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Does
a company mistreat it's employees? Is the company damaging the
environment? Is the company backing a repressive regime? Can the
company be trusted? These are increasingly questions asked by
consumers rather than by politicians. While governments have allowed
the interests of corporations to take precedence over the public
interest, the public, through the market place, is reclaiming
its interests for itself. Consumers constantly make decisions
about how and where to buy, and business, at least successful
ones, have learnt to react swiftly to their consumers' desires.
Ethical values are now a factor in the buying decisions of a significant
proportion of the population. A Mori poll in 2003 found that 74%
of UK consumers said information on a company's social and ethical
behaviour would influence their purchasing decisions. And, another
Mori poll in 2000 found that 44% had boycotted a product or company
for ethical reasons within the past 12 months. If this many people
are prepared to use their consumer power in this way, business
has no option but to listen.
In
the age of the logo, where millions are spent on marketing and
advertising, reputation and brand image are paramount. Therefore,
many businesses are fearful of adverse publicity. The cost of
rebuilding a negative reputation or brand image is high, in fact,
once lost, a good reputation may be impossible to regain. Because
of this fear, consumer pressure does seem to work. For example,
nearly all the companies targeted by the actions of the 'Free
Burma Coalition' pulled out of Burma. Before governments proved
willing to take action against the repressive regime, consumers
themselves applied sanctions with some success. Phillips, Heineken,
C&A, Ralph Lauren, Motorola and Kodak were just some of the
multinationals who decided that the potential attractions of the
Burmese market were not enough and left the country, fearing a
damaging boycott were they to remain.
Politicians, unable or unwilling
to take corporations to task, are paying lip service to the demands
of consumer activists. But the requests and urgings of politicians
via the issuing of guidelines etc are rarely backed up by the
power of the law. Companies are not compelled to enforce labour
standards in their overseas operations despite politicians' rhetoric.
External verification of environmental or 'corporate responsibility'
programmes and reports are not required, (reducing them to PR
status, or 'Greenwashing'). Governments talk of ethical foreign
policies and insist they pressure trading partners behind the
scenes to improve human rights. However, in the face of any possible
loss of trade such talk falls by the wayside. The only financial
penalties faced by companies that trade with countries such as
Indonesia, Burma, Israel and Columbia are consumer boycotts by
us.
1. Intro
2. Consumer
Activism
3. Hold
'em to Account!!
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