Building on a model of the biological, socio-psychological, and structural drivers of luxury consumption, this article explores when and why luxury consumers consider ethics in their luxury consumption practices, to identify differences in their ethical and ethical luxury consumption. The variables proposed to explain these differences derive from biological, socio-psychological, and structural drivers, namely, consumers’ (1) age, (2) ethicality, (3) human values, (4) motivations, and (5) assumptive world. A cluster analysis of a sample of 706 U.S. adult luxury consumers reveals (...) five segments of luxury consumers, each reflecting a specific persona, that engage in both ethical and ethical luxury consumption to varying extents. The five segments differ in the extent to which they exhibit features related to four discriminant functions (immorality, ego-orientation, and strain; altruistic-orientation; conservation, in control, and positivity; and youth and luxury savvy), which vary across the biological, socio-psychological, and structural drivers. The findings thus indicate which segments of luxury consumers are most relevant for luxury firms pursuing a long-term sustainability agenda and suggest practical actions to reach those goals. (shrink)

This study synthesizes research on evolutionary psychology, emotional appeals, and viral advertising in order to develop a novel perspective on how sustainable luxury brands can be effectively promoted on social media. The results of two experiments show that the emotional appeals of pride and gratitude increase consumer intentions to spread electronic word-of-mouth about sustainable luxury brands via two discrete mechanisms. Study 1 establishes that featuring the pride appeal increases eWOM intentions by heightening the luxury dimension of sustainable luxury brands, whereas (...) featuring the gratitude appeal increases eWOM intentions by heightening the sustainability dimension of sustainable luxury brands. Study 2 shows that these discrete effects of emotional appeals influence consumers to adopt different types of eWOM behaviors toward sustainable luxury brands. Specifically, the pride appeal increases consumer intentions to broadcast eWOM via status attainment motives. In contrast, the gratitude appeal increases consumer intentions to narrowcast eWOM via affiliation seeking motives. The findings offer novel theoretical insights and provide managers with tools to promote sustainable luxury brands in a digital environment. (shrink)

Scholars agree that the environmental and societal impacts of consumption require greater attention, and need examining in more diverse market contexts. This editorial essay focuses on the nascent area of ethical/sustainable luxury, and critically considers how the scope of ethical/sustainable consumption can be broadened in the luxury sector. We address the compatibility of ethicality/sustainability and luxury by examining a range of opportunities and inherent tensions in relation to improving the ethical/sustainable consumption practices within the luxury sector. We also introduce several (...) original articles published as part of this Thematic Symposium, whose arguments underscore both the merits, and flaws, of ethical/sustainable luxury. On the basis of this and prior research, we present a balanced perspective by identifying various factors that facilitate or inhibit the acceptance and furtherance of ethicality/sustainability within sector. Thus, this essay serves as a springboard for further research and development in ethical/sustainable luxury whilst simultaneously highlighting the importance of the topic in general. (shrink)

This paper builds on existing research investigating CSR and ethical consumption within luxury contexts, and makes several contributions to the literature. First, it addresses existing knowledge gaps by exploring the ways in which consumers perform ethical luxury purchases of fine jewellery through interpretive research. Second, the paper is the first to examine such issues of consumer ethics by extending the application of theories of practice to a luxury product context, and by building on Magaudda’s :15–36, 2011) circuit of practice framework. (...) This is significant in that, to date, consumer research using practice theories has focused mainly on routine and habitual practices. Our findings and discussion provide an analysis of intentional and less intentional ethical consumer performances within the interconnected nexus of activities of consumers’ fine jewellery consumption practice, where meanings, understandings and intelligibility of social phenomena are worked through the various activities that shape such a practice. Finally, the paper concludes with significant managerial and policy-related implications, as our extended circuit of practice analysis conveys that if ethics and sustainability dimensions are to be embedded in fine jewellery consumption practice, they must first be made an intrinsic part of the nexus of the social and material environment of trading and consumption places. (shrink)

As recently stakeholders complain about the use of conflict minerals in consumer products that are often invisible to them in final products, firms across industries implement conflict mineral management practices. Conflict minerals are those, whose systemic exploitation and trade contribute to human right violations in the country of extraction and surrounding areas. Particularly, supply chain managers in the Western world are challenged taking reasonable steps to identify and prevent risks associated with these resources due to the globally dispersed nature of (...) supply chains and the opacity of the origin of commodities. Supply chain due diligence represents a holistic concept to proactively manage supply chains reducing the likelihood of the use of conflict minerals effectively. Based on an exploratory study with 27 semi-structured interviews within five European industries, we provide insights into patterns of implementation, key motivational factors, barriers and enablers, and impacts of SCDD in mineral supply chains. Our results contribute to both theory and practice as we provide first insights to SCDD practices and make recommendations for an industry-wide implementation of SCDD. Altogether, this study provides the basis for future theory testing research in the context of SCDD and conflict mineral management. (shrink)

Sustainable luxury is a strategic issue for managers and for society, yet it remains poorly understood. This research seeks to clarify how corporate social responsibility actions directly and indirectly affect consumers’ willingness to pay a premium price for luxury brand products, as well as how a long-term orientation might moderate these relationships. A scenario study presents fictional CSR actions of two brands, representing different luxury products, to 1,049 respondents from two countries. The results of a structural equation modeling approach show (...) that the luxury brands’ CSR actions negatively affect customer WTPP overall and for each brand. The luxury brands’ functional and symbolic value dimensions positively mediate the effects of CSR actions on WTPP, whereas social value does not. The effects of CSR actions and brand symbolic value on WTTP do not differ between countries. The effect of functional value on WTPP differs across countries, such that it is stronger for high-LTO than low-LTO cultures. Inversely, the effect of social on customer WTPP is stronger for low-LTO than high-LTO cultures. These findings have theoretical and practical implications for luxury brand managers. (shrink)

There has been limited coverage of the corporate responsibility practices of small and medium-sized enterprises in the mainstream CR literature. Furthermore, there has been no systematic analysis of the responsibilities of the high value jewellery industry and jewellery SMEs in particular. This study explores the potential for harm and value creation by individual stakeholders in fine jewellery production. Using the harm chain and institutional theory to frame our investigation, we seek to understand how small businesses within the fine jewellery industry (...) respond to the economic, social and environmental challenges associated with responsible jewellery production, and to investigate how they perceive and negotiate the tensions between responsibility and the resistance derived from the operational norms of secrecy and autonomy within the industry. Our exploratory research provides illustrative examples of how complex harm networks operate within and across the fine jewellery industry, and demonstrates the inter-relationships that exist across the different stages of the fine jewellery harm chain. Findings suggest that institutional forces are coalescing towards a more responsible agenda for the fine jewellery industry. Moreover, while CR is a tool to disrupt harmful institutional norms and practices within such an industry, it requires the co-creation of new transformative business models and multi-stakeholder involvement including firms, trade associations, non-governmental organisations and consumers. Solutions include national and international legislation, price adjusted certification routes for small firms, harmonisation of industry CR standards to reduce overlap in certification and regulation and gem and precious metal “track and trace” schemes. (shrink)

Corporate social responsibility is often framed in terms of opposing constructions of the firm. These reflect, respectively, different accounts of its obligations: either to shareholders or to stakeholders. Although these opposing constructions of corporate responsibility are diametrically opposed, they are also much more fluid and mobile in certain contexts, since they can act as discursive resources that are deployed and brought into play in the struggle over shaping what responsibility means. They are less the fixed, ideological “signposts” they might appear, (...) and more like “weathervanes” that move alongside changing rhetorical currents. To show this, we analyse the Securities and Exchange Commission consultation process, and legislation, relating to the provenance of “conflict minerals”. We identify two dialectically opposed camps, each seeking to influence final legislation and with end goals in keeping with the shareholder/stakeholder dichotomy. One camp lobbied for firms to scrutinize their entire supply chain, constructing the firm as a “global citizen” with very wide social responsibilities. The second camp lobbied for a lighter touch approach, constructing the firm as a “trader”, with much narrower social responsibilities. We analyse the complex interplay between these two opposed camps, our contribution being to show how both deploy competing conceptions of the corporation as discursive resources. (shrink)