The political motivations of ethical consumers

Abstract Consumer‐driven labelling schemes such as F airtrade and the F orest S tewardship C ouncil , are based upon several assumptions of consumer decision making and behaviour. This study aimed to test the validity of some of these assumptions, including the belief that consumers are acting ‘on behalf’ of workers and communities in economically developing countries by supporting fair and ethical trade. It examines the political motivations underlying ethical consumption, such as its relationship to other forms of political activism, reasons behind high purchase frequency and how existing values interact with consumption choices. Drawing upon the results of a series of six focus groups with 58 participants and a nationally representative panel‐based survey of 1014 Australian consumers, this paper argues that many of the factors involved in consumer decision making are inconsistent with the assumptions made by private economic governance schemes in attempting to harness consumer power, calling into question the effectiveness and legitimacy of such schemes. However, by tailoring the marketing strategies to different types of consumers, along with suppliers and retailers, these schemes can potentially increase their effectiveness.