Responsible Consumption Both a Niche and a Trend Presented at: 2007 Consumers International Congress Sydney, Australia Doug Miller, President GlobeScan Incorporated 30 October 2007

Toronto London Washington GlobeScan is a public opinion and stakeholder research consultancy. We track what society is thinking around the world, so that clients can make better-informed business decisions. www.GlobeScan.com

Participating Countries (25) 25,000 In-Home or Telephone Interviews (Jan. 2007)

Responsible Consumption A politicization of consumption (due to companies being seen as more responsive and effective than governments in addressing major problems) A growing number of consumers are: paying attention, empowered and voting with their behaviour One world: emerging market consumers are quickly catching up to mature market consumers in this orientation Corporate reputation has become a major value-driver, suggesting leading companies will continue to be responsive The trend will continue, creating a role for a good cop/bad cop like CI (rewarding good corporate behaviour / holding bad actors accountable)

A politicization of consumption (due to companies being seen as more responsive and effective than governments in addressing major problems)

A growing number of consumers are: paying attention, empowered and voting with their behaviour

One world: emerging market consumers are quickly catching up to mature market consumers in this orientation

Corporate reputation has become a major value-driver, suggesting leading companies will continue to be responsive

The trend will continue, creating a role for a good cop/bad cop like CI (rewarding good corporate behaviour / holding bad actors accountable)

Corporate Responsibilities Companies “Held Completely Responsible for,” Average of 25 Countries 1 . I am going to read a list of things some people say should be part of the responsibilities of large companies. For each one, please tell me to what extent you think companies should be held responsible.

Consumers Can Make a Difference in How Responsibly a Company Behaves By Country The white space in this chart represents “Depends / Neither agree nor disagree” and “DK/NA.” 2at. As a consumer, I can make a difference in how responsibly a company behaves.

Consumers Can Make a Difference in How Responsibly a Company Behaves “Strongly” or “Somewhat Agree,” Increases: 2002 – 2007 2at. As a consumer, I can make a difference in how responsibly a company behaves.

Punished Companies Seen as Socially Irresponsible “Have Done,” Increases: 1999–2007 5t. In the past year, have you considered punishing a company you see as not socially responsible by either refusing to buy their products or speaking critically about the company to others?

Consumer Empowerment vs Strong Consumer Activism By Country, 2004–2007* *Kenya, Peru, Philippines, Portugal, South Korea, and UAE not surveyed in 2004 2at. As a consumer, I can make a difference in how responsibly a company behaves. 4t. How often in the past year have you rewarded companies for being socially responsible? 5t. In the past year, have you considered punishing a company you see as not socially responsible by either refusing to buy their products or speaking critically about the company to others?

Role of Consumer Organizations A clear opportunity/need for a respected good cop / bad cop to ensure continuous improvement in this space Empowering and servicing the needs of thoughtful consumers is the main opportunity area (leveraging individual efforts into collective impact, strengthening sense of efficacy, improving consumer knowledge, Fair Trade) Very similar roles needed in mature and emerging markets including promotion, testing/reporting, accountability, and consumer protection Cynicism in mature markets will be a major challenge

A clear opportunity/need for a respected good cop / bad cop to ensure continuous improvement in this space

Empowering and servicing the needs of thoughtful consumers is the main opportunity area (leveraging individual efforts into collective impact, strengthening sense of efficacy, improving consumer knowledge, Fair Trade)

Very similar roles needed in mature and emerging markets including promotion, testing/reporting, accountability, and consumer protection

Cynicism in mature markets will be a major challenge

Toronto London Washington GlobeScan is a public opinion and stakeholder research consultancy. We track issues and their reputational impacts, so that clients can make better-informed business decisions. www.GlobeScan.com