The article “Down and Out in Discount America” by Lisa Featherstone deals with the issues of corporate social responsibility and consumer behavior. Сorporate social responsibility means a company’s commitment to minimizing or eliminating any harmful effects and maximizing its long-run beneficial impact on society. It includes such areas of responsibility as obeying laws and ethical norms and treating employees fairly. A socially responsible consumer would avoid buying products from companies that harm society and actively seek out products from companies that help society.
Lisa Featherstone believes that Wal-Mart primary customers are people who have low income and cannot afford to go shopping to some other place. Wal-Mart stores are mostly located in those areas where the majority of potential consumers are poor. Wal-Mart uses discounts as one of the main tools of its promotion. Those customers who make $20, 000 per year or less consider Wal-Mart as the best place for shopping because for the same amount of money they can buy more things in Wal-Mart than in any other retail store. Therefore, Wal-Mart “makes money off of poverty”.
Wal-Mart can be called a “corporate criminal” because it violates laws which protect the rights of workers. In order to lower labor costs and, thus, increase profitability Wal-Mart pays its employees about $8 dollars per hour. This low compensation allows workers to shop only in Wal-Mart. Thus, we can conclude that Wal-Mart stimulates poverty.
The most interesting fact is that low salaries of the employees help Wal-Mart in increasing sales. Not making enough money Wal-Mart workers “feel solidarity” with those poor customers who cannot afford any other choice and come to Wal-Mart. Wal-Mart’s employees identify themselves with the customers and, thus, can understand the customers’ needs better and provide better service.
Lisa Featherstone believes that customers’ refusal to shop in Wal-Wart could become one of the possible strategies for countering Wal-Mart’s violation of labor rights. However, many customers do not understand why they should be involved in anti-Wal-Mart campaign and refuse to buy things in Wal-Mart store. They identify themselves as “customers” instead of considering themselves “citizens”. Those customers think about saving money instead of looking for some ways to fight discrimination and violation of workers’ rights. That’s why Lisa Featherstone states that “the invention of the ‘customer identity’ has been an important part of a long process of eroding workers’ power…” Most people dream about “profitable” job rather than “satisfying” work. They value those things which they can buy with their salaries instead of valuing justice and equality at work place.
Consumers first need to become aware of a firm’s level of social responsibility before this factor can impact their purchasing. Most of us essentially believe that we should only base our purchasing on standard economic, rational criteria. Moreover, some people may even think that consumers should not base their buying on corporate social responsibility because companies should only be responsible for making a profit.
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