Ethical consumerism as a key consideration for future brand strategy development in South Africa

Abstract

In the absence of sound business ethics practices in South Africa, consumers’ perceptions and expectations of businesses’ ethical behaviour will be vital determinants of market share and sustainable growth of South African businesses in the future. Clear evidence has emerged from recent research on ethical consumerism in South Africa (the first such research) that South African consumers will be important drivers of the ethical agenda. This will create sustainable growth prospects for existing and new products and services of companies that subscribe to ethical practices. Furthermore, in the context of an increasingly competitive business environment, consumer perceptions of corporate citizenship and companies’ performance against corporate citizenship criteria can represent a vital intangible asset for a company. In fact, the ethical value of a brand/product is expected to increase in importance and become an essential component in building the future brand strategies of South African-based companies. From the point of view of corporate social responsibility, ethical branding strategies are anticipated to support sustainable business and ethical claims only once such strategies are implemented throughout all phases of a brand’s/product’s lifecycle. It is thus vital that the perceptions and attitudes of consumers towards ethical purchasing are well understood, specifically in a business landscape where high value is already attached to responsible competitiveness. Although there have been a number of important surveys of this kind internationally, an understanding of consumer attitudes towards ethical purchasing is largely lacking in the South African context. This research article seeks to fill this gap by sharing the outcome of a research study conducted amongst