Analyzing The Significance Of Ethical Consumerism For Businesses

Write an analytical business report on what ethical consumerism means for businesses.

Explain and analyse how they operate ethically. This must take into account the ethics and values of the company you choose to focus on. The report must be written in business report format and include the following  numbered sections:

1.A cover page/ table of contents which lists the sections and the page numbers.

2.An executive summary which gives a brief overview of the argument in your report including key findings and conclusions.

3.An introduction which gives an overview of the structure of your report.

4.A brief definition, overview and analysis of ethical consumerism, identifying the examples of some of the products which fall into the ethical category and discussing why it is a good strategy for businesses to adopt.

5.A detailed review of one company claiming to operate ethically. Discuss the approach(es) they have used to become a more socially conscious business, linking this with their ethics and values.

6.The results of a short opinion survey on what influences consumer buying behaviour, carried out by you from a small sample of at GSM London. You need to conduct primary research for this section.

7.A conclusion which includes critical evaluation of ethical consumerism based on the evidence that you have gathered both from your primary and secondary research, focusing on the company you have chosen for detailed review.

8.Recommendations as to how your company could become more ethical.

9.A references list after the main body of the report. Remember to use Harvard referencing where appropriate.

Ethical Consumerism in Business

The aim of ethical consumerism is to identify the customers who buy products that are ethically produced, sourced and distributed (McGregor, 2005). Ethical sourcing means that creation of the product is done in accordance with the ethical terms. An ethical production is the process of involving the elements of reusing or using workers who are not categorized as slaves or children (Aboutmcdonalds.com, 2015). When a person buys this product then they are recognized as ethical consumer (Hudson, 2013). This report discusses the basic aspects of Ethical Consumerism and its significance in a business. The study will focus on the McDonalds company as the biggest hamburger chain restaurant and examine its ethical operation (Young, 2003). Ethical consumerism should be valued by every company so that customer satisfaction is met. Primary and secondary research have been made within companies to ensure necessary actions are taken in the application of ethical consumerism.

Currently, with the introduction of globalization, customers have been enabled to make several options and choices in the process of purchasing products (Devinney, 2010). With the fact that, consumers are actively getting involved in the Green Economy, it is essential for businesses to evaluate and understand the requirements of a consumer. Ethical customers value the ethical standards of the products than their prices and other qualities. They are always looking for specific ethical standards in the product (Lewis, 2011). Ethical standards of a product include, that the product must have pure and natural ingredients. In addition, ethical production, distribution and sourcing must be exercised. Also, the information regarding the products nutritional values should be clear and well outlined (Healey, n.d.). An ethical product should honour Human Rights, be transparent and must protect the health of a person using it. Companies producing goods must value the concept of a sustainable green and clean environment. They should also market and advertise their products ethically and participate in recyclable or renewable methods of packaging.

The centre of focus for a company is the customers and their behaviour, therefore it is important for any company to emphasize on providing high quality customer service (Healey, n.d.). Corporate Social Responsibility focus on attaining a balance in social, environmental and economic imperatives. CSR, encourages companies to adapt environmental management, good working conditions, and eco-efficiency (Healey, n.d.). Also, the community and employee relationship should be valued as well as gender balance and human rights concerns. Today, companies are understanding the value of developing accountable and responsible products.  The Thinking of the companies is centred on the ethical consumerism theory. The theory suggests that a number of consumers settles on the purchase decisions on the basis of product’s environmental, social and ethical aspects (Payne, 2015). However, the reality is that the majority of the consumers do not practice ethical choices.  Nonetheless, recently, consumers are becoming more aware of their rights and demanding companies to be responsible when producing goods and services.

McDonalds is the biggest world hamburger chain restaurant of fast foodstuff (McGregor, 2005). McDonalds global strategy is named as the Plan to Win which aims at recommendable experience of the consumer. Becoming customer’s favourite location is the main mission of McDonalds company.

McDonalds Review

McDonalds’ global strategy, the Plan to Win, focusses on the following:

Customers' experience whereby the company focusses on providing clean, quality, value and service to its consumers (Healey, n.d.). Another focus is commitment, McDonalds believes in offering opportunities, leadership development and talent nurturing. This ensures continued company’s' success through having well trained and healthy working conditions. The other focus of the Plan to Win is assessing the interest of the owner, workers of the company and suppliers. The plan also values business practices that are ethical with integrity, honesty and fairness (Young, 2003). McDonalds also global strategy also focusses on constant innovation that respond to dynamic needs of the workers and customers. For the betterment of the world McDonalds supports Ronald McDonald House Charities and controls its scope, resources and size. Through focusing on the customer’s well-being profitability of the business is ensured.

McDonalds CSR strategy revolves around sustainability. Sustainability enables the company to constantly get the supply of inputs for the manufacture of hamburgers and the fast foodstuff hence being regarded as an important aspect in the McDonalds CSR strategy (Schröder, 2005).McDonalds company also took an initiative of selling free cholesterol fast food goods and salads. McDonalds company, also launched Global Advisory Council which collaborates with global teams concerning expertise advice on the value of nutrition (Schröder, 2005). McDonalds is conscious when it comes to its responsibility concerning the environment. The company took enormous precautions in the reduction of emissions from greenhouse through the prevention of carbon emissions and saving of energy. Ethical consumerism states that the mechanism used in production should be ethical which McDonalds has observed in their products production (Schröder, 2005).McDonalds has implemented the green restaurant design and also banned the usage of plastics and adopted paper packaging.

Primary survey established on Random Sampling (Convenience) was conducted on 50customers who were familiar with McDonalds. The example of the research data collection and analysis is found below. The appendix contains the additional questionnaire used in this study.

Do you go to Eat in McDonalds?

Disagree Strongly Disapproves Unresponsive Agree Agrees Strongly

From the data, it can be viewed that 52% of the people strongly agree or agree that they go to eat at McDonalds. While others are indifferent or do not eat. A secondary survey also shows that an undertaken program by The White House which focused on promoting a healthy consumer awareness and control market power in collaboration with Walmart (Sun, Chen and Wang, 2012). McDonalds and Subway assisted in fighting labour trafficking which took place in Sunshine Stat’s tomato company (The Huffington Post, 2015). Innova Marketers have shown that most of the customers are worried and are asking for pure goods. Concerning the purchase of goods, the aspect of sustainability is already in the peoples' mind. Sustain Ability and Globe Scan’s current research shows that customers in the underdeveloped economies are stressing on the value of Green Economy. McDonalds has also gone ahead with the initiation of environmental friendly approaches through polystyrene coffee cups recycling and substituting them with paper cups (News, 2015). The adoption of eco-friendly methodologies can be depicted as ethical consumerism. Through the adoption of these eco-friendly measures McDonalds has strongly captured consumers' interests.

Conclusion

For a business to exist, consumers are considered as the basis of that existence. For a company, the objective should be centred on the realization of the expectations and needs of the customers. By setting this objective, the company will factor in the ethical consumerism issues discussed in this study. McDonald continue exercise best business practices and ethics by abiding by the CSR across all the operations of the company. The company continues to initiate enhanced quality programs that ensures ethical consumerism is promoted today and in the future. The success of MacDonald is based on their valued customers. As a result, the company ensures that customers make informed decision by providing them with information about healthy nutrition.

In order strengthen the quality of services and reach many customers, McDonalds should pay attention to the problems associated with food security. The supervision of food safety should the number one priority for McDonalds. This study offers two recommendations that will help the company realize a comprehensive ethical goal. First, the company should adopt the government and enterprise responsibility. This will include the strengthening of management, strictly implement food security standards. Lastly, the company should increase social moral awareness in the community they serve.

References

Aboutmcdonalds.com, 2015. McDonald’s Mission and Corporate Values. [Online]
Available at: https://www.aboutmcdonalds.com/mcd/our_company/mission_and_values.html
[Accessed 4 4 2017].

Bell, P., 2015. Ethical Consumerism: what is it and how can you make it work for you?. 1 ed. Glasgow : Glasgow Caledonian University.

Devinney, T. A. P. a. E. G., 2010. The myth of the ethical consumer., Cambridge: Cambridge:Cambridge University Press..

Healey, J., n.d. Ethical consumerism., s.l.: s.n.

Hudson, M. H. I. a. E. J., 2013. Political Consumerism in Context: An Experiment on Status and Information in Ethical Consumption Decisions.. American, 72(4), pp. 1009-1037.

Lewis, T. a. P. E., 2011. Ethical consumption., Routledge: Milton Park, Abingdon, Oxon.

McGregor, 2005. The Ethical Consumer. International Journal of Consumer Studies, 29(4), pp. 387-388..

Paish, M., 2011. Ethical food choices influencing product development, research finds |Australian Food News. [Online]
Available at: https://ausfoodnews.com.au/2011/12/21/ethical-food-choices-influencing-productdevelopment
[Accessed 4 4 2017].

Payne, J., 2015. Ethical Consumerism and Conservatism – Hand In Glove. The Heinz Journal, pp. 20-28.

Romu, H., 2009. Ethical consumption as an identity project - A narrative approach to Finnishethical consumers’ identity construction., s.l.: Ausfoodnews.com.au..

Schröder, M. a. M. M., 2005. Fast foods and ethical consumer value: a focus on McDonald's and KFC.. British Food Journal, 107(4), pp. 212-224.

Young, B., 2003. Does food advertising make children obese?. Young Consumers, 4(3), pp. 19-26.