[Dialogue] The Other CSR: Consumer Social Responsibility

[Harry Wainwright]

The Other CSR: Consumer Social Responsibility

October 12, 2006 
By Timothy M. Devinney, Patrice Auger, Giana Eckhardt, and Thomas
Birtchnell,
Stanford Social Innovation Review 


Why consumers are dropping the ball in the game of socially responsible
capitalism

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 <http://www.ssireview.org/articles/entry/the_other_csr/>  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.

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."

With a change in marketing tactics, these researchers believe that ethical
businesses could win over hard-to-reach shoppers. Social issues should be
chosen carefully, as consumers need to see a direct link between buying a
certain product and its effect on society. To wit: A 10 percent donation to
an AIDS charity for buying a pair of pants is not as convincing as buying
biodegradable dish soap. Consumers also need to know that the product
they're buying is functional in comparison to conventional brands -- no one
wants to waste money on a product that doesn't do its job. For the rational
consumer, social responsibility is only icing on the capitalist cake, but if
it's the right icing people may just be willing to pay for it. -- Suzanne
Lindgren

 

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