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Among millennials, older millennials appear
to be more influenced by ethics, likely
because they are more likely to have children
(parents tend to be more impacted by ethics)
and because they have higher incomes.
Along those same lines, respondents from
higher income households are more likely
to be influenced by a company’s ethical
track record.
Those aged 18-34 who live in $75,000-plus
households are among the most influenced
by ethics (86 percent are sometimes
influenced). Retailers and brands targeting
high-income or young, affluent millennials
should consider how their ethical track
record will be perceived with their audience.
Mintel’s research suggests that the primary
driver for purchasing from ethical companies
is the “feel good factor” associated with the
purchase. Consumers want brands to act
ethically on their behalf and they reward
these brands with loyalty.
How companies treat their employees is the
factor most likely considered by consumers
in their determination of how ethical a
company is. This is likely because most
people have been employed at some point
and can empathize with fellow workers.
Employee treatment outranks factors such
as being environmentally friendly,
treatment of animals, and stances taken on
controversial issues – which often receive
wide media coverage.
When it comes to employee treatment,
consumers likely consider fairness of wages,
benefits, and even policies around time
off and holiday hours. For example,
some retailers have faced pressure from
consumers, watchdog groups, and striking
employees due to company policies.
In some instances, even when companies
make improvements, some consumers feel
it is too little, too late. Here the lesson to
be learned is that companies need to be
proactive in getting the story out about their
efforts, rather than reactive.
Consumers are
expecting a
higher level of
engagement with
retailers and brands
than ever before.
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