Customers have boycotted big brands whenever incidents of human right violations of their operations surfaced.

People are becoming more and more environmentally and socially conscious in comparison to years ago when only price and quality mattered. Nonetheless, research investigating the connection between corporate social responsibility campaigns and customer responses suggests a poor relationship. In a recently available research which used a few research techniques, such as for example surveys and experiments, consumers were asked about different CSR initiatives and their attitudes toward them. What they thought their intentions were, and their willingness to support the business. For example, consumers had been told to rank the chances of purchasing a item from a business that donates a portion of its earnings to charitable causes. Furthermore, the writers examined responses to real incidents, such as for instance item recalls or proxies linked to the trustworthiness of the businesses. They found that even though a significant percentage of consumers find it laudable to purchase and support socially responsible companies, the vast majority prioritise facets such as for instance price and quality over CSR considerations. Moreover, positive attitudes towards companies involved in CSR initiatives usually do not regularly result in purchasing. On the other hand, they found that people are skeptical of businesses' true motivations behind CSR initiatives, and many view them as mere marketing strategies as opposed to genuine commitments to social and ecological causes.

Even though direct impact of CSR initiatives may not be strong, the prospective effects of reputational harm should not be overlooked. Businesses and countries that disregard ethical sourcing risk reputational harm, which could frequently cause boycotts and financial losses. To avoid this, businesses should be aware and worried about the state of human rights in the states they operate in. Some governments, as seen with Ras Al Khaimah human rights reforms, took severe measures to improve their transparency and ensure that human rights laws are honored within their borders. This can not just avoid ramifications associated with reputational harm but additionally build trust in their rule of law and governance, that will attract FDIs.

Data suggests that disregarding human rights may have significant costs for companies and countries. Information demonstrates that multinational corporations have faced monetary damages and backlash from customers and investors when allegations of human rights abuses, such as when a recent case of forced labour emerged online. In 2021, a few companies were boycotted due to negative publicity after allegations of using forced labour in their supply chains came to light. This is one of many similar incidents demonstrating that people are willing to work once they perceive that the business is involved in something morally repugnant. This is why it is very important for governments worldwide to align their regulations with the international convention on human rights as well as ethical business practices. Several governments have enacted reforms in that vein, as seen with Bahrain human rights and Oman human rights laws.