When Peter Mandelson proposed the scrapping of flexible working reform last week he was greeted with a mixture of outcry from unions and parenting groups and praise from business lobbies. The newly appointed business secretary called for a review of the plan to extend rights for working parents amid recession fears. The message coming from government appeared to be thus: businesses can only afford a heart in times of prosperity.

All the arguments that flexible working can actually boosts productivity and, in turn, a company’s bottom line were cast aside in favour of a new hard line approach to starving off economic turmoil. But this ‘we can’t afford values during a recession’ attitude doesn’t just end with employee rights. There are signs the recent focus on ethical and environmentally responsible trading may soon be bearing the brunt of the financial crisis.

Marketing giant McCann Erickson’s annual Moody Britain survey has revealed a dip in consumer fears about environmental issues this year. Nearly 30% of respondents cited the environment as an area of concern back in 2007, while the economy failed to make an appearance on the list. When the survey was repeated this year, only 21% were concerned with Mother Earth compared to the quarter worried about the credit crunch.

Ed Miliband, the new secretary of state for energy and climate change, recently told the House of Commons that global warming was too important to be sidelined by the economy’s woes. “In tough economic times, some people will ask whether we should retreat from our climate change objectives,” said Miliband. “In our view, it would be quite wrong to row back.”

The optimist in me wants to believe companies with a green agenda won’t give it up as consumer focus turns to more immediate concerns, but the cynic within wins out I’m afraid. When I put the issue of corporate social responsibility to Andy Redfern, co-founder of Ethical Superstore, he said he suspected some company CSR initiatives would be the first casualties of the recession.

“CSR departments will be cut back or not grow at the same rate as the rest of the organisation because there won’t be that direct way of making money out of it,” he explained.

So larger companies may hold back on their ethical PR push over the next few months, but what about companies like Andy’s with green aims at their core? Will the economic downturn mean their customers can no longer afford to care? Not if Ethical Superstore’s growth is anything to go by.

“We’re actually doing better than expected, and I think part of that is due to the supermarkets. Sainsbury’s D-listed about 200 products from their organic range over the summer, which means if you’re a committed purchaser of a particular product, suddenly those items are harder to find.”

Andy says FairTrade sales are also still strong. Once a consumer is educated abut the values of ethical shopping and the tangible benefit it has on others, he argues, they’re not likely to switch back.

As a business owner your priority is always going to be financial survival, but it’s important not to lose sight of your core principles. Remember, your customers will be weighing up those same principles against the cash in their wallets.