Abstract
Do consumers induce ethical consumption or companies seeking credibility for sales? This issue is discussed using assessments of the consumers’ behaviour and experiences with life cycle management of firms considered leaders in corporate social responsibility. Consumers state high preference for the ethical consumption but do not reveal it in purchases given product prices. This gap is often explained by the inconsistent consumers’ behaviour and deficient purchasing conditions, but supplies do not allow for sound assessments of functional qualities and ethical attributes compounded in products. Credible suppliers are highly rewarded with price markups and cost savings because can accrue a market share at low cost, save costs in supply chain and deliver value-adding products. A model on the consumers’ and suppliers’ deliberations between the functional qualities and ethical attributes, given prices, shows that the additional consumer demands have little positive influence on the ethical consumption compared to the innovating suppliers. Fostering sustainable innovations contributes more to ethical consumption than moralising about consumers’ behaviour.
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Krozer, Y. (2016). Ethical Consumers and Producers. In: Theory and Practices on Innovating for Sustainable Development. Springer, Cham. https://doi.org/10.1007/978-3-319-18636-8_9
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DOI: https://doi.org/10.1007/978-3-319-18636-8_9
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