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Green governance? Local politics and ethical businesses in Great Britain

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Business Ethics A European Review

Published online on

Abstract

One of the least understood aspects of the world‐wide “greening of markets” is the emergence of local “ethical marketplaces” and the subset of alternative business models described as “ethical businesses.” But previous research has demonstrated the ability of local politicians to encourage their regions toward more ethical marketplaces. This paper explores the impact radical centrist third party representation has on the emergence of ethical businesses across Great Britain. To understand this relationship, we utilize a novel data set of organizations with membership in Ethical Junction, the United Kingdom's largest network for ethical businesses. We use a zero‐inflated Poisson regression to model the connection, and find a meaningful relationship, between third‐party political representation on British local councils and the presence of ethical businesses within local authorities. This presents an example of the way in which radical political change may be part of a wider social movement toward greening markets.