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Investigating the impact of corporate environmental sustainability reporting on consumer purchasing behavior in the UK retail sector

1.    Research Title

Investigating the impact of corporate environmental sustainability reporting on consumer purchasing behavior in the UK retail sector

2.    Introduction, Rational & International Business Value

a)    Background Overview

The agendas of sustainability have been growing faster and faster for UK retailers in recent years Consumers developing an understanding of the consequences of their consumption habits on the environment are also demanding greater detail of the sustainability programs their companies operate.  Therefore, the United Kingdom has a lively and diverse retail industry that keeps on developing and adjusting to the curve balls of current market situations. It has a much intense impact on the national economy, representing a considerable part of GDP and workplaces for a bigger number of people (Simões & Sebastiani, 2017). The sector has gained balanced growth and development alongside years of implementation that have been instigated through the changes in consumer behavior and technological developments, as well as regulatory influences (Buallay, 2022).

b)     Problem Significance

The deficiency of consumer confidence in environmental promises made by UK retailers is among the most important problems, and it should be resolved by companies with both the tendency to social responsibility and society. At the same time, the gap between the aims of companies concerning environment protection, and the actual influence of their operations is usually wide. They do not see what is behind the curtain and also hesitate to believe in the values of the company, which may not suit them. When consumers doubt the way the company acts in environmental custody, they may like to sell the products else, and this in consequence will cause reduced sales and will put the reputation of the company in danger (Margetson, 1994). If consumers come to believe that companies’ efforts at socially responsible behavior are hollow, they will become cynical, and possibly even anti-sustainable actions. This may involve pushing the efforts for a more sustainable future further away. Additionally, firms that affect the environment could not be in the line of priority and could continue to deal with environment-manipulating operations like increasing carbon footprint and air pollution (Nilssen et al., 2018).

 c)     Importance of Topic

Firstly, ascertaining what people think and do about sustainability reporting will provide companies with useful data about how to communicate environmental work to consumers in an appropriate manner. By determining key factors that build consumers’ trust and purchasing decisions, companies can align their sustainability reporting to consumers’ expectations to boost their sales and market shares(Law, 2004). Companies can do this by boosting the reliability and originality of their sustainability reports, thus, creating trust with the customers and building their reputation in the market. Besides, the research may be useful for the retail area as well because it reveals the significance of sustainability issues and pushes other businesses to change their attitude towards ecology(Rinto et al., 2016).

3.    Research Aim, Questions, & Objectives

a)    Research Aim

To investigate the impact of corporate environmental sustainability reporting on consumer purchasing behavior in the UK retail sector.

b)    Research Questions

Problem 1: Lack of Consumer Trust in Environmental Claims

Research Objectives:

  • To test the existing level of consumer trust in the environmental sustainability reports released by UK retail firms.
  • To identify the aspects responsible for such consumer trust towards the environmentally focused UK retail brands (Nuttavuthisit & Thøgersen, 2015).
  • To analyze whether the authenticity of sustainability claims impacts the purchase-making process of consumers in Britain

Problem 2: Inadequate Impact of Sustainability Reporting on Consumer Behavior

Research Objectives

  • To help unearth the effectiveness of sustainability reporting when it comes to influencing consumers’ buying behavior in the UK retail sector.
  • To elucidate which particular section of the sustainability reports is the most powerful in the shopper’s persuasion (Eden, 1994).
  • To accept the reporting environment and procedure effecting customer actions

Problem 3: Justification of Sustainability Investment Costs

Research Objectives:

  • To consider the UK retail section where long and short term impact of financially investing to ensure sustainability for corporation.
  • To examine consumers behavior to respond to efforts against sustainability (Gurko et al., 2019).
  • To measure the standing and competitive advantages of retail organizations for invest in sustainability.

4.    Literature Review

a)    Background Information

The UK’s retail sector produces many jobs and gets into the country’s GDP. Despite challenges though, the industry stays resilient thanks to adjustments for instance the shifting consumer trends, technological breakthroughs, and compliance and regulatory norms. To overcome these issues, most retailers now bring sustainable practices into their business and have started to consider the environment in terms of different frameworks (Becker-Olsen et al., 2006).

b)    Theoretical Framework

Point-Theory of Planned Behavior (TPB)

  • Evidence: TPB is based on the point of view that consumer behavior is influenced by a complicated construction of components that include attitude towards the behavior, subjective norms, and perceived behavioral control (Conner & Armitage, 1998).
  • Explain: Consumers with a keen eye on the environment may easily go for organizations with good accountability for sustainability issues as they relate to their environmental attitudes (Ajzen, 2020).
  • Link: This theory underscores how environmental sustainability disclosures, with the capacity to influence consumer views and attitudes, can direct behavior (Shah Alam & Mohamed Sayuti, 2011).

Point-Social Identity Theory

  • Evidence: It is argued that an individual behaves in a specific way because of his association with a particular community (Bosnjak et al., 2020).
  • Explain: Those customers, who define themselves as pro-environmental group representatives, could be more likely to pursue the companies with a high ESG rating rate since such companies keep in accord with the group’s values.
  • Link: Social Identity Theory reveals what social group identification does for the sustainability reporting attitude of consumers towards it (Cheng, 2018).

Point-Stakeholder Theory:

  • Evidence: It says that organizations, in their decision-making, may note the interests of all. The stakeholders may include customers, among other groups of people (Friedman & Miles, 2002).
  • Explain: Consumers often welcome and value companies that have transparency sustainability reporting, because it is an indication of responsibility towards environmental issues.
  • Link: Stakeholders, including consumers, are satiated with the sustainability reporting is of great importance (Phillips et al., 2003).

c)      Literature Review

Consumer Perception and Attitudes:

Consumers nowadays are generally more conscious and care more about the state of the environment when compared to some years ago. This case can be illustrated in many surveys and studies conducted recently that show a clear focus on purchasing products and brands known for their environmental sustainability (Laroche et al., 2001). Social empowerment of consumers in terms of online research and product evaluation gives rise to a situation where the facing companies should pay increased attention to their environmental performance (Kollmuss & Agyeman, 2002)

Impact of Sustainability Reporting:

Sustainability reporting is a crucial tool via which companies declare what kind of environmental efforts they make toward goals they set for themselves and stakeholders like consumers. Research reveals that a message contained in such reporting may subsequently lead the public to consider a company environment-oriented (CREYER & ROSS, 1997). Consumption decisions of customers are influenced by being informed of the level of impact such companies create on the natural environment and the steps they are taking to reduce the impact (Delmas & Burbano, 2011)

Role of Corporate Social Responsibility

Those companies, that take a socially responsible approach to their activities, can expect to be viewed in a positive light by customers, with this attitude likely leading to greater brand loyalty and positive word-of-mouth (Sen & Bhattacharya, 2001)

Impact of Regulatory Environment:

UK firms have legal obligations to comply with standards and regulations which include the UK Companies Act 2006 and the Carbon Reduction Commitment Energy Efficiency Scheme (Darnall et al., 2010) Meanwhile, compliance with these laws will not only help avoid penalties but also get better points in customers’ opinion. The awareness that a business is environmentally compliant is more a reason for consumers to have a good stand on them compared to those seen as violators (CUNNINGHAM et al., 2005)

d)    Literature Gap

Consumers’ behavior is certainly connected to the big businesses’ environmental sustainability reporting. Nevertheless, the details of this link reveal how specific elements of sustainability reports can make such a big difference in the consumers’ decisions. In general, these studies have looked at the overall influence that sustainability reporting has on consumers’ perceptions and buying actions; rarely, they have considered what part of the sustainability report is precisely responsible for this. This is a substantial consideration since companies that seek to refine their environmental reporting policies and repute among consumers need what exactly the sustainability reports matter to consumers.

5.    Research Methodology

a)    Research Philosophy & Research Approach

We will use a quantitative method that includes a survey questionnaire from focus groups to collect information. They are the part or procedure of primary research methods. The survey will include closed questions which will result in quantitative data (Mbanaso et al., 2023).

b)    Research Philosophy

The methodology for this research will be based on the Research Onion model recommended by Saunders which provides a structured framework for planning and implementing the research (Da Veiga, 2016).

  • Research Philosophy.

The research philosophy of interpretivism will serve as a guide, considering that the study draws on quantitative data to investigate the subjective experiences of consumers through survey

  • Research Approach:

The research will be quantitative, using the methods of survey questionnaires from groups to delve deep into the consumer’s thought process and purchasing habits.

  • Research Strategy:

The research strategy will be exploratory, therefore looking into why consumer behavior is influenced by the reporting of the environmental sustainability of commercial corporations (EASTMAN et al., 2011).

  • Choices:

The selection of quantitative methods for this study is justified as the scope of these methods aligns well with the analysis of consumer perception and behavior. The application of a survey questionnaire from focused professionals by the researcher will allow him to receive both deep and complete data.

 

  • Time Horizon:

The research will take place in the timeframe of 3 months

  • Techniques & Procedures:

Data will be collected through an online survey which will be distributed through social media channels. The survey will be prepared to collect the quantitative data by multiple choice close-ended questions. The sessions will include

Section A        Demographic Information

Section B        Awareness Regarding Corporate Environmental Sustainability Reporting

Section C        Sustainability reporting and its influence on shopping behavior.

Section D        Causes Affecting the Buying of Green Products

Section E         Attitude and Action Towards Sustainability Through Retail.

 

Research Methodology

The survey methodology will entail sending out a questionnaire to industry practitioners who work in the UK retail sectorThe survey will be a questionnaire that possesses closed-ended questions meant for a specific, measurable response (Swisher et al., 2002).

c)     Sample Considerations

For the study, the researchers will apply purposive sampling to select professional participants who have expertise or are passionate about environment sustainability and shopping behavior within the UK market (Hu & Kravtsov, 2003).

 

Demographic Diversity: Representatives will be from different social strata, spanning across age groups, genders as well as socioeconomic statuses. Accordingly, it is going to serve as the basis for all the reliable sellers’ samples in the UK retail industry.

Interest in Sustainability: Industry professionals will be selected from among those who have expressed interest or are already involved in sustainability issues

Accessibility: The participant’s selection will be based on their availability to contribute to the exercise the way they are told to.

Sample Size: Participants for quantitative research will be a maximum of around 70-80  people(may vary) because while conducting this type of research it is necessary to obtain data saturation where there is no new data and emerging themes from the database

 

Inclusion Criteria:

We limit the participation of our survey to only individuals aged 18+ and above living in the UK.

d)    Data Collection & Data Analysis

Data Collection:

Survey Design: In survey-based quantitative research, data collection begins with the devising of a well-defined and structured questionnaire. The survey formulated around the research objectives will be developed so that the questions are simple, short, and unbiased to reduce ambiguity.

Sampling: It is a must for researchers to specify the population to be targeted and to decide on the necessary sample size. To make sure that the sample is reflective of the population it is surveying, random sampling methods are mostly used(Couper, 2017).

Distribution: When the survey is designed, it goes out to respondents using online submission via the link and approaching professionals from social media such as Linked, etc

Data Collection Methods: Closed-ended questions are employed to collect quantitative data. These questions are comprised of the given response options which in turn becomes a lot easier to analyze and quantify.

 

Data Analysis:

 

Data Cleaning: This undertaking requires the removal of incomplete or incorrect answers and then determining if there exists syntheticity and mistakes in the data.

Descriptive Statistics: These stats include mean, median, and mode, and also methods used to find the mean absolute deviation to describe the data clearly. To make our data more engaging and understandable, charts, tables, and graphs will be used as visualization tools sometimes.

Inferential Statistics: Inferential statistics, on the other hand, enables observation of the relation between the variables and determines whether these findings are important. Statistical tests such as t-tests, and chi-squared tests come as the most popular ones to gather insights from the data(Jing et al., 2019).

 

Interpretation: Lastly, the Analyst draws a conclusion based on the examined variables in the research questions and objectives of the study. Lastly, the results and their implications are explained, making clear how this research will contribute to a bigger picture.

e)     Limitations

Sample Bias:

The existence of sampling bias cannot be ruled out, since there will be purposive sampling of the participants, which stance may limit the ability to generalize the results. This gap could be narrowed by inviting a cross-section of people to the study so that richly varied perspectives are collected.

Time and Resource Constraints:

The limited time horizon and the constricted budget may affect the depth and extent of the research. To overcome this restriction, I am going to give greater preference to the main research goals and focus on collecting the data of a particular nature only which is most relevant to the task at hand.

External Factors:

Another important element that should be taken into account is the impact on results caused by external factors e.g. the changing consumer behavior or economic flux ills. Although these factors are out of control for the research, I will keep in mind their possible effect on the research and the outcome of the research and interpret the findings.

6.    Indicative Timetable & Gantt Chart 3-months

7.    Ethical Consideration

Respect for Persons:

Informed Consent: Survey filers will well understand the objectives, approaches, the issues of safety and benefits to be expected from this study, and their enrollment will need to be described as voluntary (Kaewkungwal & Adams, 2019).

Right to Withdraw: Participants of the survey will have the privilege to quit the survey questionnaire at any time and there will be no adverse comments for them.

Confidentiality: The integrity of the survey participant information will strictly be kept confidential and only the anonymized form of information will be used in the final analysis and reporting (Crespi, 1998).

Beneficence:

Minimization of Harm: Measures will be undertaken to prevent any kind of hurt or discomfort that may arise with the survey participants. These measures include but are not limited to insurance of confidentiality and the offer of supporting materials.

Fair Treatment: All survey filers should be treated with due respect and courtesy during time of the research process (Price et al., 2020).

GDPR Compliance

GDPR Compliance: The study will follow the GDPR on data collection storage, and use of personal information (Krontiris et al., 2020).

Data Protection: Securing and the confidentiality of people’s data will be achieved by the measures stated as secure storage and data anonymization (Christofidou et al., 2021).

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