This week marked the one week anniversary of the collapse of Lehman Brothers and social commentators are beginning to notice another change in our behavior.
We all knew deep down that chasing money, greed and avarice wasn’t a good way to live our lives. But while things were good, and we were getting what we thought we wanted, we didn’t care. Debt was something to worry about another day, or to be repackaged and sold to someone else. Roosevelt said in 1937, “We have always known that heedless self-interest was bad morals.” Never a truer word said, yet we fell into the exact same trap seventy years on.
We are changing our habits though, for how long nobody knows, but changing we are. We now buy more fair trade products, drive less SUV’s and investing more money in socially responsible funds than ever before.
Not only are we changing the way we spend our money, and where, we seem to be slowly becoming more socially responsible than ever before. Receding are the days of Me, me, me being replaced with a sense of social responsibility. More people are volunteering than ever before. America has always had a backbone of socially conscious citizens who gave more than they took, but they always seemed the minority. It may be the case now that they won’t be for much longer.
For example, socially responsible funds are increasing almost daily. In 1995 there were fifty five mutual funds that were classed as socially responsible. That is avoided investments in things like oil, tobacco and chemicals. Today there are two hundred and sixty, with an estimated portfolio of over $2.7 trillion, or approximately 11% of the total investment in US markets.
Corporations are catching on to this trend, racing each other to be the greenest, most culturally and ethically aware. They have realized the shift in our spending habits and are trying to catch up. They have discovered that ethical companies attract loyalty and investment, which is the holy grail for most.
In a recent Time poll, nearly half of American consumers said protecting the environment should be given priority over growth and profit. This poll was taken not long ago, while we are still mired in recession. That says a lot about the new mindset of the average American. More SUV’s are being replaced by more economical cars, including the Prius every day. In the same poll, respondents said they would willingly pay $2000 more for a fuel efficient car than an traditional one.
This may be down to the ‘feel good factor’ of saving the planet while saving yourself money, but marks a significant shift in the buying habits of consumers. One General Motors never saw coming. Both it and the other large manufacturers are racing to get more fuel efficient vehicles into the marketplace in order to compete. European manufacturers have a head start as 35 mpg is the norm there, with their efficient diesel engines getting up to 70mpg!
Long may this trend continue. While we demand greener technologies and more ethical business practices, the companies will have to provide that. Otherwise, without demand for their products they will wither and die.
