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How much power do consumers have when it comes to pushing brands to take moral and environmental responsibility? Taking a cue from CEOs from some of the world’s biggest brands, the answer is a lot. During Adidas’ annual general meeting in June of 2021, former CEO Kasper Rorstead told shareholders that a recent survey showed that, “70% of all consumers say that they consider sustainability a significant buying argument.” He also went on to say that, “If we succeed in sustainability – or when – we also succeed as a business.” This statement hints at a growing trend among CEOs who are making announcements about the link between consumer demand and how that is changing a company’s focus.
With consumers pushing brands like Adidas to spark change within and throughout their supply chains, this shows that ethical and sustainable products can be the future for the global marketplace. So, how do we as consumers communicate our changing needs to brands? And, how do brands like Adidas show that they’re ethical?
Consumers Support Ethical Businesses
Consumers are spending their money on brands that mirror their ethics and companies are taking notice. Sometimes, this information comes from brand reports about which products are selling. Adidas’s CEO mentions the company’s commitment towards growth by strengthening their credibility and sustainability with concrete goals set in place for 2050.
Communicating with brands directly is another way to stress the importance of sustainability and ethical supply chains. Do you wish to see them use more compostable packaging? Do you want them to go package free? Are you concerned about transparency along their supply chain? You can use these templates to write to brands about the sustainable ethical goals you’d like to see them invest in.
These brands and organizations are asking consumers about how sustainable products and ‘transparency’ are affecting their buying decisions to better understand what customers want. Here are a few recent studies about consumer behavior.
- Ford’s 2020 Trends Report shows that in the U.S 42% of consumers have boycotted a brand based on their values.
- Futerra’s survey of 1,000 consumers in the USA and UK show that 96% believe that their shopping actions can make a difference.
- McKinsey US Cohort Survey in 2019 showed that 66% of consumers consider sustainability when purchasing a luxury product.
- The Stagewell Group and MDC Partners, poll shows “Ethical standards are the highest-valued CEO quality – ahead of company vision and products and services.”
- The Sustainable Fashion Industry Statistics, expects the market to grow to $9.81 billion in 2025 and $15.17 billion in 2030 at a CAGR of 9.1%.”
So, Just How Is Adidas Ethical?
Like most mega brands, Adidas has updated its site with a section devoted to its sustainable and ethical efforts.
In terms of its ethical responsibility to monitor the factories where their products are produced, Adidas has established a code of ‘Workplace Standards’ throughout its supply chain. These cover several key areas such as fair compensation and safe working conditions. To help the brand assess whether or not factories meet their expectations throughout their global supply chain, Adidas is a Fair Labor Association (FLA) Participating Company. This organization holds brands accountable my doing random assessments at factories to monitor and engage with companies about labor concerns.
We verify the compliance status of our suppliers through internal and third-party audits, worker hotlines and grievance processes.
Adidas
Like other ethical companies and activists in the fashion industry, Adidas recognizes the role that policy makers play when it comes to encouraging ethical and environmental responsibility from brands. The company’s website states- “Governments play a key role and have a responsibility in protecting and promoting human rights.” It also goes on to state that in order to see long-term change, “it is necessary to engage with policymakers and national governments.” and mentions a Call to Action to protect garment workers.
These partnerships help the brand to shape policies that ensure the rights of their global workforce. And, by communicating this information consumers are also able to asses whether or not the brand upholds ethical values. This allows us to make conscious buying decisions, track their process and become a part of the ethical vetting process that holds brands accountable. As consumers we have more power than we think to help companies make more ethical decisions.