The Other CSR: Consumer Social Responsibility
Why consumers are dropping the ball in the game of socially responsible capitalism
October 12, 2006
Timothy M. Devinney, Patrice Auger, Giana Eckhardt, and Thomas Birtchnell Stanford Social Innovation Review
Everyday we hear about another new business or reformed
corporation joining the ethical marketplace in an attempt to
fulfill our fantasies of a sustainable consumer lifestyle. Maybe
these outfits are dedicated to the environment, or maybe they're
just angling for a piece of the moral profit pie by hawking
fair-trade products. Whatever the businesses' motives, there's
trouble in socially responsible paradise: Despite surveys showing
an eager customer base, people aren't putting their money where
their mouths are and actually buying ethically produced goods. In a
piece for the
Stanford Social Innovation Review, four
researchers -- Timothy M. Devinney, Patrice Auger, Giana
Eckhardt, and Thomas Birtchnell --investigate why consumers
aren't closing the corporate social responsibility (CSR)
loop.
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One surprising discovery they made was that information on
ethical issues and the availability of socially responsible
products did not make a difference in consumer choice. Consumers
made explicitly aware of a product's benefits to society or the
environment were just as likely to choose the cheaper, more harmful
brand as a control group given no information about the products.
But is it really as bad as an Australian participant in a similar
study claims: Do '[m]orals stop at the pocketbook'?
The Stanford team found that people willing to pay more in the
name of ethics do exist, but they're not who you think they might
be. There is no group designated by nationality, age, gender,
income, or education level that consistently buys ethical products
more than any other. The authors write, '[c]ontrary to what some
might believe, CnSR [consumer social responsibility] is
not just the purview of wealthy, highly educated females in liberal
Western democracies. Rather, it is something embedded in the psyche
of individuals.'