The Impact Of CSR on Consumer Behaviour

Authors Avatar

Word Count: 2046

Introduction

In recent years, there has been a distinct change in the way companies and manufactures market their products. One of these changes, and probably the most controversial, is the use of 'ethical branding'. 'Fairtrade', 'organic', 'green' are just some of the buzz words of this once niche trend which has now gone mainstream. This report will look 3 industries: fashion, transport and organic food  to determine if this new marketing strategy has had the desired impact on consumer behaviour or do people actually care.

The topic of ethical branding and the rise of corporate social responsibility was chosen due to the the fact that the rise of ethical consumerism and branding has raised a number of moral, political and controversial questions. Firstly, Is ethical consumerism a niche trend gone mainstream? Secondly, Do ethics matter in purchase behaviour? Thirdly, do consumers care about the conditions under which products (ethical or otherwise) are manufactured? Finally, Do people only care where there products come from, when they can afford to care? Answering these questions will be the aim of our research.

Literature Review/ Secondary Research

The following facts are based around the for mentioned  industries and their promotion of corporate social responsibility. These facts will further demonstrate the decision to use the rise of ethical branding as the topic for our presentation. These facts also clearly show how the objectives of our research were derived.  

In 2007 a Guardian report revealed that factory workers who make clothes for high street retailers are being paid as little as 13p per hour for a 48-hour week,  India’s biggest ready-made clothing exporter, Gokaldas Export, supplier of brands such as Marks & Spencers, Mothercare and H&M, verified that wages paid to garment workers were as little as £1.13 for a nine-hour day. This falls below the minimum international labour standards established by the Ethical Trading Initiative (ETI), whose members include Marks & Spencers, Mothercare, Gap and Primark.

This article started a chain of media events targeting the high street fashion industry, First came 'Blood, sweat, and t-shirts' in may 2008, a BBC 3 series focusing on the working conditions in factory's and sweatshops in India.  In June 2008, 'The devil wears Primark' was scheduled to be broadcast on Channel 4, but was pulled due to apparent 'editorial reasons'. The documentary looked at the conditions in the foreign factories that supply cheap clothing to high street stores for UK companies.

Following from the media attention the high street fashion industry was receiving, it seemed corporate social responsibility was the priority of 'budget retailers' such as Primark and H&M, A detailed section on CSR appeared on the H&M website . Primark followed suit and also in 2008, when  was launched.

Join now!

The rise in corporate social responsibility was not only seen in the fashion industry. In 2007 Toyota

was recognized for its corporate environmental program, including long-term goals to reduce environmental impacts (5-Year Environmental Action Plan), waste minimization efforts, energy and resource conservation, and community outreach efforts (csrwire, 2007). The following year the Toyota Yaris was named 'Green Car of the Year' by The Environmental Transport Association.

However, while they were being recognised for their corporate environmental program, they were also coming under fire and being branded as hypocritical  for selling the Yaris while at the same ...

This is a preview of the whole essay