Ethical consumption through reverse supply chain: Exploring product’s nature as a mediator in the FMCG industry

Abstract

In response to increasing environmental demands and evolving consumer expectations, Reverse Supply Chain Capabilities (RSCC) have emerged as a strategic tool to foster ethical consumption, especially in the Fast-Moving Consumer Goods (FMCG) sector. Grounded in the Resource-Based View (RBV) and Value-Belief-Norm (VBN) theory, this study investigates (1) how RSCC—Return Goods (RG), Recycled Packing Materials (RPM), and Disposal of Goods (DG) influence Ethical Consumption (EC), and (2) whether Product's Nature (PN) mediates this relationship. Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS 4.1.1.2 was employed for the analysis (n = 350). The finding reveals a statistical analysis of beverage consumption and preferences; soft drinks were the most popular, with 61.71 % of respondents preferring them, while drinking water was the second most preferred, at 38.29 %. No respondents reported consuming alcoholic beverages. The results from the empirical analysis reveal significant positive relationships: RG → RSCC (β = 0.055, p < 0.05), RPM → RSCC (β = 0.274, p < 0.05), and DG → RSCC (β = 0.543, p < 0.001). RSCC positively influences EC (β = 0.471, p < 0.001), and PN partially mediates this relationship (RSCC → PN → EC: β = 0.423, p < 0.001). The RBV framework highlights RSCC as a firm-specific capability, while VBN theory explains how consumer beliefs and norms guide ethical consumption. This innovative, interdisciplinary study links operational capabilities to consumer ethics, providing managers, marketers, and policymakers with practical guidance on building FMCG sustainability and ethical consumption strategies.