Premium Essay

Ethical Consumerism

In: Business and Management

Submitted By chinkalok
Words 2904
Pages 12
PEPSI’S CONCEPT OF ETHICAL CONSUMERISM
By (name)

Course:
Tutor:
Institution:
Location of Institution:
Date:

Executive summary
The ethical consumerism market has shifted significantly over the past few decades just as the attitudes regarding the environment and ethical sourcing of products. Unlike in the past decades when consumers were generally ignorant of the information regarding what was being offered to them, today the consumers are more individualistic and informed. A short opinion survey conducted among a sample of 13 students from GSM London to assess the factors that impact consumer behavior have shown that two-thirds of the respondents lean towards the assessment of a firm’s ethical marketing process before making a decision to buy from such a company.

Table of Contents
Executive summary 2
Introduction 4
An overview and analysis of ethical consumerism 4
Review of Pepsi Co Inc Company 6
Result of the Short Opinion Survey 8
Conclusion 10
Recommendation 10
Reference 11
Appendix 13

Introduction
Ethical consumerism is growing in significance influencing customer choices as well as increasing the role played by the social movement in the marketing process (Buechler, 2010, p.13). New unfolding and ethics are pushing customers to participate actively in market participation and also to criticize the market process and retreat from it. This paper will focus on the analysis of factors that influences consumer behavior through an opinion survey conducted among thirteen students at GSM London. The study also focuses on the identification of products deemed to fall within the ethical category.
In addition, the paper also analyzes a case study of PepsiCo, with a view to identifying ways in which it applies ethical issues in its business. It focuses on different strategies employed by PepsiCo in order to continue being a socially conscious business…...

Similar Documents

Free Essay

Consumerism

...In modern times, the term “consumerism” has been associated with a preoccupation with the acquisition of goods and commodities. Traditionally, it has been used with negative connotations – as a “problem” that indicates a lack of discretion among “buyers” and “consumers” regarding what goods to buy and why to buy them in an increasingly commercialized environment. Among Marxist thinkers especially, what happened has been linked to exploitation under industrial capitalism. Consumerism has been associated with the growth of industrial capitalism in Europe from the 18th century and its global spread thereafter – a development that was accompanied by economies of scale and increases in production and productivity. Such increases were sustained by growth in demand, both in the immediate neighbourhood of centres of production and further a-field. Improvements in technology and extensive use of the division of labour enabled manufacturers to produce on a large scale for “wants”, “needs” and “fashions”. Commercialisation of leisure and the penetration by innovative manufacturers, of religious practices, public health, and education reinforced the habits of acquisition and increasing “consumption”. In European society, in these circumstances, availability of goods ceased to be a substantial problem. Rather, more important were means to ensure that they were in demand and “consumed”. If this was not achieved, “gluts” and economic depressions would take place,......

Words: 289 - Pages: 2

Free Essay

Consumerism

...Consumerism Consumerism has become a way of life for people in the postmodern society. In a broad sense it provides some of the aspirations people live in order to try and create a better life. Religions and traditions have been overshadowed by consumerism, which reinforces the worst aspects in us, an obsessive desire to consume more. This society is driven by materialistic things “The more we consume the better our lives will be” The short story”To Feed the Night” by Philip illustrates how people are affected by consumerism. The young couple in the story barely have enough money to live on, but the husband insists on buying a new house as soon as he gets the opportunity. Whenever the couple buy a house they seem satisfied in the beginning but after a couple of months everything starts looking dull and boring. The husband has no limit to satisfaction, and he is a victim of the consumer society. Consumerism makes a person aim for the best even though they have something that’s good enough. Replacing the old with the new becomes a pattern, for example when women claim they have nothing to wear for a special occasion although their wardrobe is full of clothes. The real estate agent Mr. Bell sells the houses by persuading and manipulating the husband and making him believe he needs more, to create a better future. Just like Mr. Bell the media bombards people with all the advertising from message billboard, TV and magazines. When the media tries to sell a product, they......

Words: 425 - Pages: 2

Premium Essay

Ethical Consumerism

...Ethical Consumerism: Opportunities and Challenges Globally Your full name Your ID no. Unit code and name Lecturer name Assignment # Completion Date Emergence of new business concepts resulted due to global pressures. This result is in the form of business ethics and corporate social responsibility. Besides economic and environmental diligence, these concepts have become a marketing instrument to evaluate the performance of businesses. They are now designing products that are ethical and consider factors like health, safety and morality in their offerings (Hamelin et al. 2012). Similarly, consumers are the ultimate users of the products. They make a huge influence on the offerings by the concerns by accepting it or boycotting it. They attempt to bring changes in the society through their purchasing decisions. So the special market segment could be seen as the "ethical consumers"(Deng 2011). Thus, ethical consumerism could be defined as the ethical concern about the organizations and their products and services by choosing or not choosing a product or service that meets or fails certain ethical standards respectively. There are many aspects and matters included in the ethical considerations. These include safe environmental concerns, fair trade, animal welfare, labor standards and health concerns (Cho and Krasser 2011). The consumers reject the unethical offerings by the organizations through boycott or buycott. Boycott refers to the negative ethical purchase......

Words: 1618 - Pages: 7

Free Essay

Consumerism

...Consumerism is the theory that a country that consumed goods and services in large quantities will be better off economically. Consumerism can also be known as the theory that an increasing consumption of goods is economically desirable this means that preoccupation with and an inclination toward the buying of consumer goods. Consumerism can be referred to as a policy that promotes greediness in consumers. Consumerism is also sourced as a movement towards consumer protection that promotes improvement in safety standards and truthful packaging and advertisement. Consumerism has a massive effect on the environment. Because of consumerism countries now days misuse land and resources for personal use, this misuse of land and resources is very bad because the countries take more than they can replace. This is therefore detrimental in the long run because not only the environment but also the people are affected by this. Another effect that consumerism has on the environment is pollution. Pollution is definitely related to consumption or increased consumption. That is, the consumption itself, plus the production and waste of products used in consumption. Automobiles are a major examples of where increased consumption causes pollution. Because automobiles are in demand every single day and because other technological advancements in automobile production has increased, there is a vast amount of resources needed to build or assemble the automobiles, minerals like metal need to......

Words: 723 - Pages: 3

Premium Essay

Ethical Consumerism

...2014 8/1/2014 Impact of Ethical Consumerism on Businesses; Sainsbury’s as case study Contents Executive Summary 2 Introduction 2 Ethical Consumerism Types or Categories 2 Sainsbury’s as a case Study 4 Opinion Survey on Consumerism 4 Conclusion and Recommendations 5 Bibliography 6 Executive Summary In a ethnicity of plenty, where organisation are selling very similar products at almost the same price, and of the same quality to even the similar consumers, These consumers are free of charge to make use of other, ethical criteria in making their choice between opposite options. There are definitely different levels of ethical consumption - with some people being highly morals determined, while some are just getting on a generally satisfactory bandwagon. The reality still that there is a rising crowd of ethical consumers which need to be taking seriously. Because now it is very easy to be an ethical consumer The Internet, press, and magazines are all spreading company’s information about where and how their products and services are being generated. Blogs and customer help desk are also help customers who by one way or the other had terrible experience or who have important inside information to obtain immediate international exposure. Exposing unethical conduct and practices is a definite title for journalists, so business organisation is under more enquiry than before. Businesses like Sainsbury’s are carefully but continuously examining how well they......

Words: 2274 - Pages: 10

Premium Essay

Consumerism

...Consumerism: Its Huge Role in the Environment America is one of the most affluent nations in the world. Many Americans are able to live a life with such disposable luxury that they are often unaware of the impact of their choices. There is a constant bombardment of media images in daily life that manipulate people into believing that their desire for things is an actual need to have them thus creating a constant consumer. Consumerism is at an all time high and the rate at which such affluent nations consume is causing a dramatic change in the environment. After reading Paul Hawken’s The Ecology of Commerce it has become increasingly evident that as a nation there needs to be more awareness of how consumerism is rapidly changing how life is lived. In order to fully understand how consumerism impacts the environment there needs to be a careful understanding of what makes humans consume at such high rates, what role businesses play in catering to the wants and needs of consumers, and most importantly how the environment responds to all of these new demands. It is important to understand what consumerism is and how it affects life. The Oxford English Dictionary defines consumerism as, “the preoccupation of society with the acquisition of consumer goods”. In his book The Ecology of Commerce, Hawken states, ”every American consumes about 36 pounds of resources a week, while 2,000 pounds of waste are discarded to support that consumption”(45). It is highly unlikely that people......

Words: 2826 - Pages: 12

Free Essay

Consumerism

...The term consumerism is defined simplistically by the masses. Its common definition of increasing spending for wants and supposed needs may be attributed to the small world we often find ourselves in. While this definition is true, it reduces the concept of consumerism to a culture of overspending. If we were to check the entire concept of consumerism, we would find that more than a habit, it is a political movement and an economic instrument. In its political aspect, consumerism is an institutionalized effort to protect consumers from exploitative policies and practices such as “inferior or dangerous products, unfair pricing, and false advertising”. It is also a movement for upholding honest business practices. This political movement is to serve as check and balance for the economic theory manifested in the markets that increasing consumption of goods and services form a solid economy. This complex concept of consumerism is based upon the increasing mass production to aid the American economy after several economic declines. Come 1970s, however, the element of spending in consumerism became competitive and corrupted to display the productivity achieved by the masses. So the culture of keeping up with the Kardashians, or the Joneses if you want to be retrospective came to be and this culture is what we often mean when we define consumerism. Of course, this concept would not have been constructed without the mechanism of the media. With the growth of mass production, media......

Words: 1371 - Pages: 6

Premium Essay

Consumerism

...universe’ through to ‘how to live the life you want’, and from ‘the problem with consumerism’ through to ‘how to be happy’. For more information visit www.lifesquared.org.uk Copyright Richard Docwra 2009 © Published by Life² Life Squared Limited Registration number: 6924570 Registered address: 22 Luther Street, Brighton, East Sussex BN2 9XA www.lifesquared.org.uk info@lifesquared.org.uk Copyright © 2009 Richard Docwra. No part of this book may be reproduced in any form without the publisher’s permission. Please contact Life² if you wish to syndicate this information. Contents Introduction 4 Advertising 5 Consumerism – beyond advertising 9 The effects of consumerism 14 What is wrong with consumerism? 17 What can we do about it? 27 References Inside back page Introduction Introduction C onsumerism is one of the strongest forces affecting our lives in the modern world. The term ‘consumerism’ does not simply refer to immediate factors in our daily lives such as the omnipresence of advertising, but anything connected to the overarching idea in our modern society that in order to be happier, better and more successful people we have to have more stuff. In this booklet, we will explore the power of consumerism, how it manifests itself in our lives and the effects it has on us.  The problem with consumerism www.lifesquared.org.uk Advertising E very day, each of us is......

Words: 6356 - Pages: 26

Free Essay

Ethical Consumerism Report

...Name: Institutional Affiliation: Date: Ethical Consumerism Report Executive summary Ethical consumerism refers to personal consumption where the choice is informed by a given ethical issue, for instance, social justice, animal welfare, human rights or the environment. Ethical consumerism attempts to reaffirm the moral aspect of consumer choice through emphasizing the links between consumption and production, locally and globally. The main agenda of the ethical consumers is enhancing their well-being by practicing a purchasing behavior that avoids exploiting or harming animals, humans or the environment. There are some barriers that hinder ethical consumerism, and they include lack of knowledge, lack of information, money, corporate ethics not top of mind, as well as other concerns like brand and quality of products (Littler, 2009). Introduction Over the last one or two decades, more and more individuals around the globe, basically in industrialized nations, have become more aware as well as more informed of the origins of the products they purchase on daily basis, the buying practices and policies if the shops that they visit as well as the principles and policies of the serves that they purchase. This increased awareness as well as knowledge is influencing the consumer practices, and this may be the difference between an individual purchasing a certain service or product or not. Basically, ethical consumerism is a type of consumer activism since it involves......

Words: 2089 - Pages: 9

Premium Essay

Consumerism

...about this and decided to cut back the cost which will help to save the environment. However many economist thinks that it might have detrimental effect on the economic well-being. Consumerism refers to consume any good with higher rate. Depending on the production and selling of goods the whole economy is judged. The gross national product is the sum of total goods and services manufactured for an exact period at an exact time. Higher growth rate is determined on the amount of produced goods and also the consumption of the goods by the society. The per capita income of the individuals used as a base for the judgement of the prosperity of the nation. Therefore, good economy is mainly based on the higher purchasing power of the people. Consumerism has created mass market, industrialization and cultural behaviour that ensure more income to purchase every modern and growing output (Goodwin et al 2009). Moreover this enhanced market and industrialization provides more goods and services to the consumers. It also leads to prompt development of technological innovation, globalisation and fundamental economic modification (Stilwell 2006). Through consumerism lifestyle, people get the chance to choose from variety of goods and services. As a whole, the society gets a better living style through consumerism. Output (Y) ( Output (Y) ( Income (Y) Income (Y) Spending (Aggregated Demand or AD) Spending (Aggregated Demand or AD) The......

Words: 1030 - Pages: 5

Premium Essay

Ethical Consumerism - Body Shop

...Table of Contents ABSTRACT 3 1. INTRODUCTION 4 2. DEFINITION ETHICAL CONSUMERISM 5 3. BODY SHOP ETHICAL CONSUMERISM 6 4. MARKETING RESEARCH SURVEY QUESTIONAIRE 10 5. CONCLUSION 13 6. REFERENCE LIST 15 ABSTRACT A business intervention and technology advances the urge for ethic and corporate responsibility has gained vast attention. Consumers are more educated about what impact products have on human, animal and environment protection, hence the urge for ethical consumerism increases. In this report the ethical consumerism of the Body shop who is a subsidiary of LOreal groups was examined, critically analysed. Some of the various products that are categorised as ethical products are identified and discussed. The approaches that were used by Body shop to becoming more socially conscious business, linking these elements with the ethics and values of Body shop. A short survey was conducted to gain understanding of consumer buying behaviour was carried out to give a transparent view on the consumer buying behaviour toward Body shop. Finally a conclusion is made on the findings from the research conducted using the annual report of Body shop and other related articles to design an overall perception of the findings. 1. INTRODUCTION Body shop is one of the leading skin and hair care product distributer in the United Kingdom with more than 2,600 store in 66 markets globally selling over 1,200 products with Anita Roddick at the head of......

Words: 2739 - Pages: 11

Free Essay

Consumerism

...Environmental Effects of Consumerism December 18, 2010 By admin Leave a Comment Over consumption of tangible, non-essential products is part of what defines the developed world, with America and Western Europe taking the top prize for consumerism. Unfortunately the rest of the world, including more and more developing countries, isn’t far behind. Consumerism is defined as the need to purchase goods and services that reflect or improve one’s status. Even though it creates jobs and keeps the economy moving, consumerism is taking a toll on the environment. Natural resources are being depleted and the ecosystems are being compromised by disposable plastic products, bottles, and shopping bags. Many items, which were once thought of as luxury items have become necessities. Products are made, quickly become obsolete and are replaced. Items that are disposable, are made to be used only once, or just for fun, flood our markets. The cost of producing products, the raw materials needed and the energy consumed, is not taken into account when cost is measured. Reliance on automobiles, even in countries such as China, where not long ago bicycles outnumbered cars, has made an enormous impact on the environment in the form of pollution and the dependence on fossil fuels. Another negative impact from consumerism is the over consumption of meat, processed food, and fast, ready-made food. Raising livestock to meet the demands of the consumer impacts the water supply, and produces the......

Words: 335 - Pages: 2

Premium Essay

Consumerism

...In modern times, the term “consumerism” has been associated with a preoccupation with the acquisition of goods and commodities. Traditionally, it has been used with negative connotations – as a “problem” that indicates a lack of discretion among “buyers” and “consumers” regarding what goods to buy and why to buy them in an increasingly commercialized environment. Among Marxist thinkers especially, what happened has been linked to exploitation under industrial capitalism. Consumerism has been associated with the growth of industrial capitalism in Europe from the 18th century and its global spread thereafter – a development that was accompanied by economies of scale and increases in production and productivity. Such increases were sustained by growth in demand, both in the immediate neighbourhood of centres of production and further a-field. Improvements in technology and extensive use of the division of labour enabled manufacturers to produce on a large scale for “wants”, “needs” and “fashions”. Commercialisation of leisure and the penetration by innovative manufacturers, of religious practices, public health, and education reinforced the habits of acquisition and increasing “consumption”. In European society, in these circumstances, availability of goods ceased to be a substantial problem. Rather, more important were means to ensure that they were in demand and “consumed”. If this was not achieved, “gluts” and economic depressions would take place, affecting......

Words: 340 - Pages: 2

Premium Essay

Consumerism

...Consumerism which is a fact a longstanding international phenomenon, has multitude links with human life because people needs some requirements such as purchasing goods and consuming materials. Nowadays, people’s requirements were increased and consumerism has expanded. People was spurred on consumerism by the capitalism and with the spreading of capitalism, consumerism has increased, because consumerism fuels the capitalism. In addition consumerism has substantially effect of business domain that direct to companies in a competitive trade. Hence, there are three causes such as advertising, marketing and purchasing power that lead to increasing consumerism First of all, advertising has striking effects of consumerism. Nowadays advertising is an effective strategy of selling new products. People often wants to purchase more clothes, cars, bigger house and shoes, because people needs these requirements. Of course when they are purchasing these requirements, advertisement has been advisor to buy them. Advertising exposes people’s desires that have interest to buy something. In addition with the technology age advertisements have been increased and with the more efficient advertisement, people encourage to consumerism. For example; some companies which are selling sport goods they start to use celebrity person in their advertisement and they are using some slogans as well Therefore advertisement has some effect on people and it leads to increasing consumerism Secondly ; ......

Words: 545 - Pages: 3

Free Essay

Consumerism

...Consumerism Term 3, Lecture 1 Now, consumerism is more widespread than before. Before- What you produce determines who you are and how people look at you Now- Consumption= what is consumed, when it is consumed and how much, determines who you are and how people look at you 2. The roots of consumerism Began towards the end of the 18th century Sugar, tea, coffee- consumerist products With these consumerist products, came the associated pieces (cups, coffee cups, saucers, coffee shops) Consumerism= caused by increased prosperity. As people earn more, they consume more. Social, political and economic revolutions changed people- from this comes consumerism Consumerism becomes feminized- focuses on what goes on in the homes. Which is a woman’s job After consumerism (18th century), women are seen as more beautiful. Before, men were seen more beautiful. Thus women buy more to make themselves more beautiful. Men started to go shopping, as a fun activity. This was not the case before consumerism came along. 3. The growth on consumerism Uneven geographically- consumerism more in urban areas than rural areas a) changes in retailing(shops) changes in retailing boosts consumerism = department stores advertisement boosts consumerism = first in America Peasant societies don’t produce consumerism Changes in media boosts consumerism= radio Kleptomania= compulsion to steal...

Words: 811 - Pages: 4