Business Research Proposal: The Perception vs. Reality of Ethical Supply Chains

1. Gap Analysis Summary: A clear, evidence-based assessment of the specific disconnects between what consumers believe "ethical" and "sustainable" means for workers and the documented realities.
2. Consumer Perception Model: An analysis of the key drivers behind consumer trust and the relative importance they place on different ethical claims (e.g., fair wages, safety, environmentalism).
3. Supply Chain Risk Matrix: Identification of the highest-risk stages within a typical global supply chain where labor exploitation is most likely to occur, despite sustainability initiatives.
4. Actionable Strategic Framework: A set of strategic recommendations for a company to (a) genuinely improve labor standards in its supply chain and (b) communicate these efforts transparently and effectively to build authentic consumer trust.
5. Measurement Dashboard: A list of key performance indicators (KPIs) to track the progress of ethical supply chain initiatives and their impact on consumer perception over time.

Part 1: Information Collection Plan

Recommended Framework: Gap Analysis complemented by the KANO Model and Value Chain Analysis

• Gap Analysis: This is our foundational framework. It's a method used to compare an actual state with a potential or desired state. In our case, we will compare the "Reality of Labor Practices" (actual state) against "Consumer Perception of Ethical Sourcing" (desired state). This structure will keep our research focused on the core question.
• KANO Model: This model is used to understand customer satisfaction. It classifies customer preferences into five categories:
  • Must-be: Attributes that are taken for granted. Their absence leads to extreme dissatisfaction (e.g., consumers assume products are not made with child labor).
  • One-dimensional: Attributes where more is better, and their presence increases satisfaction (e.g., a brand paying higher-than-average wages).
  • Attractive: Unexpected attributes that can cause positive surprise and delight (e.g., a program that provides education for workers' children).
  • Indifferent: Attributes that consumers don't care about.
  • Reverse: Attributes whose presence can cause dissatisfaction.
• Value Chain Analysis (with an Ethical Lens): This framework breaks down a company's operations into a series of activities (e.g., raw material sourcing, manufacturing, logistics). We will adapt it to map the journey of a product from source to store, applying an "ethical lens" at each step to identify where labor practices are most vulnerable.

• This combination is ideal because it allows for a multi-layered investigation. The Gap Analysis provides the overall structure. The KANO Model will help us deconstruct what "ethical" means to consumers and prioritize which gaps are most damaging to brand trust. The Ethical Value Chain Analysis will provide a systematic way to investigate the "reality" side of the equation, moving beyond anecdotes to pinpoint systemic risks.

Information Collection Methods

• Search Queries:
  • "NGO reports on labor conditions in [specific industry e.g., fashion, electronics] supply chains"
  • "academic studies on effectiveness of corporate social responsibility (CSR) audits"
  • "living wage vs minimum wage in [specific region e.g., Southeast Asia, Latin America]"
  • "documented cases of forced labor in 'sustainable' or 'eco-friendly' certified factories"
  • "challenges and loopholes in supply chain auditing"
  • "consumer trust in sustainability certifications and eco-labels"
• Analysis Purpose: This information is critical for building the "reality" side of our Gap Analysis. Reports from NGOs and academic institutions provide credible, third-party evidence of systemic issues like the gap between legal minimum wages and a true living wage, the prevalence of forced labor, and the challenges of effective auditing. This allows us to create an evidence-based map of labor risks within the value chain of a given industry. It moves the analysis from assumption to fact.

• Interview Subjects:
  • Segment 1: "Conscious Consumers." Individuals who actively seek out and report purchasing products from brands they believe are ethical or sustainable.
  • Segment 2: "General Shoppers." Individuals who are aware of sustainability as a concept but do not prioritize it in their purchasing decisions.
  • Rationale: Comparing these two groups will highlight whether the perception gap is universal or more pronounced among those who are more invested in the idea of ethical consumerism.
• Interview Purpose: To understand what specific beliefs consumers hold about "sustainability" and "ethical production," how they weigh environmental versus social (labor) issues, and which claims from brands are most powerful in shaping their perception and trust. A 2021 global study showed 85% of consumers reported shifting to greener alternatives, yet 74% in a US study didn't know how to identify a sustainable product, highlighting the confusion brands can leverage.
• Core Interview Questions:
  1. "When you see a product with a label like 'sustainably sourced' or 'eco-friendly,' what does that signal to you about the people who made it? What are your expectations for their working conditions?"
     • Analysis Purpose: This question establishes the baseline of consumer perception. It directly uncovers the assumptions that form the "desired state" in our Gap Analysis. It also helps identify if consumers conflate environmental sustainability with ethical labor practices.
  2. "Imagine two t-shirts. One is marketed as being made from 100% organic cotton. The other is marketed as paying all its workers a certified living wage. If they cost the same, which is more appealing to you, and why?"
     • Analysis Purpose: This is a trade-off question designed for the KANO model. It helps us understand the relative importance of different ethical claims (environmental vs. social) and which attributes are "One-dimensional" (more is better) or "Must-haves."
  3. "Think about a brand you trust as being 'good.' What have you seen or heard that gives you this confidence? Conversely, what would have to be true for that brand to lose your trust completely?"
     • Analysis Purpose: This question identifies the key drivers of trust and the potential "deal-breakers." This is crucial for the KANO analysis to distinguish between "Must-be" attributes (the absence of which causes dissatisfaction) and "Attractive" attributes (which can build positive brand equity).
  4. "If a report revealed that a brand known for its strong environmental work was using factories with unsafe working conditions, how would that change your view of their 'sustainability' claims?"
     • Analysis Purpose: This directly tests the central hypothesis of the study. The responses will provide rich qualitative data on the depth and nature of the perception gap and the potential fallout for brands when the reality is exposed.

Part 2: Information Analysis Plan

1. Develop the "Reality" Picture with Ethical Value Chain Analysis:
   • Action: Using the web search findings (NGO reports, news investigations, academic papers), map out the primary stages of a target industry's supply chain (e.g., for apparel: Raw Material Cultivation -> Textile Production -> Garment Assembly -> Logistics -> Retail).
   • Process: At each stage, document the most common and severe labor risks identified in your research. For example, under "Garment Assembly," you might list "forced overtime," "wage theft," and "unsafe building structures," citing the reports you found. Quantify where possible (e.g., "Minimum wages in this region are often only 30-40% of the calculated living wage"). Note the documented failures of social auditing to detect these issues.
   • Output: A visual map of the value chain annotated with specific, evidence-based labor risks. This is the "Actual State" for your Gap Analysis.
2. Model the "Perception" Picture with the KANO Framework:
   • Action: Transcribe and code the responses from your user interviews.
   • Process: For each ethical attribute mentioned (e.g., "no child labor," "fair pay," "safe factories," "eco-friendly materials"), categorize it based on the KANO model by analyzing how interviewees talked about it.
     • Did they take it for granted? (e.g., "Obviously, they shouldn't be using child labor.") -> Must-be.
     • Did they see it as a positive differentiator? (e.g., "It's great that they pay above the average wage.") -> One-dimensional.
     • Were they surprised and impressed by it? (e.g., "Wow, I had no idea a company would offer free healthcare to workers' families.") -> Attractive.
   • Output: A prioritized list of consumer expectations regarding ethical labor, categorized by their impact on satisfaction. This is the "Desired State" for your Gap Analysis.
3. Execute the Gap Analysis:
   • Action: Create a table or a two-sided chart.
   • Process: On one side, list the prioritized consumer perceptions from your KANO analysis. On the other side, list the corresponding realities from your Ethical Value Chain map. For each row, clearly articulate the "Gap."
     • Example Row:
       • Consumer Perception (Must-be): "Workers are paid a fair wage that allows them to live."
       • Supply Chain Reality: "Documented evidence shows the legal minimum wage, which is often what is paid, is 42% of a living wage in India and leaves workers in poverty."
       • The Gap: "A critical gap exists between the consumer's fundamental expectation of a 'fair wage' and the reality of poverty-level wages, even in compliant factories."
   • Output: A clear, powerful summary of the core disconnects that directly answers the main research question.
4. Formulate Strategic Recommendations:
   • Action: Use the Gap Analysis to develop your strategic advice.
   • Process: Your recommendations should be directly linked to your findings.
     • If the largest gaps are on Must-be attributes (like safety or no forced labor), the primary recommendation must be about Risk Mitigation & Remediation. This involves deep, unannounced audits, investing in supplier capacity building, and potentially severing ties with suppliers who fail to remediate.
     • If there are opportunities around One-dimensional or Attractive attributes (like paying a living wage or community investment), the recommendation is about Value Creation & Authentic Marketing. This involves launching pilot programs for these initiatives, meticulously tracking their impact, and then building a transparent communication campaign around the proven results.
   • Output: The actionable strategic framework and measurement dashboard deliverables for your final report. This is how you provide "how-to" guidance to your client.