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But just how important is it to consumers that the businesses they purchase from are ethical ? Money . co . uk business credit card experts surveyed 2,002 consumers to find out .

How does an SME ’ s ethical values affect their customer base ?

The study found that an overwhelming majority of Brits are committed to buying from ethical businesses ( 70 %). Thirty percent of Brits went even further , saying they actively chose not to purchase a product or service because they were dissatisfied with a business ’ s ethical practices .

It ’ s clear that being an ethical business currently can make a huge difference to customer bases and increase profits . This is highlighted even further when it comes to Gen Z , as over half ( 51 %) of their age group said they have chosen not to purchase a product from a business if they are dissatisfied with its ethical values .

Paying a premium for ethical business products or services

Just over half ( 51 %) of Brits are likely to pay a premium of up to 10 % for products or services from a small business that is known for its ethical and green practices . SMEs should factor this into their decision-making when it comes to sourcing products or paying wages , as while going down more ethical routes may increase costs , they may be able to increase their prices accordingly to ensure the profit margin stays the same .

The bottom line is , consumers want to spend more money on your business , but they want you to be better , and they want you to shout about it .

Small business and corporate social responsibility

Two-thirds ( 66 %) of Brits agree with the statement : ‘ Small businesses have a responsibility to contribute positively to societal and environmental issues ’.

With this in mind , SMEs should consider factoring this into their growth strategies and communicating this with their customers .

With 71 % of Brits aged 24 – 35 agreeing with the statement , it ’ s likely that this will remain public opinion for years to come .

How can a business become more ethical ?

According to our survey , the top five ways Brits think small businesses can be greener / more ethical , are :

1 . Sustainable sourcing of materials ( 56 %) 2 . Fair treatment of employees ( 51 %) 3 . Minimal environmental impact in production processes ( 49 %) 4 . Transparent supply chain ( 39 %) 5 . Community engagement and support ( 36 %)

Aside from these , an SME ’ s banking and finance practices can contribute to them being more ethical .

How can a business best communicate its ethical practices ?

The survey revealed that :

• Nearly three in five ( 57 %) Brits said they would prefer small businesses to communicate their ethical practices on their website

• Just under half ( 49 %) of Brits said they do / would prefer small businesses to communicate their ethical practices on social media

• Over a third ( 35 %) of Brits said they do / would prefer small businesses to communicate their ethical practices on labels �