Ethical Consumerism in Financial Institutions: Evidence From Bahrain

Ethical Consumerism in Financial Institutions: Evidence From Bahrain

Yomna Abdulla (University of Bahrain, Bahrain)
DOI: 10.4018/978-1-7998-0272-3.ch003

Abstract

There has been a rise in the concept of ethical consumerism in various sectors of the economy. This chapter examines ethical consumerism in the Bahrain banking sector by analyzing customer surveys and annual reports from seven commercial banks. The findings show limited evidence of ethical consumerism in supply and demand. This chapter also documents challenges faced by banks and customers in ethical, social, and environmental decision making and operations. Finally, the results enhance the understanding of ethical consumerism in financial institutions.
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Literature Review

The following section starts by defining and discussing ethical consumerism, vision, mission and corporate social responsibility terms. We then review relevant studies to investigate the role of ethics in the process of a bank selection.

Ethical Consumerism

Ethical consumerism (or ethical consumption) is defined as “the moral principles and standards, which guide individual or group behavior as they obtain, use, and dispose of goods and services” (Muncy & Vitell, 1992). A more recent definition was developed by Ferrell & Fraedrich (2014, p. 341) as “the conscious and deliberate choice to make certain consumption choices due to personal moral beliefs and values”. While, consumerism is a choice made based on an ethical decision-making process (Al A’ali and Al-Sarraf, 2016).

Several papers suggest that ethical consumerism is a choosing process reflecting various concerns of the consumer, for instance, moral, ethical, and social concerns (Szmigin and Carrigan, 2006), social values (Carey, Shaw and Shiu, 2008), moral beliefs (Gill, 2012) and interaction with market place and reference groups (Fullerton, Kerch & Dodge, 1996).

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