Ethical Consumer Guide: Get Woke, Go Broke?

Please note: this blog was published in April 2021 and its content is based on what was correct at the time of writing. As a result, some of the facts and opinions may no longer be current or relevant.

Are today’s consumers looking to put their money where their values are? We ran a survey on conscious consumerism to find out.

The survey revealed that over three-quarters of UK adults believe it’s important to support ethical brands and sustainable companies in their day-to-day life. But over half admit they are held back from shopping ethically because it’s too expensive.

In our guide, we look at whether going woke actually does come at a cost and how the ‘woke generation’ is leading the change in ethical issues in business — for the better.

Keep reading as we shine the spotlight on the most ethical companies to invest in, how to avoid greenwashing, and share our everyday tips on how to shop ethically on a budget. 

Let’s suss out what ‘get woke, go broke’ actually means

A relatively new word to the English language, woke was added to the Oxford English dictionary in 2017. The definition of woke is ‘to be aware of, and actively attentive to, important facts and issues (especially racial and social justice)’¹. More casually, the meaning of woke can also be used to describe someone who is well-informed and cares about societal and ethical impacts.

But, being called woke can often have negative connotations, especially for brands and businesses. It can sometimes be perceived as doing it for reputation purposes and not out of conviction. So why is this? 

Bestselling author John Ringo coined the phrase ‘get woke, go broke’². It describes when companies use politically correct actions as part of their strategy, resulting in a massive loss of income. The main problem being that consumers don’t believe brands are doing it for a genuine reason.

Our survey backs this, revealing over 70% of UK adults feel brands commit to causes to appear 'woke' or in touch with being more 'green'.

At Wealthify, we like to celebrate the Good Eggs. The ones who have risen in woke culture — not to jump on a trend, but meaning to make a positive impact on the world and listen to what their customers care about.

Over half of consumers are willing to pay more for sustainable brands

56% of people from our survey said they’re willing to spend more if a brand is sustainable. So what has led to this change in consumers becoming more ethically aware?

Educational awakenings have undeniably been influential in striking a chord with so many, perfectly exemplified by David Attenborough's 'Blue Planet effect'. It’s said that 88% of people who watched the educational, environmental documentary changed their lifestyle to be more sustainable³. 

In 2020, Ethical Consumer ran a survey to reveal how the Coronavirus has impacted consumerism during the pandemic⁴. The report showed that 60% of consumers intend to buy more locally, increasing from only 40% pre-pandemic.

So, with more and more consumers turning to ethical brands, they could make a smart investment choice.

Good for the soul investing

The saying goes — put your money where your mouth is — and we’ve got to agree. Wherever you spend your hard-earned money, it should reflect your values.

Being true to your values can sometimes take a bit of work and, honestly, a bit of sacrifice. But at Wealthify, we believe that it’s our job to make sticking to your values easy, and remind you that you don’t need to spend a lot to invest in line with your principles. Find out how you can start ethically and socially responsible investing with just £1.

What are the benefits of socially responsible investing?

The main benefits of socially responsible investing are:

1. You can align your personal values with investment opportunities — so you don’t have to compromise your morals.
2. Make a profit — people often mistakenly think that by investing ethically, you’re sacrificing potential profit. Find out how ethical investments can offer great returns. Please note that the value of your investments can go up and down and with investing, returns cannot be guaranteed.
3. If you’re in a fortunate position to spend a little extra cash, ethical investing is a great (and easy) way to positively impact society.

Everyone’s reasons for ethical investment will be different. Our survey revealed that the top three causes people cared about were cruelty-free products, zero waste solutions, and locally sourced ethical materials.

Invest in the organisations that are committed to causes close to your heart. If you need a little help deciding where you want to put your money, we’ve created a range of Ethical Plans which make it easy for you to invest in companies that are committed to what matters to you.

Wealthify’s ethical companies to invest in

We like to make it easy for people to do good with their money through ethical investing. That’s why our Ethical Plans use the best-in-class ethical fund providers so you can invest in organisations that match your morals.

Head over to our blog to learn more about the companies we invest in — we call them our ‘Good Eggs’ companies.

10 ethical companies leading by example  

Our survey revealed that a quarter of people said they don't know where to start looking for ethical brands. So we've pulled together a list of established brands that have been flying the ethical and sustainable flags for many years.

10 ethical companies to watch in 2021 

As ethical investing is the core of what we do at Wealthify, we like to keep our eyes open for the new companies paving the way for future generations. Here are our top 10 rising ethical brands to watch:  

What is greenwashing, and why do you need to be aware of it?

A simple greenwashing definition is when a company makes a claim to be environmentally friendly, which turns out to be false⁵. The purpose is to make customers believe the brand is doing more to protect the environment than it actually is.

As we’ve already mentioned, our survey revealed over 70% of consumers believe brands only commit to a cause to appear ‘woke’ or more ‘green’. So how do you spot a genuine brand from one who’s greenwashing?

How to avoid greenwashing

An example of greenwashing we’re all probably familiar with is food items that boldly proclaim to be ‘low fat’ or ‘sugar-free’ but then don’t talk about all the less healthy ingredients they contain. This is called a hidden trade-off, and the same principle applies across most types of greenwashing.

Common forms of greenwashing include companies claiming to use ‘recycled content’ when, in fact, only a small portion of their items are made from recycled materials.

When it comes to how to identify greenwashing, it’s not always easy to spot. In fact, our survey revealed over 40% of UK adults said they weren’t able to tell the difference between a genuine ethical brand vs greenwashing.

To help spot the difference, here are our top tips on how to avoid greenwashing:

1. Don't fall for the green emoji

It’s easy for a company to slap on green branding, sprinkle environmental emojis through social posts and use eco-friendly language. Don’t take things at face value, always dig a little deeper.

2. Be wary of vague claims

You should be especially mindful of any ethical or environmental claims that are vague. If key details such as dates, amounts and figures aren't included, it's likely to be false.

3. Look for measurable proof

Never take a company's claim at face value; you need proof. If they don't back up with links to reports, data or case studies, question them on it.

4. Check outside credibility

Don’t forget to check for unbiased opinion from third party endorsements. You can check sites such as Ethical Consumer or use the app Good on You to look up a company’s ethical rating.  

5. Look at the big picture

It's great if a company can show they’re environmentally friendly in one area. But don't assume one 'green' thing makes a company ethical. Look at the organisation as a whole.

How you can shop more ethically​ — without going broke

With over three-quarters of people saying they want to shop more ethically, we asked what's holding them back. Over half admit they find it too expensive — showing that many do find it challenging financially to become an ethical consumer.

To help show you how to shop more ethically and sustainably, we've put together a checklist to remember at checkout:

For each of us and our different lifestyles, the answer to “how you can shop more ethically” will be slightly different. And making the switch to sustainable brands won't come easily to everyone. The convenience of purchasing a non-ethical brand and indulging in shopping impulses can be tricky to overcome. You can start small with little swaps. But the main thing to remember is every purchase you make is an investment, so make sure it’s with brands that align with your values.

So, will woke make you broke?

Definitely not — so long as you make smart choices and do your homework.

50% of people surveyed spend less than £50 a month on sustainable and ethical products. So while the conscious consumer market may not be affordable for everyone, it's not out of reach for the average consumer.

It’s all about where you put your pound, and teaching yourself that every purchase should be an investment. In fact, by focusing on investment pieces, you could actually save money by spending less on highly disposable impulse buys. Being conscious of where your money is going is the best starting point for becoming an ethical consumer.

*Wealthify completed an ethical consumer survey with 2000 respondents in March 2021.

References:

^{1: https://www.merriam-webster.com/dictionary/woke}

^{https://dictionary.cambridge.org/dictionary/english/woke}

^{2: https://www.cim.co.uk/exchange/editorial/when-brands-go-woke-do-they-go-broke/}

^{3: https://www.globalcitizen.org/en/content/88-blue-planet-2-changed-david-attenborough/}

^{4: https://www.ethicalconsumer.org/sites/default/files/inline-files/Ethical%20Consumer%20Markets%20Report%202020.pdf}

^{5: https://dictionary.cambridge.org/dictionary/english/greenwashing}

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