Can ethical consumers change the world?

Whether niche market labels grow in scale to make global supply chains less exploitative is a important question

Ethical labeling is still a nascent concept in many countries of the global south, including Pakistan. Yet, in more robust consumerist societies, use of ethical labels has now become common. Varied types of ethical labels tout their ware as being organic, environmentally friendly, and even based on 'fair trade' principles. The question, however, remains whether such ethical labeling is accurate, and if it is effective enough to contend with the exploitative practices rampant within the convoluted supply chains of products commonly found on store shelves.

Before assessing the efficacy of ethical labelling, it is worth noting how and why this phenomenon has become increasingly prevalent over the past few years. When one goes to purchase a basic commodity like eggs in the US, for instance, there is a range of options on offer. The cheapest eggs are caged ones. Cage-free eggs cost slightly more. Next come eggs produced by chickens which are grain-fed and antibiotics free. At the high end of these options are the free-range, organic and humane certified versions, which cost much more than 'normal' eggs. Many other products use ethical labels as well. Clothing brands now produce organic or recycled apparel and shoes. There is a plethora of environmentally friendly canned products. Organic and fair-trade coffee is also increasingly popular. However, such 'ethically' produced consumer items invariably include a surcharge to help consumers feel better about the way in which the products they consume have been sourced or produced.

Whether these niche market labels can grow in scope and scale to make global supply chains less exploitative is an important question.

Most large multinational corporations remain heavily dependent on the provision of low waged labour and lax regulatory standards within the global south to make exorbitant profits. This is why outsourcing has become such an integral part of the global production system. Unfortunately, local entrepreneurs within the global south are also not much better in terms of protecting the environment or providing decent wages and work conditions to their workers either.

Hence, the more discerning consumers are right to be dismayed by the increasing use of chemicals, the inhumane treatment of animals in the food industry, or the human rights infringements implicit in the production of ordinary consumer goods. The use of ethical labeling has emerged as a response to this angst, which aims to enable consumers to make informed choices concerning the products they should purchase. However, alongside authentic efforts to make production processes more responsible, there has also been a profusion of false marketing and superficial certification schemes.

Many well-known companies use misleading marketing tactics and labels to make their products appear more environmentally and labour conscientious than they really are. For example, 'greenwashing' tactics include promoting a given product as being 'green' based on a limited set of attributes while ignoring more fundamental problems. A beverage company, for example, may flaunt its increased reliance on solar energy while at the same time depleting and contaminating water sources in the surrounding vicinities where its manufacturing sites are located.

Misleading marketing and use of inaccurate ethical labels make it very difficult for ordinary consumers to differentiate between genuinely eco-friendly products and those that are using labels as a tactic to boost their product's appeal. A recent report published by the UNEP found that 60% of sustainability claims touted by European fashion giants were either "unsubstantiated", or worse, "misleading". The existing system of ethical certification schemes is thus not reliable. It not only makes inaccurate claims, but also provides a false and dangerous illusion of progress, without disrupting the bottom-line of profit maximisation.

Ultimately, consumers cannot be made custodians of the environment or protectors of labour rights. Instead, companies which make enormous profits by selling their goods around the world must be compelled by governments, and by relevant multilateral agencies, to clean up their supply chains.