Consumer demand as a driver of improved working conditions: the ‘Ergo-Brand’ proposition

Abstract

This article develops and explores the 'Ergo-Brand' proposition, which posits that consumers may prefer to buy goods that are made under good working conditions (GWCs). This preference would enhance a differentiation strategy for companies, thereby fostering the application of ergonomics in production. This proposition is developed in the context of a narrative review of the literature on 'ethical consumerism'. This is supplemented with a survey study, conducted in both Canada and Sweden (n = 141) to explore this proposition. Results indicate that consumers would prefer goods made under GWCs, but not unconditionally as quality and price concerns were ranked higher. Access to information on the working conditions in production was seen as a barrier. Nevertheless, the Ergo-Brand concept may be a viable avenue in promoting attention towards ergonomics in companies - particularly if consumer habits are subject to intervention by advertising. Further research on this strategy is warranted.

Reporting within the Corridor of Conformance: Managerial Perspectives on Work Environment Disclosures in Corporate Social Responsibility Reporting

“…This aligns with the findings in a growing number of studies regarding worker elements and health and safety that show that some types of indicators of worker well-being are rarely used and, importantly, those that are used may give audiences an incomplete picture of worker health within a company [6,10,12,13,69,79]. While some research has indicated that consumers would preferentially select, and maybe pay a premium for, goods made under healthy working conditions [80,81], this motivation for reporting WE was not discussed by the study participants. Furthermore, there appears to be some conflicting response from participants, between the drive to ensure employee-related information is a key feature of their CSR reporting and the reality that external actors are not asking about WE in their reports.…”

Occupational health and safety disclosures in sustainability reports: An overview of trends among corporate leaders

“…In addition, better OHS reporting could support strategic marketing advantages given the growing number of consumers who are willing to support and choose products/services from companies providing credible information on their working conditions (e.g. Neumann et al, 2014). Such competitive advantages (Porter & Kramer, 2006) could act as motivators within the firm to enhance to enhance and maintain a higher level of accountability on employee working conditions and occupational hazards, and to endorse a healthy and safe working environment.…”

“…By linking more transparent reporting around the OHS agenda with brand image and organizational reputation (Hunter & Van Wassenhove, 2011), managers may leverage the differentiation strategy of the firm and shape new or boost existing marketing advantages while increasing customer loyalty (Neumann et al, 2014;Randall, 2005). Hence, OHS reporting may encapsulate an untapped reservoir of added value for the firm and attending the issue in a manner similar to promoting 'green' products or environmentally benign behaviour can contribute to the sustainability (reporting) agenda, primarily in terms of employee-management and consumer-company dialogue and fruitful engagement (Bolis, Brunoro, & Sznelwar, 2014;Mason & Simmons, 2011;Zink & Fischer, 2013).…”

“…Such managerial implications highlight the need to design engagement programmes for meaningful employee input in this regard, as long as such accountability schemes are developed around the workforce's demands or expectations and built around fruitful employee consultation processes (Williams & Adams, 2013 (Neumann et al, 2014;Randall, 2005). Hence, OHS reporting may encapsulate an untapped reservoir of added value for the firm and attending the issue in a manner similar to promoting 'green' products or environmentally benign behaviour can contribute to the sustainability (reporting) agenda, primarily in terms of employee-management and consumer-company dialogue and fruitful engagement (Bolis, Brunoro, & Sznelwar, 2014;Mason & Simmons, 2011;Zink & Fischer, 2013).…”

“…Research findings suggest that OHS information provision can yield tangible benefits in bringing internal improvements to the working environment (Jain, Leka, & Zwetsloot, 2011;Williams & Adams, 2013), attracting a new, talented workforce (Earle, 2003), increasing customer loyalty (Dixon, Nordvall, Cukier, & Neumann, 2017;Neumann, Dixon, & Nordvall, 2014), along with reputational and legitimacy gains (Mäkelä, 2013). Nevertheless, OHS has received limited attention in sustainability reporting research despite the fact that poor OHS conditions influence employees' well-being (Takala et al, 2014) and may incur striking socioeconomic costs (Rose, Orrenius, & Neumann, 2013;Tompa, Culyer, & Dolinschi, 2008;World Health Organization, 2010).…”