Authors: Laughland, Pamela; The Network Team
Source: Network for Business Sustainability
This research finds consumers are willing to pay more for ethically produced goods and less for unethically produced ones. Further, the punishment imposed by consumers for unethical practices is greater than the reward for ethical practices. Practices need not be 100% ethical to obtain a premium. One implication is that the information consumers receive on production practices—good or bad—is of key importance to the price they are willing to pay for a company’s products.
This Research Insight is based on the journal article "Is It Really Worth It? Consumer Response to Ethical and Unethical Practices" by Trudel, R., & Cotte, J.