Nearly half (45%) of Singaporean consumers would never buy from a brand again if it was accused of working with unethical suppliers, according to a survey by OpenText.
Findings also highlight that the pandemic has made consumers more mindful of the impact of their purchases, with 89% planning to prioritise buying from companies that make it clear they have ethical sourcing strategies in place.
Before pandemic, only 78% said they prioritised buying from companies with such strategies in place.
OpenText, 3Gem last April anonymously surveyed 27,000 consumers across 12 markets globally, including 1,000 in Singapore. The other countries covered were the United Kingdom, Germany, France, Spain, Italy, the United States, Canada, Brazil, Japan, India, and Australia.
In Singapore, over half (55%) of respondents judge a brand based on not just its actions but the actions of its suppliers as well.
Consumers place such value on buying from ethical brands that 87% of Singaporeans are willing to pay more if they can be sure a product has been ethically sourced or produced. Over a third (36%) are willing to spend between 25% and 50% more for that product.
Buying ethically sourced or produced items matters to 81% of Singaporean consumers, though almost a quarter (23%) admit that it has only started to matter to them in the last year or so.
Further, 89% of Singaporean consumers are even willing to compromise convenience, such as accepting a slower delivery, if they can be sure that an item has been ethically sourced or produced.
“Creating an ethical supply chain requires having visibility into every supplier,” said Lou Blatt, SVP and CMO at OpenText. “Brands can no longer claim they act responsibly if they have no visibility into their operations or those of their suppliers.”
Over two-thirds (68%) of respondents in Singapore believe that businesses that cannot monitor where their goods have come from and don’t know if suppliers are sourcing goods ethically need to rethink their supply chain.
Also, nearly three quarters (72%) of Singaporean consumers agree that government should introduce regulation that holds businesses more accountable for responsible sourcing. The majority (88%) also think online retailers should clearly mark whether or not products are ethically sourced where they can.
A majority (84%) admit that knowing where a product has originated from or where parts are sourced is important to their buying decision. For 53%, this information always or often impacts their buying decision.
“To build an ethical supply chain, an organisation must have access to information that it can trust,” commented George Harb, Asia-Pacific regional VP of business ecosystems at OpenText. “By deploying a single, unified, cloud-based integration platform, organisations can digitise the flow of data and transactions between everyone in the supply chain for complete visibility and transparency.”