Most people want to buy products made responsibly. But those good intentions rarely survive at the store check-out.
Amazon. Dollarama. Walmart. Whatever costs less wins. When money's tight, ethical shopping takes a back seat.
The problem with ethical products
Ethical goods consider human rights, animal welfare, labour standards and environmental protection. These values come at a cost - one that gets passed to the consumer.
That higher price tag can be a deal-breaker for most shoppers, even when they want to shop ethically.
In today's uncertain economy, how can ethical products realistically compete?
A surprisingly simple solution
New TMU research points to an easy fix: Keep prices the same, but sell less. Same values. Same price point. Less sticker shock.
The study appears in the Journal of Business Ethics (Oct. 2025). Co-author Mehak Bharti teaches business management at TMU's Ted Rogers School of Management. She studies why people don't buy what they claim to value, and how brands can close that gap.
"People genuinely want to buy sustainably," says Bharti, a consumer behaviour psychologist. "They do care about workers, animals and the environment."
The study looks at everyday shopping decisions - those quick choices that often override our best intentions.
"40 per cent of people want to buy ethically, but only 4 per cent actually do."
According the Harvard International Review, chocolate production involves human rights issues like child labour and enviromental damage.
When good intentions are not enough
As Canadians face rising costs and economic uncertainty, more shoppers buy cheaper everyday items.
Over the holidays, consumers spent more on products like chocolate and coffee that are often linked to unfair labour and rainforest depletion.
"Price is immediate and hard to ignore," says Bharti. "Even people with strong values struggle, because the cost feels too real, too fast."
She says that buying sustainable coffee may help farmers and the planet, but shoppers don't see those benefits at the register.
"People struggle to justify paying more, especially for everyday items like toilet paper and soap," Bharti says. This feeling is called the pain of payment.
The ethical premium problem
According to the research, ethical goods often cost 20 to 220 per cent more than regular products. This price gap - known as the ethical premium - creates a major barrier between what consumers value and what they actually buy.
This year alone, the average price of store-bought coffee (340 grams) jumped $2.30, according to Statistics Canada.
With inflation squeezing budgets, Bharti's research offers a pricing strategy that helps ethical products compete without sacrificing conscientious production.
The research tackles a daily question: How can people make ethical choices that are also affordable?
Marketing Professor Mehak Bharti's new research highlights the importance of making ethical products more affordable and accessible to consumers.
The solution: Same price, smaller package
The strategy is simple: Match the price of regular products, but reduce the quantity slightly. The lower price removes the psychological barrier.
"Paying a higher cost hurts more than getting a little less," Bharti explains. "When the shelf price is the same, shoppers don't feel penalized for doing the right thing."
This small shift lets values win over price anxiety.
"People are much more sensitive to price than to quantity. Sacrificing some of the amount feels like a soft compromise."
By adjusting package sizes rather than raising prices, ethical companies can protect margins, attract consumers and improve competitiveness.
This is not shrinkflation, Bharti clarifies. That's when companies secretly reduce product size while keeping prices and packaging the same.
She stresses that transparency around quantity and pricing is essential.
The bottom line
Ethical production doesn't have to hurt business. When companies address affordability and perception, doing good makes economic sense for everyone.
Bharti says small changes in the way prices and quantities are presented can help consumers justify and act on their values.
