1

Raluca Butincu
41149
STUDY SKILLS Business Report
Greenwich School of Management
Spring 2015

Lets Talk Ethical

Consumerism
Table of Contents
0.0 Cover
Page
..1
0.1 Executive Summary
..3
1.2 Introduction

3
2.3 Resumed analysis over ethical
consumerism..3
3.4 What is ethical consumerism? Ethical strategies and
businesses
.4-6
4.5 Co-operatives and their
purpose
6
5.6 The Co-operative Group, the family businesses and
their
ethics
.6-8
6.7 Study over opinion survey regarding consumers
behaviour.8-13
2

7.8 Conclusion and evaluation on the ethical

consumerism and business strategy adopted by The
Co-operative Group 13
8.9 Recommendations
..14
9.10 References and Bibliography
.
15-16
Appendix

.17-18

0.1 Executive Summary

The business report was developed in order to explore the
ethical behaviour and ethical consumerism within one of the
biggest leading co-operatives in the UK, The Co-operative
Group. Studying the companys strong ethical values, the
survey will express consumers opinion towards how these are
implemented in the consumerism as a whole structure. The
expertise reveals the ethical strategy under which the massive
group of family businesses are managed. As the primary
research will further indicate, the company is recognised as
being highly ethical, although some improvements on the
marketing side of the business should occur.

1.2 Introduction
One of the reasons for which the business report was
assembled and analysed is the ethical environment through
which the consumers are influenced. Does ethical procedures in
businesses influence the buyer? What do they relate with when
deciding how to spend a certain amount of money and does
their actions reflect any moral values? Companies tend either
to adopt moral principles into their business either stay
unethical and more concerned on making profit and expand
through other values than trying to make a difference and
promote the green market (Green, Morton 1998).The report
is looking to
examine what ethical consumerism symbolises
for the business and its consumers and if this is the best
strategy to adopt in increasing different values.
After a deeper analysis of the ethical consumerism and the
background of one of the biggest family businesses, The Cooperative Group operates, the research consists in primary
research and secondary research. The primary research is
carried through a questionnaire made of ten students in
Greenwich School of Management studying the Study Skills
module. The expertise is analysed through percentages, charts
and graphics. The conclusion and the recommendations are
made on the examination of both researches.
4

2.3/3.4 What is ethical consumerism?

Before understanding what ethical consumerism is, we have to
reflect on the terms consumerism and ethical.
Consumerism is the process of buying and using goods or
services. Making this process ethical means buying and using
the products and goods that are made without damaging our
environment or exploiting the employees or workers from a
specific field of production. Being ethical in consumerism is
getting interested how the products were made, where they
come from, how exactly is the employer treating the workers
and if there is any exploitation of any kind in their company.
(IGD 2007), (Wikipedia, 2015)
Shopping ethically also means choosing organic products and
fair trade goods over the aggressive consumerism that is
encouraged by most companies for their own growth. Its
always about consumers choice and having the power to buy
products that are produced in an ethical environment instead of
the ones that arent in the criteria. Refusing to buy an
unethically produced good or service is called boycotting the
specific product as not agreeing on the way it was produced
and this can affect companies and producers if the concern
gets predominant thoughts in the consumer market. 1 (Breen,
2004) (Nationwide Education2014)
Being an ethical consumer means taking into consideration
different perspectives on how we manage our disposable
income. Instead of using money as a status supplier for our own
comfort, we should be more aware on the goods we purchase
damaging the environment less and protecting the workers
more.2 (Duh, 2010)
1. Breen T. H. 2004. Oxford: Oxford University Press
2 Duh, M., Belak, J., & Milfener, B. (2010). Values, culture and ethical climate being part
of ethical behaviour. Journal of Business Ethics, p.97, p.473489.

www.fairtrade.org.uk
Buying fair trade goods means getting informed on the product
coming from an ethical source. For example, workers having
good working conditions, being treated correspondingly and
getting paid at least minimum wage. The companies that meet
this standard are certified through The Fairtrade Foundation
and this means they are working in ethical standards and are
more supportive than exploiting the working market. 3 Ethical
practice is an important feature for a business to influence
3 http://www.fairtrade.org.uk/en/what-is-fairtrade?
6

buyers behaviour and earning recognition amongst other

ethical managed businesses. 4 (G., B., N., 1998)
The Ethisphere Institute is organising nominations for the
Worlds Most Ethical Companies every year and among the
most known and appreciated businesses and organisations in
matters of ethical practice are Gap Inc., Levi Strauss &Co., Ford
Motor Company, Microsoft, Google Inc., Intel Corporation, Marks
and Spencer, Spectra Energy, Xerox Corporation. 5
One of these organisations are the co-operatives .

4.5/5.6 Overview on The Co-operative Group

A co-operative is a group of individuals that share the same
needs and aspirations, values and principles, they share
ownership on the business and they act together
democratically creating value for customers and not necessarily
focusing on the shareholders profit.6
The co-operatives are the largest form of consumer
organisation operating in the UK. 7
The Co-operative Group is UKs largest consumer
cooperative and has a wide extent of retail businesses such as
grocery retailing, financial, funeral, legal and electrical services,
pharmacy and travel. Being a company founded, managed and
owned by its own members, all of these share the same
principles and values through which the organization was
established more than 150 years ago. 8
4 Ken Green, Barbara Morton, Steve New, (1998) "Green purchasing and supply
policies: do they improve companies environmental performance?, Supply
Chain Management: An International Journal, Vol. 3, p.89 95
5 http://ethisphere.com/worlds-most-ethical/wme-honorees/
6 http://www.co-operative.coop/corporate/aboutus/The-Co-operative-GroupValues-and-Principles/
7 http://www.co-operative.coop/corporate/aboutus/The-Co-operative-GroupValues-and-Principles/
7

Staying devoted to their ethical values, the family businesses in

the group are having the same doze of interests and common
purpose in working together for the wellbeing of their
members, helping the community and being a social conscious
business. The members stand for fair practice which is run in a
democratic manner through vote and encourage the
commitment with communities both local and international. 9
As an ethical organisation, The Co-operative Group has a
training and educational influence on its members and staff and
promotes working together for developing the co-operative
movement as a united strategy with other co-operative
organisation. The membership is accessible to everyone aged
16 years old and above and the group currently has over
100.000 employees in the United Kingdom. 10
The ethical strategy that is promoted by The Co-operative
Group has a significant impact on consumers with an ethical
background and expect the same ethical behaviour and
standards in the corporate ground. The business has a peoplebased democracy instead of money-based one, and that is the
key of bringing people in working together under the same
ethical values, ideas and purposes, coming together for the
benefit of everyone. The Co-operative has a different way of
managing and running its business, all their 8.2 million
members can get their voices heard and getting things done
ethically in the way they run the business and policies they
create. The members get a share of the businesss profits
through points that are calculated and distributed each year
and also benefit offers presented by the family of businesses.
1112

8 http://www.co-operative.coop/corporate/aboutus/The-Co-operative-Group-Values-andPrinciples/

9 http://www.co-operative.coop/about-us/
10 http://www.co-operative.coop/corporate/aboutus/The-Co-operative-Group-Values-andPrinciples/

11 http://www.co-operative.coop/corporate/aboutus/The-Co-operative-Group-Values-andPrinciples/

The Co-operative Group give people the chance to engage

into their communities, elect representatives, make the best of
themselves and get to cooperate for the same purpose. Its a
better way of doing business, it is done ethically and their
members put value of people above the financial value.
Equality and fairness, solidarity, shared responsibilities, honesty
and being cooperative are the morals and ethics through which
the business is lead. 13
Within The Co-operative Group the members and employees
are relating on the same culture of socially conscious
environment (NBS 2015) instead of materialism as some of the
biggest markets have developed theirs.
The Socially Conscious Consumerism report helped inform
our green marketing practices and our green governance.
Were using it to evaluate which green programs to actively
promote and how.(Andrew Wilczyski, Manager, Corporate
Social Responsibility)
Although it is a leading co-operative within the UK and a
diverse fielded business, The Co-operative faces high level of
competition from larger opponents nationally and
internationally. The group competes with players that are
described by their size market, developed strategies, financial
robustness, management skills, operation diversity and quality
of services such as ASDA Group, J Sainsbury, Tesco and
Morrison Supermarkets. (Co-operative Group (CWS) Limited
SWOT Analysis, MarketLine)
As a social conscious business, ethically managed, The Cooperative has been interested in the matter of renewable
energy in the past years. The group is focused on minimising
the carbon footprint, supplying their own energy or purchasing
energy from renewable sources. (Co-operative Group Limited
MarketLine Company Profile)

12 Folkes, V. S., & Kamins, M. A. (1999). Businesses ethical and unethical impact.
Journal of Consumer Psychology, p. 8(3), p.243259.

13 http://www.co-operative.coop/about-us/

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6.7
STUDY on Ethical Consumerism Customer Behaviour
regarding The Co-op Group services delivery
The information was assembled through a self-made
questionnaire completed by 10 students aged between 19 and
35 from GSM Greenwich school of Management (London),
studying Business Management and Study Skills module. The
survey was completed by each student individually, taken
home and returned within one day. The ethical influence of the
survey was applied critically on consumers behaviour and it is
reflecting the interest shown towards ethical issues in
businesses and consumerism.
The consumer behaviour applied to the interviewed persons
was influenced by business the ethical strategy under which
the Co-operative operates by 40%, good prices balanced with
the value for the quality of services had 40% of the votes and
only 20% are more dedicated to the customer service, while its
marketing and advertisement had no response.
As I was interested in how my interlocutors respond to ethical
markets and what determines them to purchase goods and
products, 30% were concerned in how the business involves in
community growth and local charities, a similar 30% was
interested in the youth employment in the company, but the
dominant 40% was influenced into using services/goods
through the good customer service provided by the business.
Considering the market competition continuing to increase, The
Co-operative was considered by 60% to be delivering higher
quality products and services than its opponents, 30% strongly
agreed with the statement regarding qualitative comparison
and only 10% disagreed. When it comes to delivering higher
qualitative services for money and good pricing, 60% of the
questioned students were agreeing and equally 20% strongly
agreed and disagreed.

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The respondents have shown a high interest in The Cooperatives ethical and moral procedures: 40% agreed that The
Co-operative has higher ethical standards than its competitors,
50% strongly agreed with the statement and only 10%
disagreed.
With a high interest in the quality of goods and services, 40%
responded they are very satisfied and a large proportion of 60%
were satisfied by the services and products The Co-operative
deliver.
Even if the market competition continues to grow, the students
felt positive about The Co-operative 40% gave a very
favourable feedback towards the business being highly
recommended, 40 % would recommend it to friends or family
members, 20% would consider recommending it less.
Taking into count the high percentage of satisfaction amongst
the participants at the study, The Co-operative is known as
being a strong voice in ethical environment and they are
influenced by its involvement in the community groups, the
quality of services and good balance price value.

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INFLUENCES

Customer Service; 2

Ethical Strategy ; 4

Price-Value; 4

Ethical Strategy

Price-Value

Customer Service

Marketing

12

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Opinion on The Co-operative market

13

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Influences in ethical consumerism regarding purchsing from Co-operative

4

3.5

2.5

1.5

0.5

0
Good customer services
Low prices
Young people employmen
Community involvement

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Recommendations
10

10

10

10

9
8
7
6
Responds

5
44

Column1
4

3
2
2

1
0
Very high
Average

Low
None

7.8 Conclusion
As pointed in the body structure of the report and after
analysing the questionnaire regarding the ethical consumer and
what are the factors that influences him most into using
services and goods from an ethical source, the majority is
ethically concerned on how businesses play their role in their
local community and if they are more focused in making profit
more than making a difference to people. Individuals get
involved in co-operatives because they have a say in the
decision-making of the company to run ethically,
democratically and with a friendly approach towards the
community development. Considering the fundamental and
secondary research, the report draws the inference that The
Co-operative Group is as ethical as their consumers expect, but
there are expected some improvements in the marketing
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sectors more than in the ethical one. Drawing a conclusion over

the report initiative, consumers are happier to purchase from
an ethical company and they are aware of this strategy aspect
in businesses.

8.9 Recommendations
The primary research underlines that the consumers are
influenced in the same equal way by the ethical strategy in The
Co-operative Group such as the quality price balance of the
goods and services they use. The consumers recognise The Cooperative as being ethically higher than its giant competitors
and would recommend that employment for the younger
people without jobs and community involvement are the key
factors in keeping the business ethical. The consumers are
directly interested in ethical business procedures and are more
likely to choose ethics over the services price-value-quality
characteristic.

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9.10 References and Bibliography

Birchall, Johnston; Simmons, Richard. Annals of Public &
Cooperative Economics. Sep2004, Vol. 75 Issue 3, p.465-495
Brunk, K. H. (2010). What is an ethical brand/company?
Consumer opinion on corporate ethics. Journal of Business
Research, p. 63(3), p.255262.
Breen T. H. 2004. Oxford: Oxford University Press
Creyer, H. Elizabeth, (1997),"The influence of firm behaviour on
purchase intention: do consumers really care about business
ethics, Journal of Consumer Marketing, Vol. 14/ p. 421 432
Carrigan, M., & Attalla, A. (2001). What is an ethical consumer
and do ethics matter in purchase behaviour? Journal of
Consumer Marketing, p. 18(7), p.560578.
Chen, Y. (2008). Ethical innovation and green image of
organisations. Journal of Business Ethics, p.83, p.531543.
Duh, M., Belak, J., & Milfener, B. (2010). Values, culture and
ethical climate being part of ethical behaviour. Journal of
Business Ethics, p.97, p.473489.
Folkes, V. S., & Kamins, M. A. (1999). Firms ethical and
unethical actions impact on consumers attitude. Journal of
Consumer Psychology, p. 8(3), p.243259.
Ken Green, Barbara Morton, Steve New, (1998) "Green
purchasing and supply policies: do they improve companies
environmental performance?, Supply Chain Management: An
International Journal, Vol. 3, p.89 95
Laroche, M., Bergeron, J., & Barbaro - Forleo, (2001). About
consumers who are willing to pay more for ethical products and
services. Journal of Consumer Marketing, p.18 (6), p.503520.
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Pandey, A., & Gupta, R. K. (2008). Group consciousness in

business organizations. Journal of Business Ethics, p.80, p.889
898.
Pruzan, P. (2001). Debate on organisations promoting values,
ethics and visions, Journal of Business Ethics, p.29, p.271284.
Singhapakdi, A., Vitell, S., & Kraft, K. (1996). Ethical conduct
offered by professionals. Journal of Business Research, p. 36,
p.245255.
Trundle, R. (2011). Consumerism. Socially conscious
consumerism.
Wagner, M. (2010). Corporate social performance and
innovation with high social benefits: a quantitative analysis.
Journal of Business Ethics, p.94, p.581594.
Research from:
[http://www.nationwideeducation.co.uk/www/downloads/pupils/
sustainable-living-education/14-16_sustainablecommunities/slv_14-16_fs_ethical-consumerism.pdf] accessed
on 15th of March 2015, 21:45PM
Research from: [http://www.co-operative.coop/about-us/]
accessed on 17th of March 2015, 14:27PM
Overview available at: http://www.cooperative.coop/corporate/aboutus/The-Co-operative-GroupValues-and-Principles/] accessed on 17th of March 2015,
15:35PM
Records available at: [http://ethisphere.com/worlds-mostethical/wme-honorees/] accessed on 20th of March 2015,
18:40PM
Graphic on fair trade goods and supply available at:
[http://www.fairtrade.org.uk/en/what-is-fairtrade?] accessed on
20th of March 2015, 22:10PM.

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Appendix

SURVEY

Gender:
F
Age:
40-55

M
18-25

25-40

This survey is based on statements and questions regarding the family of

business within The Co-operative Group that you will either agree or
disagree with. Please choose a single answer you consider more influential
in your consumer behaviour.
1. What influences you most in purchasing goods/services?
Ethical strategy of the business
Good price quality value
Excellent customer service
Good marketing and advertisement

4
4
2

2. Considering some organisations, such as the Co-operative,

which are ethically conducted for the public good, rather
than the businesses profit, which of the
following
statements are more important in you using their
goods/services?
They
They
They
They

are providing good customer services

keep their prices low
train and employ young people without jobs
get involved with local charities and community groups

4
3
3

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3. The Co-operative offers higher quality products and services

than its competitors

Strongly agree
Agree
Neither agree nor disagree
Disagree

3
6
1

4. The Co-operative has higher ethical and moral standards than

its competitors
Strongly agree
4
Agree
5
Neither agree nor disagree
Disagree
1

5. The Co-operative offers competitive prices and delivers value

for money
Strongly agree
Agree
Neither agree nor disagree
Disagree
None of the above

2
6
2

6. How would you consider, generally, the services and goods The
Co-operative provide?
Very satisfying
Satisfying
Unsatisfying
None of the above

4
6

7. What is the probability for you to recommend The Co-operative

to a friend, co-worker or family member?
Very high (I would definitely recommend)
High
Low
None of the above

4
4
2

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21

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22

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23

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24

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25

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26

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27

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References
Bibliography
Appendix

29