Ethical Branding

2.5

Ethical Branding

Ethical brands have two definitions there are those that behave ethically such as PepsiCo who incorporate ethical behaviour within their operations '' Protecting our natural resources and operating in a way that minimizes our environmental footprint, with the goal of reaching a net-neutral impact'' (Pepsico.com) And there are those who sell ethical products such as Fair trade Cadbury's Dairy milk bars which contain an increased usage of cocoa from west Africa, this promotes better living for the producers (BBC online)

Today Ethical branding is popular amongst businesses. Today there is a rising interest within the studies of ethical branding. In a world of moral issues companies need to portray themselves as socialy responsible and environmental friendly (Fan; Y (2005). The top ethical brands include the body shop, Boots, Google and M&S (marketingmagazine.co.uk). The unethical brands include McDonalds and Nike. However in comparison of ethical and unethical brands they are all as successful as one another (marketingmagazine.co.uk). However Ethical brands have seen an increase in their sales. The growth in sales of fairly traded products has been accompanied by an increased interest among consumers with regards to the ethical attributes of the products they buy (Szmigin, I; Carrigan, M and O'Loughlin, D 2007). ''Shopping for a better world'' This term is a seductive phrase for consumers and businesses encompassing an idea of an individual consumer buying one product in preference to another which can effortlessly create political and social change (Low, W; Davenport, E (2007).

Many companies nowadays have an ethical component to their organisation. A study taken in five major countries by Viewpoint 2008 identified that consumers feel that companies are performing poor in ethical parts of the business, it also showed that 63% of consumer (of the five countries including the UK) believed that companies are solely out for themselves. The study also found that 5,000 of the consumers bought from ethical brands because they felt good about themselves. The study showed that amongst the UK Co-Op stores were found to be the most ethical. The consumers of the study perceived ethical as being (from companies) fair to their employees in home countries and abroad, companies promoting the environment and companies who ensure good working conditions and fair prices to producers and suppliers.