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      Becoming a Wise Consumer with Ethical Consumption

      The Central Bureau of Statistics (BPS) noted that spending on Indonesian household consumption grew 5.06% in the third quarter of 2023. This growth is higher than the average consumption growth in 2022 which amounted to 4.93%. 

      Redaksi IAEI

      Written by Redaksi IAEI

      January 4, 2024
      15 Min Read
      General

      In the midst of uncertainty and the impact of geopolitics, this has an impact on global economic growth. However, the post-pandemic recovery process has driven supply chain improvements and global household consumption growth. Imported goods are one of the factors that affect the level of household consumption because the availability of imported goods can affect household consumption choices.

      Ethical Consumption is the behavior of making responsible and sustainable purchasing decisions by considering the social, economic, and environmental impacts of the products and services consumed. In response to economic uncertainty, consumers need to realize the importance of Ethical Consumption.

      Ethical Consumption aims to reduce the negative impact of consumption on living beings and the Earth as a place to live. This form of consumption involves making conscious and responsible choices about the products and services chosen, and focusing on needs rather than wants.

      Ethical Consumption is also linked to sustainable, green consumption and is becoming a significant movement to influence producer behavior to promote social, environmental, sustainable and fair responsibility in the production and distribution of manufactured goods.

      Ethical Consumption and Fair Trade

      Fair-trade is a sustainable trading system to achieve fairness, equality, transparency, mutual trust, and protect the environment. In the context of fair-trade, consumers can choose not to consume products that do not comply with fair trade principles. The rejection of such products is considered part of Ethical Consumption, especially when done in response to human rights violations, social injustice, or adverse environmental impacts. The aim is to protest against the company's violation of ethical values and convey a moral message so as to change the company's behavior and influence its policies.

      The implementation of ethical consumption also has its own challenges, including limited information, ethically produced and fair-trade products often have higher costs than conventional products, and there are cultural constraints in certain communities that make it difficult to change the consumption behavior of these communities.

      Ethical Consumption in the Islamic Perspective

      In the Islamic perspective, Ethical Consumption refers to the concept of ihsan, creating social benefits, to achieve the pleasure of Allah SWT. The principles of consumption in the Islamic ethical framework include the principles of tolerance and generosity, the principles of responsibility and simplicity, the principles of balance and justice, and the principles of priority and morality.  Ethical consumption in Islam avoids israf and tabdzir, which are wastes of resources that do not bring benefits. Islam also emphasizes the importance of treating animals and the environment well, and considering the spiritual aspect, not just the physical and material aspects. 

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