Page 272 - (DK) The Business Book
P. 272
270
PEOPLE WANT COMPANIES
TO BELIEVE IN SOMETHING
BEYOND MAXIMIZING
PROFITS
THE APPEAL OF ETHICS
he appeal of ethics is founding of the Fairtrade Foundation.
IN CONTEXT based on a basic human This introduced a labeling system
T preference for a fair deal. for products that had been produced
FOCUS
Business ethics—the moral and traded without exploitation.
Business ethics
principles and rules of trade—has It gave consumers the ability to
KEY DATES been an area of study since the choose products on ethical grounds
1867 Karl Marx claims that early 1900s. Early attention focused when making a purchase.
capitalism was built on the on workers’ rights and conditions, From the 1990s, as corporations
exploitation of labor. and whether they were paid a “fair pursued globalization strategies and
wage.” In the 1960s, consumers increasingly outsourced production
1962 US president John
also demanded rights too, and they to low-wage economies, consumers
F. Kennedy outlines the wanted to know more about a became more aware of the issues
Consumer Bill of Rights: company’s reputation and approach. involved, and the implications of
the right to safety, the right However, it was not until the their buying choices.
to be informed, the right to 1980s that ethics began to be Unilever publicized its ethical
choose, and the right to be reflected in the market, with the goals in its 2010 “Sustainable
heard. This is extended Living Plan,” which promised it
and adopted by the United would halve its environmental
Nations in 1985. footprint and source all of its raw
products sustainably by 2020.
1988 The Fairtrade Foundation
Others have since followed suit.
is launched.
Although consumers know that
2008 A study in the journal some companies may fail to make
Psychological Science claims good on these kinds of promises,
that humans are neurally they often choose to believe them,
programmed to prefer fair because, as Facebook founder Mark
treatment. Mayan coffee sold under the Fairtrade Zuckerberg observed, “people want
label provides consumers with a to use services from companies
2012 The London Olympic
guarantee that coffee farmers have that believe in something beyond
Games restricts its food been fairly paid for their product. simply maximizing profits.” ■
retailers to using only Fairtrade
brands of tea, coffee, sugar,
See also: Play by the rules 120–23 ■ Morality in business 222 ■ Creating an ethical
wine, chocolate, and bananas. culture 224–27 ■ Understanding the market 234–41 ■ Greenwash 268–69
