When talking about social entrepreneurship in last month's issue of Invested, the concept of “ethical consumerism” kept popping up. But what exactly is ethical consumerism, and is it even possible in today’s labyrinthine world of global supply chains and often greenwashed corporate promises?
What is Ethical Consumerism?
At its core, ethical consumerism is a commitment to making purchasing decisions that consider the social, environmental, and ethical impacts of products and brands. It's about asking questions like: Who made this? Were they paid fairly? Is it harming the planet? From fair-trade coffee to sustainably sourced fashion, ethical consumerism spans across industries, offering a plethora of options for those eager to align their purchases with their principles, while seeking transparency and accountability from companies. (Singer, 2019)
The Paradox of Choice
Navigating the landscape of ethical consumerism presents a formidable challenge in today's world, where the abundance of choices often paradoxically leaves consumers paralyzed with indecision. The sheer multitude of labels, certifications, and ethical considerations can transform what should be a straightforward transaction into a daunting task.
With every click, tap, and scroll, we're bombarded with articles, documentaries, and social media posts telling us why we should boycott this brand or support that cause. From fair-trade and organic to cruelty-free and carbon-neutral, the array of ethical considerations is vast. And the absence of standardized labeling and certification processes only amplifies consumer confusion, making it arduous for consumers to confidently discern which products genuinely align with their ethical values. Consider this scenario: you find yourself in the aisle of your local grocery store, torn between organic, fair-trade, locally sourced, artisanal snacks and their considerably cheaper, mass-produced counterparts, tainted with questionable labour practices and a sizable carbon footprint. Which do you choose? (Carrigan, 2017)
Most people don’t have the time to research ethical alternatives to the products and services they use daily, nor do they have the liberty or time to reject the accessible (and often unethical) options easily available to them. Stack on top of that the cost of ethical alternatives — especially environmentally-conscious ones — and ethical consumerism starts to seem like an insurmountable obstacle, a distant dream. (Desai Swaddle, 2020)
A sitcom is an unusual place to find meaningful discussions on philosophy and ethics, but The Good Place came to mind when researching this article. One of the big reveals was that (*spoiler alert*) no matter how much of an effort is made by people striving to be good, the current consumerism model makes being ethically sound impossible. The Good Place features a point system to determine who goes to the "good place" and who goes to the "bad place." This becomes problematic when the points that were once gained by doing a good deed are now negated by the negative impacts that come from the myriad of ethical challenges discussed above.
The Greenwashing Gambit
And, as if all of that wasn’t enough, one of the foremost challenges facing ethical consumers is the pervasive presence of greenwashing – the deceptive practice of making unsubstantiated or exaggerated claims about the environmental or ethical attributes of a product. With companies increasingly capitalizing on the growing demand for sustainable products, distinguishing between genuine commitments to sustainability and mere marketing gimmicks has become an almost herculean endeavour. (Singer, 2019)
Consumers today face a barrage of green-friendly messaging from companies hoping to profit from increased concern over environmental issues. Unfortunately, many of these environmental promises don’t pan out. Research carried out in Europe found that 42% of green claims were exaggerated, false, or deceptive, which points to greenwashing on an industrial scale. (Ioannuo et al., 2022)
Consider the case of a product labeled "eco-friendly" or "all-natural" – terms that sound promising on the surface but may lack any meaningful certifications or evidence to support their claims. All too often, you can find yourself in a scenario where one moment you’re patting yourself on the back for choosing that fair-trade, organic coffee; the next, you're learning about the exploitation of workers in the very fields where those beans were grown.
A Call to Action
“Voting with your wallet” and boycotts are typical examples of actions consumers can take. However, journalist Maya Singer contends that the notion of "voting with your wallet" as a means to drive societal change is often impractical for many individuals. This constant moral quandary consumers face when making purchases has led to people feeling tired and numb. Instead, she advocates for a shift towards advocating for change in public policy, where the burden of responsibility doesn’t fall on consumers' shoulders to research and select which product is the most ethical, but on the producers to ensure that their products and practices are not harmful. (Singer, 2019)
Additionally, boycotts are often ineffectual. Professor Brayden King of Northwestern University argues that particularly in this age of rapid social media and news cycles, corporations are often able to weather the storm of public outcry against their unethical practices as our attention spans are so fleeting. This results in the boycott having a minimal impact on revenue. (Desai, 2020)
I don't mean to come across all doom and gloom. Ethical consumerism is an aspirational goal. But it has become an intricate maze, often confounding even the most well-intentioned individuals, which underscores the limitations of relying solely on consumer behaviour to drive ethical change. So, going back to the question asked at the start of this article: is ethical consumerism possible? I think the short answer is, kind of.
Bibliography
Carrigan, M. (2017). Revisiting ‘The Myth of the Ethical Consumer’: why are we still not ethical shoppers?. Journal of Consumer Ethics, 1(1), 11-21.
Desai, R. (2020). Ethical consumerism is unsustainable; what can take its place? Retrieved from https://www.theswaddle.com/ethical-consumerism-is-unsustainable-what-can-take-its-place
Ioannou, I., Kassinis, G., & Papagiannakis, G. (2022). How greenwashing affects the bottom line. Retrieved from https://hbr.org/2022/07/how-greenwashing-affects-the-bottom-line
Singer, M. (2019). Is there really such a thing as “ethical consumerism”? Retrieved from https://www.vogue.com/article/ethical-consumer-rentrayage-batsheva-lidia-may