Point at Issue: Buying With Your Conscience or Wallet?

Weiquan Lin

Hypothetically picture a company, we can call it Company A. Company A produces reasonably priced clothing. Its prices are much lower than its competitors, but this is because they use inexpensive labor outside of the United States. Not only this, but their company puts money toward the political campaign of someone with views that oppose yours. Can you, as a consumer, get past any or all of these issues? Values are the issue that many consumers face when purchasing anything. Are you just buying something, or are you helping the continuation of unethical practices?

For many people shopping and making decisions about products is about convenience. You go to the store for shampoo, buy the one that is on sale, or one you have always used. At that moment, you are not thinking about if the product contains chemicals that harm our oceans or are tested on animals. It is hard to find a product that you can agree with without doing a lot of homework beforehand.

It is not as time-consuming as one would think. Some apps can help you understand the impact a product has on our environment. These can help you make an informed decision in a short period. One app is Bunny Free, which lets the user search for companies by name and advise you on whether they test on animals.

Bunny Free uses data from the cruelty-free shopping guide published by People for the Ethical Treatment of Animals (PETA) and gives regular updates. Environmental Working Group is another app that tells you if any of the ingredients in a product are harmful. The user can scan the product with their phone, and it will give you up-to-date information on the ingredients in your next tube of sunscreen. The U.S. is trying to pass federal legislation called the Humane Cosmetics Act, which would prohibit animal testing for cosmetics and ban the Salle of animal-tested cosmetics. As a consumer, you have the opportunity to educate yourself on these practices and make an educated choice.

In addition to apps, social media plays a big part in giving consumers information on a company's policies. Social media makes it easier than before for consumers to get regular updates on their favorite brands. "At the same time, younger customers are increasingly demanding higher ethical standards from companies in a variety of issues such as environmental concerns, inclusiveness, and animal rights," wrote reporter Dinara Bekmagambetova. For brands that want to thrive in today's market, they need to keep their customers happy and comply with their needs and asks.

Maybe it's not the ingredients that bother you, but what groups the company supports with their profits. According to a survey from Markstein, 46% of all consumers (and 51% of millennials) say they pay close attention to a company's efforts to be socially responsible when deciding to buy something. Only 17% say they don't pay attention at all. These consumers are also willing to pay more for a product that aligns with their views.

Some people are not able to afford this. They do not have the luxury to spend more on products and forces a decision out of need. Should they be faulted for this decision? Some people also don't want to pay for an ethically sourced product. Consumers consistently say they want more sustainable products and services but are often unwilling to pay a premium, said Steve Polski, senior director of responsible supply chains and sustainability at Cargill. For many, the most important factor in choice is price. When a company is developing a socially responsible product and meets all of the consumer requirements, the price increases. "With sustainability and resource efficiency comes a price," reported Sustainability Advisor and Business Founder Tumuli-Anna Tiuttu. 

It isn't a simple process to consider all of the elements of making a product everything for everyone. "Developing new materials and creating innovative solutions is a time-consuming process, and investments in new manufacturing equipment can take a lot of companies' revenues." All of these considerations and changes directly impact the price per unit and make it out of range for some.

What are companies to do to keep their consumers and grow their base? They can lose a customer because of their practices, and also if they have to compensate their prices for new production methods. If customers disagree with the company and its policies, they will go elsewhere. Consumers are more likely to "select brands based on how well they align with their personal beliefs," stated a Barrons research poll. If the products are not eco-friendly and in line with their values, they will stop buying them. "A third of respondents say they will stop buying a product if they lose trust in the brand. Another third had already ditched their favorite brands in 2019."

Another significant consideration for consumers is political preference. Some want companies to be vocal, while others want them to be unbiased. We know that businesses want to be a part of legislation because of the regulations that can come into play that will affect their bottom line. In today's political climate, there are mixed opinions on who is right and who is wrong. There was a time when companies did not speak out on politics, but this has changed.

After the January 6 U.S. Capitol riot, many companies reconsidered their positioning and contribution policies. Amazon suspended contributions to the members of Congress who objected to the election results. American Express, AT&T, and Best Buy did the same. They halted campaign contributions to those who objected to the certifying of the election results. "Fifty-nine percent of Democrats and 55 percent of Republicans said a company's stance on a social or political matter is important when it comes to buying a product or service," reported Morning Consult. Companies do not want to take a stand but are forced to by consumers. They want to throw their support behind a company that shares their beliefs.

One thing that is on the minds of many consumers is the use of slave labor to produce many garments that we wear. According to a recent report, there are over 83 companies that have identified 83 brands that depend on factories in China that use the forced labor of minority Uighurs. Companies like Apple, The Gap, H&M, Target, and others rely on forced labor. As a consumer, purchasing from these companies may not align with your beliefs. You have the choice to purchase or not, and you can look at the appendix of the report that lists the companies that are guilty of these unethical practices.

There are also groups dedicated to campaigning for accountability in the fashion industry, such as Fashion Revolution. The site boasts the mission to "come together as a global community to create a better fashion industry." Another way to determine if your brand of clothing is following ethical practices is to read their impact reports. The more information a company gives about their process, the more likely they are ethically producing their clothing. If you cannot find any information online, email them with any questions on their process. Instead of buying new, you can buy second-hand or locally. Both of these options will allow you to have transparency into the manufacturing process and allow you to make an educated choice when buying your next pair of jeans.

So now, as a consumer, you have to think about environmental factors, testing on animals, ethical practices, and a companies political views; are there any products left that mesh with your beliefs? The variety and assortment of products you have to choose from shrinks when you have many filters to consider

The solution is different for everyone; for some, it means taking a hard look at their favorite products. For others, it is unfortunate, but they need their product and do not want to waste money or time finding an alternative. One thing we can do is become an educated consumer. Use tools that are readily available to understand exactly where your product comes from, the creation process, and where our money goes when we make a purchase. There is no right or wrong, but a happy medium is better than no product education at all.