By George Anderson
Maybe there is something to all this conscious capitalism stuff. A new study by Landor Associates, Penn Schoen Berland and Burson-Marsteller finds that consumers are drawn to brands they perceive as being more socially responsible.
According to the survey, 77 percent of consumers believe corporate social responsibility (CSR) is important. The top two actions companies could take to demonstrate social responsibility, according to respondents, are to give back to the local community (20 percent) and engage in self-regulation and accountability (19 percent).
"Social responsibility remains a differentiator for purchases. Though the recession is causing consumers to be even more price-sensitive than usual, many are still willing to put their pennies where their principles are," said Scott Siff, executive vice president of Penn Schoen Berland, in a press release. "And when price is comparable, the choice is no contest - 55 percent are more likely to choose a product that supports a certain cause when choosing between otherwise similar products."
While consumers are often more likely to support brands with a cause, most are not actively seeking out those companies that fit the CSR description. Only 11 percent were aware of hearing CSR messages from any company over the past year.
The percentage of respondents who reported reading about a company's social agenda while on a website was just 13 percent. Seventy-five percent of those, however, said they were more likely to purchase products from the company as a result.
"While many consumers may not be precise in how they define terms like 'corporate social responsibility,' they have a clear sense of how they expect companies to behave. They expect companies to offer high-quality products at good prices and to explain how they treat their employees well, give back to their communities, and respect the environment," said Eric Biel, managing director for corporate responsibility at Burson-Marsteller. "Those companies that can clearly articulate how they advance these values to consumers can achieve real benefits for their brands and overall reputation."
Of the industries tested in the survey, consumer goods manufacturers and retailers are perceived as performing best. Financial services, healthcare and the media were on the bottom of the list.
Discussion Questions: To what do you attribute the high marks that consumers give retailers and consumer brands for corporate social responsibility? Does consolidation within the retailing industry make it easier or harder for companies to demonstrate a commitment to local communities and attributes such as self-regulation and accountability?