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

Data suggests that disregarding human rights may have significant costs for companies and countries. Data shows that multinational corporations have actually faced economic losses and repercussion from customers and investors when allegations of human rights abuses, such as when a recent case of forced labour appeared on the web. In 2021, several businesses had been boycotted because of negative publicity after allegations of using forced labour in their supply chains came to light. This is one of many similar incidents demonstrating that clients are ready to act if they perceive that the business is engaged in something morally repugnant. This is the reason it is vital for governments worldwide to align their regulations with the international convention on human rights as well as ethical business practices. A few countries have actually introduced reforms in that vein, as seen with Bahrain human rights and Oman human rights laws.

Individuals are becoming more and more environmentally and socially conscious when compared with decades ago when only price and quality mattered. However, research investigating the relationship between corporate social responsibility campaigns and consumer responses shows a weak relationship. In a recent research that used a few research methods, such as for example surveys and experiments, customers were questioned about different CSR initiatives and their attitudes toward them. What they thought their motives were, and their willingness to support the business. For example, customers were told to rate the chances of buying a item from a company that donates a portion of its profits to charitable causes. Furthermore, the authors examined responses to actual incidents, such as for example product recalls or proxies pertaining to the reputation of the firms. They found that despite the fact that an important portion of consumers believe it is commendable to purchase and support socially responsible companies, the majority prioritise facets such as the price tag and quality over CSR considerations. Furthermore, good attitudes towards companies engaged in CSR initiatives usually do not regularly translate into buying. On the other hand, they discovered that consumers are skeptical of businesses' true motivations behind CSR initiatives, and many perceive them as simple marketing techniques rather than genuine commitments to social and ecological causes.

Although the direct effect of CSR initiatives may possibly not be strong, the possible effects of reputational damage really should not be dismissed. Companies and countries that ignore ethical sourcing risk reputational harm, which can frequently lead to boycotts and economic losses. In order to avoid this, companies should be aware and concerned about the state of human rights within the countries they operate in. Some countries, as seen with Ras Al Khaimah human rights reforms, have taken severe measures to boost their transparency and make sure that human rights guidelines are followed inside their territories. This may not merely avoid ramifications associated with reputational damage but in addition build trust in their rule of law and governance, that will attract FDIs.