Consumer Boycotts. “An attempt by one or more parties to achieve certain objectives by urging individual consumers to refrain from making selected purchases.

Consumer Consumer BoycottsBoycotts

““An attempt by one or more parties An attempt by one or more parties to achieve certain objectives by to achieve certain objectives by urging individual consumers to urging individual consumers to refrain from making selected refrain from making selected purchases in the marketplace”purchases in the marketplace”

For many years Irish peasants were For many years Irish peasants were mistreated by their British landlordsmistreated by their British landlords

Charles Cunningham BoycottCharles Cunningham Boycott 1880 Boycott evicted tenant farmers1880 Boycott evicted tenant farmers Tenants convinced Boycott’s Tenants convinced Boycott’s

employees to desert himemployees to desert him

““Boycotts are as American as apple pie.”Boycotts are as American as apple pie.” 1765 Stamp Act led to boycotts of British 1765 Stamp Act led to boycotts of British

goods in Boston, New York, Philadelphiagoods in Boston, New York, Philadelphia• Act repealed a year laterAct repealed a year later

German goods boycotted by American German goods boycotted by American Jewish community in 1930’s and 1940’sJewish community in 1930’s and 1940’s

Alabama bus boycott organized by Martin Alabama bus boycott organized by Martin Luther King was defining moment of civil Luther King was defining moment of civil rights movementrights movement

Three characteristics of consumer Three characteristics of consumer boycottsboycotts

1.1. Focus on individual consumers rather Focus on individual consumers rather than organizational entitiesthan organizational entities

2.2. Attempts to use marketplace means Attempts to use marketplace means to secure what may or may not be to secure what may or may not be marketplace endsmarketplace ends

Lower prices/higher quality goodsLower prices/higher quality goods Environmental/other social goalsEnvironmental/other social goals

3.3. Emphasis on urging consumers to Emphasis on urging consumers to withdraw selectively from withdraw selectively from participation in marketplaceparticipation in marketplace

Types of BoycottsTypes of Boycotts

Commodity boycotts Commodity boycotts vs. vs.

Brand-name or single-firm boycottsBrand-name or single-firm boycotts

Complete boycott Complete boycott vs. vs.

Partial boycottPartial boycott

Negative boycott Negative boycott vs. vs.

Positive boycottPositive boycott• whitelistwhitelist• buycottbuycott• girlcottgirlcott• procottprocott• anti-boycottanti-boycott• reverse boycottreverse boycott

Instrumental boycottInstrumental boycottvs.vs.

Expressive boycottExpressive boycott• “Buy Nothing Day”“Buy Nothing Day”• TV TurnoffTV Turnoff

Non-surrogate boycottsNon-surrogate boycottsvs.vs.

Surrogate boycottsSurrogate boycotts• Travel boycottsTravel boycotts• Headquarters boycottsHeadquarters boycotts

Primary boycottPrimary boycottvs.vs.

Secondary boycottSecondary boycott

Consumer Economic BoycottsConsumer Economic Boycotts

1.1. Failure to lower prices beyond term Failure to lower prices beyond term of boycottof boycott

2.2. Lack of leadershipLack of leadership

3.3. Prices more stable todayPrices more stable today

4.4. Staples being replaced by Staples being replaced by convenience foods and meals away convenience foods and meals away from homefrom home

5.5. Dual incomes reduce impact of price Dual incomes reduce impact of price increases on quality of lifeincreases on quality of life

Other goalsOther goals

1.1. EnvironmentalEnvironmental

2.2. LaborLabor

3.3. Animal rightsAnimal rights Animal testing/cosmetics & drugsAnimal testing/cosmetics & drugs Treatment of food animalsTreatment of food animals

4.4. Other socialOther social• HealthHealth• CommunityCommunity

5.5. PoliticalPolitical

Historically noteworthy boycotts: Historically noteworthy boycotts: 1. Nestle1. Nestle

provides information to mothers which provides information to mothers which promotes artificial infant feeding and promotes artificial infant feeding and discourages breastfeeding discourages breastfeeding

donates free samples and supplies to donates free samples and supplies to health facilities to encourage artificial health facilities to encourage artificial infant feeding infant feeding

gives inducements to health workers for gives inducements to health workers for promoting its products promoting its products

does not provide clear warnings on labels does not provide clear warnings on labels of benefits of breastfeeding and dangers of of benefits of breastfeeding and dangers of artificial feedingartificial feeding• In some cases labels are in a language that In some cases labels are in a language that

mothers are unlikely to understand mothers are unlikely to understand

UNICEF: in areas with unsafe water, bottle-UNICEF: in areas with unsafe water, bottle-fed baby 25 times more likely to die from fed baby 25 times more likely to die from diarrhea than breastfed one diarrhea than breastfed one

Expense of baby milks affects all family Expense of baby milks affects all family members family, impoverishing those members family, impoverishing those already pooralready poor

In developing world formula is over-diluted In developing world formula is over-diluted to make it last longerto make it last longer• can cause malnutritioncan cause malnutrition

UNICEF: 1.5 million infants die annually UNICEF: 1.5 million infants die annually because they are not breastfed because they are not breastfed

2. Apartheid in South Africa2. Apartheid in South Africa

Sullivan PrinciplesSullivan Principles Prohibited GM from following Prohibited GM from following

apartheid lawsapartheid laws Required non-segregation in Required non-segregation in

company operationscompany operations Required equal pay for equal work Required equal pay for equal work

regardless of raceregardless of race

By 1986 172 of 280 American By 1986 172 of 280 American companies in South Africa had signed companies in South Africa had signed agreementagreement

1987 Sullivan declared experiment a 1987 Sullivan declared experiment a failure and called for withdrawal from failure and called for withdrawal from South AfricaSouth Africa

Boycotts of companies continuing to Boycotts of companies continuing to do business in South Africado business in South Africa

Universities and other institutions Universities and other institutions pressured to pressured to divestdivest shares of stock shares of stock in such companiesin such companies

3. Grape boycott3. Grape boycott

1964 United Farm Workers 1964 United Farm Workers Association (UFW) formedAssociation (UFW) formed

1965 Filipino and Mexican-American 1965 Filipino and Mexican-American farm workers called a strike against farm workers called a strike against table grape farmers in Delano, CAtable grape farmers in Delano, CA• Low wages Low wages • Poor working/living conditionsPoor working/living conditions

UFW president Cesar Chavez called UFW president Cesar Chavez called for national boycott of table grapesfor national boycott of table grapes

By 1969 sale of table grapes had By 1969 sale of table grapes had nearly vanishednearly vanished

US Defense Department had to step in US Defense Department had to step in to help growersto help growers

increased shipment of table grapes to increased shipment of table grapes to soldiers in Vietnam by 2 million soldiers in Vietnam by 2 million pounds over previous yearpounds over previous year

Boycott ended in 1970 when first Boycott ended in 1970 when first union contracts were signedunion contracts were signed

Are boycotts effective?Are boycotts effective?

Survey of business leaders indicate they Survey of business leaders indicate they consider it more effective than other consider it more effective than other consumer techniquesconsumer techniques• E.g., lobbying, letter writing campaigns, class E.g., lobbying, letter writing campaigns, class

action suitsaction suits Grape boycott succeededGrape boycott succeeded

• As did subsequent 16-year effort to eliminate As did subsequent 16-year effort to eliminate pesticides harmful to worker healthpesticides harmful to worker health

1984-20001984-2000 Divestment in South Africa succeededDivestment in South Africa succeeded

Nestle boycott partially successfulNestle boycott partially successful Boycott of states did not result in Boycott of states did not result in

passage of Equal Rights Amendmentpassage of Equal Rights Amendment Other successful boycottsOther successful boycotts

Ongoing boycottsOngoing boycotts

Ethical ConsumerEthical Consumer