The growing availability and consumption of Fairtrade products is recognised as one of the most widespread ethically inspired market developments, and as an example of activist-driven change within the wider marketing system. The Fairtrade Towns movement, now operating in over 1700 towns and cities globally, represents a comparatively recent extension of Fairtrade marketing driven by local activists seeking to promote positive change in production and consumption systems. This paper briefly explores the conventional framing of the role that ethically related activism (...) plays in the operation of markets and in influencing market participants. It then presents key insights gathered from a grounded theory exploration of Fairtrade Towns as activist-driven marketing systems, revealing the atypical nature of the activism involved. The findings demonstrate how local activists leverage their social networks to exert pressure and generate support to promote ethical consumption. The study suggests that Fairtrade Towns offer a new role for activists as Fairtrade itself becomes more mainstream, and considers the role they are fulfilling as ‘informal’ local marketers. The marketing dynamics revealed represent a complex and distinctive form of relational activism that seeks to build Fairtrade markets and highlight their positive benefits, with potential lessons for other local ethical market-building efforts in future. (shrink)

Ethical consumption is on the rise, however little is known about the degree and the implications of the sometime conflicting sets of values held by the broad category of consumers who report consuming ethically. This paper explores convergence and divergence of ethical consumption values through a study of organic, fair trade, and local food consumers in Colorado. Using survey and focus group results, we first examine demographic and attitudinal correlates of ethical consumption. We then report evidence that while many organic, (...) fair trade, and local food consumers converge around similar values, some Colorado consumers support only local food, while opposing the consumption of organic and fair trade products. Next, we investigate how ethical consumers who converge and diverge frame their commitment to consuming ethically. The discussion and conclusion suggest that community development planners of projects that focus on ethical consumption will need to successfully traverse issues stemming from convergence and divergence to enjoy long-term sustained success. (shrink)

Prior literature has demonstrated that religiosity is associated with a reduced acceptance of unethical business practices and financial reporting irregularities. On this premise, we examine whether religiosity, conceptualized as the degree of adherence to religious norms in the geographical area where a firm’s headquarters is located, has an impact on audit firms’ pricing decisions in the US. We measure the intensity of religiosity by the number of adherents relative to the total population in a county and demonstrate that increased religious (...) adherence operates as an institutionalized monitoring mechanism that decreases audit risk and audit costs, which is, in turn, reflected in reduced audit pricing. Additional tests suggest that the impact of religiosity on auditors’ pricing decisions is not differentiated by levels of auditor expertise but that audit fees are determined by an auditor’s relative location in a market sector and religious adherence. We conclude that religious adherence reduces the need for shareholders to bear the costs of monitoring agents, a finding which could be of importance for market participants and regulators. (shrink)

This study aims to shed light on the relationship between individual and regional Christian religion and individual sustainable behaviors in an exploratory manner, with a special focus on sustainable consumption and investment decisions. To this end, we econometrically analyze online representative survey data that contains information on the self-reported importance of the consideration of ecological and social/ethical criteria in the context of a large variety of individual behaviors. The target group are financial decisions makers in German households, i.e., important actors (...) in the largest economy in Europe. Results of the econometric analysis suggest that Christian religion is positively related to a variety of ecological and social/ethical activities. Our findings empirically support explanations postulating a positive relationship between Christian religion and environmental behavior, such as the stewardship hypothesis, rather than opposite theories like White’s :1203–1207, 1967) dominion hypothesis. Particularly, we find that both individual and regional measures for Christian religion positively affect various behaviors emphasizing the importance of individual and contextual norms for individual behavior. Hence, we provide empirical evidence for the importance of Christian religion for another country than the USA, which is typically in the focus of similar studies. Our results can be used for targeted information campaigns by politicians to enhance sustainable behaviors or acceptance for related policy measures. (shrink)

The very idea of human resource management raises ethical considerations: What does it mean to us as humans for human beings to be managed as resources? Intriguingly, the field of ethics and HRM remains underdeveloped. Current approaches to HRM fail to place ethical considerations as their central warrant. This article, building on Greenwood (J Bus Ethics 36(3):261–279, 2002), argues for a deeper analysis of ethical issues in HRM, indeed for a differentiated ethical perspective of HRM that sets normative deliberations as (...) its prime task. By identifying a distinct ethical approach to HRM that is unashamedly normative and socio-politically embedded, two objectives can be achieved. First, mainstream and critical approaches will be challenged to take ethical issues in HRM more seriously. Second, a dedicated forward-looking research agenda for the ethical analysis of HRM will be advanced. (shrink)

The article reports the findings of an empirical study among consumers, regarding the impact of physical, social, and psychological proximity on their engagement to the fair trade idea and purchasing behavior. Based on a random sample of 211 British and 112 Indian consumers and using structural equation modeling, it was found that high levels of physical, social, and psychological proximity leads to high consumer fair trade engagement. Moreover, consumer fair trade engagement was confirmed to have a positive impact on fair (...) trade purchasing behavior. Furthermore, consumer empathic concern was found to positively moderate the association between proximity and consumer fair trade engagement, while the opposite was true with regard to consumer hypocrisy. Finally, consumer nationality was found to have a control effect on physical, social, and psychological proximity, with the latter felt stronger among Indian, as opposed to British consumers. (shrink)

The ongoing global economic and financial crisis has exposed the risks of considering market and business organizations only as instruments for creating economic wealth while paying little heed to their role in ethics and values. Catholic Social Teaching (CST) could provide a useful contribution in rethinking the role of values in business organizations and markets because CST puts forward an anthropological view that involves thinking of the marketplace as a community of persons with the aim of participating in the Common (...) Good (CG) of society. In the light of the CST tradition, and in particular Caritas in Veritate , this article investigates the thinking of some of the historical scholars of the Italian Economia Aziendale ( EA ), by focusing on the concept of azienda , in order to reinterpret in a more humanistic way the role of business organizations in society. By linking CST and EA , the dichotomy between for-profit and not-for-profit organizations and the stereotype of the so-called business amorality that has, for a long time, driven business managers can be transcended. The conclusions imply a forward-looking application of the ethical concepts embedded in the Italian science of EA. (shrink)

Although fair trade has grown exponentially in the U.S. in recent years, we do not have a clear understanding of why small U.S. firms choose to participate in it. To answer this question, we use a qualitative case study approach and grounded theory analysis to explore the motivations of 35 small fair trade businesses. We find that shared values and the desire to help others, often triggered by a critical incident, lead social entrepreneurs to found and sustain fair trade businesses. (...) The relationship between shared values and engagement in fair trade and the relationship between altruism and engagement in fair trade are strengthened by four motivating factors: direct relationships with producers, support for social causes, the desire for the preservation of craftsmanship, and the desire to share aesthetic products. These links are strengthened by four facilitating factors : the acquisition of business knowledge, family member involvement in the firm, assistance from faith communities, and assistance from the fair trade community. Additional analysis reveals three types of fair trade social entrepreneurs: “ethics first” entrepreneurs, primarily motivated by human rights and social justice concerns; “faith first” fair traders, motivated primarily by their religious faith; and “business first” businesspeople, motivated by what they perceive to be an opportunity to build a successful business while simultaneously doing “good” and helping others. (shrink)

The current research investigates how religiosity can influence unethicality in a consumption context. In particular, considering the link between extrinsic religious orientations and unethicality, this research clarifies why and when extrinsic religiosity leads to unethical decisions. Across two studies, findings show that ethnocentrism is both a mediator and a moderator of the effects of extrinsic religiosity on consumers’ ethical judgments. This is because extrinsic religiosity leads to ethnocentrism, and in-group loyalty manifested through ethnocentrism increases support for unethical consumer actions, thus (...) establishing ethnocentrism as a mediator. At the same time, different levels of ethnocentrism can also influence how extrinsic religiosity leads to supporting unethical consumption via self-righteousness, thus establishing ethnocentrism as a moderator. The findings from this research have significant implications for diverse stakeholders who have an interest in religiosity and consumer behavior. (shrink)

An overview and assessment of the current state of research on individual consumption of Fair Trade (FT) products is given on the basis of 51 journal publications. Arranging this field of ethical consumption research according to key research objectives, theoretical approaches, methods, and study population, the review suggests that most studies apply social psychological approaches focusing mainly on consumer attitudes. Fewer studies draw on economic approaches focusing on consumers’ willingness to pay ethical premia for FT products or sociological approaches relying (...) on the concept of consumer identity. Experimental, qualitative and conventional survey methods are used approximately equally often. Almost all studies draw on convenience or purposive samples and most studies are conducted in the USA or the United Kingdom. Several problems in current research are identified: amongst others, studies’ rather narrow theoretical focus, potential hypothetical and social desirability bias of conventional survey data, and a lack of generalizability of empirical findings. In turn, we suggest that research would benefit from both a multiple-motives and a multiple-methods perspective. Considering competing theories can help to single out key behavioral determinants of individual FT consumption. The combination of different methods such as conventional surveys and field experiments contributes to uncovering respondents’ truthful answers and improves generalizability of results. Scholars in the field of ethical consumption research should use experiments to detect causal relations proposed by theories and conduct cross-country surveys to gather insights as to how differences in market structures, cultural traits, and other path dependencies affect patterns of individual FT consumption. (shrink)