The Impact of Business Ethics and Practices on Consumer Choices: A Critical Analysis

Consumers today are becoming more socially and ethically conscious, making informed choices that go beyond the mere functionality and price of a product. Factors such as a company's business practices, ethical standards, and the treatment of employees play a significant role in driving consumer decisions. This analysis will explore the impact of business ethics and practices on consumer choices, focusing on specific incidents and examples to illustrate the points.

Unfair Treatment of Employees: A Driving Force for Boycotts

The treatment of employees, especially those from diverse backgrounds, is a critical factor that influences consumer behavior. For instance, the experience of a consumer in Dubuque, Iowa, reflects the impact of a company's treatment of its workforce. This person felt comfortable and safe at Walmart because of the respectful treatment of nonwhite employees, including Mexican Black, Indian, Native American, and Jamaican individuals.

In contrast, Hyvee was boycotted due to its lack of diversity and the perceived mistreatment of its employees. The company’s 97 percent white workforce and the unlikable CEO contributed to the decision to avoid shopping there. Similarly, in the UK, discriminatory practices are illegal, but companies like Dyson and Whetherspoons, which have been vocal supporters of Brexit, lost consumer loyalty due to their association with toxic acts of self-harm.

Political Rhetoric in Product Decisions

Political rhetoric can significantly influence consumer decisions, even when the products themselves are not directly related to political issues. As an example, the consumer avoided Brie Larson's Captain Marvel movie after listening to her political speeches, which were aimed at rallying support for a particular narrative. However, when the consumer watched Wonder Woman at the theater, they found that it was directed by a female, and it still became a favorite. This scenario illustrates that the quality and appeal of a product can outweigh political considerations for the average consumer.

Unfair Business Practices: A Reason for Discontinuing Loyalty

Unfair business practices, such as a lack of customer service or poor product quality, can also lead to consumer boycotts. JTF Wholesale, a business that refused to refund a damaged coffee table, is a prime example of this. Despite being a regular customer, the company's refusal to provide even an exchange or refund led to a loss of business. The company's attitude was described as particularly shady, resulting in the customer not returning as a customer. Such incidents can severely impact a business's reputation and profitability.

In Conclusion

Business ethics and practices significantly influence consumer choices. Ethical treatment of employees, diversity, and fair business practices are crucial for maintaining customer loyalty and positive word-of-mouth. Companies that prioritize these values not only enhance their public image but also build trust with their customers. On the other hand, unethical practices can lead to boycotts, negative publicity, and a decline in customer base.

As consumers become more informed and socially conscious, businesses must ensure that they act ethically and responsibly to retain and attract customers. The actions of a few can have a profound impact on a business's reputation and, ultimately, its success.