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Blood Diamonds and Ethical Consumerism: An Empirical Investigation

Author

Listed:
  • Meike Schulte

    (The Business School, Middlesex University Dubai, Dubai P.O. Box 111075, United Arab Emirates)

  • Sreejith Balasubramanian

    (The Business School, Middlesex University Dubai, Dubai P.O. Box 111075, United Arab Emirates)

  • Cody Morris Paris

    (The Business School, Middlesex University Dubai, Dubai P.O. Box 111075, United Arab Emirates
    School of Tourism and Hospitality, University of Johannesburg, Johannesburg 2006, South Africa)

Abstract

Although ethical consumerism has witnessed significant interest in recent years, most studies have focused on low-value, commoditized product categories such as food and beverage and apparel. Despite its significance, the research on ethical consumerism in luxury product segments such as diamonds is relatively scant. This formed the motivation of this study, which examined the ethical buying behavior of consumers and the moderating effects of their income levels in the diamond industry. Four hundred eightteen responses toa structured questionnaire were collected. The framework comprising of four constructs, namely ethically-minded consumer behavior, willingness to pay more, ethical concerns regarding country of origin of diamonds, and ethical buying behavior of diamonds was first validated, and then the hypothesized relationships between the constructs were assessed using structural equation modeling. Overall, ethically minded consumer behavior had a significant positive impact on willingness to pay more, ethical concerns regarding the country of origin of diamonds, and ethical buying of diamonds. Additionally, ethical concerns regarding country of origin positively influenced the ethical buying of diamonds, while the willingness to pay more had no significant impact on ethical diamond purchases. The multi-group moderation test results revealed that the income levels of buyers do affect the relationships between constructs. For instance, for the middle income group, generic ethically-minded consumer behavior did not translate into the ethical buying behavior of diamonds. The findings provide useful insights for practitioners and policy-makers regarding ethical consumerism in the diamond industry and help to highlight the issues facing the industry, such as its poor supply chain transparency, human rights abuses, child labor, money laundering, bribery and corruption, and environmental degradation from mining activities.

Suggested Citation

  • Meike Schulte & Sreejith Balasubramanian & Cody Morris Paris, 2021. "Blood Diamonds and Ethical Consumerism: An Empirical Investigation," Sustainability, MDPI, vol. 13(8), pages 1-18, April.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:8:p:4558-:d:539484
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    1. Hui Wang & Haiming Chen & Vincent Tawiah, 2023. "Does Ethical Behaviour Affect Sustainable Development? Evidence from Developed and Developing Countries," Sustainability, MDPI, vol. 15(13), pages 1-16, June.
    2. Giat, Yahel & Manes, Eran, 2023. "Firm response to ethically motivated boycotts," European Journal of Operational Research, Elsevier, vol. 305(1), pages 300-311.
    3. Leïla Traoré & Bienvenue Belinga & Guillaume Lescuyer, 2023. "A Systematic Review of the Scope and Patterns of Green Consumption in Sub-Saharan Africa," Sustainability, MDPI, vol. 15(8), pages 1-17, April.

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