Ethical Choices Drive Consumers
Social Enterprises: How Ethical Choices Are Driving Consumers
Blog
Social Enterprises: How Ethical Choices Are Driving Consumers
The UK alone has over 100,000 businesses and organisations registered as social enterprises. Being a part of such a large network has obvious inherent benefits; social enterprises have a tendency to work together in support of their social and ethical commitments.
But beyond synergy between companies, consumers are also becoming more and more socially aware and ethical consumerism is on the rise. The source, background, production and sustainability of products and suppliers are becoming just as important as price, image and branding, especially to certain consumer demographics.
What is a Social Enterprise?
Not every business will be able to qualify as a social enterprise. Some may be able to adapt with some minor changes while others will be built from the ground up to fit the model. The first and most obvious stipulation in order to qualify is that the business needs to have a clear social and/or environmental mission. This mission needs to be set out in the business’ governing documents. The business should also generate the majority of their income through trade, and reinvest the majority of their profits.
Not every business will be able to qualify as a social enterprise. Some may be able to adapt with some minor changes while others will be built from the ground up to fit the model. The first and most obvious stipulation in order to qualify is that the business needs to have a clear social and/or environmental mission. This mission needs to be set out in the business’ governing documents. The business should also generate the majority of their income through trade, and reinvest the majority of their profits.
The Benefits of Social Cooperation
Beyond financing and cooperation between businesses, ethical considerations have a direct impact on consumer behaviour and spending. The Ethical Consumer Markets Report shows that, in 2019, ethical consumer spending in the UK reached a record high of £98bn and that the trend is only continuing to rise. Despite the negative effect that the COVID-19 pandemic has had on many economies, consumers continue to look for ethical and environmental alternatives.
Comparing pre-pandemic statistics to today, an additional 15% of consumers now look for products that reduce energy consumption, an additional 19% look for reduced plastic, and an additional 12% try to buy Fairtrade imported goods. This indicates that ethical consumerism is based on social rather than economic trends.
The type of product and target demographic also have an impact on ethical spending. Consumers are more likely to make ethical choices when it comes to food and drinks (Fairtrade, organic, sustainable) and ‘green’ housewares (energy-efficient appliances and light bulbs, reusable products) than they are for other products such as clothing and cosmetics. While men and women seem to be equally likely to make ethical choices, there is a marked difference between age groups. Consumers over 65 years of age are the least likely to make purchasing decisions based on ethical concerns, while perhaps, unsurprisingly, Generation Z and Millennials are the most likely to be ethical consumers. A 2015 survey showed that 42% of consumers aged 18-34 would be prepared to pay a premium for products they consider to be ethically manufactured or sourced.
A Trend 32 Years in the Making
The Ethical Consumer has been tracking this sector of the market since 1989 and the trend is very clear. Not only do more and more companies make social and environmental commitments, but consumers are also making choices that are increasingly influenced by ethical considerations.
There are myriad benefits to operating as a registered social enterprise, and these benefits would seem to be only increasing over time. While not every business can be a social enterprise itself, there are still opportunities to reap these benefits. By supporting and collaborating with registered social enterprises, companies can work to meet their own social and environmental commitments and show that they give ethical business practices the same importance that their customers do.
This article was created by Mediareach Advertising, a leading London-based marketing agency.
Ethical Choices Drive Consumers
Social Enterprises: How Ethical Choices Are Driving Consumers
Blog
Social Enterprises: How Ethical Choices Are Driving Consumers
The UK alone has over 100,000 businesses and organisations registered as social enterprises. Being a part of such a large network has obvious inherent benefits; social enterprises have a tendency to work together in support of their social and ethical commitments.
But beyond synergy between companies, consumers are also becoming more and more socially aware and ethical consumerism is on the rise. The source, background, production and sustainability of products and suppliers are becoming just as important as price, image and branding, especially to certain consumer demographics.
What is a Social Enterprise?
Not every business will be able to qualify as a social enterprise. Some may be able to adapt with some minor changes while others will be built from the ground up to fit the model. The first and most obvious stipulation in order to qualify is that the business needs to have a clear social and/or environmental mission. This mission needs to be set out in the business’ governing documents. The business should also generate the majority of their income through trade, and reinvest the majority of their profits.
Not every business will be able to qualify as a social enterprise. Some may be able to adapt with some minor changes while others will be built from the ground up to fit the model. The first and most obvious stipulation in order to qualify is that the business needs to have a clear social and/or environmental mission. This mission needs to be set out in the business’ governing documents. The business should also generate the majority of their income through trade, and reinvest the majority of their profits.
The Benefits of Social Cooperation
Beyond financing and cooperation between businesses, ethical considerations have a direct impact on consumer behaviour and spending. The Ethical Consumer Markets Report shows that, in 2019, ethical consumer spending in the UK reached a record high of £98bn and that the trend is only continuing to rise. Despite the negative effect that the COVID-19 pandemic has had on many economies, consumers continue to look for ethical and environmental alternatives.
Comparing pre-pandemic statistics to today, an additional 15% of consumers now look for products that reduce energy consumption, an additional 19% look for reduced plastic, and an additional 12% try to buy Fairtrade imported goods. This indicates that ethical consumerism is based on social rather than economic trends.
The type of product and target demographic also have an impact on ethical spending. Consumers are more likely to make ethical choices when it comes to food and drinks (Fairtrade, organic, sustainable) and ‘green’ housewares (energy-efficient appliances and light bulbs, reusable products) than they are for other products such as clothing and cosmetics. While men and women seem to be equally likely to make ethical choices, there is a marked difference between age groups. Consumers over 65 years of age are the least likely to make purchasing decisions based on ethical concerns, while perhaps, unsurprisingly, Generation Z and Millennials are the most likely to be ethical consumers. A 2015 survey showed that 42% of consumers aged 18-34 would be prepared to pay a premium for products they consider to be ethically manufactured or sourced.
A Trend 32 Years in the Making
The Ethical Consumer has been tracking this sector of the market since 1989 and the trend is very clear. Not only do more and more companies make social and environmental commitments, but consumers are also making choices that are increasingly influenced by ethical considerations.
There are myriad benefits to operating as a registered social enterprise, and these benefits would seem to be only increasing over time. While not every business can be a social enterprise itself, there are still opportunities to reap these benefits. By supporting and collaborating with registered social enterprises, companies can work to meet their own social and environmental commitments and show that they give ethical business practices the same importance that their customers do.
This article was created by Mediareach Advertising, a leading London-based marketing agency.
Ethical Choices Drive Consumers
Social Enterprises: How Ethical Choices Are Driving Consumers
Blog
Social Enterprises: How Ethical Choices Are Driving Consumers
The UK alone has over 100,000 businesses and organisations registered as social enterprises. Being a part of such a large network has obvious inherent benefits; social enterprises have a tendency to work together in support of their social and ethical commitments.
But beyond synergy between companies, consumers are also becoming more and more socially aware and ethical consumerism is on the rise. The source, background, production and sustainability of products and suppliers are becoming just as important as price, image and branding, especially to certain consumer demographics.
What is a Social Enterprise?
Not every business will be able to qualify as a social enterprise. Some may be able to adapt with some minor changes while others will be built from the ground up to fit the model. The first and most obvious stipulation in order to qualify is that the business needs to have a clear social and/or environmental mission. This mission needs to be set out in the business’ governing documents. The business should also generate the majority of their income through trade, and reinvest the majority of their profits.
Not every business will be able to qualify as a social enterprise. Some may be able to adapt with some minor changes while others will be built from the ground up to fit the model. The first and most obvious stipulation in order to qualify is that the business needs to have a clear social and/or environmental mission. This mission needs to be set out in the business’ governing documents. The business should also generate the majority of their income through trade, and reinvest the majority of their profits.
The Benefits of Social Cooperation
Beyond financing and cooperation between businesses, ethical considerations have a direct impact on consumer behaviour and spending. The Ethical Consumer Markets Report shows that, in 2019, ethical consumer spending in the UK reached a record high of £98bn and that the trend is only continuing to rise. Despite the negative effect that the COVID-19 pandemic has had on many economies, consumers continue to look for ethical and environmental alternatives.
Comparing pre-pandemic statistics to today, an additional 15% of consumers now look for products that reduce energy consumption, an additional 19% look for reduced plastic, and an additional 12% try to buy Fairtrade imported goods. This indicates that ethical consumerism is based on social rather than economic trends.
The type of product and target demographic also have an impact on ethical spending. Consumers are more likely to make ethical choices when it comes to food and drinks (Fairtrade, organic, sustainable) and ‘green’ housewares (energy-efficient appliances and light bulbs, reusable products) than they are for other products such as clothing and cosmetics. While men and women seem to be equally likely to make ethical choices, there is a marked difference between age groups. Consumers over 65 years of age are the least likely to make purchasing decisions based on ethical concerns, while perhaps, unsurprisingly, Generation Z and Millennials are the most likely to be ethical consumers. A 2015 survey showed that 42% of consumers aged 18-34 would be prepared to pay a premium for products they consider to be ethically manufactured or sourced.
A Trend 32 Years in the Making
The Ethical Consumer has been tracking this sector of the market since 1989 and the trend is very clear. Not only do more and more companies make social and environmental commitments, but consumers are also making choices that are increasingly influenced by ethical considerations.
There are myriad benefits to operating as a registered social enterprise, and these benefits would seem to be only increasing over time. While not every business can be a social enterprise itself, there are still opportunities to reap these benefits. By supporting and collaborating with registered social enterprises, companies can work to meet their own social and environmental commitments and show that they give ethical business practices the same importance that their customers do.
This article was created by Mediareach Advertising, a leading London-based marketing agency.