Ethical Supply Chain Practices and Consumer Disposal Behavior: A

Comparative Analysis of Fashion and Electronics Industries

Ahmad Siar Nazeri1, Mohammed Salem2
1,2
Economic Behavior & Governance, Department of Business and Economics, University of
Kassel, Kassel, Germany
corresponding author: Ahmad Siar Nazeri, University of Kassel, Kassel, Germany,
[email protected]

1
 Ethical Supply Chain Practices and Consumer Disposal Behavior: A
Comparative Analysis of Fashion and Electronics Industries

Abstract
This study investigates how consumer behavior in the electronics and apparel industries is
affected by ethical supply chain policies. It examines how labor laws, environmental
concerns, and ethical sourcing affect consumer attitudes and disposal practices, emphasizing
the significance of corporate social responsibility (CSR). Results show that moral business
conduct improves consumer trust and brand reputation, which increases buy intents and
encourages responsible disposal. Stakeholder theory and the triple bottom line method are
integrated in this study, which provides useful advice for companies looking to go green. Its
cross-sectional methodology, reliance on self-reported data, and limited geographic scope
are among its drawbacks. It is advised to conduct more research using a variety of samples,
longitudinal studies, and viewpoints from multiple stakeholders. Notwithstanding these
drawbacks, the study lays the groundwork for more investigation into ethical supply chain
management and consumer behavior.
Keywords: Ethical supply chain, consumer behavior, corporate social responsibility (CSR),
fashion industry, electronics industry, sustainable practices, stakeholder theory

1. Introduction
Ethics has been examined in many academic fields, e.g. law and medicine. In recent years, its
applicability in the commercial sector has been expanded and companies have become
increasingly interested. The question of what ethics are, how much they should be applied and
the benefits that businesses can gain by doing so has raised significant concerns (Yahya Yusuf
et al., 2014).
An approach to business operations known as Ethical Supply Chain Management (ESCM)
integrates moral values at every stage of a supply chain's existence. Ethical requirements of
social responsibility and environmental care, as well as the efficiency of activities, are equally
emphasized in this strategy (Olaniyi Kolade, 2024). The growth of ESCM is due to rising
awareness among consumers and businesses about the wider impacts of business activities. The
impact of production processes on the environment, the social impact of the supply chain on

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communities and workers, and the moral issues related to labor and sourcing methods are
covered (Ashby A, et al., 2012).
Discussions on improving labor standards in these production centers have intensified because
of the expansion of industrial supply networks to developing countries and globalization. Child
labor, poor working conditions and a lack of pay are still an issue in numerous factories that
create scandal at international brands (Auger et al., 2003; Sancha et al., 2019). The issue of
wages between suppliers to several global clothing brands has been highlighted in the last few
reports (Zhang et al., 2019).
Ethical sourcing, often referred to as socially responsible buying or sourcing, involves making
business decisions that consider ethical, social, and economic issues (Welford R, 1995;
Maignan, 2002; Zorzini et al., 2015; Carter et al., 2002). The most famous examples are Nike
and Wal Mart, who were harshly criticized for their ethical business practices before they rose
to the top by adopting more rigorous moral standards (Strom S, 1996; Bonjo S, 2014).
Consumers are increasingly concerned about the impact of packaging on the environment
(Lindh et al., 2016; Wikstrom et al., 2018; Magnier et al., 2015). Businesses are under pressure
from governments and consumers to embrace environmentally friendly packaging (Boks et al.,
2007; Koenig-Lewis et al., 2014).
The fashion industry is one of the most important global industries, and sustainability plays a
major role in its evolution (Gereffi, 1996). Ethical fashion can be difficult to define, as there are
no standards in the industry, but it is frequently associated with fair trade and environmentally
responsible practices (Fletcher, 2008; Joergen C, 2006). Similar challenges exist in the
electronics sector, which is being confronted by an increasing amount of electronic waste and a
need for efficient waste management due to increased urbanization and household incomes
(Phulwani et al., 2021).
To advance sustainability, initiatives in the field of corporate social responsibility are crucial
(Nguyen et al., 2024). These programs include measures such as fair pay, safe working
conditions and involvement of the community to increase morality and sustainable supply
chains (Kumar, D, 2024). Understanding the impact of such ethical behavior on consumers'
perceptions and their inclinations to buy environmentally friendly products is essential. The
customers are more likely to support companies which show a commitment to sustainability
and ethics in their business (Akram, U et al., 2024).

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This link is mitigated by Product Life Cycle Management or PLM (Ibeh, C et al., 2024). PLM
refers to the entire lifecycle management of a product, starting from its conception and
continuing through an engineering design, manufacture, maintenance or disposal. Businesses
can ensure that ethical standards are respected at all levels, improve sustainability as a whole
and successfully influence customer attitudes and purchase intentions through the integration
of Product Lifecycle Management (Mitchell, E, 2024).
The upcoming sections of the paper are structured in the following manner: Section 2 hunts into
the theoretical background and the development of hypotheses. Section 3 provides details of the
research methods employed. The findings are analyzed in Section 4. Lastly, Section 5
encompasses a discussion of the results, limitations, and potential avenues for future research.
2. Theoretical Background and hypothesis development
The Theory of Corporate Social Responsibility (CSR) and the Stakeholder Theory are two
foundational ideas that offer thorough frameworks for comprehending decision-making
processes, and they serve as the foundation for our research. According to the Theory of CSR,
businesses have a responsibility to behave morally and make a beneficial impact on society in
addition to their financial success. This idea contributes to the understanding of how CSR
activities may improve a company's reputation and affect customer behavior. This is enhanced
by Stakeholder Theory, which emphasizes the significance of attending to the demands and
interests of all parties involved, including suppliers, consumers, workers, and the larger society.
This theory offers a framework for comprehending how companies might build strong bonds
with all their stakeholders in order to achieve long-term success.
2.1 Corporate Social Responsibility Theory (CSR)
With its origins dating back to the 18th century, the concept of corporate social responsibility
(CSR) has developed significantly over the years (Kruse, E, 2018; Werther Jr et al., 2010;
Carroll, A, 1991). The concept of corporate social responsibility has evolved from the 1950s to
the present, with a focus on sustainable values (Latapi Agudelo et al. 2019).
Despite the differences in CSR definitions, the European Union puts strong emphasis on
businesses making voluntary contributions to a better society and cleaner environment which
benefits all parties as well as promotes long term prosperity (Gronroos, C, 2016; Corner P,
2001). CSR is designed to promote society's consent, and when it isn't mandatory under law,
businesses need to be ethical and open about their practices (Blowfield M, 2008).

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Famously, Friedman criticized CSR as an ill-defined idea, contending that businesses are really
set up to maximize profits for their owners (Friedman M, 2007). However, the definition and
use of CSR may vary according to the company and cultural context (Matten et al., 2008;
Rasche et al., 2017) Five perspectives on corporate social responsibility are described:
normative, integrative, instrumental, political, and emergent CSR, highlighting the reasons for
and consequences of CSR adoption (Rasche et al. 2017).
Economic, legal, ethical and charitable duties are part of the four levels of the CSR pyramid.
Profitability and productivity are essential, which is also highlighted by economic
responsibility. Responsibility for the law is based on adherence to laws and justice. Beyond
legal requirements, ethical responsibility reflects cultural norms that prioritize justice and
respect. Although it isn't a genuine obligation, philanthropic responsibility deals with societal
expectations and how they affect a company's brand and interactions with stakeholders. (Carroll
A, 1991).
The fashion business is a hot topic for corporate social responsibility discussions because of its
labor-intensive production methods and the intense scrutiny it receives for worker exploitation
and child labor (Smestadt, 2010). Global companies are increasingly responsible for the social
performance of their supply chains, in addition to their own commercial activities (Andersen et
al., 2009; Seuring et al., 2008). Both corporate and charitable objectives are behind the fashion
CSR projects. Risk management, investor relations, operational efficiency, reputation and
employee motivation can all be improved by implementing CSR strategically (Carter, 2005;
Vogel, 2005; Carter et al., 2008; Porter et al., 2002; Burke et al., 1996). However, the
complexity, fragmentation, and lack of transparency that characterize the fashion supply chain
make it difficult to apply CSR successfully (Gwilt et al., 2011; Wong et al., 2000; Dickson et
al., 2006; Goworek, 2011).
In the electronics sector, about electronic waste management, there are also problems related to
CSR. The problem of e-waste is exacerbated by urbanization and rising disposable income,
which calls for more sustainable behavior and better waste management (Phulwani et al., 2021).
The implementation of CSR in the electronics and fashion sectors is affected by several
variables. One of them is the opportunity to market environmentally friendly, green and ethical
products in response to customer demand (Wong et al., 2000; Dickson et al., 2006) and
competitive pressures to offer CSR based products (Birtwistle et al., 2007; Goworek, 2011). In

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addition, moral behavior is promoted by NGOs' efforts and demands from the general
population (Sutantoputra, 2009; Seuring et al., 2008), Although business executives may feel
morally obliged to take part in CSR projects (Smith, 2003; Carter, 2005). The possibility of cost
savings in manufacturing inputs, waste management and liability are also influencing the
adoption of CSR (Carter et al., 2008; Porter et al., 2002). In addition, a major factor in
encouraging businesses to adopt socially responsible practices is government rules on the
enforcement of corporate social responsibility obligations (Epstein et al., 2003; Searcy, 2011).
2.2 Stakeholder Theory
Stakeholder theory states that the interests of all parties concerned, not just shareholders, should
be considered by undertakings. This includes workers, clients, suppliers, municipalities and
even the environment as well. Freeman (1984) asserts that an organization's ability to effectively
manage these connections is critical to its success (Freeman, 1984). In addition to maximizing
profits, the Freeman Stakeholder Theory suggests that companies need to consider and adapt
their requirements about a variety of stakeholders. Thanks to this philosophy, corporate
emphasis has shifted towards a more ethical and inclusive way of conducting business. It argues
that by listening to stakeholders' expectations and concerns, businesses will be able to sustain
their success and gain more durable contacts (Freeman, 1984).
The stakeholder theory focuses on the importance of accountability and openness when it comes
to supply chain ethics, regarding procurement of materials, labor conditions and effects on the
environment. Ethical raw material procurement, which has a direct influence on suppliers and
local communities, for example, includes enforcement of fair-trade standards as well as
reducing environmental harm (Donaldson et al., 1995). In addition, it contributes to the interests
of workers and increases their loyalty and productivity when they pay fair wages and uphold
good working conditions (Clarkson, 1995).
Stakeholder Theory emphasizes how, from the standpoint of the consumer, people are starting
to see their purchases to communicate their ethical beliefs. Today's consumers are more aware
of the effects that goods purchased have on other parties, for instance environmentalists and
workers in manufacturing plants. By demonstrating its commitment to ethical practices through
CSR activities, like the sustainability of product lifecycle management and ecofriendly
packaging, businesses can positively influence customers' perceptions and their buying
intentions (Jones, 1995; Carroll, 1991).

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The implementation of stakeholder driven initiatives, such as controlling ethical behavior costs
and balancing competing interests, is subject to obstacles. However, the long-term benefits,
such as improved risk management, customer loyalty, and brand reputation, are often
outweighed by these difficulties. For example, in terms of overall sustainability and stakeholder
satisfaction, companies which implement comprehensive CSR policies generally have a better
track record (Clarkson, 1995).
2.3 Consumer Perception and Purchase intentions towards sustainable products
Consumers' perceptions of and interest in purchasing sustainably produced products are affected
by several societal and environmental issues. Most clothing is worn only seven or eight times
before it's thrown away, with 15% recycled and used for other purposes while the remaining
75% ends up in landfills or incineration (Soyer et al., 2021). The clothing industry is using
considerable resources to produce 1.2 billion tons of CO2 equivalent each year (Niinimäki et
al., 2020; Sanders et al., 2019; Soyer et al., 2021). Fast fashion aggravates waste and excess
consumption, despite the growing environmental consciousness of today's youth (Jin et al.,
2012; Beckh et al., 2022). However, the consumption of faster fashion is increasing because of
factors such as quality, affordability, societal conventions and aesthetics preferences, resulting
in a gap between intentions and behavior (Yuan et al., 2019; Kollmuss et al., 2002; Bocti et al.,
2021; Park et al., 2020).
There are similar challenges in the electronics sector. The growth of the Electrical and
Electronic Equipment sector can be attributed to several variables such as situational, societal
or economic conditions (Li, 2023). Romania is one of the many regions which still lack this
kind of development, even though recycling electronic devices is essential to a circular
economy. Although there is a sizable worldwide market for eco-friendly goods, consumers are
not very interested in buying recycled electronic products (Li, 2023). The way in which
consumers perceive and apply sustainable technologies is also affected by geopolitical
instability, for example Russowar and social media usage (Beckh et al., 2022).
2.4 Independent Variables
2.4.1 Ethical Sourcing of Raw Material
Ethical procurement of raw materials is essential for ensuring sustainability and reducing
environmental impacts. Some of the methods used in this phase include sustainable agriculture,
exploitation of natural raw materials, ethical sourcing and fair trade (Fortunati S, 2020 By

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conserving biodiversity and adhering to the guidelines of green chemistry, businesses aim at
reducing their environmental impacts (Yilan G, 2022). Controlling eco-toxicity,
biodegradability, and bioaccumulation is aided by life cycle assessment (LCA). In addition, it
is common for companies to use eco-friendly products made from recycled materials and they
are frequently involved in circular economy networks with a view to promoting industry
cooperation (Fortunati, 2020).
Different brands have different CSR policies about ethical sourcing (Lund Thomsen, 2020). For
example, H&M charges more for its "conscious" product lines because they employ sustainable
materials like recycled polyester and organic cotton, yet Nike places a greater emphasis on
product safety to maintain high CSR levels (Galica J, 2022). To promote ethical procurement
and transparency in the supply chain, luxury companies such as Louis Vuitton are using
decentralisation technology. Ethical sourcing, based on social and ethical principles, improves
the sustainability of the supply chain and the welfare of the community. Ethical purchasing from
suppliers in order to protect the environment and human life is a part of this, which will
contribute towards creating an eco-friendly supply chain (Garriga & Melé, 2004; Gunasekaran
& Spalanzani, 2012; Cantor et al., 2012; Drake & Schlachter, 2008; Muller, 2009; Beamon,
2005). Therefore, we are proposing the following hypothesis:
H1: Ethical sourcing of raw materials has a positive impact on sustainable product perceptions
and purchase intentions.
2.4.2 Labor Conditions and Fair Wages
Workers sometimes find that their pay is insufficient to meet basic needs because of rising living
expenses. Despite annual government changes, employees often do not receive enough to live
on. Unstable working conditions that lack social integration and stability can result from flexible
and undisciplined work arrangements which are common in the Global North, including labour
leasing and gig jobs (Kalleberg & Hewison, 2013). This precarious situation has a serious
impact on the health, happiness and social life of the individual. Furthermore, the disparity
between growing minimum wage levels and increases in worker productivity has expanded,
making it more difficult for workers to obtain a livelihood and escalating income inequality
(Smith, 2021; Reeves et al., 2023).
Living wages have been advocated above minimum wages, which frequently fall short of
pulling workers out of poverty. To meet basic needs, living wages are intended to provide a fair

8
level of income. Adequate employment and working conditions are essential to develop
capabilities and general well-being (Carr et al., 2016; Searle et al., 2021). Since the 1970s, legal
minimum wages have not kept pace with productivity growth in industrialized countries and
this has resulted in income disparities around the world (United Nations, 2020). As a result,
there is an emerging movement to raise living wages that are much higher than minimum wage
rates to sustain one's quality of life, family and future savings (Eurofound, 2018). The idea of a
"living wage" which broadens the standard requirements to quality of life is an incredible
improvement in worker's ability to live satisfying lives (Carr et al., 2018; Yao et al., 2017).
Consequently, we present our second hypothesis in the following way:
H2: The positive impact on consumer attitudes and intentions to buy sustainable products is
due to the fairness of wages and working conditions.
2.4.3 Eco-friendly Packaging Solutions
Products are presented, preserved, and protected in packaging to please customers
(Dharmadhikari, 2012). As a result of increasing consumer awareness and government
requirements, packaging, which has traditionally been mainly concerned with marketing and
logistics, is becoming more involved in the environment. Sustainable food packaging is
becoming increasingly necessary because of health and environment concerns related to the use
of conventional packaging. To improve quality and security, life cycle models have been applied
in the assessment of Sustainable Packaging's Environmental Impact as well as sensor
technologies for Smart Packaging systems. To determine factors such as temperature and
humidity, these instruments use naturally occurring additives. (Nguyen et al., 2021).
Bioactive substances derived from natural sources, such as plants and fruits, have anti-
inflammatory, antibacterial and antioxidant properties, which enhance food safety and prolong
their shelf life, in smart packaging (Messinese et al., 2024). However, obstacles such as cost
and technical difficulties are preventing broad use despite the customers' desire. In the absence
of reliable data, businesses find it difficult to defend their efforts regarding sustainable
packaging. Poor decisions are often made by customers since they do not understand how
sustainable packaging options really exist. To tackle these issues, it is necessary to understand
consumer motivations in support of ecofriendly packaging and sustainable practice (Lan et al.,
2023). As a result, we propose our third hypothesis as follows:

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H3: The propensity of consumers for buying sustainable products is positively influenced by
environmental packaging options.
2.4.4 Corporate Social Responsibility (CSR) Initiatives
CSR has the potential to improve business performance, have a positive impact on society and
increase customer purchasing intentions (Baskentli et al., 2019). The impact of a CSR
programme will vary according to its compatibility with the company's general strategy (Marin
et al., 2007; Nickerson et al., 2021). For example, when a company's CSR activities are in line
with its business plan, it is more likely that its customers' happiness and company value will
increase (Aksoy et al., 2022; Ivanov et al., 2013). However, it is often difficult for businesses
to convince investors and consumers of their CSR initiatives which lead to a disconnect between
these actions and the perceived performance of companies (Kramer, 2018).
CSR initiatives have a greater impact on the satisfaction of consumers for product
manufacturers as compared to service providers, given that products are intangible assets
(Aksoy et al., 2022). The impact of CSR, which has a smaller effect on customer satisfaction,
is harder to see given the fact that services are not purely tangible (Ghanbarpour et al., 2022).
Customer satisfaction is likely to increase when a company's primary business objective
incorporates value-creating CSR initiatives (Chen et al., 2018). In addition, CSR initiatives
linked to the company's core position are more popular with customers as opposed to general
and less concentrated CSR efforts. CSR remains important, particularly in view of legislation
that encourages it to be implemented by the company. In doing so, it promotes public relations
and the development of the local community as well as promoting company objectives. (Du et
al., 2007). Therefore, we introduce our fourth hypothesis as stated below:
H4: Corporate social responsibility CSR initiatives have a positive impact on consumer
purchasing intentions for sustainable products.
2.5 Product Lifecycle Management (PLM)
Product lifecycle management (PLM) is an attempt to control all information and knowledge
relating to a product throughout its life cycle in order to enhance corporate competitiveness. It
was difficult for collaboration partners to integrate and share information in the 4.0 industry,
due to the centralized and decentralized nature of the PLM systems in the past (XL Liu et al.,
2020). To address these problems, it has been proposed that a PLM blockchain framework be

10
developed which would facilitate the sharing of services and exchange of information during
the product life cycle (Chen et al., 2020).
From the conception of a product until its disposal, PLM covers a wide range of commercial,
management and technical tasks (Stark J, 2024). The rapid development of large data, cloud
computing, Internet of Things (IoT), Artificial Intelligence (AI) and all kinds of technologies is
making a difference in the evolution of modern manufacturing which has an impact on Product
Lifecycle Management (Ghosh et al., 2024). The vision of intelligent manufacturing, through
the integration of artificial intelligence and advanced production, is shared by national industrial
strategy around the world, such as Industry 4.0 in Germany and Made in China 2025
(Rasoulinezhad et al, 2024). Today's PLM processes encompass a wide range of phases in the
product lifecycle, including market analysis, product design, process development,
manufacturing, distribution, usage, post-sale service, and recycling (Stark J, 2024).
Accordingly, we formulate our fifth hypothesis in the following manner:
H5: The link between CSR actions and customer purchase intentions for sustainable products
is moderated by product lifecycle management (PLM).
Figure 1 gives a description of the study research framework. The model shows a relationship
between the independent variables (i.e. Ethical Sourcing of Raw Materials, Labor Conditions
and Fair Wages, Eco-friendly Packaging Solutions, Corporate Social Responsibility (CSR)
Initiatives) and dependent variable (i.e., Consumer Perception and Purchase Intentions Towards
Sustainable Products). Moreover, the influence of product lifecycle management.

Figure 1. The research framework

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3. Methodology
3.1. Participants
In total 258 respondents completed and returned the questionnaire. Figure 2 below shows that 134 of the
respondents are males, while 108 are females. In total, 38 of the respondents are PhD holders, 60
respondents are masters graduate, 86 undergraduate degree holders, 34 vocational education, 8
secondary school, while 32 participants are primary school graduates. Finally, most respondents (150)
are between 25 and 35 years old.
Table 1: Demographics
Marital status

22
Widowed

26

124
Single

86
Education Level

38
Master

60

86
Diploma

34

40
years ≥ 56 years Female
Gender

124
Group

134

20

48
Age group

36–45

98

92
≤ 25 years

92

0 20 40 60 80 100 120 140 160

Figure 2: Respondents’ demographics

3.2. Procedure
The recruitment of participants was carried out through a range of channels, including
community centers, and internet platforms. Research has been made publicly available to
potential volunteers through a focused outreach effort. In promoting voluntary participation from

12
people of all ages, education levels and geographic areas, the recruitment method has highlighted
a high emphasis on diversity.
The non-random sampling procedure was justified by the need to ensure representation across
diverse demographics within the German community. By targeting community centers, and
internet platforms, the recruitment process aimed to capture a wide range of perspectives, ages,
educational backgrounds, and geographical locations. This intentional approach facilitated a
more comprehensive understanding of the population, allowing for richer insights into the
beliefs, practices, and experiences of German nationals within Germany. Additionally, the
focused outreach effort ensured accessibility to research participation, promoting inclusivity
and engagement among potential volunteers.
To gather information on the customs of Consumer perception and purchase intentions towards
sustainable products, ethical sourcing of raw materials, labor conditions and fair wages, eco-
friendly packaging solutions and corporate social responsibility (CSR) initiatives and impact on
product lifecycle a thorough questionnaire has been implemented in this study. Subsequently,
the survey has been converted to a Google Forms version for online dissemination. Social
media, email and in person interactions were used to contact a total of 950 respondents. A total
of 259 responses have been submitted and analyzed for this study.
Despite the large outreach, a notable response rate of 31% was achieved, with 259 highly
engaged respondents providing valuable insights for analysis. This high level of involvement
underscores the significance and relevance of the research to the Muslim community, enhancing
the credibility and robustness of the study findings.
3.3. Measures
A survey instrument utilizing a 5-point Likert scale (5 = strongly agree, 4 = agree, 3 = no
opinion/neutral, 2 = disagree, and 1 = strongly disagree) was developed, comprising three
sections. The first segment explores the ethical sourcing of raw materials, encompassing six
items modified from (Garriga et al., 2004), (Cantor et al., 2012), (Gunasekaran et al., 2012),
(Drake et al., 2008), (Aras-Beger et al., 2020), (Searle et al., 2021), (Reeves et al., 2017),
(Kalleberg et al., 2013), (Chesters J, 2024), (Cullen Z, 2024), (Carr et al., 2016),
(Dharmadhikari, 2012), (Nguyen et al., 2021), (Zeng et al., 2019), (Lan et al., 2023), (Baskentli
et al., 2019), (Kramer, 2018), and (Aksoy et al., 2020). The second part investigates Product
lifecycle management (PLM) with five items adapted from (Chen et al., 2022), (Gecevska et

13
al., 2013), (Tyulin et al., 2020), and (Smith et al., 2019). Lastly, the third section examines
Consumer perception and purchase intentions towards sustainable products, incorporating
seven items rooted in the studies of (Monferrer Tirado et al., 2023), (Lan et al., 2023), (Reeves
et al., 2021), (Aksoy et al., 2022), (Kramer, 2018), and (Du et al., 2007).
4. Results
4.1. Measurement model assessment
Fitting the model depicted in Figure 1 using the PLS algorithm leads to a two-step assessment
process to ensure the validity and reliability of results. In the first stage, the model was assessed
by applying tests to the outer model and establishing convergence and discriminant validity.
Measures such as internal consistency and construction reliability have been considered. By
comparing the link between latent constructs and the square root of Average Variance Extracted
(AVE), discriminant validity was assessed. The next step involved examining the Structural
(Inner) model and hypotheses, predicting the relationships suggested in the research model by
using the Coefficient of Determination (R2).
As shown in Table 2, a good scale reliability - Cronbach alpha values exceed 0.7- is achieved.
Furthermore, for convergent validity assessment every construct's AVE value exceeds 0.5
(Henseler et al. 2009) confirming the measuring tool's convergence validity.

Table 2. Reliability and loading values of the constructs.

Construct Item FL CA CR AVE
Ethical Sourcing A company ensures that raw materials 0.814 0.905 0.921 0.702
of Raw Materials are sourced sustainably to minimize
environmental impact
A company prioritizes ethical sourc- 0.864
ing as fair trade in its supply chain
A company uses recycled materials in 0.885
its production processes

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Construct Item FL CA CR AVE
The company collaborates with sup- 0.880
pliers to ensure ethical sourcing prac-
tices are followed
The company’s ethical sourcing prac- 0.737
tices lead to improved environmental
performance
Labor Conditions The company provides wages that are 0.855 0.906 0.927 0.716
and Fair Wages sufficient to meet the daily needs of
its workers
The company regularly adjusts wages 0.843
to keep up with the cost of living
The company ensures that workers 0.828
have secure and stable employment
contracts
The company provides a safe and 0.836
healthy working environment for its
employees
The company offers fair wages that 0.869
reflect the productivity of its workers
Eco-friendly The company uses packaging that 0.748 0.884 0.903 0.653
Packaging Solu- minimizes environmental impact
tions The company’s packaging materials 0.764
are biodegradable or recyclable
The company uses innovative pack- 0.860
aging solutions that help preserve
product quality
The company uses smart packaging 0.787
technologies to extend product shelf
life

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Construct Item FL CA CR AVE
The company educates consumers on 0.872
the environmental benefits of its
packaging
Corporate Social The company actively engages in so- 0.817 0.867 0.905 0.703
Responsibility cial responsibility initiatives to im-
(CSR) Initiatives prove its performance
The company effectively communi- 0.864
cates its CSR initiatives to custom-
ers/investors
CSR initiatives consistent with the 0.867
company's business strategy posi-
tively impact customer satisfaction
and firm value
CSR activities are harder for service 0.804
customers to perceive due to the in-
tangible nature of services
Product Lifecycle The company's product lifecycle 0.757 0.862 0.891 0.620
Management management efficiently tracks prod-
uct information throughout its lifecy-
cle.
The product lifecycle management 0.848
system helps the company quickly
adapt to changes in the market
The product lifecycle management 0.746
helps the company stay competitive
in the market
The company ensures easy sharing of 0.806
product information among all rele-
vant parties through product lifecycle
management

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 Construct Item FL CA CR AVE
The company follows a clear process 0.776
for each stage of the product lifecycle,
from design to disposal
Consumer Percep- I am willing to pay more for products 0.779 0.920 0.934 0.671
tion and Purchase that are ethically sourced and sustain-
Intentions To- ably produced
wards Sustainable Eco-friendly packaging influences 0.825
Products my purchasing decision
I am more likely to purchase products 0.868
from brands that ensure fair labor
conditions and wages for their work-
ers
I like to buy from companies that care 0.839
about the environment and society
A sustainable company makes me 0.840
feel better about buying their products
I look for information about a com- 0.771
pany’s sustainability practices before
I buy their products
I feel more satisfied with my purchase 0.809
when I know it was made sustainably

The Fornell-Larker criterion, which requires the AVE of each latent concept to be greater than
the greatest squared correlation with all other components, was used to assess discriminant
validity. The requirements, which indicated the discriminant validity of the measurement
instrument, have been met according to Table 3.
Table 3. Discriminate validity of the constructs
ES LC EP CS PL CP ME1 ME2 ME3 ME4
ES 0.838
LC 0.572 0.846

17
 EP 0.411 0.600 0.808
CS 0.379 0.486 0.460 0.839
PL 0.359 0.451 0.491 0.354 0.787
CP 0.234 0.400 0.495 0.324 0.351 0.819
ME1 0.331 0.084 0.004 0.032 0.065 0.011 1.000
ME2 0.083 0.133 0.081 0.091 0.218 0.028 0.511 1.000
ME3 0.004 0.075 0.057 0.114 0.248 0.125 0.420 0.642 1.000
ME4 0.035 0.099 0.134 0.013 0.081 0.078 0.409 0.407 0.492 1.000

Note: ES = Ethical Sourcing of Raw Materials, LC = Labor Conditions and Fair Wages, EP =
Eco-friendly Packaging Solutions, CS = Corporate Social Responsibility (CSR) Initiatives, PL
= Product Lifecycle Management, CP = Consumer Perception and Purchase Intentions Towards
Sustainable Products, ME1 = Moderating Effect 1, ME2 = Moderating Effect 2, ME3 =
Moderating Effect 3, ME4 = Moderating Effect 4.
4.2. Structural model assessment
The results of the structural model assessment that examined the relationship between the
various variables in the recommended model, are presented in Table 4; for each hypothesized
path, estimated path coefficients were tested. The sign, magnitude, and meaning of the path
coefficients are considered. To assess the significance of each estimated path, bootstrapping
using 5000 re-samples drawn with substitution was used. The coefficient of determination R2
is used to assess the structural model's explanatory capacity and evaluate the model's ability to
anticipate endogenous constructs.
The findings indicate that there is a positive relationship between Ethical sourcing of raw
materials, and Consumer perception and purchase intentions towards sustainable products (β=
0.162, t = 2.834, p < 0.000); the labor conditions and fair wages (β= 0.178, t = 2.038, p < 0.042);
Eco-friendly packaging solutions (β= 0.363, t = 4.554, p < 0.000); Consumer perception and
purchase intentions towards sustainable products (β= 0.172, t = 2.364, p < 0.026); Product
lifecycle management (β= 0.186, t = 2.649, p < 0.008) . These findings also provide evidence
to support the hypotheses H1 and H2. The findings also support the moderating role of Product
lifecycle management in the relationships between consumer perception and purchase
intentions towards sustainable products (β = 0.194, t = 2.205, p < 0.035), providing support to
H2.

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 Table 4. Structural equation modelling results
Path coefficient T Statistics P Values
ES -> CP 0.162 2.834 0.000
LC -> CP 0.178 2.038 0.042
EP -> CP 0.363 4.554 0.000
CS -> CP 0.172 2.364 0.026
PL -> CP 0.186 2.649 0.008
ME1 -> CP 0.194 2.205 0.035
ME2 -> CP 0.163 2.201 0.038
ME3 -> CP 0.238 3.646 0.000
ME4 -> CP 0.169 2.151 0.034

Finally, the fit model in PLS was assessed by employing the Stone-Geisser Q2 (predictive
relevance) and the standardized root mean square residual (SRMR). Q2 determines how well
the model, and its anticipated parameters match the observed values. A Q2 value greater than 0
indicates predictive relevance. The composite model SRMR value of independent and
dependent variables was 0.076, which technically meets Hu and Bentler's (1999) recommended
value of 0.08, indicating a strong model fit. The adjusted R2 value was 0.572, this means that
the independent factors explained almost half of the variation in respondents’ consumer
perception and purchase intentions towards sustainable products. In the existence of the
moderating variable (Product lifecycle management), the composite model SRMR value was
0.074. The adjusted R2 value is 0.624 which is lower than Hu and Bentler's recommended value
of 0.08, revealing a good model fit.
5. Discussion
5.1. Discussion of findings
The research findings highlight the significance of ethical supply chain procedures and their
profound influence on the attitudes and actions of consumers. This aligns with research that
highlights how customers are becoming more conscious of and demanding ethical company
practices (Yahya Yusuf et al., 2014). The findings are consistent with the Ethical Supply Chain
Management (ESCM) theoretical paradigm, which emphasizes social responsibility and
environmental care while integrating moral principles at every stage of a supply chain's life
(Olaniyi Kolade, 2024).

19
The findings also mirrored the introduction's emphasis on the growing concern over labor
standards in developing nations. The research backs up earlier assertions made by (Auger et al.,
2003; Sancha et al., 2019) regarding the influence of ethical sourcing procedures on customers
and the potential benefits to businesses of implementing these practices on their brand image
and customer loyalty. The backlash against companies like Nike and Walmart prior to their
adoption of strict ethical standards is evidence that bad working conditions and unethical labor
practices can have a detrimental effect on consumer views, as demonstrated by the findings of
this study (Strom S, 1996; Bonjo S, 2014).
Furthermore, the findings align with the body of research on how packaging affects the
environment and how customers can urge companies to use eco-friendly practices (Lindh et al.,
2016; Wikstrom et al., 2018; Magnier et al., 2015). The results of this study support the notion
found in the literature that consumers are increasingly considering sustainable packaging when
making decisions, finding that environmental practices of businesses have a major impact on
consumers' purchase intentions (Boks et al., 2007; Koenig-Lewis et al., 2014).
The congruence of these results with earlier studies emphasizes how important ethical behavior
is to contemporary supply chain management. This study adds to our understanding of how
businesses can strategically leverage ethical practices to improve their market position and
satisfy the increasingly demanding demands of socially conscious consumers by validating the
significant positive impact that sustainable practices and ethical sourcing have on consumer
perceptions.
5.2. Theoretical and practical implications
The theoretical discussion of ethical supply chain management (ESCM) and corporate social
responsibility (CSR) has benefited greatly from this work. It supports the idea that companies
must include ethical considerations into their core operations to succeed in the contemporary
marketplace by providing empirical evidence of the beneficial effects of ethical practices on
consumer perceptions and purchase intentions. This is in line with (Carroll, 1991) paradigm for
corporate social responsibility, which encourages companies to concurrently handle their legal,
ethical, charitable, and commercial obligations.
The study offers a sophisticated comprehension of Product Lifecycle Management (PLM) as a
moderating element, implying that an all-encompassing lifecycle management amplifies the
favorable impacts of ethical practices on consumer attitudes. This PLM-CSR integration

20
provides a more comprehensive view of how companies might attain long-term sustainability
and customer happiness. The findings are consistent with the theoretical viewpoints put out by
(Mitchell, 2024) who maintained that attaining holistic corporate sustainability requires
incorporating sustainability into all phases of the product lifecycle. Moreover, this research
extends the Stakeholder Theory by (Freeman, 1984), which posits that businesses must consider
the interests of all stakeholders, including consumers, employees, suppliers, and the community.
The findings show that ethical practices not only satisfy consumer demands but also contribute
to overall stakeholder satisfaction, thereby reinforcing the interconnectedness of ethical
behavior and stakeholder value.
Practically speaking, the study's conclusions offer several useful suggestions for companies
looking to boost customer impressions and strengthen their sustainability plans. To enhance
customer views and buy intents, businesses should place a high priority on fair labor methods,
environmentally friendly packaging, and ethical sourcing. In addition to being morally right,
these actions can provide businesses with a competitive edge in the market and increase brand
loyalty (Sancha et al., 2019).
Strong Product Lifecycle Management (PLM) systems can greatly increase the beneficial
effects of these moral behavior strategies. It is recommended that companies incorporate
Product Lifecycle Management (PLM) into their overall sustainability plan to guarantee ethical
practices are upheld throughout the product's lifecycle, consequently improving consumer
happiness and confidence. This strategy is in line with the suggestions made by (Agyabeng-
Mensah et al., 2020), who stressed the significance of moral work practices and how they affect
consumer behavior.
Businesses should also put a lot of effort into communicating openly about their ethical
standards. Companies may strengthen their relationships with customers and other stakeholders
by showcasing their commitment to sustainable and ethical business practices through effective
communication methods. This is consistent with (Maignan, 2002) analysis, which emphasized
the significance of communication and transparency in CSR operations. According to the report,
companies should spend money on environmentally friendly packaging options to satisfy both
legal and customer demands. This is important because environmentally friendly packaging and
products are becoming more and more important to customers, and companies who don't adjust
to these preferences risk losing market share (Lindh et al., 2016).

21
All things considered; this study offers a thorough framework that companies may use to
incorporate ethical principles into their daily operations. By doing this, they can support more
general societal and environmental objectives in addition to improving their market position.
To gain a better understanding of the relationship between sustainability and consumer
behavior, future research should investigate the long-term effects of these practices on customer
loyalty and corporate performance.

5.3. Limitations and further research

Despite the insightful information this study offered, several limitations must be noted. First
off, the results' generalizability can be constrained by the sample size and participant
demographic variety. The study's primary focus was on a particular demographic and
geographic area, which may not be representative of all consumers. To improve the
generalizability of the findings, larger and more varied samples should be used in future studies.
Furthermore, the research depends on self-reported information, which may be influenced by
social desirability bias. It's possible that participants gave answers that were more in line with
social norms than with their actual beliefs and tendencies.
Thirdly, the study's cross-sectional design makes it more difficult to determine causality. The
results do not prove causation, but they do show a strong correlation between ethical behavior
and customer views and purchasing intentions. To investigate the causal relationships between
ethical behaviors and consumer behavior across time, longitudinal research is required. The
potential impact of outside variables that were not taken into consideration in the study is
another drawback. Variables including individual values and beliefs, cultural and economic
disparities, and product perceptions may also influence consumer intentions to purchase
sustainable goods. These elements should be considered in future studies to offer a more
thorough understanding of the dynamics at work.
Furthermore, the survey ignored the viewpoints of other stakeholders, including suppliers,
employees, and the larger community, in favor of concentrating primarily on the customer
perspective. Gaining insight into the effects of ethical practices from the viewpoint of multiple
stakeholders may enable a more comprehensive understanding of the advantages and difficulties
related to ethical supply chain management.
Lastly, even though the study emphasizes the role that Product Lifecycle Management (PLM)

22
plays as a moderating factor, it skips over delving into the precise processes by which PLM
improves the efficacy of ethical practices. Subsequent studies could go deeper into these
systems to offer more precise recommendations for companies looking to integrate PLM with
moral behavior.
Considering these drawbacks, the study lays the groundwork for further research in this field
by making significant contributions to our knowledge of ethical supply chain management and
how it affects customer behavior.
6. Conclusion
This study concludes by highlighting the important influence that ethical supply chain practices
have on consumers' views and intentions to buy. The results are consistent with previous
research, highlighting how crucial ethical sourcing, labor standards, and environmentally
friendly packaging are to contemporary corporate operations. The study's theoretical
contributions bolster the foundation of ethical supply chain management, and its practical
implications offer useful advice to companies looking to improve their competitiveness by
implementing sustainable and ethical business practices. Subsequent investigations may go
deeper into the enduring effects of these methodologies on customer allegiance and commercial
outcomes.
Businesses may meet the demands of socially conscious consumers and advance wider societal
and environmental objectives by incorporating ethical considerations into their supply chains.
Businesses looking to prosper in a more ethically aware market environment must prioritize both
effective supply chain management and ethics.

23
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