The return of ethical consumers - Scot Case

841 views

Published on

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
841
On SlideShare
0
From Embeds
0
Number of Embeds
331
Actions
Shares
0
Downloads
15
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

The return of ethical consumers - Scot Case

  1. 1. UL and the UL logo are trademarks of UL LLC © 2014 February 6, 2014 The Rise of Ethical Consumers Scot Case UL Environment Scot.Case@ul.com @scotcase International Symposium on Ethical Purchasing Sapporo, Japan
  2. 2. Overview  Define Ethical Consumerism  Identify Ethical Concerns  Discuss Information Sharing  Describe Transition from Voluntary to Legal Requirements
  3. 3. Defining Ethical Consumerism Ethical consumerism is the intentional practice of buying goods and services that generate human health, environmental, and social benefit and that are produced in ways that minimize human health, environmental, and social damage.
  4. 4. Defining Ethical Consumerism Buying better products and services from better companies.
  5. 5. Will it last? How much is  it? Does it work? Traditional Concerns Price, Performance, and Quality
  6. 6. Do I like & trust  the people who  make it?Do I need this  product? Is the purchase  consistent with  my values? What do  others think  about it? The Ethical Consumer
  7. 7. ??? The Ethical Consumer
  8. 8. World Country Prefecture Village Neighborhood ??? ??? ??? ??? The Ethical Consumer
  9. 9. Operating Theory 1. Every purchase has hidden human health, environmental, and social implications throughout every supply chain.
  10. 10. Ethical Consumer Concerns Vary
  11. 11. Operating Theory 1. Every purchase has hidden human health, environmental, and social implications throughout every supply chain. 2. And those hidden impacts are increasingly visible to customers.
  12. 12. 12 Nothing is Secret
  13. 13. Nothing is Secret – The Triple Threat Miniature Cameras: Social Media: Smart Phones:
  14. 14. Two Cups of Coffee a Day •34 gallons of coffee a year. •18 pounds of coffee beans •12 pounds of fertilizer •A few ounces of highly toxic pesticides •43 pounds of coffee pulp •Clear cutting of forests to grow even more coffee •Bird species disappearing •More erosion •More pesticides
  15. 15. Ethical Consumer Issues  Human Health  Environmental  Social  Carcinogens, Mutagens, Reproductive Toxins  Endocrine disruptors  Global warming  Air and water pollution  Resource depletion  Habitat destruction  Worker safety  Worker rights  Women’s rights  Child labor  Forced labor  Fair Wage  Energy & Water efficiency  Recycled content  Zero waste  Renewable resources  Volatile Organic Compounds  Hazardous ingredients
  16. 16. World Country Prefecture Village Neighborhood ??? ??? ??? ??? The Ethical Consumer
  17. 17. Information Consumer’s Ethical Purchasing Behavior Consumer’s Proximity to Manufacturer LowHigh Close Distant The Ethical Consumer
  18. 18. World Country Prefecture Village Neighborhood The Ethical Consumer Information Information InformationInformation
  19. 19. 19 Information Sharing There are more than 400 labels addressing some aspect of ethical purchasing.
  20. 20. Seven Sins of Greenwashing
  21. 21. Source: http://www.ethicalconsumer.org/printmagazine/currentissue.aspx ,1/24/2014 Information Sharing  Founded in 1989  Publishes buying guides,  company ratings, and  boycott lists.  Has extensive website  and mobile apps   www.ethicalconsumer.org
  22. 22. “Ethical” means different things to different customers Fair Trade Certified No child labor Low-Toxicity Recycled Content Made by “green” company with strong Corporate Social Responsibility practices. Available Products There are an infinite variety of possible definitions for “ethical.”
  23. 23. Information Sharing
  24. 24. 24 Information Sharing
  25. 25. 25 Data Platform (API) UL Transparency Platform UL Data The Wercs, GoodGuide Data Retailer Data Supplier Data Other Data B2B tools B2C tools Multiple Data Sources
  26. 26. 26 Information Sharing
  27. 27. From Questions to Requirements Question Desire Request Requirement What are the impacts? Is it possible to …. ? Please respond to … You are required to…
  28. 28. Ethical Purchasing Policies States: California Connecticut Georgia Illinois Indiana Iowa Massachusetts Missouri Minnesota New Jersey New York North Carolina Oregon Pennsylvania Vermont Washington Counties: Chatham County, NC Kalamazoo County, WI King County, WA Kitsap County, WA Multnomah County, OR San Mateo County, CA Santa Cruz County, CA Sarasota County, FL Cities: Boulder, CO Cincinnati, OH Kansas City, MO Portland, OR Phoenix, AZ San Francisco, CA Santa Monica, CA Seattle, WA Many governments, colleges and universities, and large companies are adopting ethical purchasing policies.
  29. 29. SEC. 1502. CONFLICT MINERALS. (a) SENSE OF CONGRESS ON EXPLOITATION AND TRADE OF CONFLICT MINERALS ORIGINATING IN THE DEMOCRATIC REPUBLIC OF THE CONGO.—It is the sense of Congress that the exploitation and trade of conflict minerals originating in the Democratic Republic of the Congo is helping to finance conflict characterized by extreme levels of violence in the eastern Democratic Republic of the Congo, particularly sexual- and gender-based violence, and contributing to an emergency humanitarian situation therein, warranting the provisions of section 13(p) of the Securities Exchange Act of 1934, as added by subsection (b). USA: Dodd-Frank Legislation on Conflict Minerals …the products that do not contain minerals that directly or indirectly finance or benefit armed groups in the Democratic Republic of the Congo or an adjoining country),
  30. 30. 30 Source: http://www.proskauer.com/publications/client-alert/navigating- the-secs-recently-finalized-conflict-mineral-rules/ USA: Dodd-Frank Legislation on Conflict Minerals  Publically traded companies in the United States must disclose if their product contains any:  Tantalum  Tin  Tungsten  Gold  All affected companies must conduct a “reasonable country of origin” inquiry.
  31. 31. Summary  Ethical consumerism is not new; it is just re- emerging.  Product quality, performance, and value will always be important.  Consumers want information about the human health, environmental, and social impacts of their purchases.  Consumers have access to information and expect companies to provide it.  Be prepared.
  32. 32. Recommendations  Know your supply chain.  Optimize your supply chains for ethical considerations. 1 2 3 4 4 4 4 5 6 6 6 7 3 3 2 3 4 2 3 3 4 2 3 4 2 3 3 3 4 4 2 2
  33. 33. Recommendations  Understand the current, emerging, and potential risks throughout your supply chain.  Share information proactively; don’t become a victim of someone else telling your story.  Validate critical human health, environmental, and social aspects of your story.  Ask questions; ask questions; ask questions.
  34. 34. UL and the UL logo are trademarks of UL LLC © 2014 February 6, 2014 Thank you Scot Case UL Environment Scot.Case@ul.com @scotcase

×