Global Recession and Ethical Consumerism in Retail

This study aims to examine the impact of global recession and ethical consumerism on the performance of the retail industry. It will analyze the challenges faced by retailers in adhering to the needs of ethical consumers and suggest recommended activities for supporting ethical consumerism in the context of global recession.

Running head: GLOBAL RECESSION AND ETHICAL CONSUMERISM IN RETAIL
GLOBAL RECESSION AND ETHICAL CONSUMERISM IN RETAIL INDUSTRY
Name of the student
Name of the university
Author note

1GLOBAL RECESSION AND ETHICAL CONSUMERISM IN RETAIL
Table of Contents
1. Introduction..................................................................................................................................2
1.1 Background of the research...................................................................................................2
1.2 Research Problem..................................................................................................................3
1.3 Research scope.......................................................................................................................4
1.4 Research objectives...............................................................................................................4
1.5 Research questions.................................................................................................................4
2. Hypotheses and propositions development.................................................................................4
3. Research Methodology................................................................................................................6
3.1 Research Philosophy..............................................................................................................6
3.2 Research Approach................................................................................................................7
3.3 Research Design....................................................................................................................8
3.4 Data collection process..........................................................................................................8
3.5 Sampling and sample size......................................................................................................9
3.6 Time frame.............................................................................................................................9
4. Contributions.............................................................................................................................10
4.1 Industry perspective.............................................................................................................10
4.2 Academic perspective..........................................................................................................11
5. Conclusion.................................................................................................................................11
References......................................................................................................................................12

2GLOBAL RECESSION AND ETHICAL CONSUMERISM IN RETAIL
Topic: Global recession and Ethical consumerism in retail industry
1. Introduction
The global recession has imposed serious impact on the operations that are commenced
by the retailers in order to support the ethical consumption related needs of the customers. In this
relation, the research will aim at studying the impact of global recession and ethical
consumerism based habits of the customers on the performance of the retail industry. The higher
price that is required to be paid by the retail industry for implementing the sustainable measures
has affected the capabilities of the same in continuing the effectiveness of the operations in
adherence to the needs of an ethical consumer.
1.1 Background of the research
Ethical consumerism is defined as a consumer activism that is based on the concept
of dollar voting and ethical buying of products and services, which will create less adversity on
the environment1. It has been stated that the delineation of the ethical standpoints are dependent
on the morality of the actions that are commenced by the same in order to continue with the
effectiveness of the outcomes2. Gunn and Oksana also noted that the utilitarian views of ethics
are based on the delineation of the consequence of the activities rather than judging the activities
themselves3. The proper identification of the growing trend of ethical consumerism in the global
businesses has brought about significant modifications in the operations that are commenced
by the ventures4. On the other hand, the growing competition in the markets and the volatility of
1 Davies, Iain Andrew, and Sabrina Gutsche. "Consumer motivations for mainstream “ethical”
consumption." (European Journal of Marketing 50, no. 7/8 2016): 1326-1347.
2 Khan, Zeenath Reza, Gwendolyn Rodrigues, and Sreejith Balasubramanian. "Ethical consumerism
and apparel industry-towards a new factor model." (2016): 1.
3 Gunn, Madeline, and Oksana Mont. "Choice editing as a retailers’ tool for sustainable
consumption." (International Journal of Retail & Distribution Management 42, no. 6 2014): 464-481.
4 De Marchi, Valentina, Joonkoo Lee, and Gary Gereffi. "Globalization, recession and the
internationalization of industrial districts: experiences from the Italian gold jewellery

3GLOBAL RECESSION AND ETHICAL CONSUMERISM IN RETAIL
the economies has affected the capabilities of the organizations in keeping up to the assurance of
continuing the norms of ethical consumerism.
The regulations and standardization of diverse processes has induced diverse
modifications in the processes that are commenced by the businesses. In this context, the
research will delineate the impact of global recession and ethical consumerism on the retail
industry. The ethical consumerism trend has significantly changed the marketing, production and
the supply chain operations that are commence by the retail industry. On the other hand,
Cavusoglu and Mourad noted that the global recession and higher levels of volatility in the
economies affected the capabilities of the retail organizations in upholding the ethical
standpoints5. It has also challenged their capabilities of retaining the ethical outcomes of the
activities that are commenced by the same6. Therefore, the research will aim at understanding
the impact of global recession and ethical consumerism on the capabilities of the retail industry.
1.2 Research Problem
Lack of sufficient resources and the fluctuations in the economies has affected the
capabilities of the retailers in continuing with the effectiveness of the operations in
adherence to the needs of the business7. On the other hand, the global recession also affected the
capabilities of the retail organizations in supplementing the existing processes through high
priced sustainable measures. The diverse modifications that are commenced by the
industry." (European Planning Studies 22, no. 4 2014): 866-884.
5 Cavusoglu, Lena, and Mourad Dakhli. "The impact of ethical concerns on fashion consumerism: A
review." (Markets, Globalization & Development Review 1, no. 2 2016).
6 Vitell, Scott J. "A case for consumer social responsibility (CnSR): Including a selected review of
consumer ethics/social responsibility research." (Journal of Business Ethics 130, no. 4 2015): 767-
774.
7 Gereffi, Gary, and Joonkoo Lee. "Economic and social upgrading in global value chains and
industrial clusters: Why governance matters." (Journal of Business Ethics 133, no. 1 2016): 25-38.

4GLOBAL RECESSION AND ETHICAL CONSUMERISM IN RETAIL
organizations are dependent on the smooth functioning of the systems in adherence to the needs
of the business.
1.3 Research scope
The research will be undertaking the evaluation of the diverse issues faced by the retail
industry while adhering to the needs of the ethical consumers in a volatile market environment.
Therefore, the research will generally assess the issues that are faced by the retailers while
supporting ethical consumerism habits while defining the market volatility through the utilization
of diverse ethics- based theories and models on market volatility.
1.4 Research objectives
The research objectives will be:
 To identify the concept of ethical consumerism
 To examine the impact of global recession on the capabilities of retailers while adhering
to the needs of the ethical consumers
 To evaluate the relation between global recession and ethical consumerism in the
retailers’ context
 To suggest recommended activities that might be commenced by the retailers for
supporting ethical consumerism in the context of global recession
1.5 Research questions
The research questions are:
 What is the concept of ethical consumerism?
 How does global recession affect the capabilities of retailers while adhering to the needs
of the ethical consumers?
 What is the relation between global recession and ethical consumerism in the retailers’
context?
 What recommended activities might be commenced by the retailers for supporting
ethical consumerism in the context of global recession?

5GLOBAL RECESSION AND ETHICAL CONSUMERISM IN RETAIL
2. Hypotheses and propositions development
H0 - Global recession does not affect the capabilities of retailers in adhering to the needs of
ethical consumers
H1 - Global recession affect the capabilities of retailers in adhering to the needs of ethical
consumers
Justification of the hypothesis
The analysis that will be commenced in the study will aim at relating whether
Global recession affect the capabilities of retailers in adhering to the needs of ethical consumers
or not. In this context, a comprehensive study will be commenced through various data
collection methods for delineating the role of Global recession and the manner in which it
affected the capabilities of the retailers while developing propositions for the ethical consumers.
The diverse changes that are commenced by the retailers have facilitated the same in
continuing the effectiveness of the operations in adherence to the needs of the ethical
consumers. The changing preferences of the ethical consumers are dependent on the
sustainability of the propositions and to avoidance of their impact on the environment8. On the
other hand, the hypothesis for the study will also help in examining the diverse challenges that
are faced by the retailers in adhering the ethical consumption needs of the customers. It has been
stated that the assessment of the needs of the customers assists an organization in continuing
the effectiveness of the planning and operations based activities9. In this context, the
hypothesis will support the study through the enumeration of the diverse global recession factors
affecting the processes of the retailers while adhering to the needs of the ethical consumers.
Theories relating to Ethical consumerism
8 Valášková, Katarína, and Tomáš Klieštik. "Behavioural reactions of consumers to economic
recession." (Business: Theory and Practice 16 2015): 290.
9 Mann, Manveer, Sang-Eun Byun, Hyejeong Kim, and Kelli Hoggle. "Assessment of leading apparel
specialty retailers’ CSR practices as communicated on corporate websites: Problems and
opportunities." (Journal of Business Ethics 122, no. 4 2014): 599-622.

6GLOBAL RECESSION AND ETHICAL CONSUMERISM IN RETAIL
Gunderson noted that the utilitarianism theory emphasized on the development of the
activities in adherence to the consequences10. In this relation, the ethical consumerism is based
on the needs of sustenance and the impact of the same on the performance of the retail industry.
The utilitarianism theory will support in relating the sustenance related needs of the consumers
and the challenges that might be faced by the organizations in devising the operations11. On the
other hand, Lekakis noted that the delineation of the diverse activities that might be commenced
by the retail industry is elaborated through the utilization of the theory12. The utilitarianism
theory will support the research in relating the evolving trends of ethical consumerism and the
manner in which it would affect the capabilities of the retail industry. The delineation of the
ethical theory will help the retail organizations in assessing and relating the needs of promoting
products relating to ethical consumerism.
3. Research Methodology
3.1 Research Philosophy
The research will be commenced through the utilization of the Positivism philosophy,
as it will help in relating the behaviours relating to ethical consumerism through the utilization
of scientifically proven techniques and models. The delineation of the changing preferences of
the customers and the needs of adhering to the sustainable operations has brought about
modifications in the overall processes that are commenced by retail organizations13. The
10 Gunderson, Ryan. "Problems with the defetishization thesis: ethical consumerism, alternative food
systems, and commodity fetishism." (Agriculture and Human Values 31, no. 1 2014): 109-117.
11 Yusuf, Yahaya, Anya Hawkins, Ahmed Musa, Nagham El Berishy, Marion Schulze, and Tijjani
Abubakar. "Ethical supply chains: analysis, practices and performance measures." (International
Journal of Logistics Systems and Management17, no. 4 2014): 472-497.
12 Lekakis, Eleftheria J. "ICTs and ethical consumption: The political and market futures of fair
trade." (Futures 62 2014): 164-172.
13 Puelles, Maria, Mónica Diaz-Bustamante, and Sonia Carcelén. "Are consumers more rational and
informed purchasers during recession periods? The role of Private Labels and retailing

7GLOBAL RECESSION AND ETHICAL CONSUMERISM IN RETAIL
diverse modifications that are commenced by the organizations are dependent on the
assessment of the requirements of the customers. On the other hand, the positivism philosophy
will assist in relating the diverse issues that might be faced by the organizations due to the
global recessions and market volatility. The assessment of the market dynamics through the
application of the accounting theories and models will support in examining the issues that are
faced by the retail industry while operating in adherence to the needs of the ethical consumers14.
The research will investigate on the impact of the ethical consumerism on the retail industry and
the propositions that are made by the same. In this relation, the utilization of the positivism
philosophy will support in facilitating the research through the enumeration of diverse
scientifically proven paradigms.
3.2 Research Approach
The research will be commenced through the application of deductive approach,
which will support the study through the assessment of diverse available data sources while
proving the hypothesis. The utilization of the approach will assist in continuing the quality and
consistency of the research study and avoid personal idiosyncrasies15. The research approach
assists in delineating the major goals and guiding the study towards the common objectives of
undertaking the research. The diverse changes that might be noted in the study are based on the
tools that are used while making the research for gathering data from the diverse sources. The
major section of the data gathered during the study will be based on the available frameworks
from the previous researches, which will help in validating the study on the impact of ethical
strategies." (The International Review of Retail, Distribution and Consumer Research 26, no. 4
2016): 396-417.
14 Sadachar, Amrut, Frayen Feng, Elena E. Karpova, and Srikant Manchiraju. "Predicting
environmentally responsible apparel consumption behavior of future apparel industry professionals:
The role of environmental apparel knowledge, environmentalism and materialism." (Journal of
Global Fashion Marketing 7, no. 2 2016): 76-88.
15 McEachern, Morven G. "Corporate citizenship and its impact upon consumer moralisation,
decision-making and choice." (Journal of Marketing Management 31, no. 3-4 2015): 430-452.

8GLOBAL RECESSION AND ETHICAL CONSUMERISM IN RETAIL
consumerism and global recession on the retail industry. The assessment of the available data
will support in continuing the effectiveness of the study while adhering to the objectives of
culminating into an unbiased research outcome.
3.3 Research Design
The study will be commenced through the utilization of descriptive research design,
which will assist in exploring and defining the diverse issues that are faced by the retail industry
while adhering to the needs of ethical consumerism in the context of global recession. The major
part of the study will be aiming to identify the diverse aspects of ethical consumerisms and the
issues faced by retail organizations while adhering to the same in the context of recession and a
high volatile market structure. The evaluation of the global recession will be made through an
analysis of the diverse global reports. The global reports and reports from the World Bank will
help in assessing the diverse aspects of the market volatility and the manner in which it affects
the capabilities of the retail industry. On the other hand, an assessment of the ethical
consumerism needs will be commenced through sampling of data. The data that will be
derived from the procedures will be helping to identify the diverse issues that are faced by the
retail industry while continuing the balance between the ethical consumption based demands
and the market volatility encountered by the same. The utilization of the descriptive research
design will thereby help in enhancing the study through exploration of diverse data points
relevant to the objectives of the study.
3.4 Data collection process
The data will be collected through the utilization of mixed method where primary
quantitative data will be collected through survey that will be circulated among a group of 100
respondents. The questionnaire for the survey will be based on the diverse aspects of ethical
consumerism in order to record the viewpoints of the respondents. Data from the responses will
be collected and analyzed through regression. Later the P value will be calculated and analyzed if
it is below 0.05 (p < 0.05) the alternative hypothesis will be considered. The data that will be
collected through the primary assessment will be helping to identify the expectations of the
customers and the recommended activities that might be commenced by the retail industry
for adhering to ethical consumerism.

9GLOBAL RECESSION AND ETHICAL CONSUMERISM IN RETAIL
On the other hand, the research will also undertake a Secondary data collection through
evaluation of the diverse available articles, journals, websites, government reports and industry
reports for relating the impact of global recession on the performance of the retail industry. The
secondary assessment of data from the diverse sources will help to support the suitable
understanding of the market condition that is faced by the retail industry and the manner in
which it curtailed the capabilities of the same in adhering to the demand of ethical consumerism.
The detailed exploration of the diverse available data points will support in enhancing the
quality of the study in order to examine the issues that are faced by the retail industry while
adhering to the demand of ethical consumerism in diverse international markets. On the other
hand, the research will be dependent on the assessment of data points from diverse sources,
which will help in validating the research as per the objectives.
3.5 Sampling and sample size
Cluster sampling method will be commenced as a part of the research, which will
assist the researcher in dividing the population into diverse groups as clusters. Then the
researcher will select a random sample of clusters. In this context, the researcher will select a
group of ethical consumers comprising of 100 respondents and data will be gathered through the
responses that are provided by the same. The utilization of the cluster sampling method will help
in upholding the effectiveness of the research study through the identification of validated
data from diverse sources.
3.6 Time frame
Task Week
1
Week
2
Week
3
Week
4
Week
5
Week
6
Week
7
Week
8
Week
9
Selection of topic
and search for
justification
Constructing
literature
Selecting
appropriate

10GLOBAL RECESSION AND ETHICAL CONSUMERISM IN RETAIL
methods
Data collection
Data analysis and
representation
Reviewing the
outcomes
Conclusions and
recommendations
Submitting draft
of the project
Printing and final
submission
Table 1: Table showing the timeframe of the entire research
(Source: As created by author)
4. Contributions
4.1 Industry perspective
The research will assist the retail industry in relating the possible steps that might be
commenced by the same in order to adhere to the evolving trends of ethical consumerism.
The data that will be gathered from the primary sources will assist the researcher in facilitating
an unbiased study. On the other hand, the responses that will be gathered through the primary
responses of the ethical consumers will assist retail organizations in perceiving the diverse
modifications that might e commenced by the same while operating in the diverse global
markets. On the other hand, the assessment of the diverse industry and government reports will
provide the retail industry with an insight on market volatility. The perception of market
volatility and global recession will help the industry in creating strategies for sustaining in the

11GLOBAL RECESSION AND ETHICAL CONSUMERISM IN RETAIL
diverse markets16. Therefore, the research will help the organizations with an insight of the
problems that they might face while adhering to the evolving trends of ethical consumerisms.
The research will also provide the retail organizations with diverse recommended activities that
might be considered by the same for continuing the sustenance of the same.
4.2 Academic perspective
The research will be assisting the future researchers in relating the diverse aspects of
ethical consumerism and the manner in which retail organizations might take steps to adhere to
the same. Therefore, the research will assist the future researchers in developing insights on the
cost that might be commenced by the retail organizations for adhering to the needs of ethical
consumerism. On the other hand, the assessment of the diverse secondary sources assists in
enhancing the research through the identification of the market volatility and global recessions. It
will be assisting the future researchers in delineating diverse strategies in their respective studies
for continuing the sustenance of the retail organizations in changing global environments. The
overall assessment of the diverse alternative solutions and strategies will support the researchers
in undertaking detailed assessment of the diverse prospects faced by the organizations.
5. Conclusion
The changing trends in the consumption habit of the consumers have enforced an
enormous pressure on the retail industry for developing sustainable operations. The research
developed arguments based on the identification of the impact of global recession and ethical
consumerism on the performance of the retail sectors. In this relation, the research devised a
suitable methodology for assessing the impact of global recession on the operations of the retail
industry. The theoretical evaluation of the diverse aspects helped in identifying the diverse range
of factors that are made by the retail organizations.
16 Carrington, Michal J., Benjamin A. Neville, and Gregory J. Whitwell. "Lost in translation:
Exploring the ethical consumer intention–behavior gap." (Journal of Business Research 67, no. 1
2014): 2759-2767.

12GLOBAL RECESSION AND ETHICAL CONSUMERISM IN RETAIL
References
Carrington, Michal J., Benjamin A. Neville, and Gregory J. Whitwell. "Lost in translation:
Exploring the ethical consumer intention–behavior gap." Journal of Business Research 67, no. 1
(2014): 2759-2767.
Cavusoglu, Lena, and Mourad Dakhli. "The impact of ethical concerns on fashion consumerism:
A review." Markets, Globalization & Development Review 1, no. 2 (2016).
Davies, Iain Andrew, and Sabrina Gutsche. "Consumer motivations for mainstream “ethical”
consumption." European Journal of Marketing 50, no. 7/8 (2016): 1326-1347.
De Marchi, Valentina, Joonkoo Lee, and Gary Gereffi. "Globalization, recession and the
internationalization of industrial districts: experiences from the Italian gold jewellery
industry." European Planning Studies 22, no. 4 (2014): 866-884.
Gereffi, Gary, and Joonkoo Lee. "Economic and social upgrading in global value chains and
industrial clusters: Why governance matters." Journal of Business Ethics 133, no. 1 (2016): 25-
38.
Gunderson, Ryan. "Problems with the defetishization thesis: ethical consumerism, alternative
food systems, and commodity fetishism." Agriculture and Human Values 31, no. 1 (2014): 109-
117.
Gunn, Madeline, and Oksana Mont. "Choice editing as a retailers’ tool for sustainable
consumption." International Journal of Retail & Distribution Management 42, no. 6 (2014):
464-481.
Khan, Zeenath Reza, Gwendolyn Rodrigues, and Sreejith Balasubramanian. "Ethical
consumerism and apparel industry-towards a new factor model." (2016): 1.
Lekakis, Eleftheria J. "ICTs and ethical consumption: The political and market futures of fair
trade." Futures 62 (2014): 164-172.

13GLOBAL RECESSION AND ETHICAL CONSUMERISM IN RETAIL
Mann, Manveer, Sang-Eun Byun, Hyejeong Kim, and Kelli Hoggle. "Assessment of leading
apparel specialty retailers’ CSR practices as communicated on corporate websites: Problems and
opportunities." Journal of Business Ethics 122, no. 4 (2014): 599-622.
McEachern, Morven G. "Corporate citizenship and its impact upon consumer moralisation,
decision-making and choice." Journal of Marketing Management 31, no. 3-4 (2015): 430-452.
Puelles, Maria, Mónica Diaz-Bustamante, and Sonia Carcelén. "Are consumers more rational
and informed purchasers during recession periods? The role of Private Labels and retailing
strategies." The International Review of Retail, Distribution and Consumer Research 26, no. 4
(2016): 396-417.
Sadachar, Amrut, Frayen Feng, Elena E. Karpova, and Srikant Manchiraju. "Predicting
environmentally responsible apparel consumption behavior of future apparel industry
professionals: The role of environmental apparel knowledge, environmentalism and
materialism." Journal of Global Fashion Marketing 7, no. 2 (2016): 76-88.
Valášková, Katarína, and Tomáš Klieštik. "Behavioural reactions of consumers to economic
recession." Business: Theory and Practice 16 (2015): 290.
Vitell, Scott J. "A case for consumer social responsibility (CnSR): Including a selected review of
consumer ethics/social responsibility research." Journal of Business Ethics 130, no. 4 (2015):
767-774.
Yusuf, Yahaya, Anya Hawkins, Ahmed Musa, Nagham El Berishy, Marion Schulze, and Tijjani
Abubakar. "Ethical supply chains: analysis, practices and performance measures." International
Journal of Logistics Systems and Management17, no. 4 (2014): 472-497.