Consumerism awareness as part of the sustainable world

By Nusair bin Nadzri

Consumerism is a topic that is evergreen as it is part of an ongoing discussion that is not limited by time. Consumerism has also been affected greatly by the COVID-19 pandemic that has changed several things in our lives over the past two years; from our attitudes towards the environment to the way we work. One of the activities that has been impacted greatly is consumer behavior in relation to climate change. Consumers’ concern for the environment has led to changes towards more socially- and environmentally-conscious consumer habits amongst some buyers: the Millennials (born between 1981 and 1996) and Gen-Zers (1997-2012) who want to reduce consumption that is not sustainable.

A recent US study by Qualtrics, found that there is a growing desire among consumers to support companies that treat their employees well. Almost half of the 2,000 people surveyed – 47% of the respondents – said they would trust a brand more if it took care of its employees; and 36% said they would stop spending money on a business if its stance on societal issues did not align with their personal values.

Furthermore, a research study conducted in 2021 by Japan’s Hiroshima University supports these findings. It discovered that more Millennials and Gen-Zers preferred a sustainable lifestyle compared with previous generations and are willing to spend money on products churned by green companies.

Is consumerism related to specific generations in Malaysia? Taylor’s University Senior Lecturer, Dr Song Bee Lian, observes that Malaysian Millennials and Gen-Zers are indeed more socially conscious in their spending, prioritizing socially responsible values and displaying strong “good citizenship” behavior.

“Based on my research, I found that, mostly, Malaysian Millennials and Gen-Zers are prone to supporting businesses that have good ethical values, such as the fair treatment of employees,” says Song, whose expertise is in consumer behavior and corporate social responsibility.

“Malaysian Millennials’ and Gen-Zers’ spending habits are different from that of previous generations due to their higher educational levels, increase in financial and digital literacy, and better knowledge and access to information that influences their mindset, beliefs, behaviors and preferences,” she explains.

The occurence of value congruence between customers and businesses plays an important role; where customers will match their personal values – for example, social responsibility – with an organisation’s values. Therefore, an organisation’s reputation as a good and socially responsible employer is a critical factor in attracting customers. Although COVID-19 has adversely impacted the economy and Malaysian youths tend to prioritize affordability; certain categories of environmentally-friendly products are still important to them, says Song.

Products that are organic, locally-produced and humanely raised are still in high demand among Malaysian youths due to their health concerns. Several recent research studies done in Malaysia have shown that young consumers still give importance to making socially conscious purchases during the pandemic. Local demand for sustainable products and services will increase in the future, creating more opportunities and encouragement for companies to venture into these areas.

It is important for businesses to formulate a sustainable business model that incorporates environmental, social and consumer considerations into their core business practices. At the same time, the government could provide support by offering subsidies, incentives and training on how to lower production costs and yet be sustainable. Hopefully, pressure from this increasingly vocal consumer base will drive companies that have yet to adopt ethical and sustainable business practices to do so.

While there are many overseas studies that depict a changing consumer trend towards sustainability among the younger generation, the Federation of Malaysian Consumers Associations (FOMCA) says that there is not enough local data to conclusively show that the same is happening here. “We cannot say for certain that there is also a trend here, whether it is in terms of environmental or labour conscious purchases as we do not have enough data,” said FOMCA Secretary-General Datuk Paul Selvaraj.

Although there is increased concern for the environment among consumers, there is insufficient evidence to show whether this interest contributes to change in consumer behaviour.

The younger generation is generally more sensitive about environmental issues and sustainable consumption. They may intend to be more socially conscious in their purchases, but whether they act on it, is not yet known. There needs to be a national effort to make consumers more aware of the social and environmental impact of their purchasing decisions, which will then encourage businesses to improve their environmental and labour practices. Companies will look at the local context when running their businesses. If people do not show interest in improving the situation, they will continue with their bad ways. Legislation and clear sentiment on the ground will impact how companies operate and whether they change to become more sustainable.

It is believed that knowledge on how to be a responsible consumer is important for us to attain so that we are able to form a sustainable world and life. Our recent generation’s positive attitude to sustainable consumerism should be praised as this is proof that it is important to receive the right education and be advocates of efforts to build a more sustainable world.***

(Nusair bin Nadzri is a student in Department of Business Administration, Kulliyyah of Economic and Management Sciences (KENMS). The article is part of ‘Responsible Consumerism’ course. The views expressed here are those of the writer/author and do not necessarily represent the views of IIUMToday,)

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