ABSTRACT
This chapter begins by arguing that failing to deal with the problem of ‘externalities’ is creating an existential threat for people and their ecosystems with evidence around the problem of climate change particularly strong. It goes on to explain how ethical purchasing under capitalism can provide an additional corrective mechanisms for the tendency of markets to reward companies which maximise their externalities. Examples used include the Living Wage Foundation, the Bangladesh Fire and Safety Accord, and the California grape boycott.
This chapter then situates ethical purchasing within a wider movement calling for a consciously ethical approach to all economic transactions. This movement would include Socially Responsible Investment (SRI), also known as ESG (Environmental, Social, and Governance) investment. Some, particularly those within green or ethical economics, argue that this movement offers a system level solution to some of the system level problems within modern capitalism.
After further exploring the role of economics, culture, and language as well as democracy and participation, this chapter ends by observing how the growth of ethical purchasing is also a key factor in the emergence of new mission-oriented company types. These include co-operatives, social enterprises B-Corporations, and some types of brand activism.
