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Chapter 15. The Impact of Consumer Choices. Learning Outcomes. Upon completion of this chapter you should be able to: Consider the role of the consumer in the marketplace and the wider economy Examine the impact of consumer behaviour on others – locally, nationally and globally
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Learning Outcomes • Upon completion of this chapter you should be able to: • Consider the role of the consumer in the marketplace and the wider economy • Examine the impact of consumer behaviour on others – locally, nationally and globally • Explore the ways in which consumer choices can influence the provision of goods and services and how consumer power can change the lives of other people • Outline the concept of sustainability • Explain what it means to be an ethical consumer • Debate the ethical and sustainability issues that arise from consumption of goods and services • Evaluate how you can contribute to sustainable development.
Some BIG Questions • What type of consumer are you? Are you informed? Ethical? Green? • What influences your decision to buy a product? • Do you consider the materials and resources used to produce a product? • Do you think about the people involved in making and delivering the product? • Do you recycle products when you are finished with them?
Consumer Choices • Consider the impact of your consumer choices at local, national and international level • Consumers have the power: • to create demand for goods and services • to influence the type of goods and services that are produced as well as the way these goods and services are produced
Resources • All goods and services require the use of different types of resources: • Natural resources: oil, gas, coal, water, agricultural land, etc. • Human resources: workers and the labour they provide • Capital resources: buildings, vehicles, machinery, equipment, etc. • Financial resources: money • The goods and services you consume will have an impact on the use of these resources.Your spending habits can have consequences for people throughout the world. • Activity • Can you think of any examples of how your spending habits affect others?
Non-Renewable Resources • Non-renewable resources are limited in supply. • They cannot be replaced in the short term. • Examples include fossil fuels such as coal, oil, natural gas • We are using these up at a faster rate than they can be replaced, so they will eventually run out. • Activity • Go to http://worldometers.info and research how many years are left until oil is depleted (if we continue pumping oil at the present rate). • How would running out of oil affect your daily life? • What alternative sources of fuel could be used when oil runs out?
Renewable Resources • Renewable resources are not limited in supply. • They won’t run out or they can be regrown, reused or recycled. • Examples include wind energy, solar energy, trees and soil • Activity • Can any of these resources be overused?
Sustainable Consumption • If used too quickly, even renewable resources can be overused to the point of extinction. • Resources must therefore be used sustainably. • Sustainability is the process of balancing the social, economic and environmental systems that are in constant interaction for the well-being of individuals now and in the future. • The core pillars of sustainability are social (people), environmental (planet) and economic (profit). • Sustainable use means using resources in a way that meets current needs but also preserves the resources for future generations.
Sustainability • Sustainability involves carefully managing a resource to give it time to renew itself. • The fishing industry issues licences and sets limits on the amount of fish that can be caught each year. • Activity • Can you think of any other resources that need to be managed? • It is important to think about our buying habits as our choices can affect the lives of others. • Sustainable consumption means buying goods and services that do not harm society, the environment or the economy.
The Ethical Consumer • Ethical consumers choose goods and services that meet their needs and reflect their moral values (the ability to judge right from wrong). • Not everyone shares the same values. • The values we develop depend on our culture and our financial circumstances. • Scarce resources force us to make choices about consumption. • To be an ethical consumer we need to become an informed consumer so we can understand the issues involved and make choices taking into account our: • Needs • Values • Financial circumstances
Considerations for Ethical Consumers • Ethical goods are produced in a way that is kind to the environment and to the people who produce them. • Ethical consumers buy products and services that have been produced under ethical conditions. They: • make careful choices about the goods and services they buy • take responsibility for their buying decisions • avoid goods and services that have a negative impact on society, animals and the environment. • Several businesses including Nike, Gap, Adidas, Primark and Marks & Spencer have been known to exploit resources and workers used to produce their goods. • Consumers were encouraged to ‘boycott’ these businesses. • As a result, businesses are more aware of the need to behave ethically.
The Impact of Ethical Consumerism • Increased emphasis on corporate social responsibility (CSR) • Increased focus on ‘green consumerism’ • Awareness of our carbon footprint • United Nations Millennium Development Goals (MDGs) • Production of fair labour-certified garments • Promotion of animal welfare • Sustainable resources and technologies • Reduce, reuse, recycle
What Can You Do? • Engage in life-cycle thinking and consider: • Energy usage • Working conditions • Waste production • Pollution effects • Destruction of endangered ecosystems. • Ask questions, e.g. • Where is the product made? • What is it made of? • How much energy does it consume? • How are the workers who made this treated? • Support sustainable businesses • Reduce, reuse and recycle • Consider end of life disposal • Shop locally where possible
Review and Recap • Can you do the following? • Consider the role of the consumer in the marketplace and the wider economy • Examine the impact of consumer behaviour on others - locally, nationally and globally • Explore the ways in which consumer choices can influence the provision of goods and services and how consumer power can change the lives of other people • Outline the concept of sustainability • Explain what it means to be an ethical consumer • Debate the ethical and sustainability issues that arise from consumption of goods and services • Evaluate how you can contribute to sustainable development