1. Introduction
“Ethics are in vogue” is an assertion drawn after the International Herald Tribune (IHT) conference on luxury (Smale, 2007). The reason for this statement is the presumption of an emergent type of luxury consumer whose purchase decision is up to the ethical behaviour of business. Is this concept mere wishful thinking or does it reflect empirical reality, since the latter would void the expression “the devil wears Prada”. It is obvious, that the conventional way of economic development not any longer satisfies the needs of the world in which we live – “the environment is, without doubt, one area which is being subjected to greater public scrutiny” (Dembkowski and Hanmer-Llyod, 1994). Society increasingly requires a healthy living, innovative, efficient and safe technologies as well as a “stable and safe” natural and social environment (Jochem 2011). The media especially reports on ethical and sustainable business conduct and its affects on “human health, the ecosystem and future generations” (Bonacchi and Rinaldi, 2006).
Simultaneously to the increasing requirements of ethical and sustainable business conduct, the luxury fur demand is substantially growing. From US $ 456.99 million in 2001, the world fur outlook estimates an increase in sales up to US $ 854.13 million in 2011 (Parker, 2005) - fur auction houses sell “record-breaking” numbers. Fur re-emerges as a fashionable design material; especially younger designers are “fascinated with fur and use it in innovative ways” (Foreman, 2010). The material has also trickled down to the streets - the younger generation demands it more than ever; even child fashion designers use it for their collections (Vulsier, 2010).
The inherent question from these insights is whether both developments, namely an increasing requirement of sustainable and ethical business conduct as well as a growing fur fashion demand, are in line or in contrast to each other. Thus, is a fur producer ethical and sustainable? The author aims to gain knowledge whether a fur business responds to these external societal requirements regarding ethics and sustainability and whether ethical and sustainable or unethical and insustainable business conduct implicates advantages or disadvantages.
This study will examine the topics ethics and sustainability within a fur business. The research will examine the supply chain sustainability performance and ethicality of a fur producer and trader from a business and consumer perspective.
Table of Contents
1. Introduction
1.1 Motive of the research study
1.2 The research questions and focus
1.3 Structure of the Research
2. Literature Review
2.1 Overview of key themes
2.2 Ethicality and morality
2.3 Sustainable development strategies and their potential to competitive advantages
2.4 The measurement of sustainable strategies
2.5 The fur industry
2.6 Ethical consumption in the luxury industry
2.7 Conclusion of the literature review
3. Research Design
4. Empirical Investigation
4.1 Bonnie – the single case study – an introduction
4.2 Evaluation of Bonnie’s sustainability strategy
4.3 Analysis through case study
4.4 Analysis of (non-) consumer questionnaire
5. Conclusion
5.1 Findings
5.2 Discussion
5.3 Limitations of the research
5.4 Recommendation for further research
Objectives & Core Topics
This dissertation investigates the intersection of business ethics, sustainability, and the luxury fur industry. The primary goal is to determine whether a fur producer can operate ethically and sustainably, and whether these practices align with profitability or provide a competitive advantage, ultimately bridging the gap between theoretical societal demands and empirical business realities.
- Business ethics and moral philosophy in corporate contexts.
- Sustainability strategies and their role in achieving competitive advantages.
- Consumer attitudes and paradoxical buying behaviors regarding ethical luxury goods.
- Empirical assessment of a fur producer's sustainability performance using the Sustainable Balanced Scorecard.
- The influence of market trends and consumer demand on ethical decision-making in the fur trade.
Excerpt from the Book
2.2 Ethicality and morality
As already mentioned, not just current academic literature but also ancient philosophical stances are committed to the explanation of the phenomenons ethics and morals.
With his categorical imperative the philosopher Immanuel Kant (1724-1804) combines ethics and morals by saying
"act only according to that maxim whereby you can, at the same time, will that it should become a universal law" (Timmermann, 2004; Precht, 2007).
It is obvious that according to Kant, the human being himself does not possess ethics as this is described as being a universal law, but only possesses moral that implements the ethical values of society.
The utilitarian philosophical approach was mostly developed by Mill (1806-1873) and Bentham (1748-1832) - a theory of benefit maximisation. The concept says that actions are only morally correct when all agrieved parties benefit as much as possible and suffer least from these actions, hence acting in accordance with the least harmful alternative (Pieper, 2007).
Summary of Chapters
1. Introduction: This chapter establishes the motive for studying ethics and sustainability within the growing fur industry and outlines the central research questions.
2. Literature Review: An exploration of theoretical frameworks concerning business ethics, sustainable strategy development, the specific dynamics of the fur industry, and the complexities of ethical consumer behavior.
3. Research Design: Describes the methodology, focusing on a mixed-methods approach including a single case study of a German fur company and a (non-) consumer survey.
4. Empirical Investigation: Presents the analysis of the case study company's sustainability performance and evaluates (non-) consumer questionnaire data to test initial hypotheses.
5. Conclusion: Summarizes the key findings regarding the gap between theoretical ethical ideals and practical business and consumer behavior, offering recommendations for further research.
Keywords
Ethicality and morality, business ethics, sustainability, competitive advantage of sustainable strategies, sustainability performance measurement, fur industry, ethical luxury consumption, stakeholder theory, blue sustainability, consumer behavior, corporate social responsibility, luxury fashion, supply chain management, empirical investigation, case study.
Frequently Asked Questions
What is the core focus of this dissertation?
The study examines the relationship between business ethics, sustainability strategies, and their impact on profitability and competitive advantage specifically within the luxury fur industry.
What are the primary themes addressed in the research?
The key themes include the philosophical basis of ethics, the application of sustainability strategies, the unique challenges of the fur trade, and the gap between consumer stated beliefs and actual purchasing behavior.
What is the primary research goal?
The research aims to determine whether fur producers can be both ethical and sustainable, and whether these practices are perceived as competitive advantages by the company and required by the market.
Which methodology does the author employ?
The dissertation uses a mixed-method, pragmatic research approach, combining a theoretical literature review with empirical data from a single case study and a (non-) consumer survey.
What topics are explored in the main body?
The main body investigates existing literature on ethical frameworks, utilizes the Sustainable Balanced Scorecard (SBSC) to evaluate a specific fur company's performance, and analyzes consumer perspectives on luxury fur consumption.
How would you characterize the keywords of this study?
The keywords highlight the intersection of corporate performance, ethical luxury consumption, and sustainability frameworks within the specific context of the fur industry.
How does the fur industry perform according to the SBSC analysis?
The case study reveals that the investigated company ranks slightly better than the industry average, primarily through waste reduction and operational efficiency, though it does not implement a comprehensive blue sustainability strategy.
What paradox is identified regarding consumer behavior?
The study identifies that while consumers value sustainability and ethical production in principle, they are often unwilling to pay a price premium for these attributes, leading to a disconnect between belief and practice.
How is the concept of "blue sustainability" used in the context of the fur trade?
Blue sustainability represents a strategic integration of sustainable measures into core business activities rather than one-time actions, serving as a potential driver for differentiation in a market where such strategies are rare.
What is the author's final conclusion on the ethicality of the fur trade?
The author concludes that because consumers do not consistently practice their own stated ethical beliefs, and companies prioritize economic imperatives, there remains a persistent conflict between market demands and ethical ideals in the fur industry.
- Quote paper
- Corinna Jung (Author), 2011, The Importance of Business Ethics and Sustainability within Supply Chains, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/183156
