Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Ethical Consumption - MIT & Boston Review - Nov. 3, 2011

4,601 views

Published on

Published in: Business, Economy & Finance
  • Be the first to comment

Ethical Consumption - MIT & Boston Review - Nov. 3, 2011

  1. 1. The Promise ofEthical Consumption Dara O’Rourke UC Berkeley and GoodGuide
  2. 2. New Market Dynamics
  3. 3. Failure of TraditionalState & Intergovernmental Regulation
  4. 4. Consumers as Potential Point of Leverageover Global Production
  5. 5. Consumers Say They Care…
  6. 6. 76% say they considerenvironmental and socialissues when purchasing.
  7. 7. 73% say they arewilling to pay more for green products.
  8. 8. 67% say they haveboycotted a company on ethical grounds
  9. 9. Variations of Ethical Consumption
  10. 10. Growth in Ethical Consumption Organic Food: from $12 billion (2005) => $21 billion (2009) Fair Trade: from €200 million (2000) => €3.4 billion (2010) Local Foods: from $4 billion (2002) => $7 billion (2011) Farmers’ Markets: from 1,755 (1994) => 6,132 (2010)Ethical Personal Care: $5.3 billion (2005) => $8.1 billion (2009
  11. 11. Product Introductions with Green Claims 800 Alcoholic Beverages Baby Food 700 Bakery Breakfast Cereals 600 Color Cosmetics Desserts and Ice 500 Cream DishwashingNumber per Year Products 400 Fabric Care Hair Products 300 Non-alcoholic Beverages Paper Products 200 Pet Food Skincare 100 Snacks 0 Soap and Bath 2002 2003 2004 2005 2006 2007 2008 2009 2010
  12. 12. New Businesses andNew Business Models
  13. 13. Alta Gracia
  14. 14. Still…a Huge Gapbetween What People Say and What They Do
  15. 15. Consumers areConstrained by Habit,Status, Manipulative Marketing, and Lack of Information
  16. 16. People Need: Better Information, While Shopping, Showing Impacts of Decisions,Showing People “Like You” Care, Simple, Easy, Empowering,“On Ramp” to Collective Action.
  17. 17. A platform for transparencyinto the environmental, social, and health impacts of products and companies.
  18. 18. Actionable Information• Summary rating combines health, environmental and social impacts• 0 – 10 scale for ease-of-understanding• Distributional information for quick comparison• Ratings explanations spotlight key indicators driving scores
  19. 19. Science-Based
  20. 20. @Moment of Decision
  21. 21. Social Graph + Interest Graph
  22. 22. Personalized
  23. 23. Shop Online with Your Preferences
  24. 24. Feedback on Your Purchases
  25. 25. Lessons• Changing Consumers is Difficult• Make Visible the Invisible• Show People They Can Have an Impact• Scientific Information Alone Will Not Change Most People• Need to Bring in Behavioral Dynamics• Need to move from Individual to Collective Action• Key Roles for Government & NGOs
  26. 26. Turning Point inMarket Transparency andConsumer Empowerment
  27. 27. Ethical Consumption can complement NGO Strategies andGovernment Regulation
  28. 28. Dara O’Rourke@daraorourke

×