Fairtrade Labelling Organizations International

Ethical Consumerism
A Guide for Trade Unions
Congress would like to Acknowledge the continued support of Irish Aid for our Global Solidarity work.
 Contents 3

Contents
Foreword .................................................................. 4
What is “ethical consumerism”? ...................................... 5
The origins of consumer activism ..................................... 7
Consumer activism and globalisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Consumers' International ............................................. 16

Ethical trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Fair trade ................................................................ 23

Organic and free range produce .................................... 28
Ethical labels uncovered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Recycling:
An essential element of ethical consumerism ..................... 36
Sustainable development ............................................. 38
Ethical consumerism in the finance sector ......................... 47
Ethical investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Trade union action on ethical consumerism ....................... 56

Additional Resources .................................................. 59

An Irish Congress of Trade Unions Publication

4 Ethical Consumerism: A Guide for Trade Unions

Foreword
Congress is very pleased to be publishing the latest in our Global Solidarity series of publications - a trade union guide
to ethical consumerism. One might question the timing of the publication of such a guide given the global economic
crisis that is having such a devastating effect on workers around the globe. However, the evidence suggests that the
predicted demise of the ethical market - 'ethical' is a fad and a luxury and now that hard times are here we'll forget this
nonsense and get back to good old-fashioned value for money - is not true and in fact shoppers' interest in ethical
products has gone up despite the credit crunch.

A global survey, released in May 2009 by the Fairtrade Labeling Organisations, showed that shoppers increasingly expect
companies to be more accountable and fair in dealing with producers in developing countries. Among those surveyed,
almost three quarters of shoppers believe it is not enough for companies to do no harm, but that they should actively
support community development in developing countries. Consumers are calling for a new model in trade in which
justice and equity are integral parts of the transaction. 'Active ethical consumers' make up more than half the
population (55%) in the countries surveyed. These shoppers have higher expectations of companies' social, economic
and environmental responsibilities. Their shopping habits and decisions tend to reward (or punish) companies that meet
(or do not meet) their expectations, and they influence others with their opinions.

With the devastating impacts of the global recession and the credit crunch, the people who produce many of the
products and services we consume need such action now more than ever. Trade unions can play a part in the growth
of this movement. It is not just a question of justice and fairness but also a powerful instrument for shaping the kind of
world we want to live in post this economic crisis. There can be no return to the fundamental economic and
governance imbalances that are the direct result of three decades of neo-liberal economic policies, with the effect that
the fruits of growth have not been distributed to workers. Now is the time to learn the lessons of this crisis and build a
more sustainable and just future and using our power as consumers can make a powerful contribution to this.

Congress would like to thanks Nick Grisewood for his work on this publication and also expresses thanks to both Irish
Aid and Concern for their continued support of our Global Solidarity Work.

David Begg
General Secretary
Irish Congress of Trade Unions (ICTU)
 What is “ethical consumerism” 5

What is “ethical
consumerism”?
Over the last ten or twenty years, more and more people around
the world, primarily in industrialised countries, have become better
informed and more aware of the origins of the goods they
purchase on a day-to-day basis, the buying policies and practices of
the shops they visit and the policies and principles of the services
they buy. In a growing number of cases, this increased awareness
and knowledge is affecting consumer practices and may be the
difference between someone buying a particular product or service
or not. There are a number of reasons for this development, which
is commonly referred to as “ethical consumerism”, or also “ethical
consumption”, “ethical purchasing”, “moral purchasing”, “ethical
sourcing”, “ethical shopping” or “green consumerism”.
Fundamentally, ethical consumerism is a form of consumer
activism, in other words, consumers taking responsibility for their
decisions in purchasing goods and services.

An Irish Congress of Trade Unions Publication

 6 Ethical Consumerism: A Guide for Trade Unions

Two key elements that have contributed to this life stories of exploited workers, sometimes children, who
development and that are interrelated are the significant make products which are eventually sold in the west at
and rapid progress in Information and Communications many times the small amount of money they are paid in
Technologies, particularly internet-based, and the role of wages. All of which contributes to a very confusing
the media in exposing bad practices in global supply picture for the average consumer, who is bombarded
chains of goods and services. If consumers log on to the with messages of what to do or not to do.
internet today and carry out a search on “ethical
consumerism” or “ethical trade”, they will get thousands Trade unions, charities and other civil society
of hits of web sites with information on these issues or organisations the world over run regular campaigns to
specialised retail goods and services advertised as either inform consumers of how the products and services they
“ethical” or “fair trade”. In addition, there are articles buy are manufactured, farmed or otherwise provided and
nearly every day in many newspapers and magazines on produced. The aim is to highlight the significant profits
made by companies and others on the backs of workers
in developing countries, pointing out that a very obvious
way to tackle poverty and inequality around the world
would be to ensure that everyone enjoys decent working
conditions and benefits from a living wage, access to
adequate public services, particularly education, health
and social protection, and a fulfilled and meaningful life.
In this way, the fundamental principles of ethical
consumerism are directly linked to the need for
companies to be socially responsible in all aspects of their
business activities and for governments to apply and
monitor the application of international conventions
relating to human rights and appropriate labour, social
and environmental standards.

In essence, therefore, “ethical consumerism” applies to

the intentional purchase by a consumer of products and
services that have been manufactured, processed or
provided through ethical means, in other words, with
minimal harm to or exploitation of humans, animals
and/or the natural environment. Put simply, it is about
buying products and services that are made and
distributed under ethical conditions by companies that
behave in an ethical and socially responsible manner.
Ethical consumerism is practised through “positive
buying” in that ethical products, for example, those
branded “fair trade”, are favoured over others.

© International Labour Organization

 The origins of consumer activism 7

The origins of
consumer activism
So how did ethical consumerism start and what is the history
behind it? Society has been aware of the power of organised
consumer movements for generations. Consumer activism is
not a new concept and ethical consumerism is built on the
foundations laid by social activists mainly in 20th century,
but going back as far as the creation of cooperatives
in the mid-19th century.

Cooperative movement
In many ways, the rise of the cooperative and consumer
movements were linked to that of the trade union
movement and enhanced social activism. Cooperatives
were an effective response by agricultural and rural
communities in Europe and North America protecting
their interests and livelihoods against powerful
landowners and big business owners at that time who
sought to exploit cheap labour, land and raw materials to
make even greater profit through trade. In this respect
and looking at the ongoing challenges in global trade
and the economy today, not a great deal has changed.
Cooperatives were - and are still - based on the principles
of solidarity and community and focused on ensuring an
improved standard of living for workers by providing
products and services at affordable prices.

The movement became gradually more structured and

organised over the years, providing health, housing and
banking services, promoting gender and education
equality and protecting the environment and workers'
rights. Their strength was built on the fact that the
cooperative - usually workers in a particular location - © International Labour Organization
owned everything from the land on which crops were
grown, to the factories that made comestible products movement faded somewhat in industrialised countries as
and the shops that sold them. Prices were maintained at economies grew more sophisticated and competitive.
affordable levels for working people and, today, there are Nevertheless, a growth in ethical and environmental
millions who benefit from the cooperative movement, awareness in the late 20th century has seen renewed
mainly in developing countries. However, over time the interest in cooperative principles and values.

An Irish Congress of Trade Unions Publication

8 Ethical Consumerism: A Guide for Trade Unions

The Fairtrade Foundation

The rise of consumer groups

The late 19th and early 20th centuries saw the gradual that workers throughout the world should have decent
establishment of a more formal consumer movement in working conditions and in this the Irish trade union
emerging industrialised countries, which focused more movement follows the ILO policy of campaigning for
specifically on ensuring that people were able to get decent work wherever there is an opportunity of job-
value for their money in terms of their purchases. For creation or job-maintenance.
example, a Consumers League was formed in New York, Without significant and fundamental reform of the WTO,
USA, in 1891 and by 1898 the National Consumers globalisation as it is currently being practiced cannot be
League had been created. In Great Britain, the ‘managed’ for everybody’s benefit, because not
Consumers Council, which later became the Consumers' everybody is engaged in the relevant decision-making
Association, was established around the time of World processes. If the trade union movement can become a
War I. These early movements became less concerned partner to help the WTO, then working people will
with political agitation or cooperative action, instead engage in a dialogue to manage the process, to
turning their attention to providing authoritative everyone’s benefit. But if we continue to be excluded,
information to consumers to enable them to obtain then we can only oppose the current trends in
better value for their money. This focus by early globalisation.
consumer activist groups led to a strengthening of the
legal framework of the retail sector, including advertising Consumer groups began to conduct specialised research
regulation and improved labelling requirements of food, into a wide range of products to support consumer
drugs, cosmetics and other consumer goods. spending. One of the best known research magazines of
this type is the British Consumer Association's Which?,
and similar research media exist in most industrialised
Unfortunately, whilst the loss of jobs in rich countries is
countries today. Experts test products usually in their own
in itself a serious problem for the workers who lose out
research laboratories according to a range of criteria,
there, in poor countries too there are often very
including price, safety, durability, effectiveness, and so on
negligible gains from globalisation: the workers are not
- in short, everything that will help consumers to obtain
well-paid, nor are they in secure employment with
value for money. These movements focused far more on
decent benefits and adequate levels of social protection.
consumers' rights, information, labelling and what legal
(See accompanying box on Uganda) What is important is
redress was available in case things go wrong.
 The origins of consumer activism 9

However, this form of consumer movement faced a companies, large and small. This form of activism
number of difficulties towards the end of the 20th stemmed from a growing realisation that the behaviour
century. First, the pace of technological change impacted and practices of companies affects the lives and
on the value of consumer information as things changed livelihoods of millions of people, whether or not they are
so quickly. Second, retailers themselves began to address employed directly or indirectly by these same companies.
consumers' expectations and to promote themselves as This subject is covered extensively in the ICTU's
consumer champions. This was done through cost- publication in 2006, Corporate Social Responsibility: A
cutting promotions, establishing cheaper own brand Guide for Trade Unionists, and it would be important for
lines, and so on, and one just has to watch and listen to trade unionists to cross-reference these two publications
advertising campaigns by big retailers in Ireland today to as there are many points of overlap. Ethical consumerism
understand how they compete for consumer interest by plays a significant role in obliging companies to think
promoting their own value brands. Third, the main more carefully about their behaviour and practices.
criticisms of this form of consumerism are: that it fails to
address longer-term social and environmental issues; that In the USA, this emerging form of consumer activism was
it disregards the plight of poorer consumers; and that it led by lawyer Ralph Nader, who published a book Unsafe
encourages a middle-class orientation of aspiring to ever at any speed in 1965 which exposed the irresponsible
increasing standards of living. In spite of these criticisms, behaviour of the car industry in not focusing enough
the impact this form of consumer activism has had on attention on safety in its design and building of cars.
business worldwide should not be underestimated. The Nader pointed out that advertising was misleading
level of professionalism applied to their consumer consumers in believing some vehicles were safe when
research means that companies and governments ignore statistics proved that they clearly were not. His research
them at their peril. revealed the extent of damage to property, road-related
injuries and deaths, insurance claims, and so on and
criticised the industry for not acknowledging the dangers
Taking on the multinationals of vehicle design faults. Subsequent to this publication,
Nader set up his own Center for Study of Responsive
The late 1960s and beyond saw a rise in activism against Law and Corporate Responsibility which led to a
the power of multinational corporations closely related to proliferation of similar organisations, not only in the USA
a parallel focus on the “corporate social responsibility” of but worldwide.

© International Labour Organization

An Irish Congress of Trade Unions Publication

10 Ethical Consumerism: A Guide for Trade Unions

Initially, these organisations were established on a public As a result, private companies of all sizes are more aware
groundswell of growing distrust of companies, particularly of the importance of behaving in a socially responsible
the larger multinational corporations, and a feeling that manner throughout their business processes and across
people needed to be able to defend their interests, health global supply chains. This period, supported by the
and well-being. These organisations grew from an development of the internet and other information and
imbalance of “David and Goliath” proportions and aimed communication technologies, saw a surge in consumer
at lobbying governments to take necessary action to activism and sparked considerable interest in where
protect the rights and interests of ordinary citizens companies source labour, raw materials, products and
through legal reform and appropriate industry standards services and why. Today, more and more companies pay
of conduct. In addition, these organisations began to increasing attention to their supply and investment chains
broaden the scope of consumer protection to include a to ensure that these comply with relevant international
range of services, such as insurance, banking and other conventions and standards as to ignore this aspect of
financial services, and also health and other public business is to risk survival in increasingly competitive
services. private sector markets.

In the 1980s and 1990s, this form of consumer activism While there are still many challenges in monitoring the
focused strongly on the application of international labour behaviour and business practices of companies
standards in global supply chains and informing the domestically and internationally and ensuring that they are
general public of violations of these in the production of not just paying lip-service to their corporate social
certain goods. Campaigns were launched against such responsibilities, using it as a marketing tool for example,
well-known multinational companies as Nike, The Gap, this form of consumer activism has had a major impact on
Reebok, Adidas and Marks & Spencer, highlighting the working conditions and socio-economic environments
exploitative practices used in supply chains. The early of workers and their families across the globe, but
argument used by multinationals that they could not be particularly in developing countries. Much more needs to
responsible or accountable for the labour and other be done, particularly within the framework of the United
practices of its multitude of suppliers, particularly in Nations Millennium Development Goals (MDGs) targeting
developing countries, was no longer considered valid and poverty and hunger and environmental sustainability, but
the need for greater accountability was integrated into at least the role of the private sector is now acknowledged
national and international conventions and legislation. and embedded in human development processes.

© International Labour Organization

 The origins of consumer activism 11

Fairtrade Labelling Organizations International

Alternative consumer activism

Since the 1980s, an additional emerging form of While in the early stages of its existence, the green
consumer activism that has grown significantly in consumer movement remained on the margins of
strength and influence has been so-called “green retailers' radars, it gradually grew in importance and
consumerism”, which is based on the impact of influence to the extent that today green “products” are
consumption on the environment. The premise of this growing in both number and scope, from vegetables and
form of consumer awareness is to limit the impact of fruit, to green cars and electrical products. The
consumption on the environment to protect the well- movement generally promotes a message calling on
being and interests of future consumers, i.e. future consumers to be more careful and informed in their
generations. Decisions are based on guidance provided decision-making on consumption, although there is also
through different media on which products to buy from a more radical element which recommends that people
particular producers that either benefit the environment should make more effort to consume less in general to
or inflict the least lasting damage on the environment. protect the environment and its capacity to provide for
For example, green consumerism impacted on the sale of future generations.
aerosols with chlorofluorocarbons (CFCs) and the sale of
fruit and vegetables treated with pesticides.

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12 Ethical Consumerism: A Guide for Trade Unions

The emergence of ethical health and hygiene concerns have also played their part
consumerism in promoting ethical consumption as citizens in
industrialised countries pay greater heed to the increasing
As the green consumer movement became more
number of research reports into the effects of certain
established, it gave rise to a new form of consumer
types of food and food-processing methods in terms of
activism in the late 1980s and early 1990s, which had
contemporary diseases and illnesses, such as cancer,
previously been on the fringes of the movement, namely,
obesity and diseases affecting the heart, the brain, the
ethical consumerism. At first, it appeared that this new
digestive and the respiratory systems, and so on. People
entrant into the consumer movement would forever
generally pay more attention to their diet and therefore
remain a marginalised form of the mainstream
to the products they consume.
movement. However, underpinned by an increasingly
global focus on the principles of fair trade within the
broader perspective of trade, development,
environmentalism and human rights, the ethical
The full circle of
consumer movement has grown in strength and consumer activism
influence, reaffirming the basic values of the very first
cooperative movement in terms of bringing consumers Although consumer activism has taken different forms
closer to non-exploitative producers, thereby bypassing over the last 100 years or so, its fundamental principles
the processes of conventional trade through large have remained relatively consistent in that they seek to
supermarket chains. ensure fairness, social justice, equality and protection of
the individual. Consumer activism aims at ensuring value
The success of the ethical consumer movement can be for money for those who consume, while protecting their
seen more tangibly today in many supermarkets, interests and well-being as well as those of workers
including in Ireland. For example, most stores, including involved in local, national and global supply chains.
multinational retailers such as Tesco, Marks & Spencer, Ethical consumerism further reinforces these principles
Aldi and Lidl, include a wide range of fair trade, organic and values by focusing on environmental protection and
and free range products on their shelves and are careful sustainable development. In its purest form, ethical
to ensure detailed labelling of all products to inform consumerism is about purchasing goods and services that
potential buyers of conformity with relevant ethical have been produced without harm to or exploitation of
standards, thereby influencing decision-making and humans, animals or the environment. In this respect, its
encouraging consumption. In addition, in most philosophy appeals to the majority of consumers in the
industrialised countries there is a wide range of smaller world as ideally most people would probably prefer to
ethical and fair trade shops and internet-based retail sites buy ethical products and services. The challenge is that
responding to the growing numbers of consumers who the world is not “ideal” and consumers are obliged to
are concerned about such issues as environment, fair make purchasing decisions based on a range of priorities
labour standards and personal health. Indeed, personal and personal realities.

© International Labour Organization

 Consumer activism and globalisation 13

Consumer activism
and globalisation
The world today is shrinking and rapidly evolving in terms of
technology, telecommunications, travel, and knowledge. The term
“global village” has never been more pertinent, but what impact
has this had on the way trade and governance works? There is a
close link between consumer activism and the anti-globalisation
movement, and in looking more closely at some of the factors
behind the emerging ethical consumerism trend, this link becomes
more evident. Many of the forces underpinning ethical
consumerism are driven by single issue pressure groups, for
example, those against testing consumer products on animals,
resisting the use of dwindling supplies of rare wood, protecting the
natural habitat of various species of animals, targeting the sale of
genetically modified foods, and so on. The common thread is that
of global trade and economic integration.

As economic markets become more integrated at process of regional and global markets and multinational
regional and global level, the responsibility for regulation behaviour. Organisations such as Friends of the Earth,
and monitoring is gradually assumed by global and People for the Ethical Treatment of Animals (PETA),
regional institutions, such as the World Trade Oxfam, Amnesty International, Christian Aid,
Organisation (WTO), the European Union (EU), the North Greenpeace, Clean Clothes Campaign and many, many
American Free Trade Association (NAFTA), and other others spearhead a broad range of campaigns, often
regional trade bodies, such as CARICOM (Caribbean), based on single issues, to raise awareness and lobby
MERCOSUR (South America), ASEAN (South-East Asia) governments, governmental organisations such as the
and SADC (Southern Africa). This development, coupled G7, G8 and G20, United Nations (UN) agencies, and
with the competitive pressures countries face to attract others, to influence their policies and programmes on
inward investment, has inevitably impacted on the ability these specific issues. Indeed, since the 1960s, there has
of national governments to regulate the behaviour of been a proliferation of these civil society organisations
some multinational companies, particularly the larger and associations, focusing on single or multiple issues
ones, whose financial resources, in some cases, can be that campaign and mobilise to protect their causes. More
larger than the Gross Domestic Product (GDP) of some and more of these organisations focus on environmental
developing countries. issues which underpin the ethical consumer movement.

As a result, consumer movements have become more Some consumer organisations, for example, the Ethical
politicised and conduct targeted campaigns to highlight Consumer in the UK, promote ethical consumerism as a
flaws and deficiencies in the regulatory and monitoring form of “voting” through decisions on how consumers

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 14 Ethical Consumerism: A Guide for Trade Unions

spend their money. It points out that consumers have • Negative purchasing: Avoiding products of which
considerable political power through their spending consumers may disapprove, such as eggs laid by
processes and that by choosing to purchase certain battery hens or large cylinder cars which give out high
products or not, they can potentially influence carbon emissions.
companies' policies in the retail market. The Ethical
Consumer is the UK's leading alternative consumer • Company-based purchasing: Targeting a business as a
organisation, researching the social and environmental whole and avoiding all the products made by one
records of a wide range of companies and providing company, for example, through national and/or
information on the outcome of this research to international boycotts.
consumers to guide their decision-making.
• Fully-screened approach: Looking both at companies
and at products and evaluating which product is the
Its web site describes four types of ethical buying,
most ethical overall. This is the basis of the work of
stating that ethical consumerism is just as much
Ethical Consumer, which conducts research into a wide
about supporting “good” companies and products
range of products and highlights what it terms “best
as it is withdrawing support from the so-called
buys”, which are essentially the most ethical, “fully
“bad” ones:
screened” products that it can find. The results are
• Positive buying: Favouring particular ethical products, then published in the Ethical Consumer Magazine.
such as energy-saving light bulbs.

The Fairtrade Foundation

 Consumer activism and globalisation 15

Company and product boycotts

One of the four types of ethical buying described by the Ethical Consumer
is “company-based purchasing”. This involves targeting companies which
violate ethical principles, particularly in relation to international labour
standards, either by taking an individual decision to avoid purchasing any
of their products or organising campaigns to encourage others to join in a
boycott. This was a common practice in the early days of consumer
activism, particularly in the 1980s. Indeed, it was considered to have been
effective in the international movement against apartheid in South Africa,
forcing a number of multinational investors to pull out of that country and
thereby increasing pressure on the government to abolish apartheid.

However, consumer boycotts can potentially have an adverse effect on

those working for the companies concerned or their suppliers in
developing countries. While the aims behind such campaigns can be
ethically sound, they can result in workers losing their jobs and whole
families and communities suffering the effects. It is not the fault of
workers that their employers use unethical business practices and it is not
the fault of suppliers that the multinationals they serve are unethical.
Ultimately, the most effective solution to tackling unethical practices is
through social dialogue involving local trade unions and workers and their
international federations. The ICTU guidelines, Corporate Social
Responsibility: A Guide for Trade Unionists (2006), go into more detail on
the impact of international framework agreements and codes of conduct
in this domain.

The Ethical Consumer web site ([Link]) includes a

section on boycotts, offering constructive advice to consumers and
emphasising the sensitivity and potential impact of such action. In some
situations, there may be little choice but to proceed with a boycott to
force change. However, such a decision should not be taken lightly, should
involve dialogue with the workers involved and their unions and with the
companies themselves. Every avenue of constructive social dialogue should
be explored before proceeding with boycotts. The Ethical Consumer's web
site also includes a list of current boycotts in the United Kingdom,
information on how to organise them and the latest news on this issue.

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16 Ethical Consumerism: A Guide for Trade Unions

Consumers' International
Consumers' International (CI) is an independent global association
of organisations working in the consumer sector worldwide. This
includes independent national consumer organisations and
government bodies and it currently represents over 220
organisations in 115 countries. Around two-thirds of the
membership are from developing countries and the other third
from industrialised countries. Some independent member
organisations are long-established, with hundreds of staff and
millions of their own members, whilst others are semi-voluntary
associations providing information and advice about basic services
in some of the world's poorest countries. Because so many of its
members are in developing countries, CI supports programmes to
develop strong and effective consumer organisations that can
impact on policy-making at national and global levels. These
programmes include training, seed grants,technical assistance and
information networks.
 Consumers’ International 17

CI aims to be the campaigning global voice for • The right to be heard, i.e. to have consumer interests
consumers and to build a powerful international represented in the making and execution of
consumer movement to help protect consumers government policy and in the development of products
everywhere. and services.

1 • The right to redress, i.e. to receive a fair settlement of

In its strategic plan for 2007-2011 , the
just claims, including compensation for
organisation sets out the following four-year
misrepresentation, shoddy goods or unsatisfactory
objectives:
services.

• to campaign on key issues of concern to global • The right to consumer education, i.e. to acquire
consumers and take a lead; knowledge and skills needed to make informed,
confident choices about goods and services, while
• to act as a global watchdog for the behaviour of
being aware of basic consumer rights and
international corporations;
responsibilities and how to act on them.
• to help build strong consumer organisations around
• The right to a healthy environment, i.e. to live and
the world;
work in an environment which is non-threatening to
• to be a strong, sustainable, global umbrella the well-being of present and future generations.
organisation to protect the interests of consumers
worldwide. Among the key consumer issues being tackled by
CI in 2009 are:
A key regular activity of CI is marking World Consumer
Rights Day on 15 March each year, celebrated for the • Global consumer dialogue, education and access to
first time in 1983. On 9 April 1985, the UN General information and knowledge, details of which can be
Assembly adopted the UN Guidelines for Consumer found on the dedicated web site:
Protection2, following a decade of lobbying by CI and [Link]
other consumer organisations. The guidelines embrace
• The Junk Food Generation campaign targeting
the principles of eight consumer rights and provide a
marketing of unhealthy food to children, details of
framework for strengthening national consumer
which can be found on the dedicated web site:
protection polices.
[Link]

The eight consumer rights are defined as follows: • The Marketing Overdose campaign targeting
irresponsible drug promotion by pharmaceutical
• The right to satisfaction of basic needs, i.e. to have companies around the world, details of which can be
access to basic, essential goods and services: adequate found on the dedicated web site:
food, clothing, shelter, health care, education, public [Link]
utilities, water and sanitation. • The Streetfood campaign through CI is working to
• The right to safety, i.e. to be protected against preserve street food life, so that local consumers, street
products, production processes and services which are food sellers and travellers can continue to benefit from
hazardous to health or life. the traditional practice of enjoying cultural foods
prepared and sold in streets all over the world. More
• The right to be informed, i.e. to be given the facts
details of this campaign can be found on the dedicated
needed to make an informed choice, and to be
web site: [Link]
protected against dishonest or misleading advertising
and labelling.

• The right to choose, i.e. to be able to select from a

range of products and services, offered at competitive
prices with an assurance of satisfactory quality.

1
Consumers' International web site, [Link]
2
[Link]/esa/sustdev/publications/consumption_en.pdf

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18 Ethical Consumerism: A Guide for Trade Unions

CI also runs an ongoing campaign entitled “The Real

Deal” as part of its work on sustainable consumption.
Working with member organisations and partners, CI
publishes a series of features on its web site to highlight
unethical and unsustainable behaviour by corporations
and governments around the world. The aim is to help
consumers make informed and responsible choices about
the products they buy and the services they use. Along
with investigative reports from around the world, the
campaign also cooperates with the Ethical Consumer
Research Association (ECRA) in the United Kingdom to
expose the facts behind some of the world's most
popular brands and products. The campaign's most
recent investigations have studied the coffee industry,
including Fairtrade coffee; the ethics of mobile phone
companies; the impact of dumping obsolete computer
equipment in West Africa; and the unethical behaviour of
some of the world's leading hotel chains.

CI provides a very wide range of information and

research resources to consumers through its web site:
[Link]. As well as its
ongoing campaigns, it also conducts regular research
studies into a wide variety of industries around the world
to assist consumers in making informed ethical decisions
about what they buy. In this respect, the organization
provides a useful and informative service to those
interested in ethical consumerism.
© International Labour Organization
 Ethical Trade 19

Ethical trade
According to the Ethical Trading Initiative (ETI) in the UK, “ethical
trade” can carry two meanings, one broad and one more specific.
It can be an umbrella term for all types of business practices that
promote more socially and/or environmentally responsible trade, or
it can refer more specifically to the labour practices in a company's
supply chain. ETI considers ethical trade in the latter sense in its
policies and programmes and, in many respects, this focuses largely
on the corporate social responsibility (CSR) practices of companies,
i.e. the responsibility of a company for the labour and human
rights practices within its supply chain. The issue of CSR is dealt
with in detail by Corporate Social Responsibility: A Guide for Trade
Unionists (ICTU, 2006). As consumers, trade unionists should be
guided in where they shop and what they buy by CSR principles.

What do we mean by
ethical trade?
Millions of people around the world work in a range of workers and to monitor the application of relevant
areas to provide food and many other products for sale international instruments. Ethical trade, therefore,
in industrialised countries, such as Ireland and the UK. In involves sourcing companies, retailers and brands, taking
too many cases, these workers toil in hazardous responsibility for these workers, and striving to improve
conditions, often for pay that barely covers their needs their conditions progressively.
and those of their families. They may also be
discriminated against, harassed and prevented from More and more companies have adopted some form of
joining or forming trade unions. ethical sourcing policy to address growing public concern
over supply chain labour issues. Pressure on companies
As mentioned previously, as knowledge grew in the has been maintained as trade unions and civil society
1980s and 1990s of the impact of negative business organisations, in developing and developed countries,
practices in developing and transition economies, the have continued to campaign on these and related issues,
trade union, civil society and consumer movements for example, investment screening according to a range
joined together in condemning such practices and in of social and environmental criteria. Together, these
bringing pressure to bear on companies and trends are making it more and more difficult for
governments to ensure decent working conditions for all companies to ignore ethical sourcing issues.

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20 Ethical Consumerism: A Guide for Trade Unions

Codes of practice
The response of many companies to the ethical trade The key issue is that codes should reflect and
lobby has been to develop or adapt codes of business directly reference existing international instruments
practice, which should be the first step in addressing the on labour standards and company practice,
issue. However, the greatest challenge facing the civil including:
and consumer movements is that of monitoring and
ensuring the application of these codes by the individual • the core Conventions of the International Labour
companies. In addition, a number of companies establish Organization (ILO), including the right of workers to
and impose these codes without any form of negotiation form and join trade unions and bargain collectively
or social dialogue with trade unions, which raises with employers, and its Multinational Enterprises
questions over their content and effectiveness. There are Declaration;
thousands of such codes now in place around the world, • the United Nations Global Compact;
highlighting a further problem, namely that of
coherence. Without a more negotiated and unified • the OECD Guidelines on Multinational Enterprises.
approach, it is difficult to influence the content of these
These standards are covered in detail in the ICTU
codes, and there have been instances of incompatible
guidelines on CSR. However, even codes of practice that
standards being used. directly reference such key standards can only be truly
effective if they are implemented fully and if human and
© International Labour Organization financial resources are directed towards their
implementation, follow-up and reporting. Some efforts
are being made towards the standardisation of codes of
practice for different industries, for example, clothing,
sports equipment, toys, and so on. However, the issue of
monitoring implementation and the existence of
mechanisms to punish violations of codes still need to be
fully resolved.

ETI has produced its own Base Code which contains

nine fundamental principles:

• no one should be forced to work;

• workers should be able to form and join trade unions;
• working conditions should be safe and healthy;
• child labour shall not be used;
• working hours should not be excessive;
• wages should be enough to live on and provide some
discretionary income;
• workers should be treated equally, regardless of their
sex, ethnic group, religion or political opinions;
• where possible, workers should be provided with
regular employment;
• workers should not be verbally, physically or sexually
abused or disciplined.

The code puts the responsibility on retailers and brands

which outsource their production to know where and
who their suppliers are and what conditions they provide
for their workers. ETI promotes the practice of
monitoring visits to suppliers to assess working
conditions firsthand and for the outsourcing companies
to work with suppliers to address areas where
improvements should be made.
 Ethical Trade 21

Ethical Trading Initiative (ETI)

ETI in the UK is an alliance of companies, trade unions, charities and

campaigning organisations that work together to improve working conditions
in global supply chains. Since its inception in 1998, it has developed and
disseminated a wide range of tools and guidance on ethical trade, including
good practices. It has galvanised industry-wide alliances that have brought about
widespread change for workers around the world. ETI also provides training
programmes for retailers and others working in the field of ethical trade.

Some of the complex issues surrounding ethical trade that ETI and its
members tackle include: how companies can gain an accurate picture of
working conditions; what they should do to help protect particularly
vulnerable workers; and how they can make sure their buying practices do not
detract from their suppliers' ability to provide decent pay and conditions for
their workers. ([Link])

UTZ CERTIFIED - Good Inside

Is a global certification scheme covering agricultural commodities like

coffee, cocoa and tea.

UTZ CERTIFIED's vision is to achieve sustainable agricultural supply chains

where farmers are professionals implementing good practices which lead to
better businesses, where the food industry takes responsibility by demanding
and rewarding sustainably grown products, and where consumers buy
products that meet their standard for social and environmental responsibility.

In many countries including Ireland and Britain the UTZ CERTIFIED programme
is seen as being complementary to Fairtrade ([Link])

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22 Ethical Consumerism: A Guide for Trade Unions

Impact of consumer activism analysis of the cost implications of meeting international

standards in trade. Companies are concerned that ethical
trade could squeeze their profit margins and consumers
The focus on ethical trade today is very much a product
are concerned that this could result in higher prices in
of concerns expressed by ordinary consumers and trade
the shops. As yet, there are no definitive answers either
union and civil society organisations. People wanted to
way and it would be premature to draw conclusions.
know that the products they were consuming came from
ethical sources. However, turning ethical trade into a
reality is clearly far more complex. It involves UN
agencies, international organisations, trade and industry Is ethical trade the same
bodies, governments, companies, trade unions, civil
society and consumer organisations, and so on, from all as fair trade?
over the world. The shared ambition is to ensure that all
people benefit from decent working conditions and that Although there are many similarities between the
the socio-economic and environmental impact of trade is concepts of “ethical trade” and “fair trade” which can
more positive for current and future generations. be confusing for consumers, they are not the same.
Ethical trade aims to ensure that decent minimum labour
However, there no easy solutions and the many processes standards are met in the production of goods and
that the movement has ignited will take time to achieve services. By contrast, fair trade is primarily concerned
their ultimate goals. Nevertheless, the important thing is with the trading relationship, especially those involving
that the process has started, that people are more aware small producers in developing countries. Fair trade
and that progress is steadily being made. It is vital that ensures that producers are paid a decent price for their
everyone, particularly consumers, continue to monitor goods that at least covers the true costs of production,
progress and to ask questions about the ethical sourcing despite often serious fluctuations in world commodity
of all products and services. prices. Ethical trade and fair trade have distinct origins,
but their approaches are complementary in that they
A question commonly asked by many consumers is what both focus on helping make international trade work
the potential impact of ethical trade might be on retail better for poor and otherwise disadvantaged people. The
prices. At present, this issue is being researched by Fair Trade movement is dealt with in more detail in the
various bodies, including governments and companies next section, however, the table below provides some of
themselves. However, there is currently little research the main differences between the two movements.

Ethical trade Fair trade

Focuses on protecting workers' rights Focuses on helping disadvantaged producers

throughout the supply chain. and workers in the developing world take
more control over their lives, for example,
Is about the behaviour of buying companies, cotton, banana, cocoa and coffee farmers.
retailers, brands and their suppliers, and the
steps they take to ensure supplier companies Applies specifically to products, not companies.
respect workers' rights.
Has widespread consumer recognition and a
Does not depend on consumer awareness recognised label, the Fairtrade Mark.
which is why there is no recognised 'ethical
trade' label.
 Fair Trade 23

Fair trade
Fair trade is an organized social movement and market-based
approach that aims to help producers in developing countries and
promote sustainability. The currently accepted definition of fair
trade was agreed by FINE, an informal association of four
international fair trade networks (Fairtrade Labelling Organizations
International, World Fair Trade Organization, Network of European
Worldshops and the European Fair Trade Association), in
October 2001.

“Fair trade is a trading partnership, based on dialogue,

transparency and respect, that seeks greater equity in international
trade. It contributes to sustainable development by offering better
trading conditions to, and securing the rights of, marginalized
producers and workers - especially in the South. Fair trade
organizations, backed by consumers, are engaged actively in
supporting producers, awareness-raising and in campaigning for
changes in the rules and practice of conventional international
trade. Fair trade products are produced and traded in accordance
with these principles - wherever possible verified by credible,
independent assurance systems.”

There are three key strategic aims of the fair

trade movement:

• to deliberately to work with marginalised producers • to empower producers and workers as stakeholders in
and workers in order to help them move from a their own organizations;
position of vulnerability to security and economic self-
• to actively play a wider role in the global arena to
sufficiency;
achieve greater equity in international trade.

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24 Ethical Consumerism: A Guide for Trade Unions

European Fair Trade Association (EFTA)

EFTA is an association of 11 fair trade importers in nine European countries

(Austria, Belgium, France, Germany, Italy, the Netherlands, Spain, Switzerland and
the UK). It was formally established in 1987. Its aim is to support its members in
their work and to encourage them to cooperate and coordinate by facilitating the
exchange of information and networking. EFTA also identifies and develops joint
projects and maintains a database of EFTA suppliers, called Fairdata. The
association has an office in Brussels, Belgium, which is responsible for the
execution of the EU-funded Fair Procura project, which aims to encourage public
authorities and institutional buyers to participate in fair trade initiatives and
purchase fair trade products.

EFTA produces a range of information resources on fair trade in Europe and, to

date, has published five comprehensive research studies in a range of European
countries. The last report was produced in 2007 and covered 33 European
countries, including Ireland. This and other reports and resources can be
downloaded from the EFTA web site below.
([Link])

The movement was born out of a backlash against the The movement espouses several key aims:
United Nations Agreement on Trade and Tariffs and
subsequently the World Trade Organization in terms of • to provide market access to small producers,
the perceived detrimental impact of global and regional connecting them to customers and allowing access
trade agreements on small producers and farmers. It was with fewer intermediaries;
felt that these small businesses were being further • to provide higher prices than typically paid to
marginalised in global trade, particularly in terms of producers in trading relationships, with the hope of
commodities speculation and trading, and that they were allowing them to achieve greater financial stability,
unable to compete in national and international markets improve their general well-being and allow future
to ensure they were paid a decent price for their investments;
products which would ensure a decent living for them
• to provide information and support to enable
and their families, while also being able to develop their
producers to develop knowledge, skills and resources
own businesses. Global commodity speculation has been
to improve their lives;
particularly detrimental to small producers and farmers,
for example, according to a study by the EU, during the • to raise awareness of fair trade, its products and
1970-2000 period, prices for many of the main principles in industrialised countries.
agricultural exports of developing countries, such as
sugar, cotton, cocoa and coffee, fell by 30 to 60 per Fair trade products are traded and marketed either by an
cent. integrated supply chain whereby products are imported
and/or distributed by fair trade organisations, or by
The fair trade movement therefore advocates the product certification whereby products complying with
payment of a “fair price”, as well as the application of fair trade specifications are certified indicating that they
social and environmental standards, in areas related to have been produced, traded, processed and packaged in
the production of a wide variety of goods. It focuses in accordance with the relevant standards (see section on
particular on exports from developing countries to Fairtrade labelling).
developed countries, most notably handicrafts, coffee,
cocoa, sugar, tea, bananas, honey, cotton, wine, fresh
fruit, chocolate and flowers.
 Fair Trade 25

© International Labour Organization

Fairtrade labelling
According to the 2008 Annual Report of Fairtrade “Max Havelaar”, which guaranteed that the goods met
Labelling Organisations International (FLO), fair trade certain labour and environmental standards. The label
certified sales amounted to approximately 2.9 billion only applied to coffee initially, but the concept caught
worldwide, a 22 per cent year-to-year increase. While this on. Within years, similar labelling initiatives, such as the
represents a tiny fraction of world trade in physical Fairtrade Foundation, TransFair and Rättvisemärkt,
merchandise, it does point to the positive impact of emerged across Europe and North America in an effort to
awareness-raising on ethical consumerism and fair trade. follow Max Havelaar's footsteps and boost fair trade
In June 2009, the FLO also reported that more than 5 sales.
million producers and their families were benefiting from
The organizations launched their own campaigns and
fair trade-funded infrastructure, technical assistance and
certification marks and originally operated independently.
community development projects.
Then in 1997, these organizations created FLO
International, whose mission is to set fairtrade standards,
Fairtrade labelling is a certification system designed to
support, inspect, certify disadvantaged producers and
enable consumers to identify goods which meet agreed
harmonise the fairtrade message across the movement.
fair trade standards. The system is overseen by an
In 2002, the organisation launched a new international
umbrella organisation, Fairtrade Labelling Organisations
Fairtrade Certification Mark to improve the visibility of
International (FLO International). Although fair trade has
fair trade products on supermarket shelves; convey a
existed since the 1950s through the activities of
dynamic, forward-looking image for fair trade; facilitate
Alternative Trade
cross-border trade; and simplify procedures for importers
and traders. At present, 21 national labelling initiatives
Organisations (ATOs), often closely linked to volunteer
are members of FLO International, including Fairtrade
groups and Third World Worldshops, it was not until
Mark Ireland, and there are fairtrade certification marks
1988 that these products were expanded to mainstream
on dozens of different products which can be found on
retailers. A Dutch ATO, Solidaridad, created a label, called
the shelves of shops across Ireland.

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26 Ethical Consumerism: A Guide for Trade Unions

FLO International develops and reviews standards and The Fairtrade certification guarantees not only fair prices,
assists producers in gaining and maintaining certification, but also the principles of ethical purchasing. These
thereby being able to make the most of market principles include adherence to ILO Conventions, such as
opportunities. To ensure transparency, the standards are those banning the use of child and slave labour,
developed and reviewed by the FLO Standards Committee, guaranteeing a safe workplace, decent working conditions
which includes stakeholders from FLO's member and the right to form and join trade unions. They also
organisations, producer organisations, traders and external include adherence to the UN Declaration of Human
experts. The actual certification itself is carried out by an Rights, a fair price that covers the cost of production and
independent international certification company registered facilitates social development, and protection and
in Germany, FLO-CERT, which ensures that producers and conservation of the environment. The certification system
traders comply with the Fairtrade standards and that also promotes long-term business relationships between
producers invest the benefits received through Fairtrade in buyers and sellers, crop pre-financing, and greater
their development. It also oversees a specially developed transparency throughout the supply chain among others.
trade auditing system that checks that every Fairtrade- More and more products are covered by the Fairtrade
certified product sold to a consumer has indeed been label, including bananas, honey, coffee, oranges, cocoa,
produced by a Fairtrade Certified Producer Organisation cotton, dried and fresh fruits and vegetables, juices, nuts
which has been paid the Fairtrade Price. The system, and oil seeds, rice, spices, sugar, tea and wine. Companies
therefore, is both comprehensive and effectively offering products that meet the Fairtrade standards may
monitored, engaging consumer confidence in the apply for licences to use one of the Fairtrade Certification
Fairtrade Certification Mark. Marks for those products and will then be subject to the
certification and monitoring process.

© International Labour Organization

 Fair Trade 27

World Fair Trade Organisation (WFTO)

The WFTO, known as the International Fair Trade Association (IFTA) up until the
beginning of 2009, is the global representative body of organisations committed
to fair trade. It operates in 70 countries across the globe to create market access
through policy, advocacy, campaigning, marketing and monitoring. The
organisation and its members are committed to the eradication of poverty
through sustainable economic development and pioneering social and
environmental policy and practice and continual reinvestment in marginalised
artisans, farmers and producer communities.
Like FLO International, the WFTO also operates a special certification system, but
rather than certifying products, it certifies organizations that are committed to fair
trade. Launched in 2004, the so-called FTO Mark enables consumers to recognise
registered fair trade organisations and guarantees that standards are being
implemented, including working conditions, wages, child labour, gender equity,
transparency and the environment. ([Link])

Fair trade in Ireland and the UK

Fairtrade Mark Ireland ([Link]) and the organisations and individuals looking for more detailed
Fairtrade Foundation ([Link]) are the information on fair trade and promoting this issue through
national Fairtrade labelling organisations in Ireland and the their own activities.
UK respectively. They license a variety of Fairtrade products
for sale in wholesale and retail outlets and the catering The organisations promote such initiatives as Fairtrade
trade and provide information to consumers on the Fortnight, Fairtrade Towns, Fairtrade Schools, Fairtrade
different products and lists of retailers. As well as business Colleges and Fairtrade Parishes, which are all designed to
development, a key area of the work of these mobilise different communities to promote Fairtrade
organisations is awareness-raising and advocacy and they products and work towards specified goals in order to
provide a wide range of resources to volunteers, achieve certification.

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28 Ethical Consumerism: A Guide for Trade Unions

Organic and free

range produce
It would not be possible to discuss the issue of ethical consumerism
without addressing the growing importance of organic and free
range produce. This produce can be found in a wide range of retail
outlets and markets around the country, particularly farmers
markets, which are increasing in popularity in Ireland. Organic
produce can cover anything from fruit and vegetables to meat and
other edible products, such as honey. Organic foods are grown or
produced according to specific standards governed by strict
certification systems, for example, the use of conventional non-
organic pesticides, insecticides and herbicides. If livestock are
involved, they must be reared without the routine use of antibiotics
and without the use of growth hormones, and generally fed a
healthy diet. In most countries, organic produce may not be
genetically modified. While favouring organic produce is primarily a
personal lifestyle and health choice, it also affects ethical consumer
decision-making in so far as organic farmers avoid the use of
chemicals on their farms, which is generally good for the
environment and, of course, show concern for animal rights
and welfare.
 Organic and free range produce 29

Historically, organic farms were relatively small family-run growers and processors involved in organic production
activities, which is why organic food was once only have met, and continue to comply with, organic
available in small stores or farmers markets. However, standards.
since the early 1990s, organic food production has
experienced growth rates of around 20 per cent a year, In Ireland, these organizations are:
far ahead of the rest of the food industry, in both
developed and developing nations. As of April 2008, • the Irish Organic Farmers and Growers Association
organic food accounts for 1 to 2 per cent of food ([Link])
sales worldwide.
• Organic Trust Limited ([Link])
• Demeter Standards (Irl) Limited (no web site)
Organic certification systems
It is important to point out that organic food production © International Labour Organization
is a heavily regulated industry and not a form of private
gardening as is commonly believed. All organic products
sold in Ireland and the UK must comply with EU
regulations governing organic production. These are
extremely strict, legally enforceable standards that
describe the inputs and practices to be used in organic
farming, growing and processing. In Ireland, the
Department of Agriculture and Food is the competent
authority responsible for regulating the organic sector
and ensuring that obligations and requirements are met.
In the UK, this role is performed by the Department of
Environment, Food and Rural Affairs.

In the EU, the regulation which governs organic

farming, growing and processing contains a number
of overarching principles, including:

• working with natural systems rather than seeking to

dominate them;
• the encouragement of biological cycles involving micro-
organisms, soil flora and fauna, plants and animals;
• the maintenance of valuable existing landscape
features and adequate habitats for the protection of
wildlife, with particular regard to endangered species;
• careful attention to animal welfare considerations;
• the avoidance of pollution;
• consideration for the wider social and ecological
impact of the farming system.

Therefore, it is illegal to offer for sale in the EU any

product as organic that does not comply with the EU
regulations governing organic production. This means
that all products labelled as “organic” are legally required
to have been organically produced and certified as such.
There are currently three certification bodies in Ireland
and nine in the UK approved by the government to
administer the organic standards. These organizations
play a crucial role in ensuring the integrity of the
standards and conduct audits to ensure that the farmers,

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30 Ethical Consumerism: A Guide for Trade Unions

What about organic products imported from outside the EU?

Organic products imported from within the EU are required to comply with EU
organic regulations and therefore must meet the same high standards as those
produced in either Ireland or the UK. Organic products from countries outside
the EU are not allowed to be imported into either Ireland or the UK unless the
organic standards and certification systems in their countries of origin are
deemed equivalent to those imposed by the EU regulations. Therefore, in
principle, even organic foods produced outside the country meet the same high
standards as those produced in Ireland and the UK.

Organic versus Broadly speaking, the general consensus across

these surveys is that organic farming is less
conventional farming damaging for the following reasons:

As with organic products in the market place, organic • Organic farms do not consume or release synthetic
agricultural methods are also internationally regulated pesticides into the environment, some of which have
and legally enforced by most countries, including Ireland the potential to harm soil, water and local terrestrial
and other EU countries, based primarily on the standards and aquatic wildlife.
and principles set by the International Federation of
• Organic farms are better than conventional farms at
Organic Agriculture Movements (IFOAM), a global
sustaining diverse ecosystems, for example,
umbrella organization for organic organisations
populations of plants and insects, as well as animals.
established in 1972. IFOAM defines the overarching goal
of organic farming as follows: • When calculated either per unit area or per unit of
yield, organic farms use less energy and produce less
“Organic agriculture is a production system that sustains waste, for example, waste such as packaging materials
the health of soils, ecosystems and people. It relies on for chemicals.
ecological processes, biodiversity and cycles adapted to
local conditions, rather than the use of inputs with However, some critics of organic farming methods
adverse effects. Organic agriculture combines tradition, believe that organic farms require more land to produce
innovation and science to benefit the shared the same amount of food as conventional farms.5 They
environment and promote fair relationships and a good argue that if this is true, organic farms could potentially
quality of life for all involved.” destroy the rainforests and wipe out many ecosystems.6
However, these studies are not conclusive and it is
Several surveys3 and studies4 have attempted to widely accepted that organic farming is generally better
examine and compare conventional and organic systems for public health, for the environment and for the health
of farming. of farm workers by avoiding contamination with
synthetic pesticides.

3
Hansen, Birgitte, Alrøe, H. J. & Kristensen, E. S. (January 2001). “Approaches to assess the environmental impact of organic farming
with particular regard to Denmark”. Agriculture, Ecosystems & Environment 83: 11-26.
4
Stolze, M., Piorr, A., Häring, A.M. and Dabbert, S. (2000). Environmental impacts of organic farming in Europe. Organic Farming in
Europe: Economics and Policy Vol. 6. Universität Hohenheim, Stuttgart-Hohenheim.
5
Goldberg, B. “The Hypocrisy of Organic Farmers”. ([Link]).
6
Leonard, A. “Save the rain forest - boycott organic?” How The World Works. ([Link]).
 Organic and free range produce 31

may be higher because organic products are produced

on a smaller scale, may need to be milled or processed
separately and are labour intensive. In the case of dairy
and eggs, the animal's requirements, such as the number
of animals that can be raised per acre, or the breed of
animal can also affect retail costs.

Ultimately, as in all cases of ethical consumerism,

deciding or not to purchase and consume organic
produce comes down to individual choice, based
primarily on personal ethics and beliefs. Unfortunately, in
times of economic hardship, when people are concerned
for their livelihoods and their ability to provide for and
protect their families, these choices are quite often - and
understandably - affected by cost. As organic food
production and consumption grow, they should
eventually reach a stage of critical mass and scale that
can bring retail prices down to compete on a more equal
basis with the prices of conventionally produced items.

Nevertheless, the potential impact of organic agriculture

in some developing regions, particularly Africa, could be
significant. In 2008, the UN Environmental Programme
(UNEP) and UN Conference on Trade and Development
(UNCTAD) issued a report which stated that “organic
agriculture can be more conducive to food security in
© International Labour Organization Africa than most conventional production systems, and
that it is more likely to be sustainable in the long term”.7
One downside, however, is that organic produce typically The report assessed 114 projects in 24 African countries,
costs 10 to 40 per cent more than similar conventionally finding that “[crop] yields had more than doubled where
produced products. An article on organic foods published organic, or near-organic practices, had been used” and
in the Journal of Food Science in 2006 noted that prices that soil fertility and drought resistance improved.

Farmers markets

Traditional farmers markets are growing in popularity throughout the

industrialised world, including in Ireland. There are socio-economic and health
benefits in buying produce and crafts that have been grown or made locally, for
example, in terms of being able to buy fresh fruit and vegetables that have
travelled no further than a local farm, helping local farmers to stay in business
and the social gains of community development and interaction. However, the
food produce sold at these markets is not always organically grown or farmed.
The Irish Farmers Markets web site focuses on promoting traditional farmers
markets throughout the country by encouraging communities to set markets up
and mobilising farmers and growers to join the markets.
([Link])

7
UNEP-UNCTAD (2008). Organic Agriculture and Food Security in Africa. United Nations.

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32 Ethical Consumerism: A Guide for Trade Unions

© International Labour Organization

Free range farming

“Free range” is a method of farming husbandry where restrictions imposed by veterinary authorities);
the animals are allowed to roam freely on the land
• the open-air runs should be covered with vegetation
instead of being contained in any manner. The term may
and not used for other purposes except for orchards,
apply to meat, eggs or dairy farming. In the case of
woodland and livestock grazing - this effectively means
poultry, free range methods were developed in response
that the runs should be on grass as opposed to on
to the public backlash against such practices as battery
bare earth or other manmade surfaces;
chicken factories where chickens were kept under
inhumane conditions. Farmers practise free range for a • the open-air runs must satisfy minimum conditions set
number of reasons, including: achieving appropriate free out in the EU regulations concerning a maximum
range certification and delivering a higher quality number of hens per hectare of ground available and an
product; reducing feed costs as the animals mainly live adequate number of shelters and drinking troughs
off the land; and generally improving the well-being of depending on the number of hens and the total area
their animals. of the run.

Although the EU does regulate free range farming Egg farming in the EU is classified in four categories:
to some extent, the standards apply primarily to organic, free range, barn and cages, each category being
egg farming and specify the following minimum progressively worse for the well-being of the animal. The
conditions: free range regulations relating to other animals, such as
pigs, are not as stringent as above, although in order to
• hens must have continuous daytime access to open-air be classified as free range, animals must have access to
runs (except, of course, in the case of temporary the outdoors for at least part of their lives
 Organic and free range produce 33

The difference between organic Organic producers, on the other hand, are prohibited
from administering antibiotics to healthy birds and
and free range prohibited from the use of any routine or preventive
veterinary treatments. Even in cases of specific illness of
The growing array of ethical goods and products and the organic birds, medicine must be prescribed by a
different terminology can be very confusing to veterinary surgeon and their use is strictly controlled by
consumers. One example is the difference between the Organic Standards. Routine mutilations such as beak
organic and free range eggs and poultry. The Organic trimming are not permitted in organic production. Free-
Trust sheds some light on this confusion. Whilst free- range production, on the other hand, actively encourages
range production is a method of food production, de-beaking and also permits practices such as clipping of
organic farming is part of a complete farming ethos. In claws at chick stage in order to distinguish one breed
general, free range producers feed their flocks with from another or even to distinguish the sexes among
standard feeds, such as those used in conventional farms. particular flocks.
There are no requirements regarding the GM (genetic
modification) status of such feeds, their origin, their There are also differences in the average life spans of
method of production or the type of seed used. Whereas organic and free range birds, with organic ones living
in certified organic production, all of these areas are of almost twice the amount of time than their free range
primary concern. counterparts. The regulations on the number of birds per
housing unit is also far stricter for organic farms. Other
Additionally, certified organic producers have a legislative differences include stricter inspection requirements for
obligation to use certified organic grain-based feeds free organic farms than for free range ones.
from specific additives. The Standards for Organic Food
and Farming in Ireland stipulate the specific list of
Clearly, therefore, there is a difference between organic
feedstuffs permitted for use in organic production
and free range production systems. Whilst free range
systems and organic producers must adhere strictly to
production systems do offer the opportunity to birds to
this listing, for example, Genetically Modified Organisms
access open-air runs, in essence this is the only significant
(GMOs) are prohibited throughout the organic food
difference between free range production and
chain. This is not a requirement of free range systems.
conventional production. On the other hand, certified
organic poultry producers are subject to a strict
In addition, the regular feeding of antibiotics to flocks of
production regime based on specified and regulated
birds is a permitted practice in conventional rearing
organic principles and regulation. Therefore, all organic
systems, including free range systems. This is the routine
birds and eggs are free range, but not all free range birds
treatment of birds with antibiotics as a pre-emptive
and eggs are organic.
management practice aimed at illness prevention.

© International Labour Organization

An Irish Congress of Trade Unions Publication

34 Ethical Consumerism: A Guide for Trade Unions

Ethical labels uncovered

Below is a sample of just a few of the many labels given
to ethical, environmental and ecological products and programmes
that exist today. Their number is large and growing and can cause
considerable confusion among consumers as they struggle to
understand what each one represents and why one should be
considered over another. While some of the labels shown here are
among the better known, more detailed information can be found
on different labels at [Link]
This web site provides a constantly updated list of many current
ethical or eco labels. It tells companies what labels are out there
and what they might apply for and educates consumers about the
value of the different labels. It defines an ecolabel as any consumer
facing logo that claims an added environmental or social benefit.
The organisation's goals are to:

• gather all ecolabels in the world onto one common Fairtrade: Products produced by
platform; farmers certified to standards set
• provide standard data and analysis on those ecolabels; Fairtrade Labelling Organisations
International (FLO) ensure they are
• help companies buy and sell ecolabelled products and committed to improving conditions
services. for workers and their families.
Consumers pay a premium
If these labels are to have any value and to provide a
guaranteed to go to disadvantaged
crucial and valuable service to consumers, there needs to
farmers.
be trustworthy and transparent information. The issue of
ecolabelling is an area that does need to be addressed as
MSC: The Marine Stewardship
ethical consumerism continues to grow.
Council (MSC) has developed an
environmental standard for
Organic: Products grown using
sustainable fishing. The MSC ecolabel
environmentally friendly methods. The
assures consumers that the product
use of artificial fertilisers and pesticides
has not contributed to the
is severely restricted and animals are
environmental problem of overfishing.
reared without the routine use of drugs.

Soil Association: The word organic is LEAF: The Leaf mark stands for
defined by law, and food labelled Linking Environment and Farming and
organic must meet strict standards, the denotes food produced by farmers
best known of which are monitored by committed to improving the
the Soil Association, which certifies environment.
more than 70 per cent of all UK organic
produce. A dozen or so other organic
labelling systems also operate, however.
 Ethical labels uncovered 35

Recycle: The recycle sign means a programme, relating to socially and

product or component can be environmentally responsible farming
recycled where recycling facilities practices.
allow.
Vegetarian Society Approved:
FSC: The Forestry Stewardship Council The seedling symbol shows food,
(FSC) labelling means wood has come drinks and household products that
from a forest managed according to are free of animal products; that eggs
strict environmental, social and are free range, products are GMO-
economic standards. free and that items have not been
tested on animals.
Carbon footprint: The Carbon Trust
label (a downwards arrow above a Rugmark: Perhaps one of the first
C02 symbol, accompanied by a and best-known of the ecolabels.
number) shows the weight of carbon Rugmark is a global non-profit
produced in the manufacture of a organisation working to prevent and
product. eliminate child labour in the carpet
industry and offer educational
Aeroplane: Shows a product has opportunities to children in South
been air freighted into the country. Asia.

Rainforest Alliance: Products European Energy Label:

produced in compliance with This labelling system rates electrical
Rainforest Alliance guidelines, products' energy efficiency from
protecting the environment, wildlife, A to G.
workers and local communities.

UTZ Certified: Products produced

according to standards set by Utz
Certified, a global certification

© International Labour Organization

An Irish Congress of Trade Unions Publication

36 Ethical Consumerism: A Guide for Trade Unions

Recycling:
An essential element of
ethical consumerism
One aspect of ethical consumption that should not be overlooked
is recycling. Any form of consumption creates waste products.
In most cases, this would be in the form of packaging of a wide
variety of consumer products - even organic fruit and vegetable
products are packaged to some extent. However, waste disposal
covers all consumer products, from small to large, and highlights
an area that is often neglected within the consumption process.

Recycling involves processing used materials into new waste bin and decide if it can be reused for some other
products to prevent waste of potentially useful materials; purpose, if it can be returned to the retail outlet from
to reduce the consumption of fresh raw materials; to where it was purchased for specialised disposal, or if it
reduce energy usage in the recycling process; to reduce can be taken to one of the recycling centres that have
air pollution from incineration and water pollution from been established throughout Ireland. More and more
land filling by reducing the need for “conventional” materials can now be recycled, including glass, paper,
waste disposal; and to lower greenhouse gas emissions metal, plastic, oil, textiles, electronics and batteries.
by reducing energy needs for the recycling process. As
scientific understanding and knowledge on the impact of In addition, local authorities across the country are
waste disposal on all aspects of the environment have encouraging households to reuse biodegradable waste
grown, particularly in terms of carbon emissions resulting through “composting”, through which food and garden
in the so-called “global warming” effect, which is waste can be broken down in special containers over
especially destructive, the world's governments, time to be used as “compost” fertiliser on gardens. The
international agencies and other relevant organisations aim is to reduce the levels of “wet waste” produced by
have begun to take appropriate steps to address this households. Wet waste is either incinerated or put into
situation. Some may argue that the international landfill sites, both of which pollute the environment.
community has not gone far enough and has been too
slow to act. But gradually, new international legislation Recycling, however, is not without its critics, and there is
has been passed, resulting in improved legislative a school of thought that disputes the net economic and
frameworks and new systems, regulations and environmental benefits of recycling over its costs.
programmes at national level. However, there is no disputing the impact recycling can
have in reducing national carbon emissions. For example,
The mission of recycling, captured by the three arrows in the US Environmental Protection Agency found that
the recycling logo, is “Returning, Reusing, Recycling”. recycling efforts reduced the country's carbon emissions
This encapsulates the shared responsibility of consumers, by a net 49 million metric tonnes in 2005 and the UK
producers and governments to limit the amount of waste Waste and Resources Action Programme stated that the
that is collectively produced through consumption and to country's recycling efforts reduce carbon emissions by 10
think much more carefully before putting anything in a to 15 million tonnes a year.
 Recycling: An essential element of ethical consumerism 37

Fairtrade Labelling Organizations International

European WEEE Directive

In 2003, the EU's Waste Electrical and Electronic the Minister of Environment in 2005 to operate a WEEE
Equipment (WEEE) Directive set collection, recycling and Compliance Scheme on behalf of the producers on the
recovery targets for all types of electrical goods sold Irish market.
across the EU. The directive imposes the responsibility for
the disposal of waste electrical and electronic equipment As a result, consumers in Ireland have two
on the manufacturers of such equipment. These possibilities to ecologically recycle their electrical
companies are required to set up an appropriate and electronic equipment:
infrastructure for collecting WEEE in such a way that
“users of electrical and electronic equipment from private • they can bring their unwanted equipment to their local
households should have the possibility of returning WEEE civic amenity centre for recycling free-of-charge;
at least free of charge”. Companies are also obliged to
• they can bring their unwanted equipment to retailers
use the collected waste in an ecologically friendly
when they purchase new equipment on a like-for-like
manner, either by ecological disposal or by reuse or
basis - they have 15 days from purchase in which to do
refurbishment of the collected waste goods.
this.

In Ireland, the implementation of the directive was

WEEE Ireland organises the treatment and recycling of
supported through the establishment of WEEE Ireland
waste electrical and electronic equipment and batteries
([Link]) in 2004. This not-for-profit
and accumulators from authorised collection points
organisation, whose members are the producers of
around the country. It also operates a schools awareness
electrical and electronic equipment in the Irish market,
project and public collection days for waste equipment
provides support, information and services to consumers
around the country. The WEEE logo on equipment
in terms of understanding the recycling solutions
packaging indicates a cross over a waste bin to inform
available and to producers in meeting their obligations of
consumers that the product should be recycled.
the WEEE regulations. The organisation was approved by

An Irish Congress of Trade Unions Publication

38 Ethical Consumerism: A Guide for Trade Unions

Sustainable development
The whole issue of recycling is closely linked to the broader issue
of sustainable development. The term “sustainable development”
was first coined by the UN's Brundtland Commission8 in 1987,
when it defined it as development that “meets the needs of the
present without compromising the ability of future generations to
meet their own needs.” Sustainable development is the ultimate
goal of ethical consumerism.

© International Labour Organization The concept of sustainable development encompasses

economic, social and environmental concerns. It aims to
achieve socio-economic and political development in a
way that will benefit all countries in the world and bring
developing countries to parity with their industrialised
counterparts while ensuring that this development does
not erode the environment and destroy basic ecological
systems. The indigenous groups of the world have also
called for sustainable development policies and
programmes to ensure that continued human
development does not erode the rich, cultural diversity
that exists.

Following the Brundtland Commission report, the UN

organised the so-called Earth Summit (United Nations
Conference on Environment and Development) in Rio de
Janeiro, Brazil, in 1992. Out of this conference emerged
the Rio Declaration on the Environment and
Development, a global plan of action entitled Agenda 21
and principles for sustainable forest management, as well
as a number of international bodies focusing on
sustainable development. It also led to the development
of a crucial international convention, the UN Framework
Convention on Climate Change (UNFCCC).9 This treaty
aims to stabilise greenhouse gas concentrations in the
atmosphere at a level that would prevent dangerous
interference by humankind with the natural climate system.
 Sustainable development 39

The Kyoto Protocol on

Climate Change
• Minimising impacts on developing countries: By
Although the UNFCCC did not contain any binding limits establishing an adaptation fund for climate change.
on greenhouse gas emissions, nor any enforcement
• Accountability: Putting in place accounting, reporting
measures, there have been a number of subsequent
and review systems to ensure the integrity of the
updates to the treaty, called “protocols”, which have
protocol.
proceeded to set mandatory and enforceable limits. The
best-known of these is the Kyoto Protocol of 1997. The • Compliance: Establishing a Compliance Committee to
protocol establishes legally binding commitments for the enforce compliance with the commitments under the
reduction of four greenhouse gases (carbon dioxide, protocol.
methane, nitrous oxide and sulphur hexafluoride) and
two groups of gases (hydrofluorocarbons and The Kyoto Protocol has been hailed as a first step
perfluorocarbons). Ireland, like most other nations, has towards achieving the main goals of the UNFCCC. These
signed this treaty and must abide by its limitations range. instruments are ambitious and while not perfect and not
There are severe financial penalties for countries that fail without their critics and detractors, at the very least they
to achieve the set targets. Under Kyoto, industrialised represent a step in the right direction and an
countries agreed to reduce their collective greenhouse acknowledgement by all UN member States that the
gas emissions by 5.2 per cent compared with 1990, world faces an environmental crisis beyond imagination if
whereas the EU agreed to reduce its collective level by 8 it continues its reckless and irresponsible use and abuse
per cent. of natural resources and the environment. The EU and its
members have been strong supporters of the protocol
The five principle concepts of the Kyoto and represent somewhere in the region of a quarter of
Protocol are: the world's greenhouse gas emissions. In 2000, the EU
launched the European Climate Change Programme.
• Commitment: The heart of the protocol lies in
establishing commitments for the reduction of
greenhouse gases that are legally binding.

• Implementation: To meet the objectives of the protocol,

countries are required to prepare policies and measures
for the reduction of greenhouse gases in their
respective countries.

Combat Climate Change Campaign

The Combat Climate Change Campaign is run by Sustainable Energy Ireland (SEI).
The campaign aims to make people aware of the issue of climate change and
understand what they can do about it. The web site includes a special section for
primary and secondary schools, as well as information on energy saving and a
carbon footprint calculator. ([Link])

8
United Nations (1987). “Report of the World Commission on Environment and Development.”
([Link]/documents/ga/res/42/[Link]).

9
Web site of the United Nations Framework Convention on Climate Change, [Link].

An Irish Congress of Trade Unions Publication

40 Ethical Consumerism: A Guide for Trade Unions

Share of Home - gas,

public services oil and coal
Financial services 12% 15%
3%
Home Electricity
Recreation
and leisure 12%
14%
Private transport
House - buildings
and furnishings
10%
9%
Public transport
Car manufacture Holiday 3%
and delivery Clothes and Food and flights
7% personal effects drink 6%
4% 5%

What is a carbon footprint?

A carbon footprint is a measure of the impact a person's meet its Kyoto commitments. Domestic energy
activities has on the environment, and in particular consumption is an important subsector when considering
climate change. It relates to the amount of greenhouse Ireland's greenhouse gas emissions. Although there was
gases produced in our day-to-day lives through burning an increase of about 17 per cent in domestic energy
fossil fuels for electricity, heating and transportation, etc. consumption between 1990 and 2006, this is now slowly
A carbon footprint is made up of the sum of two parts, decreasing. This is mainly due to the preference in oil and
the primary footprint (shown by the green slices of the natural gas heating, rather than carbon-intensive fuels
pie chart below) and the secondary footprint (shown such as coal and peat.
as the yellow slices). The pie chart shows the main
elements of a typical person's carbon footprint in the As mentioned earlier, waste production and processing
developed world. are important sources of greenhouse gas emissions. This
is mainly the result of the conditions of landfill sites,
The primary footprint is a measure of direct emissions of which are still the principle means of waste disposal in
carbon dioxide from the burning of fossil fuels, including Ireland. The EPA has noted a slight reduction in emissions
domestic energy consumption and transportation, such from this sector thanks to the utilisation of gas produced
as cars and air travel. These are things over which from landfills at a number of sites around the country.
consumers have direct control. The secondary footprint However, one way of significantly reducing emissions
is a measure of the indirect emissions from the whole from waste processing would be simply to reduce the
lifecycle of products used by consumers associated with amount of waste that is sent to landfills. Recycling can
their manufacture and eventual breakdown. In the end, make a major contribution to reducing landfill waste.
the situation is quite straightforward: the more
consumers buy, the more emissions will be caused on The government is also tackling emissions through the
their behalf. domestic sector by introducing stricter building
regulations which aim to improve insulation and ensure
that heat is conserved in homes. There have also been
Ireland and greenhouse advances in the design and manufacture of heating
systems, including geo-thermal systems which draw heat
gas emissions from the earth, solar systems and more efficient domestic
heating boilers. The overall aim is to improve energy
However, Ireland is still struggling with its reduction conservation and therefore reduce emissions. As part of
commitments. Each year, the Environmental Protection this process, the government has introduced a grants
Agency (EPA) calculates the actual emissions for the system to encourage house owners to look at ways to
entire country. In 2006, Ireland's emissions were still use energy and heat more efficiently. Trade unionists can
rising and the country was approximately 7 million play their part by having the energy efficiency of their
tonnes above its set target. It is essential that Ireland homes assessed and potentially benefiting from the
achieves considerable reductions in the coming years to grants scheme to reduce domestic emissions.
 Sustainable development 41

Sustainable Energy Ireland (SEI)

Ireland's national energy agency was set up by the government in 2002

with the aim of promoting and assisting the development of sustainable
energy through:
• improving energy efficiency;
• advancing the development and deployment of renewable sources of energy and
combined heat and power;
• reducing the environmental impact of energy production and use.
The SEI also runs programmes to raise awareness, to provide information and
advice to consumers, and to carry out research and development in this field. It
also publishes statistics on sustainable energy. In addition, the SEI manages grants
schemes for different sectors, including domestic homes.

The grants for homeowners include the following:

• Greener Homes Scheme - provides assistance in buying and installing renewable

heating systems for existing homes
• Warmer Homes Scheme - aims to improve the energy efficiency and comfort
conditions of low-income households
• Home Energy Saving Scheme - provides grants to homeowners to improve
energy efficiency to reduce energy use and costs as well as greenhouse gas
emissions. ([Link])

Sustainable energy
Sustainable energy is the provision of energy in such a or so, including in such countries as India and China, the
way that it meets the needs of present generations most populous countries in the world. Against this
without compromising the ability of future generations to backdrop and in the light of ongoing research around
meet their needs. Current fossil fuel sources are being sustainable development, a number of renewable energy
rapidly depleted, and the situation has been exacerbated sources have been developed, including biofuels, solar
by the rapid global economic growth of the last 20 years power, wind power, hydropower, geothermal power and
tidal power.

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42 Ethical Consumerism: A Guide for Trade Unions

Birth of renewable energy industry in Northern Ireland

Strangford Lough in County Down, Northern Ireland, separated from the Irish Sea
by the Ards Peninsula, is a popular tourist attraction noted for its fishing and the
picturesque villages and townships which border it. The lough is a conservation
area and its abundant wildlife recognised internationally for its importance. Almost
totally landlocked, the lough is approached through 8-kilometre-long fast-running
tidal narrows. It is these narrows which led to the lough being chosen as a source
of potential renewable energy.

In 2007, Strangford Lough saw the birth of a new industry as the world's first
commercial tidal power station was installed in the narrows. The 1.2 megawatt
underwater tidal electricity generator, part of Northern Ireland's Environment and
Renewable Energy Fund scheme, takes advantage of the fast tidal flow in the
lough, which can reach up to 4 metres per second. Although the generator is
powerful enough to provide electricity to a thousand homes, the turbine has a
minimal environmental impact, as it is almost entirely submerged, and the rotors
turn slowly enough that they pose no danger to wildlife.

Achieving the goals of sustainable energy will require energy and energy efficiency are no longer niche sectors
changes not only in the way energy is supplied, but in that are promoted only by governments and
the way it is used. Energy efficiency has become a environmentalists. The increased levels of investment and
buzzword in recent years, particularly on the back of the the fact that much of the capital is coming from more
Kyoto Protocol. It has also become a crucial component conventional financial actors suggest that sustainable
in construction and in the domestic housing market. The energy options are now becoming mainstream. An
good energy efficiency rating of a home is considered a example of this in Ireland would be companies such as
significant advantage in the property market. Renewable Airtricity, which develops and operates wind farms across
energy and energy efficiency are sometimes said to be Europe. Previously, Airtricity only supplied the business
the “twin pillars” of sustainable energy policy. Both must market. However, it now also supplies the domestic
be developed in order to stabilise and reduce carbon energy market. The company claims that 79 per cent of
dioxide emissions. its energy comes from a renewable wind source and
homes that switch to their energy supply can reduce
The issue of energy efficiency is, of course, more their carbon emissions by around 2 tonnes a year. A
important in industrial economic sectors and the public mark of the seriousness with which mainstream energy
sector. If energy is used more efficiently, the demand for companies regard renewable energy development is that
energy within the economy slows down, which enables Airtricity was bought by Scottish and Southern Energy Plc
renewable energy sources to be further developed and in January 2008. In terms of ethical consumerism, these
promoted to compete more effectively with energy developments will continue to expand the level of choice
supplies based on fossil fuels, such as oil. If energy for individual consumers, enabling us all to make choices
demand grows too fast, as was the case in recent years, that can impact on the environment.
particularly during the rapid economic expansion of
China and India, then renewable energy development According to a trend analysis by the United Nations
will be left behind. In addition, it is vital that renewable Environment Programme (UNEP),11 climate change
energy supplies are rapidly made available. Slowing concerns coupled with high oil prices and increasing
demand growth for fossil-based energy through government support are driving increasing rates of
improved efficiencies is only one half of the equation in investment in the sustainable energy industries. Global
reducing carbon emissions. It is equally important to investment in sustainable energy in 2007 was higher
reduce the carbon content of new energy sources. Any than previous levels, with US$148 billion of new money
serious vision of a sustainable energy economy requires raised in 2007, an increase of 60 per cent over 2006. The
commitments to both renewable energy sources and mainstream capital markets are “now fully receptive to
efficiency.10 sustainable energy companies, supported by a surge in
funds destined for clean energy investment”.
In Ireland as elsewhere around the world, renewable
 Sustainable development 43

Action you can take

Reducing carbon emissions and protecting the environment are key elements in
campaigns to promote ethical consumption. There are many advertisements in the
media today regarding the way people use energy in their homes and workplaces.
Burning fossil fuels to generate heat and electricity is the main source of greenhouse
gas emissions, including in homes. These emissions can be reduced through actions
that lead to greater energy efficiency and can also reduce household energy expense.

Below is a list of a few simple actions that individuals can take to improve energy
efficiency. More comprehensive lists can be found on the web sites of Sustainable
Energy Ireland ([Link]) and the Electricity Supply Board (ESB, [Link]).

• Replace regular incandescent light bulbs with compact fluorescent light bulbs (cfl):
all EU countries have agreed to progressively phase out incandescent bulbs starting
in 2009 and finishing at the end of 2012. By switching to energy saving bulbs, the
EU hopes that countries will save almost 40 terawatt hours (TWh), the equivalent of
the electricity consumption of almost 11 million European households, which would
also lead to a reduction of about 15 million tons of carbon emissions per year.
• Turn thermostats down 2º.
• Choose energy efficient appliances when making new purchases: check the energy
efficiency labels of electrical appliances.
• Wrap water heaters in insulation blankets.
• Use less hot water: it takes a lot of energy to heat water.
• Turn off electronic devices you are not using.
• Unplug electronic devices from the wall when you are not using them: even when
turned off, many electronic devices use energy.
• Insulate the house.
• Make sure to recycle at home.
• Buy recycled paper products: it takes 80 per cent less energy to make recycled paper
and it prevents the loss of forests worldwide.
• Plant a tree: over its lifetime, a single tree will absorb one tonne of carbon dioxide.
• Buy fresh food instead of frozen: frozen foods take ten times more energy to
produce.
• Support local farmers markets: farmers markets reduce the amount of energy
required to grow and transport food to the consumer.
• Avoid heavily packaged products: energy footprints can be reduced by minimising
waste packaging.

10
American Council for an Energy-Efficient Economy (2007). The Twin Pillars of Sustainable Energy: Synergies between Energy Efficiency
and Renewable Energy Technology and Policy ([Link]).
11
UNEP (2008). Global Trends in Sustainable Energy Investment 2008 ([Link]).

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44 Ethical Consumerism: A Guide for Trade Unions

Water: The world's most

valuable resource
The principles of ethical consumerism also apply to the situation with Ireland's water resources and provides
consumption of the world's most valuable resource: assistance to a wide range of groups to raise awareness
water. Overall, the quality of water in Ireland is still quite and get actively involved. It also closely monitors the
good compared with other countries. Over the past 30 work of the Irish government in fulfilling the
years, however, water quality has reduced significantly requirements of the EU's directive on water.
and incidences of pollution have emerged, notably the
outbreak of cryptosporidium, a parasitic organism, in As consumers of this valuable resource and in applying
Galway in early 2007. Although the issue of water ethical values to our consumption practices, there is
conservation might seem strange for a country renowned much that we can all do.
for its wet climate, there are concerns that more needs
to be done in Ireland to conserve water resources to There are several key information sources in Ireland
ensure sustainability for future generations. This not only that provide assistance and guidance in taking
involves governments, local authorities, industries and steps to conserve water in the home and in
those in the agricultural sector, but also homeowners and workplaces, including:
consumers. It has to be a combined effort to preserve the
country's largest natural resource. • [Link]: provides practical ideas for
conserving water in the home and in the workplace
Implementation of the EU's Water Framework Directive and includes a special section for children
began in 2003 with the aim of improving the quality of
• [Link]: a water conservation
the water environment across the EU. Its principal
campaign initiated by Galway City Council and covers
objective is “to achieve good status in all waters by 2015
schools, the home and garden, and businesses
and must ensure that status does not deteriorate in any
waters”. The directive is guiding Ireland's work in the • [Link]/environment/[Link]: highlights
field of water conservation. To increase public awareness the challenge of water conservation in the Dublin area
regarding the need for sustainable water supplies, the and provides links to resources on water conservation
Sustainable Water Network (SWAN) was established. This and other relevant web sites
group comprises national, regional and local partners, • [Link]/WaterWasteEnvironment/
mainly environmental groups, and its aim is to preserve Water/Pages/[Link]:
Ireland's waters through cooperation between the Dublin City Council has created an easily accessible
government, SWAN's partners and the Irish community information pack about conserving water in the home.
as a whole. The organization provides information on the

AskAboutIreland

AskAboutIreland is a major internet information resource set up by the Department

of the Environment, Heritage and Local Government and the Cultural Heritage
Project. It is an initiative of public libraries together with local museums and
archives in the digitisation and online publication of material from their local
studies' collections to create a national internet resource for culture. Participating
organisations select material of particular public interest from a variety of topics.
The material is then digitised and set in a narrative context.

AskAboutIreland is a constantly growing resource with content being added to the

web site on an ongoing basis. The site also includes a special section dedicated to
the environment, ENFO. ([Link]/)
 Sustainable development 45

Looking after the world's

oceans and forests
The oceans and forests on our planet are the largest A 40-year study of African, Asian, and South American
natural carbon sinks. In other words, they absorb vast tropical forests by the University of Leeds in the United
quantities of manmade carbon dioxide which can have a Kingdom shows tropical forests absorb about 18 per cent
highly negative impact on the ecological systems of all carbon dioxide emitted by fossil fuels, thus
supported by these two natural resources. Oceans buffering some effects of global warming. However, the
represent the largest active carbon sink on Earth, problem is that forests, particularly the rainforests,
absorbing an estimated one-third of manmade carbon around the world are disappearing at a much faster rate
emissions. than they are being replaced, particularly for commercial
and development purposes, which will reduce their
The Marine Stewardship Council (MSC) runs an natural capacity to absorb carbon dioxide and thus
ambitious programme, working with partners to increase the rate of global warming, with all the negative
transform the world's seafood markets and promote connotations that has for climate change.
sustainable fishing practices. The organisation has
developed standards for sustainable fishing and seafood An example of the level of reforestation that would be
traceability, both of which are based on independent required for the United States alone to further reduce its
third-party assessments by accredited certifiers. In carbon dioxide emissions by 7 per cent, as stipulated by
addition, the MSC offers fisheries around the world a the Kyoto Protocol, would require the planting of “an
way to be recognised and rewarded for ethical area the size of Texas every 30 years”.12 Reforestation
management. By working in partnership with sustainable programmes to tackle carbon emissions are currently
fisheries to create a market for sustainable seafood, other planting millions of trees around the world each year.
fisheries are also encouraged to change their practices. The Intergovernmental Panel on Climate Change13
The distinctive blue ecolabel helps consumers ensure that concluded that “a sustainable forest management
they choose fish products from sustainable sources and strategy aimed at maintaining or increasing forest carbon
thus contribute to replenishing the oceans' stocks. It also stocks, while producing an annual sustained yield of
runs a special fisheries programme for developing timber fibre or energy from the forest, will generate the
countries as half of the world's seafood comes from the largest sustained mitigation benefit”. Sustainable
developing world. The MSC is encouraging developing management practices of the world's forests are critical
world fisheries to take part in its sustainable fisheries and in achieving the Kyoto goals and in keeping the promise
certification programme. for future generations.

Oceana: Protecting the world's oceans

Founded in 2001, Oceana is the largest international group focused solely on

ocean conservation. It has offices in North and South America and Europe and
works on a number of strategic campaigns aimed at saving the world's oceans
and returning them to their former levels of abundance. The organization is
highly scientific in identifying problems and solutions for the world's oceans. Its
institutional web site provides information on campaigns and activities around
the world to protect oceans and their myriad of ecological life systems, all of
which are under threat from commercial fishing and greenhouse gas emissions.
([Link])

12
William H. Schlesinger, dean of the Nicholas School of the Environment and Earth Sciences at Duke University,
Durham, North Carolina, USA.
13
The Intergovernmental Panel on Climate Change was established in 1988 by the World Meteorological Organization (WMO) and the United
Nations Environment Programme (UNEP). It is a scientific body tasked to evaluate the risk of climate change caused by human activity.
([Link]).

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46 Ethical Consumerism: A Guide for Trade Unions

Forest Stewardship Council (FSC)

The FSC is an independent, non-governmental, not-for-profit organisation

established to promote the responsible management of the world's forests. It
provides standard setting, trademark assurance and accreditation services for
companies and organisations interested in responsible forestry. Products
carrying the FSC label are independently certified to assure consumers that
they come from forests that are managed to meet the social, economic and
ecological needs of present and future generations.

The FSC's vision is that: “The world's forests meet the social, ecological, and
economic rights and needs of the present generation without compromising
those of future generations.” It points out that socially beneficial forest
management helps both local people and society in general to enjoy long-
term benefits and also provides strong incentives to local people to sustain
the forest resources and adhere to long-term management plans. FSC is not
opposed to the commercial use of forests, but it believes that this can be
done without generating financial profit at the expense of the forest resource,
the ecosystem or affected communities. The organisation's web site provides
more information on activities and research in sustainable forestry
management, facts and figures and ways to support sustainable forests
around the world. As a first step, consumers should keep an eye out for the
FSC label on any wood and paper products, particularly those made from
protected hard woods, such as teak.

The FSC has very strict accreditation standards which:

• prohibit conversion of natural forests or other habitat around the world;

• prohibit the use of highly hazardous pesticides around the world;
• prohibit the cultivation of genetically modified trees (GMOs);
• respect the rights of indigenous peoples around the world;
• control each certified operation at least once a year, and if they are found
not to comply, the certificate is withdrawn.

([Link])
 Ethical consumerism in the finance sector 47

Ethical consumerism
in the finance sector
In considering the scope of ethical consumption, it is important to
note that this does not only refer to comestible and other material
consumer products. It also covers the services industries, including
banking, investment and other financial services. Prior to the global
financial crisis which emerged in 2008-2009, the concept of ethical
banking and ethical investment may not have stirred the interest of
many consumers in industrialised countries. However, the impact of
the crisis on the financial sector, particularly in terms of poor
regulation and monitoring of ethical business practices, has led to
calls for greater independent regulation at national and
international level. Consumers today might think more carefully
about which financial institutions they might use and where and
how they might invest their savings.

An ethical bank is one which is concerned with the social To provide some idea of the approach of ethical banks,
and environmental impacts of its investment and loan below is the mission statement of the Triodos Bank:
activities. These banks are regulated by the same
authorities as traditional banks and have to abide by the Triodos Bank finances companies, institutions and
same rules for the financial sector, but they differ in that projects that add cultural value and benefit people and
they insist on transparency and social and/or the environment, with the support of depositors and
environmental aims of the projects they finance over and investors who want to encourage corporate social
above that which is demanded by legislation and responsibility and a sustainable society.
regulation. Many ethical banks invest in development
projects all over the world, as well as in their countries of Our mission is:
origin. Because ethical banks mostly work with narrower
profit margins than traditional ones, they may have fewer • To help create a society that promotes people's quality
offices and operate mainly by phone, internet or mail. of life and that has human dignity at its core.
Among the most best known ethical banks in the United
• To enable individuals, institutions and businesses to use
Kingdom are the Cooperative14 and Triodos15 banks,
money more consciously in ways that benefit people
while there is the ShoreBank16 in the United States and
and the environment, and promote sustainable
the Cultura Bank17 in Norway. As of April 2009, there
development.
were no ethical banks established and operating in
Ireland, but this may well change in the future. • To offer our customers sustainable financial products
and high quality service.

14
[Link]
15
[Link]
16
[Link]
17
[Link]

An Irish Congress of Trade Unions Publication

48 Ethical Consumerism: A Guide for Trade Unions

European Federation of Ethical and Alternative Banks

Created in 2001, the European Federation of Ethical and Alternative Banks (FEBEA)
is a non-profit organisation based in Brussels, Belgium, and which currently boasts
25 members form 13 different countries across Europe. These financial institutions
share a common aim to finance social and solidarity-based businesses in their
countries, for example, farmers starting up in organic produce. Social and
solidarity-based businesses are what would be termed “ethical”.

FEBEA's members support each other through the exchange of experience and
expertise in order to improve and broaden their range of financial services and
products to support ethical projects in their various countries. In addition, the
organisation has established a mutual guarantee fund to underpin further financial
support for applying projects. It has also established a solidarity investment fund
(SICAV) that invests in solidarity companies to enable them to continue to develop.

([Link])

Financial or
ethical gain?
Financial institutions play a significant role
in national and global economies - as can
be seen from the fallout from the global
financial crisis in the first decade of this
century - and can therefore have an
equally profound impact on sustainable
development. A large part of their
business involves placing depositors'
money in investment areas which
maximise returns, leading to improved
rates of return for the depositor but also
to greater profits for the bank. In turn,
profits made by banks benefit those who
have invested as shareholders.
Conventional banks focus primarily on the
potential level of return of investment
and they benefit from access to a wide
range of detailed knowledge and
© International Labour Organization
information systems to assess potential
investments and make appropriate decisions. In the possibly true that many clients may not inform
majority of cases, depositors will be unaware of where themselves of their bank's investment decisions or may
exactly the bank is investing its funds and, indeed, this not even care. Ultimately, the objective is to maximise
has arisen as an area of concern to be addressed in the returns and improve income potential.
light of the global financial crisis. It is
 Ethical consumerism in the finance sector 49

However, if clients knew more about the investment their business in the hands of an ethical bank, which only
practices and decisions of their conventional banks, for seeks investment areas that are morally, ethically, socially
example, in Ireland the Bank of Ireland and Allied Irish and environmentally responsible. Unfortunately, these
Banks (AIB), it is possible that they might not approve of investments may not always provide the same level of
some of these and may prefer their personal savings return as other conventional investments, but ethical
funds to be used for more ethical, moral and socially and consumers may not always be as concerned about the
environmentally acceptable ends. The onus would level of return on their investment as feeling confident
therefore be on the client to seek detailed information that their money is being used in ethically and morally
from the bank on its investment areas. However, due to acceptable ways. For example, Triodos publishes a list of
the large investment portfolios managed by most every organisation to which it lends to ensure that its
conventional banks, this level of detail might not be clients can inform themselves of how their savings are
readily available and some banks may not be able or being used. Indeed, the Triodos Individual Savings
willing to provide it at all. In such cases, clients who are Account (ISA) is described by the Ethical Consumer
concerned with issues of a higher moral standing than a magazine as “the best ethical ISA” in the United
simple level of return of investment could turn to placing Kingdom.

Services offered by ethical banks

Most ethical banks provide traditional banking services, including:

• current and savings accounts;

• mortgages;
• loans;
• credit cards;
• insurance services, including car, home, life, business and other insurances;
• nvestment services, including stocks and shares, trust funds, investment bonds,
pensions and related services;
• corporate financial services.

They also provide a wide range of ethical investment opportunities, which usually
take into account social, ethical, environmental and management issues across the
funds they manage. Some banks will provide very specific information to clients to
enable them to choose their investment areas.

In addition, these banks contribute significantly to community development, for

example, supporting schools, education programmes, awards, and so on, and also
support social and environmental organisations in their ongoing development, for
example, fair-trade brands, organic farms, projects to alleviate poverty and
renewable energy companies.

An Irish Congress of Trade Unions Publication

50 Ethical Consumerism: A Guide for Trade Unions

The “carrot-and-stick” theory In Ireland, credit unions began to appear in the late
1950s. The Irish League of Credit Unions (ILCU) currently
represents just over 500 of these institutions, which are
According to authors Jeucken and Bouma in their book
Ireland's leading providers of social finance and, in early
The Changing Environment of Banks,18 for ethical
2009, claimed around 3 million members. Credit unions
banking to have greater impact on society, it would be
are based on cooperative principles, bringing together
necessary for banks to be able to promote socially and
people in a community or group of communities to save
environmentally oriented companies and penalise those
together and lend to each other at fair and reasonable
that do not conform to appropriate standards, for
rates of interest. In this way, its members, ordinary
example, through a “carrot-and-stick” approach, where
people in the community, own the institution and exert
conforming companies would pay less interest than the
greater control over their financial activities, ensuring that
market price for borrowing capital, while those that do
their own savings work in and for the community by
not conform would pay a much higher interest rate. The
contributing to loan funds. Irish credit unions are not-for-
authors also suggest that banks could develop more
profit organisations, as surplus income is returned to
sustainable products, such as environmental, social or
members by way of a dividend and/or is directed to
ethical investment funds. However, without giving banks
improved or additional services required by the members.
the authority to take punitive action against those
companies that do not conform to appropriate ethical,
From the perspective of ethical consumerism, the
social and environmental standards, supported by
benefits to the community of this type of lending are
appropriate governmental regulation, these suggestions
significant, including employment, community
would be pointless and possibly counter-productive.
development, education and environmental
Comprehensive change, backed by relevant enforceable
enhancement. In addition, the ILCU points out that as
regulations and legislation, would be crucial in ensuring
Irish credit unions have progressed over the last 50 years,
that all banks abide by moral and ethical norms.
they have also begun to play a growing role in tackling
poverty in developing countries by promoting the credit
There are very few such financial institutions operating at
union self-help concept and supporting credit union
present, although one potential outcome of the global
start-ups and developments.
financial crisis could be a growth in the number of ethical
banks and/or a more transparent approach to ethical
investment by conventional banks, underpinned by
stronger government regulation of the financial sector
Challenges in the ethical
overseen by effective independent regulatory bodies banking sector
equipped with the requisite authority to take action in
cases of violations. Ethical or alternative banking is a relatively new sector,
which brings its own set of challenges, and how the
sector deals with these will shape its future as a viable
Credit unions in Ireland alternative to conventional banking. These challenges lie
mainly in the level of transparency of ethical banking
Although there are no ethical banks or branches of practices and the confidence therefore of potential
foreign ethical banks operating in the country at present, clients. For example, at present, there is the challenge
Ireland does benefit from the existence of a well- facing potential clients of knowing how some ethical
established credit union network, which shares some of banks measure or qualify their ethical policies. While
the principles of ethical banking and is not part of the established banks, such as the Cooperative Bank in the
mainstream banking system. United Kingdom, can provide detailed statistics on the
A credit union is a cooperative financial institution that is number of companies that they have screened for loans
both owned and controlled by its members and provides and how many of these may have been accepted or
loans and other financial services to them. In many refused and for what reasons, others may simply state
instances, credit unions were established to further that they seek to work with organizations that
community development and, in some cases, sustainable demonstrate a commitment to ethical business practices.
international development. This form of financial This statement may sound positive to a potential client,
institution varies from country to country. In some, they but it is not really clear what it means and there may not
are small, not-for profit organisations, sometimes run by always be a transparent means of finding out.
volunteers, whereas in others, they are profit-making and If banking institutions wish to claim that they are ethical
may have hundreds of thousands of members and assets and profile themselves to consumers under this
running into billions of euro. description, then it is vital that their practices and

18
Jeucken, M. H., and Bouma, J.J. (1999), The Changing Environment of Banks, Greener Management International, pp. 21-35.
 Ethical consumerism in the finance sector 51

© International Labour Organization

activities can stand up to scrutiny. This implies that these impossible challenge and especially in the context of the
banks must themselves be subject to a high level of public backlash against conventional financial institutions and
relevant regulation and monitoring to ensure that they governments following the financial crisis of 2008-2009.
are what they say they are and do what they say they do.
It would also be important for any form of monitoring to Complying with such standards and the challenges of
be carried out by an independent regulatory body that internal monitoring of investment activities to ensure that
sets and applies minimum legal standards. Indeed, ethical these meet the bank's own ethical standards brings
banks will need to comply with regulations above and challenges of its own in the form of higher costs and
beyond current levels in order to set themselves apart
lesser returns. As with the fair trade industry, the
from their conventional counterparts.
problem is how much consumers will be willing to pay
When ethical banks do not lend to companies that do for these ethical services and generating the level of
not satisfy their minimum ethical standards, these critical mass of customers necessary to enable the banks
borrowers will often turn to other conventional banks. to function and flourish in a highly competitive market.
This highlights again the importance of industry-wide
regulation, which could cover all banks and which could During times of socio-economic crisis, there will inevitably
ensure that unethical businesses would not be able to be a limit to the amount consumers will be willing to pay
find funds to finance their projects. This possibility is not for ethical goods and services. This challenge raises its
unattainable either. For example, current industry codes head time and again across the various elements of the
prohibit the financing of illegal drug production. ethical consumer movement and will need to be
Ultimately, expanding industry regulation will take time addressed if ethical consumerism is to become a
and significant pressure from civil society, but it is not an mainstream sustainable movement.

An Irish Congress of Trade Unions Publication

52 Ethical Consumerism: A Guide for Trade Unions

Ethical investment
Ethical investment, more commonly known as socially responsible
investment, describes an investment strategy which seeks to
maximize both financial return and social good. In general, socially
responsible investors favour ethical corporate practices that
promote environmental stewardship, consumer protection, human
rights, and diversity. As with other aspects of ethical consumerism,
ethical investment activities are not new, with the very earliest
recordings of such practices dating back to the early Quaker
movement in the 18th century and remained closely linked to
religious movements since that time. The fundamental premise is to
ensure that investment funds favour those companies, projects or
other investment opportunities that maintain certain ethical
standards and avoid those which do not. For example, in the
1960s, social investors increasingly sought to address equality for
women, civil rights and labour-management issues. In the late
1970s, increasing attention was given to nuclear power and the
control of vehicle emissions.
Government-controlled funds, such as pension funds, are ethical companies and projects that espouse the
often very large players in the investment field, and civil fundamental principles and values of the trade union
society often seeks to bring pressure to bear on movement itself. Sometimes these investments can
governments to adopt investment policies that directly benefit trade union members, for example, in the
encourage ethical corporate behaviour, respect the rights form of union-built social housing projects or improved
of workers, take environmental concerns into account medical facilities to benefit workers. The issue of
and avoid violations of human rights. Trade unions, investment of pension funds has been global front-page
especially in the United Kingdom and United States, are news in recent years, particularly in situations where
quite often the largest representative group on pension major companies have collapsed and their pension funds
fund boards and in some cases control major pension with them. There have been many tragic stories of
funds. These funds are usually very large and are workers on the brink of retirement who have lost
therefore significant in terms of the impact they can have everything with no recourse to recover their losses. These
in certain investment sectors. Trade unions are stories multiplied in the global economic crisis as values
particularly concerned that these funds are invested in of pension funds tumbled in the financial markets.
 Ethical investment 53

While one can only speculate as to what might have from the investment industry, intergovernmental and
happened if some pension fund investments had been governmental organisations, civil society and academia.
subject to greater ethical standards, it does nevertheless
raise the issue as to whether the losses might not have Coordinated by the UNEP Finance Initiative (UNEP FI) and
been so catastrophic and irreversible in some situations if the UN Global Compact, the process was concluded in
decisions were made on a more ethical basis. Pension January 2006 with the emergence of an agreed set of
funds provide significant sums for potential investment principles ([Link]). The PRI reflect the core values
worldwide and are also a financial safeguard for millions of the investment industry and are open to all
of workers in their retirement years. In this respect, it is institutional investors, investment managers and
incumbent on governments and companies to protect professional service partners to support. Following the
them as much as possible, including through applying launch of the principles, significant efforts have been
greater ethical standards in investment decisions, with made to promote adoption of the PRI by investors
trade unions playing a monitoring role. worldwide. The PRI initiative is governed by an elected
board of 11 representatives from signatory organisations
Socially responsible investment can be a powerful tool in and two representatives from the UN. The secretariat is
activism. For example, the apartheid regime in South operated by UNEP FI and reports to the PRI Board. The
Africa was eventually brought down through secretariat provides comprehensive resources to assist
international pressure manifest in a variety of ways, investors in implementing the principles, including a
including wide-ranging divestment of funds, including reporting and assessment tool. It also facilitates exchange
pension funds, from companies operating in South of information and experiences among signatories.
Africa. The subsequent negative flow of investment
eventually forced a group of businesses, representing 75 There are six broad principles altogether which
per cent of South African employers, to draft a charter commit investors to the following:
calling for an end to apartheid. While efforts to impact
on investment alone did not bring an end to apartheid, • incorporating ESG issues into investment analysis and
they did focus persuasive international pressure on the decision-making processes;
South African business community. A similar initiative
• to be active owners of the PRI and incorporate ESG
was launched against Sudan in 2006 following the
issues into their policies and practices;
atrocities in the Darfur region and the Sudan Divestment
Task Force was set up. • to seek appropriate disclosure on ESG issues by the
entities in which they invest;
In more recent years, ethical investment has become • to promote acceptance and implementation of the PRI
increasingly defined as a means to promote within the investment industry;
environmentally sustainable development, and this can
be seen in the significant increase in the number of • to work together to enhance effectiveness in
government and private sector policies and programmes implementing the PRI;
to recycle waste and reduce carbon emissions and other • to report on activities and progress towards
outputs that impact on the environment. implementing the PRI.

Principles for Responsible Investment Each principle includes a set of possible actions that
In an effort to address the lack of an international investors could take to assist them in implementing the
framework on environmental, social and corporate principles in practice. The list of signatories to the PRI is
governance (ESG) issues to guide investors in their work, growing rapidly and includes a wide range of companies
in early 2005 the UN Secretary-General invited a group of and institutional investors, including the National
the world's largest institutional investors to join a process Pensions Reserve Fund of Ireland and Northern Ireland
to develop Principles for Responsible Investment (PRI). Local Government Officers' Superannuation Committee.
Individuals representing 20 institutional investors from 12 The role of this international initiative in reinforcing
countries agreed to participate in this effort and were efforts to promote ethical investment practices around
supported by a large multi-stakeholder group of experts the world is significant.

An Irish Congress of Trade Unions Publication

54 Ethical Consumerism: A Guide for Trade Unions

Ethical investment creates new

business opportunities
The issue of socially responsible investment, ethical The company points out that:
banking and the growing range of ethical financial
products has led to the creation of new business “We continue to see a steady increase in clients
opportunities for investment and financial advisors. These interested in investing ethically. We're glad to see that
advisory companies specialise in socially responsible more people are realising that they can make their
investment and provide advice and guidance to money change their world. This trend is mirrored
governments, private companies, and individuals wishing nationwide and there are now over 90 ethical investment
to invest their savings ethically. The existence of such funds available to the public, and in excess of £6.1 billion
advisors is important for those concerned about the way is invested ethically in the UK.”
in which their savings are invested and wanting to
change to more ethical choices but who might be Over the years, more established national networks have
overwhelmed by the broad range of ethical investment emerged, including the Sustainable Investment and
products and lack confidence in taking the right Finance Association in the United Kingdom (UKSIF),
decisions. Ethical Futures is a company based in which provides services and opportunities to its members
Edinburgh, Scotland, that provides extensive advice on to work together to align investment profitability with
ethical investments. social and environmental responsibility.

European Sustainable Investment Forum (Eurosif)

Eurosif is a pan-European not-for-profit group which aims to address

sustainability through financial markets. Current affiliates of Eurosif include
pension funds, financial service providers, academic institutes, research
associations and non-governmental organizations, ranging from HSBC Limited to
Greenpeace, Amnesty International and Oxfam. Sustainable Investment Forums
(SIFs) are gradually being established across Europe, although by early 2009 this
was not yet the case in Ireland.

Eurosif has four main activities:

• European Union lobbying: representing the views of its membership in relevant

EU fora;
• Research: providing members with access to current research on legislation,
policies and practices for the integration of social, environmental, ethical and
governance issues into European financial services;
• Initiatives: participating in a number of pan-European initiatives in a range of
areas such as pension funds, trustee education and guideline development;
• Events and communications: participating in various related events on the state
of socially responsible investment across Europe and globally.

([Link])
 Ethical investment 55

© International Labour Organization

Some social investors have sought to address the rights • Screening: This process aims to exclude certain
of indigenous peoples around the world who are investment possibilities based on social and/or
affected by the business practices of various companies. environmental criteria. For example, many socially
However, healthy working conditions, fair wages, responsible investors screen out tobacco company
product safety, equal opportunity employment and the investments.
environment remain the key concerns of many social
• Divesting: This process involves removing stocks from
investors. Socially responsible investing is a booming
an existing portfolio based on ethical objections to
market in both the United States and Europe, with assets
certain activities of a particular company.
in socially screened portfolios reaching trillions of dollars
by 2007. According to the SIF in the United States, as of • Shareholder activism: This describes the process of
2007 around one out of every nine dollars under shareholders trying to positively influence company
professional management in the United States is involved behaviour. As part of the investment process, these
in socially responsible investing. Research estimates activists become shareholders in a range of companies,
predict that the market in the United States alone will including multinationals, and this enables them to
reach US$3 trillion by 2011, whereas the European represent the views of ethical investment and concern
market grew from 1 trillion in 2005 to 1.6 trillion in with company management and submitting and voting
2007. Whether this growth will continue given the global resolutions at shareholder meetings. Through enhanced
financial crisis remains to be seen. However, these figures collective action, socially responsible shareholders can
clearly indicate the growing level of importance of the influence company decision-making to ensure that
socially responsible investment market in the world. ethical and environmental considerations are taken into
account.
Social investors use four basic strategies in their • Positive investing: This process involves making
work to try and ensure maximum financial return investments in activities and companies believed to
with maximum social good: have a high and positive social impact.

An Irish Congress of Trade Unions Publication

56 Ethical Consumerism: A Guide for Trade Unions

Trade union action on

ethical consumerism
Ethical consumerism and people's awareness of what this means
and how it affects their personal, professional and family lives are
growing rapidly. More and more individuals and companies are
taking an active interest in what they consume and why and are
subsequently changing their behaviours and attitudes. In the case
of individuals, these changes may come about because of concerns
over their health and the collective health of their families, or it
might be because of genuine concern that a particular product has
been manufactured, processed or grown under unacceptable and
unethical conditions. Changes are also occurring because of a
growing understanding of how consuming products and/or services
in one country can impact negatively in another. People are
thinking more about what they can do to improve the lives and
well-being of themselves and their families and improve the lives of
others in different parts of the world through the simple and daily
act of consumption.

Companies are sitting up and taking notice of this world has decided to set itself on a course towards
growing phenomenon of consumer power and raising the socio-economic, political and environmental
awareness. The more enlightened companies and service standards of all countries to eventually achieve parity on
providers are understanding the new opportunities these a global scale. This is a challenging ambition, but is what
developments can create in providing a more human development is all about, and either the
transparent, fair and ethical business relationship with international community is serious about this perceived
consumers and suppliers. If the ultimate goal of goal or not. We must assume it is and it is vital that we,
sustainable development is to be believed, then the as trade unionists, play our role in achieving this goal.
 Trade union action on ethical consumerism 57

The objective of these guidelines is not to persuade trade Efforts are being made at all levels, by individuals,
unionists to change their consumption behaviour organisations, companies, local and central government
overnight. The simple fact is that ethical consumerism authorities, schools, universities, retail outlets, and so on,
over the years has always been an approach by consumer to change their purchasing and consumption practices
activists to ask questions to find out the truth behind and to be guided in these in future by more ethical
what people consume, from food, to electronics, to cars, considerations and standards. Examples of this include
to energy, to retirement funds, and so on. We hope that decisions to purchase fair trade products in offices or
this guide will stimulate thinking and start conversations homes, improving insulation efficiency to reduce heat
and a process of discussion. It has attempted to cover as loss in houses, ensuring more household waste is either
much of the broad range of issues involved in ethical recycled or composted - the list continues. The questions
consumerism as possible and to provide the reader with a of are we doing enough or fast enough are another
more detailed understanding of what these issues are. matter. If we are to achieve the reduction of carbon
And what we would suggest is that, as a trade unionist, emissions we need to in order to reduce global warming
you should give greater consideration to your actions as and climate change to an acceptable level, then we are
a consumer and to the products and services you not doing enough as a nation and we are not acting
consume, your families consume and that your quickly enough. Much more needs to be done.
workplace consumes.

© International Labour Organization

An Irish Congress of Trade Unions Publication

58 Ethical Consumerism: A Guide for Trade Unions

There is significant scope for us as individuals and These are just a few of the questions that we should all
as a trade union movement to do more: be asking ourselves as individuals and trade unionists.
These guidelines are not designed to provide a
• We should ask more detailed questions of our comprehensive and practical list of do's and don'ts in
politicians and government in terms of whether we are ethical consumerism. We strongly recommend that you
on target for carbon emission reductions and, if not, look closely at the additional resources pages of this
why not? Where can more be done and how can we publication and the ICTU's guide to CSR. These will
make it happen quicker? provide you with a wide range of useful and interesting
web sites where you can learn a great deal more about
• We need to know more about how and where
the various aspects of ethical consumerism and CSR and
pension funds are being invested, particularly national
obtain practical advice. There are some aspects of ethical
pension funds, and to ensure that ethical
consumerism that concern personal views, beliefs and
considerations are guiding decisions.
principles and our aim is not to prescribe what trade
• We need to engage employers and the government in unionists should and should not do.
dialogue on fair trade and other ethical issues
regarding international trade. This is not something Clearly, we can all contribute to improving the lives and
that can change overnight, but rather it should be part well-being of others in different countries around the
of a coordinated global campaign, built on dialogue world. We can contribute to the protection and well-
and respect for fundamental standards. There are being of our planet, our environment and the very air we
many more workers in conventional food production breathe and make sure that we look after the interests of
and processing than there are in organic or free range future generations. We can contribute to our own health
sectors and they have rights too. It would not be and well-being by being more aware of what we
possible to change the basis of trade and production consume. We can ensure that our savings and
quickly and it would not be desirable either. However, investments are used for the greater good of the more
the process of dialogue needs to get under way and vulnerable and weak in our society and in the wider
should involve all stakeholders, particularly trade global society. We just need to take the time to be
unions. conscious of what we consume in every aspect of our
• We need to understand what we can do practically lives and to give greater consideration to an activity that
within our personal situations and circumstances to we do so often and in so many different ways that we
support ethical consumerism and what we feel do not even realise we are consuming. Our lives are
strongly about. Some ethical products can be more based on consumption in some shape or form every day.
expensive than their conventionally produced
counterparts and if consumers are restricted in their We hope that the information included in this guide will
purchasing decisions based on available family income, provoke and stimulate much needed thought and debate
then what choices are available in reality? on a personal and professional level. Ethical consumerism
is an issue that affects us all and we all have a significant
• As taxpayers, do we really take enough active interest role to play in taking responsibility for our actions.
in what our government does with tax revenue,
particularly in so far as it concerns such issues as trade,
development, aid, and so on? Are we even aware of
its policies in these areas and the programmes that it
implements worldwide? Could the government do
more or could it at least be more efficient and effective
in its activities?
• We need to know more about the ethical and
ecological labelling programmes that exist around the
world and what they actually mean so that when we
see them in shops and on packaging or company
leaflets, that we know exactly what they are and how
they should influence our consumption decisions.
 59

Additional resources
The resources below provide useful additional information The web site is both informative and wide-ranging and
and links to those interested in understanding more about those interested in further research on ethical consumerism
ethical consumerism and the issues surrounding it. Readers should refer to its many publications and resources on the
are also advised to visit the web sites included in the challenges facing consumers today.
guidelines themselves and to refer to the Useful Resources [Link]
section of the ICTU's publication Corporate Social
Clean Clothes Campaign
Responsibility: A Guide For Trade Unionists.
The Clean Clothes Campaign is an alliance of organisations
in 12 European countries, including trade unions and non-
Civil society organisations governmental organisations, covering a broad spectrum of
perspectives and interests, such as women's rights,
and campaigns consumer advocacy and poverty reduction. It supports
garment workers in their efforts to create substantive,
Global Solidarity Project sustainable improvements in working conditions. In this
The Irish Congress of Trade Unions (ICTU) is taking steps to respect, it relies on a partner network of more than 200
foster a greater understanding within the trade union organisations and unions in garment-producing countries
movement on the island of Ireland about the causes and to identify local problems and objectives and to help
effects of global poverty and inequality. It believes it is develop campaign strategies to support workers in
essential to deepen global solidarity between atrade union achieving their goals. [Link]
members in the Republic of Ireland and Northern Ireland
with trade unions in developing countries. The activities of Traidcraft
ordinary trade union members are key to building a safer, Traidcraft is a UK-based non-governmental organisation
more just and ethical world. The web site includes a wide which aims to fight poverty through trade, practising and
range of information resources and links on issues of promoting approaches to trade that help poor people in
global solidarity concern. developing countries transform their lives. Established in
[Link] 1979, it combines a trading company and a development
charity and builds lasting relationships with producers,
Consumers' Association of Ireland (CAI) supports people to trade out of poverty and works to bring
The Consumers' Association of Ireland is an independent, about trade justice. [Link]
non-profit organisation working on behalf of Irish
consumers. It publishes a regular consumers' magazine, International Labor Rights Forum
Consumer Choice, in which it reports on products and The International Labor Rights Forum (ILRF) is a US-based
services available on the Irish market and comments on advocacy organisation dedicated to achieving just and
consumer rights in general. humane treatment for workers worldwide. A section of its
[Link] web site is dedicated to the issue of ethical consumerism,
entitled Creating a sweat free world with reference to the
Ethical Consumer campaign against sweatshop labour.
The Ethical Consumer Research Association Ltd (ECRA) is [Link]/creating-a-sweatfree-
the United Kingdom's leading alternative consumer world/ethical-consumerism
organisation. It provides a wide range of information
resources and guides for those interested in ethical
consumerism, investment and trade. In addition, it provides Organic and free range
a comprehensive range of links to web sites related to
ethical consumerism, human rights, trade union rights,
organisations
animal rights, environmental issues, peace, and so on.
Organic Guide
[Link]
Organic Guide is a private web site dedicated to organic
[Link]/AboutUs/
lifestyles. As well as providing a forum for like-minded
[Link] for useful links
people and professionals, the Guide also provides reliable,
Consumers International comprehensive, and practical information on organic food
Consumers International is the world federation of and farming, including the strict certification process in
consumer groups that aim to secure a fair, safe and different countries.
sustainable future for consumers in the global marketplace. [Link]

An Irish Congress of Trade Unions Publication

60 Ethical Consumerism: A Guide for Trade Unions

Organic Farmers and Growers Statement of Principles for the Sustainable

Organic Farmers and Growers is a leading UK organic Management of Forests
control body which carries out inspection and licensing of The full text of the UN Statement of Principles for a Global
organic food processing, farming, body care products and Consensus on the Management, Conservation and
other organic enterprises, as well as composting Sustainable Development of All Types of Forests can be
certification. Its web site also carries useful information found at the web site below.
resources on organic issues, including composting in the [Link]/documents/ga/conf151/aconf15126-
home. [Link] [Link]

Organic Monitor Commission on Sustainable Development

Organic Monitor is a specialist research and consulting The UN's Commission on Sustainable Development is
company that focuses on the global organic and related located in the Division for Sustainable Development of the
product industries. It provides a range of business services UN Department of Economic and Social Affairs. Full details
to organisations active in these industries, including of the work and activities of the Commission can be found
business research publications, customised research, at the web site below.
business consulting, seminars and workshops. [Link]/esa/dsd/csd/csd_csd16.shtml
[Link]
United Nations Environment Programme (UNEP)
International Federation of Organic Agriculture UNEP is the UN's environmental agency. It focuses on a
Movements (IFOAM) broad range of issues concerning all aspects of the
IFOAM brings together organisations and professionals in environment, including what it terms “sustainable
the organic agriculture movement from around the world, consumption and production”. It provides information
including Ireland, to foster debate on standards in the resources and training tools for governments, businesses
organic movement and integrate scientific and business and civil society organisations and is a vital source of
expertise into organic agriculture. [Link] information for those interested in all aspects of ethical
consumerism in so far as this impacts on the environment.
Organic Matters [Link]
Organic Matters is the bi-monthly magazine of the Irish
Organic Farmers and Growers Association for farmers, Department of the Environment, Heritage and Local
gardeners and consumers. It features articles on a wide Government
range of related issues, including organic farming, The web site of the Irish government's Department of the
gardening tips, organic recipes, environmentalism and Environment, Heritage and Local Government includes
consumerism. [Link] information and resources on a wide range of topics that
would be related to ethical consumerism, including the
environment, water, waste, genetically modified organisms,
Sustainable development building standards, and so on. [Link]

Agenda 21 Friends of the Earth Ireland

Agenda 21 is a comprehensive plan of action to be taken Friends of the Earth campaigns for environmental justice
globally, nationally and locally by organisations of the UN and sustainability. The organisation believes in sustainable
system, governments and other organisations in every area development and is a strong campaigner on climate
in which humankind impacts on the environment. The full change. Internationally, Friends of the Earth is the world's
contents of the plan of action can be found at the web site largest network of environmental groups. [Link]
below.
[Link]/esa/sustdev/documents/agenda21/engli Carbon Footprint Limited
sh/[Link] Carbon Footprint Limited is a UK-based consultancy firm
specialising in the environment. The firm assists companies
Rio Declaration on Environment and Development looking at carbon management and reduction and offers a
The 27 principles of the Rio Declaration can be found at wide range of services to companies in terms of reducing
the web site below: their carbon footprints. The company is represented in
[Link]/[Link]/[Link]? Ireland. The web site also includes a carbon calculator for
DocumentID=78&ArticleID=1163&l=en companies and individuals interested in assessing their
carbon emissions. [Link]
 61

Water Framework Directive Ireland Ethical Futures

A public web site to provide information to the general Ethical Futures is a group of independent ethical financial
public on the EU directive and setting out the Irish advisors based in the United Kingdom. They specialise in
government's response. The web site seeks to involve ethical investment advice and only recommend financial
citizens in understanding what needs to be done, what is services and products that are ethically screened or that
being planned and what has been done. It also invites meet the company's own ethical criteria.
public participation in the programme. [Link]
[Link]

The Marine Stewardship Council (MSC) Ethical retail

The MSC has developed an environmental standard for
sustainable fishing. Well-managed fisheries that are [Link]
independently certified as meeting this environmental This organisation was launched to counteract the
standard may use the MSC ecolabel on seafood from their increasing number and differing quality of ecolabels
fishery. Strict rules are in place to control how the ecolabel around the world which were creating confusion among
can be used. Before a store can sell fish or seafood with business and consumers. It provides information on a wide
the MSC label, every company in the supply chain must be range of ethical and eco labels and describes what each is
certified as meeting the MSC Chain of Custody standard supposed to mean and the accreditation process. It also
for seafood traceability. This ensures that products with the provides links to the labels' sites. [Link]
MSC ecolabel can be traced back to a certified fishery.
[Link] Get Ethical
Get Ethical is a not-for-profit organisation set up in 2001
to promote and advance ethical consumerism and support
social business and social enterprises in the United
Ethical banking and investment Kingdom. In August 2008, it partnered with Ethical
Junction, the United Kingdom's ethical business network.
The Ethical Investment Co-operative Both companies, their members and suppliers are
The Ethical Investment Co-operative Ltd are specialists who committed to operating according to a core set of values,
offer financial advice to clients who want to align their including taking active care for the environment, having
investments with their ethical preferences. The Co- responsible, fair and sustainable trading practices and the
operative has adopted a structure whereby all members are equality of opportunity and promotion of diversity. The
equal and decisions are made on simple majorities. The web site promotes a wide range of ethical products from
Co-operative is independent and transparent with regard independent suppliers. Its mission is to provide a
to its operations and costs. The company works closely trustworthy and safe market place for conscious
with Amnesty International UK. consumers, acting as a one-stop shop for information and
[Link] products. [Link]
Ethics Foundation Ethical Junction
The Ethics Foundation is a membership-based organisation The Ethical Junction Network was launched in the United
in the United Kingdom that seeks to build the ethical Kingdom in 1999 originally as a web-based portal for
capacities of members, companies, organisations and different ethical issues, from consumers looking for organic
individuals. It operates a certification scheme, The Ethics compost, to ethical businesses looking for finance. Its
Mark, which is an independently verified symbol of ethical constitution as a not-for-profit community interest
commitment that helps organisations to demonstrate company ensures that any profit is donated to causes that
trustworthiness, transparency and ethical accountability. promote sustainable living. Members are companies selling
[Link] ethical products and services and must endorse the six
ethical principles of Ethical Junction.
The Ecology Building Society [Link]
Established in 1981 in the United Kingdom, the Ecology
Building Society is one of the fastest growing building
Ethical Superstore
societies in the country. The organisation promotes the
The Ethical Superstore is a major online ethical retail site
concept of sustainability through its mortgage lending and
also offers a range of ethical savings accounts to support which offers a wide range of fair trade, organic and eco
this. The society favours properties which include friendly products. The site offers product background
ecologically sound features measured against a set of information to assist consumers in making informed ethical
guiding principles. purchasing decisions, including explanations of ethical
[Link] labels. The company also evaluates the ethical credentials
of its suppliers. [Link]

An Irish Congress of Trade Unions Publication

62

Flower Label Programme

The objective of the Flower Label Programme (FLP), based
in Cologne, Germany, is to improve labour, social, health
and safety standards for flower farm workers; improve the
use of chemicals and pesticides used on the flowers; and
to follow stringent standards to protect the environment.
[Link]

Rainforest Alliance
The Rainforest Alliance certification is a conservation tool
whereby an independent third party awards a seal of
approval guaranteeing consumers that the products they
are buying are the result of practices carried out according
to a specific set of criteria balancing ecological, economic
and social considerations. At the request of a resource user,
such as a forest or farm manager, or a tour boat operator,
a multi-disciplinary team of Rainforest Alliance experts
conducts a series of assessment activities for evaluation by
an independent, voluntary committee of outside experts.
Once the standards are met, the operation is permitted to
display the Rainforest Alliance Certified seal.
[Link]

Rugmark
Rugmark is a global non-profit organisation working to
prevent and eliminate child labour in the carpet industry
and offer educational opportunities to children in South
Asia. The organisation randomly inspects the carpet looms
of companies that agree to employ adults only. Through
independent certification and rigorous inspections, rugs
and carpets are given the Rugmark label, which indicates
that no child labour has been used in the carpet supply
chain.
[Link]

Publications
The Ethical Consumer
By Rob Harrison
Terry Newholm and Deirdre Shaw
SAGE, 2005
[Link]

Journal of Consumer Policy

Published by Springer Netherlands
[Link]
Ethical Consumerism
A Guide for Trade Unions

Irish Congress Northern Ireland Committee

of Trade Unions Irish Congress of Trade Unions
31/32 Parnell Square Carlin House
Dublin 1 4/6 Donegal Street Place
Ireland Belfast BT1 2FM
Northern Ireland
t. +353 (01) 889 7777
f. +353 (01) 887 2012 t. +44 (028) 9024 7940 - (048) from ROI
e. congress@[Link] f. +44 (028) 9024 6898
e. info@[Link]

[Link]/globalsolidarity