Science Economics and Statistics 16
University of Jyvaumlskylauml Jyvaumlskylauml
2 Uusitalo L (1990) Are environmental attitudes and behaviour inconsistent Findings from a Finnish study
Scandinavian Political Studies
13
211ndash2263 Moisander J (2001)
Representation of Green Consumerism A Constructionist Critique
Helsinki School of Economics Helsinki A185
4 Uusitalo L (1986)
Suomalaiset ja ympaumlristouml Tutkimus taloudellisen kaumlyttaumlytymisen rationaalisuudesta [Finns and the Environment ndash A Study in the Rationality of Economic Behaviour]
Helsinki School of Economics Helsinki A49
5 Roberts JA (1996) Will the socially responsible consumer please step forward
Business Horizons
39
79ndash84
6 Simon FL (1995) Global corporate philanthropy a strategic framework
International Marketing Review
12
20ndash377 Carrigan M amp Attalla A (2001) The myth of the ethical
consumer ndash do ethics matter in purchase behavior
Journal of Consumer Marketing
7
560ndash5748 Boulstridge E amp Carrigan M (2000) Do consumers
really care about corporate responsibility Highlighting the attitude-behaviour gap
Journal of Communication Management
4
355ndash3689 Zadek S Lingayah S amp Forstater M (1998) Social
labels tools for ethical trade executive summary
copy 2004 Blackwell Publishing Ltd
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
221
O Uusitalo and R Oksanen
bull
Ethical consumerism
European Commission Directorate-General for Employment Industrial Relations and Social Affairs Directorate VD1
Office for Official Publications for the European Communities Luxembourg
10 Irving S Harrison R amp Rayner M (2002) Ethical Consumerism ndash Democracy through the Wallet
JRConsumerscom
issue 3 URL httpwwwjrconsumerscom
11 Fair Trade Label (2002) [WWW document] URL httpwwwklakcomreilukauppasivutindexphp
12 Engel J Blackwell R amp Miniard P (1986)
Consumer Behavior
The Dryden Press Saunders College Publishing Chicago IL
13 Dickson PR amp Wilkie W (1985)
Consumer Information Search and Shopping Behaviour
Working paper University of Florida Gainsville FL
14 Dickson PR amp Sawyer A (1990) The price knowledge and search of supermarket shoppers
Journal of Marketing
54
42ndash53
15 Bettman J (1979)
An Information Processing Theory of Consumer Choice
Addison-Wesley Publishing Co Inc Reading MA
16 Solomon M (1999)
Consumer Behaviour ndash Buying Having and Being
Prentice Hall Upper Saddle River NJ17 Newell A amp Simon HA (1972)
Human Problem Solving
Prentice Hall Englewood-Cliffs NJ18 Mohr LA Webb DJ amp Harris KE (2001) Do
consumers expect companies to be socially responsible The impact of corporate social responsibility on buying behavior
Journal of Consumer Affairs
35
45ndash7219 Titus PA amp Bradford JL (1996) Reflections on
consumer sophistication and its impact on ethical business practice
Journal of Consumer Affairs
30
170ndash19520 Statistical Yearbook of Finland (2001)
Statistics centrum of Finland
Otavan Kirjapaino Oy Keuruu
Ethical consumerism
bull
O Uusitalo and R Oksanen
220
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
copy 2004 Blackwell Publishing Ltd
activity they consider business beyond moral judge-ments and judge it only based on the profit it makes
Conclusion
Ethical consumerism has recently become an idealwhich is pursued by groups of consumers especially inthe Western countries Both firms and consumers havea significant role in promoting ethics in production andtrade The most important barriers to ethical consumer-ism appear to be difficulties in obtaining informationthe availability of ethical products and the high pricesof these products
Consumersrsquo consciousness about ethics should beenhanced by educating them and providing them withreliable information Ethics in consumption shouldbecome a norm in society which is followed in the sameway as other moral principles or invisible rules
4
Con-sumers may find it difficult to make a trade-off betweenconvenience or low prices and ethics even when theyregard ethics as important But if neglecting ethics wasto become unacceptable and immoral behaviour posi-tive attitudes towards ethics might be realized in pur-chasing decisions
Public policy makers and firms interested in ethicalconsumerism should pay attention to consumersrsquo con-fusion and uncertainty Consumers find it problematicthat firms carry both unethical and ethical products intheir ranges It remains a future challenge for firms tofind ways to present ethical product alternatives visiblyand convey reliable information about ethics in orderto justify why a given product meets ethical standardsand why that product may cost more than otherproducts
One future opportunity open to firms in marketingethical products is the practice of selective ethics Forexample the Body Shop concept is famous for a singleethical claim no products are tested on animals Whileconsumers find it difficult to consider several ethicalcriteria simultaneously selective ethics only require thatthey take into account one or two important ethicalissues
Opportunities for socially responsible and ethicalconsumerism continue to be little known among con-sumers Firms need to show more clearly that they arepursuing ethical codes of conduct They could develop
greater competence in using ethics as a resource or thebasis for differentiation and competitive advantageHowever there is a danger that ethics will be used onlyas a marketing trick or image which has no substancein the firmrsquos actions Firms using ethics in this way notonly damage their own business but also affect thetrustworthiness of other firms that pursue ethics as agoal in itself
The role of consumers as promoters of ethical tradeshould also be stressed If consumers do not demandfirms to provide ethical products firms are likely toremove ethical products from their ranges Socialresponsibility cannot exclude profit making If socialresponsibility turns out to be unprofitable it will bedifficult for firms to contribute to reducing ethical injus-tices in global trade
References
1 Takala T (1991)
Managerial Beliefs Concerning Social Responsibility of the Firm Jyvaumlskylauml Studies in Computer Science Economics and Statistics 16
University of Jyvaumlskylauml Jyvaumlskylauml
2 Uusitalo L (1990) Are environmental attitudes and behaviour inconsistent Findings from a Finnish study
Scandinavian Political Studies
13
211ndash2263 Moisander J (2001)
Representation of Green Consumerism A Constructionist Critique
Helsinki School of Economics Helsinki A185
4 Uusitalo L (1986)
Suomalaiset ja ympaumlristouml Tutkimus taloudellisen kaumlyttaumlytymisen rationaalisuudesta [Finns and the Environment ndash A Study in the Rationality of Economic Behaviour]
Helsinki School of Economics Helsinki A49
5 Roberts JA (1996) Will the socially responsible consumer please step forward
Business Horizons
39
79ndash84
6 Simon FL (1995) Global corporate philanthropy a strategic framework
International Marketing Review
12
20ndash377 Carrigan M amp Attalla A (2001) The myth of the ethical
consumer ndash do ethics matter in purchase behavior
Journal of Consumer Marketing
7
560ndash5748 Boulstridge E amp Carrigan M (2000) Do consumers
really care about corporate responsibility Highlighting the attitude-behaviour gap
Journal of Communication Management
4
355ndash3689 Zadek S Lingayah S amp Forstater M (1998) Social
labels tools for ethical trade executive summary
copy 2004 Blackwell Publishing Ltd
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
221
O Uusitalo and R Oksanen
bull
Ethical consumerism
European Commission Directorate-General for Employment Industrial Relations and Social Affairs Directorate VD1
Office for Official Publications for the European Communities Luxembourg
10 Irving S Harrison R amp Rayner M (2002) Ethical Consumerism ndash Democracy through the Wallet
JRConsumerscom
issue 3 URL httpwwwjrconsumerscom
11 Fair Trade Label (2002) [WWW document] URL httpwwwklakcomreilukauppasivutindexphp
12 Engel J Blackwell R amp Miniard P (1986)
Consumer Behavior
The Dryden Press Saunders College Publishing Chicago IL
13 Dickson PR amp Wilkie W (1985)
Consumer Information Search and Shopping Behaviour
Working paper University of Florida Gainsville FL
14 Dickson PR amp Sawyer A (1990) The price knowledge and search of supermarket shoppers
Journal of Marketing
54
42ndash53
15 Bettman J (1979)
An Information Processing Theory of Consumer Choice
Addison-Wesley Publishing Co Inc Reading MA
16 Solomon M (1999)
Consumer Behaviour ndash Buying Having and Being
Prentice Hall Upper Saddle River NJ17 Newell A amp Simon HA (1972)
Human Problem Solving
Prentice Hall Englewood-Cliffs NJ18 Mohr LA Webb DJ amp Harris KE (2001) Do
consumers expect companies to be socially responsible The impact of corporate social responsibility on buying behavior
Journal of Consumer Affairs
35
45ndash7219 Titus PA amp Bradford JL (1996) Reflections on
consumer sophistication and its impact on ethical business practice
Journal of Consumer Affairs
30
170ndash19520 Statistical Yearbook of Finland (2001)
Statistics centrum of Finland
Otavan Kirjapaino Oy Keuruu
copy 2004 Blackwell Publishing Ltd
International Journal of Consumer Studies
28
3 June 2004 pp214ndash221
221
O Uusitalo and R Oksanen
bull
Ethical consumerism
European Commission Directorate-General for Employment Industrial Relations and Social Affairs Directorate VD1
Office for Official Publications for the European Communities Luxembourg
10 Irving S Harrison R amp Rayner M (2002) Ethical Consumerism ndash Democracy through the Wallet
JRConsumerscom
issue 3 URL httpwwwjrconsumerscom
11 Fair Trade Label (2002) [WWW document] URL httpwwwklakcomreilukauppasivutindexphp
12 Engel J Blackwell R amp Miniard P (1986)
Consumer Behavior
The Dryden Press Saunders College Publishing Chicago IL
13 Dickson PR amp Wilkie W (1985)
Consumer Information Search and Shopping Behaviour
Working paper University of Florida Gainsville FL
14 Dickson PR amp Sawyer A (1990) The price knowledge and search of supermarket shoppers
Journal of Marketing
54
42ndash53
15 Bettman J (1979)
An Information Processing Theory of Consumer Choice
Addison-Wesley Publishing Co Inc Reading MA
16 Solomon M (1999)
Consumer Behaviour ndash Buying Having and Being
Prentice Hall Upper Saddle River NJ17 Newell A amp Simon HA (1972)
Human Problem Solving
Prentice Hall Englewood-Cliffs NJ18 Mohr LA Webb DJ amp Harris KE (2001) Do
consumers expect companies to be socially responsible The impact of corporate social responsibility on buying behavior
Journal of Consumer Affairs
35
45ndash7219 Titus PA amp Bradford JL (1996) Reflections on
consumer sophistication and its impact on ethical business practice
Journal of Consumer Affairs
30
170ndash19520 Statistical Yearbook of Finland (2001)
Statistics centrum of Finland
Otavan Kirjapaino Oy Keuruu