GOODPURPOSEEdelman goodpurpose® 2012GLOBAL CONSUMER SURVEYExploring consumer attitudes around social purpose including their commitment to social issues and their expectations of brands and corporations
Societal Performance Builds Future TrustFuture trust is centered around a companys societal performance – or Purpose 3
Consumer Participation in Societal Issues SoarsHowever Australians Less Likely to Take Action to Support Good Causes 4
Purpose Gets a Whole Lot More PersonalPersonal Need Trumps Common Good for Aussies 5
The Reengineering of Brand MarketingPurpose is now a clear purchase trigger 6
Fifth Global Consumer Study 2012 CANADA INDIA 500 500 BRAZIL CHINA 500 500 US JAPAN 500 500 UK UAE 500 500 FRANCE GERMANY 500 500 NETHERLANDS ITALY 500 500 INDONESIA BELGIUM 500 500 AUSTRALIA MALAYSIA SINGAPORE 1000 500 500 StrategyOne surveyed 8,000 consumers across 16 countries, aged 18+ in January/February, 2012 New in 2012, Catalyst Research surveyed 1,000+ consumers across Australia, aged 18+ in March, 2012 Global data points included in this report exclude Australia.
An Evolving “Consumer” hungry concerned vocal empowered86% of global consumers believe that business needs to place at least equal weight on society’s interests as on business’ interests. GLOBAL: Q49. Thinking about society’s interests and business’ interests, how much weight should each interest have in business decisions? (Net: At least equal weight on society’s interests) 10-country global total (excludes Belgium, Indonesia, Malaysia, the Netherlands, Singapore, UAE and Australia) 8
A Shifting Marketplace The Reinvention of Brand The Adoption of SharedThe Arrival of the “B Corp” Marketing Value Top brands and companies more committed than ever. 9
A New ImperativeRather than merelyexercising their “license tooperate,” leading brandsand corporations of thefuture must move beyondoperational imperativesand social add-on’s toestablish their “license tolead.”
1. Consumer Participation in Societal Causes Soars 11
of global consumers take part in 89% activities to address societal issues. 75% of Germans take actions to 77% of Chinese conserve energy donated money 72% in US recycle regularly 40% of Australians 63% of Brazilians signed a petition voiced their supporting an issue concerns online or in personGLOBAL: Q25. Q25. Which, if any, of the following activities have you taken part in over the past year to address societal issues? [SELECT ALL THAT APPLY]l; 16-country global total – NET ‘Take part in any activities toaddress societal issues’. Brazil - Voiced my concerns during conversations with other people, China - Donated money; Q26. Which, if any, of the following actions do you engage in on a regular basis? [SELECT ALL THATAPPLY] US and GermanyAUSTRALIA: Q9. Which, if any, of the following activities have you personally taken part in over the past year, to address society and community issues? (PLEASE SELECT ALL THAT APPLY)
Half of us are personally involved in a cause 48% OF AUSTRALIANS ARE PERSONALLY INVOLVED IN A CAUSE AUSTRALIA: Q8. Are you personally involved in supporting a cause? (Yes, No, Don’t Know) 13
Involvement in good causes is much more prevalent amongst Rapidly Growing Economies Consumers in Rapid Growth Economies(RGEs) have much higher expectations of and engagement with brands and corporations on societal issues. INDIA BELGIUM CHINA BRAZIL ITALY FRANCE MALAYSIA NETHERLANDS INDONESIA VS UAE JAPAN GERMANY US UK 14
Societal activity starts to moves online 38% of Australians used the internet or mobile technology to support a cause 20% Posted information about a cause or issue 18% Emailed someone about an issue 12% Communicated with people via social networks 8% Participated in a movement or strike via social media or the Internet AUSTRALIA: Q9: Which, if any, of the following activities have you personally taken part in over the past year, to address society and community issues? [TICK ALL THAT APPLY] 15
The Globalisation of Need Because of the global recession, societal issues are hitting close to homeUnable to pay Unable to medical Reduced My salary donate as decreased Reduced expenses or spending on much money afford healthcare food leisure shopping to societal issues 85% of those surveyed around the. world say they have been affected by the economic downturn in some way. GLOBAL: Q29: Q29. Has the global economic downturn affected you in any of the following ways? [SELECT ALL THAT APPLY] 16-country global total (Excludes Australia) 17
Discovering theMe in WeConsumers are developing anddemonstrating personal valuesamidst today’s persistenteconomical challenges andcultural upheaval.More and more consumers arediscovering the me (personalneed) in the we (the commongood)…Purpose Gets Personal. 18
Consistent Commitment; Diverse Opportunity Improving the quality of healthcare 89% Protecting the environment 89% Ensuring access to safe drinking water 86% Equal opportunity to education 86% Stopping relationship violence and abuse 84% Reducing poverty 84% Aiding in disaster relief 83% Alleviating hunger and homelessness 83% Supporting human and civil rights 83% Encouraging tolerance for people who are different 82% Fighting the spread of global disease and pandemics 80% Helping to raise peoples self-esteem 78% Supporting animal rights 74% Supporting the creative arts 67% GLOBAL: Q8-21. [TRACKING] How much do you personally care about the following good causes? (Top 2 Box, Care a great deal/Somewhat) 16-country global total (excludes Australia) 19
Issues that matter to Aussie’s are closer to home 70% - crime74% - Improving the 73% - Stopping 65% - access to water reduction & crimequality of healthcare violence & abuse & water management prevention AUSTRALIA: Q4 – 7: How important are the following issues to you. (Environmental, economic and safety; equality and social inclusion; health, education and arts). [Ranking: Not important, Not very important, somewhat important, very important, don’t know]. [Top Box ‘very important’ issues].
Looking deeper into what matters to Australians Top Ranking Social Causes in Australia (Top Box, Very Important)The top three environmental issues: The top three economic and safety issues:1. Access to water and water management (65%) 1. Crime reduction and prevention (70%)2. Sustainable food product and security (60%) 2. Unemployment and job security (61%)3. Recycling and waste management (55%) 3. Housing and rental affordability (60%)The least important issue: Biodiversity (27%) The least important issue: Fair Work Policy (55%)The top three equality and social inclusion issues: The top three health, education and arts issues:1. Stopping violence and abuse (73%) 1. Improving the quality of healthcare (74%)2. Encouraging tolerance for different people (54%) 2. Ensuring access to healthcare services (69%)3. Reducing poverty (52%) 3. Disease prevention and awareness (65%)The least important issue: Reducing social isolation The least important issue: supporting creative arts(27%) (music, art, literature, dance) (22%) AUSTRALIA: Q4 – 7: How important are the following issues to you. (Environmental, economic and safety; equality and social inclusion; health, education and arts).[Ranking: Not important, Not very important, somewhat important, very important, don’t know]. [Top Box ‘very important’ issues]. 21
Balancing Me and We Sales of global consumers 52% believe it’s equally important to address issues that impact me personally and society overall. GLOBAL: Q27. In general, is it more important for you [ROTATE:] to “address causes and issues that impact you personally” or to “address causes and issues that impact society overall”? 16-country global total (% who say it is EQUALLY important to address causes and issues that impact me personally and society overall) (Excludes Australia) 22
The Power ofPurposeIt is the power of Purpose thatis helping to drive consumerpreference in a world wheretrust in corporations is low anddifferentiation between brandsis negligible.
Profit + Purpose: The New NormalIt is OK for brands to support good causes and make money at the same time +33% since 2008 69% AUSTRALIANS AGREED GLOBAL: Q40-46. [TRACKING] Below are some things that people have said about supporting good causes. How much do you agree or disagree with each of the following statements? “IT IS OK FOR BRANDS TO SUPPORT GOOD CAUSES AND MAKE MONEY AT THE SAME TIME” (Top 2 Box, Agree) 10-country global total (excludes Belgium, Indonesia, Malaysia, the Netherlands, Singapore, UAE and Australia) AUSTRALIA: Q14) Below are some things that people have said about supporting good causes and companies. How much do you agree or disagree with each of the following statements? “IT IS OK FOR BRANDS TO SUPPORT GOOD CAUSES AND MAKE MONEY AT THE SAME TIME”(Top 2 Box, Strongly Agree, Tend to Agree) 25
Social Purpose as Purchase TriggerWhen quality and price are the same, Social Purpose most important factor GLOBAL: Q48. [TRACKING] Now, if you had to choose between two brands that were the same in quality and price, please rank the following remaining factors from 1 to 3 in the order that would affect your decision when selecting a brand where 1 is the most important factor and 3 is the least important. 10- country global total (excludes Belgium, Indonesia, Malaysia, the Netherlands, Singapore, UAE and Australia) (% WHO RANKED SOCIAL PURPOSE FIRST). Note: In the question, “social purpose” is defined as: Benefits others through charity or selfless acts 26
Purpose = dollarsBrands aligning themselves with anauthentic purpose and cause are notonly securing more consideration, butthey are also earning their dollars andsupport.58 percent of Australians would switchbrands if a different brand of similarquality supported a good cause. AUSTRALIA: Q14. Below are some things that people have said about supporting good causes and companies. How much do you agree or disagree with each of the following statements? (Top 2 Box, Strongly Agree, Tend to Agree)
Consumers Prefer Purpose Global 2008 59% 52% RECOMMEND 2009 64% 2010 63% + 39% 2012 72% AUSTRALIANS AGREED 52% 2008 53% PROMOTE 2009 59% + 34% 2010 62% 2012 71% AUSTRALIANS AGREED SWITCH 2009 2010 63% 67% + 9% 58% 2012 73% AUSTRALIANS AGREED68% of Australians say they are more likely to purchase a product knowing that a portion of the money would go to a good casue GLOBAL: Q40-46. [TRACKING] Below are some things that people have said about supporting good causes. How much do you agree or disagree with each of the following statements? (Top 2 Box, Agree) 10-country global total (excludes Belgium, Indonesia, Malaysia, the Netherlands, Singapore, UAE and Australia) AUSTRALIA: Q14. Below are some things that people have said about supporting good causes and companies. How much do you agree or disagree with each of the following statements? (Top 2 Box, Strongly Agree, Tend to Agree) 28
Purchase Frequency ‘At Least Monthly’ purchases of cause-supporting brands increased by 47% from 2010 - 2012 2010 2012 34% 19% EVERY 6 TO 12 EVERY 6 TO 12 MONTHS MONTHS 47% 32% AT LEAST MONTHLY AT LEAST MONTHLYGLOBAL: Q47. [TRACKING] On average, how often do you buy a brand that supports a good cause? (Atleast monthly NET, Every 6-12 months NET) 10-country global total (excludes Belgium, Indonesia,Malaysia, the Netherlands, Singapore, UAE and Australia) 29
However, Aussie brands are not doing a great job in communicatingtheir commitment to purpose.1 in 3 Australians said they did not know if they had purchased a product that supported a good cause.If Australian companies can make consumers aware of their effortsto address societal issues, Australia’s purchase intent may climbcloser to the global average.84% of global consumers say they purchase a product that supports a good cause at least yearly.57% of Australians said they purchased a product that supports a good cause once a year. AUSTRALIA: Q10. On average, how often do you buy a product that supports a good cause? (AT LEAST ONCE A YEAR or DON’T KNOW) GLOBAL: Q47. On average, how often do you buy a brand that supports a good cause? (AT LEAST ONCE A YEAR) (Excludes Australia) 30
4. Building Future Performance on Societal Lead License to Actions
Performance Gap in Addressing Societal IssuesGap could drive disillusionment, disengagement and distrust 83% Performance of Australians lacking on believe business addressing should place societal issues at least equal weight on societal issues and business issues Only 29% believe business is performing well AUSTRALIA: Q12 How important do you believe it is for business in general to be addressing society and community issues? (Top 2 Box, Very Important/Important) AUSTRALIA: Q13 Thinking about the ways you believe business in general should be addressing societal issues, how would you rate business in general’s performance in addressing societal issues? (Top 2 Box, Excellent/Good) 32
Consumers will praise…and punish Company that does NOT _ + Company that actively actively support a good cause supports a good causeIncrease from 2010 Increase from 2010 44% 76% +9 +7 REFUSE TO BUY PRODUCTS/SERVICES BUY ITS PRODUCTS/SERVICES +7 44% 76% +9 CRITICIZE IT TO OTHERS RECOMMEND ITS PRODUCTS/SERVICES +5 44% 73% +8 SHARE NEGATIVE OPINIONS SHARE POSITIVE OPINIONS AND EXPERIENCES AND EXPERIENCES + 11 48% 57% +4 NOT WANT TO WORK FOR IT WANT TO WORK FOR IT +7 53% 45% NOT INVEST IN IT INVEST IN IT 44% PAY A PREMIUM FOR ITS PRODUCTS/SERVICES GLOBAL: Q54-59. [TRACKING] How likely would you be to do the following in relation to a company that actively supports a good cause? (Top 2 box, likely) Q61-65. [TRACKING] How likely would you be to do the following in relation to a company that does NOT actively support a good cause? (Top 2 box, likely) 10-country global total (excludes Belgium, Indonesia, Malaysia, the Netherlands, Singapore , UAE and Australia) 33
What Should Companies be Doing? Donating profits, products or services seen as most important action DONATING A PORTION OF PROFITS 51% DONATING PRODUCTS OR SERVICES 50% CREATING NEW PRODUCTS OR SERVICES 49% PROVIDING EDUCATIONAL INFORMATION COMMUNICATE IT! 47% WORKING WITH THE GOVERNMENT 45% 80% of global OFFERING PROGRAMS FOR EMPLOYEES 45% consumers believe it PARTNERING WITH NGOS 43% is important for ENABLING EMPLOYEES TO VOLUNTEER 42% companies to make ORGANIZING CONSUMER EVENTS 41% them aware of its COLLABORATING WITH OTHER COMPANIES efforts to address 36%SOCIAL NETWORK FOR CONSUMERS TO ADDRESS SOCIETAL ISSUES societal issues. 28% EMPLOYEE FUNDRAISING PROGRAMS 27% CREATING SOFTWARE/MOBILE FUNDRAISING APPS 19% CREATING SOFTWARE/MOBILE COMMUNICATION APPS 19% GLOBAL: Q36. What should companies be doing to address societal issues? [SELECT ALL THAT APPLY] 16-country global total (Excludes Australia) Q98. How important is it for companies to make you aware of their efforts to address societal issues? (Top 2 Box, Important NET) 16-country global total (Excludes Australia) 34
The Role of the CEOCEOs must think proactively about using their business to address issuesCREATE SOCIALLY RESPONSIBLE AND INNOVATIVE PRODUCTS 56% MAKE A LONG-TERM COMMITMENT TO SOCIETAL 55% ISSUES PUBLICALLY SUPPORTING SOCIETAL 55% ISSUES MOTIVATE EMPLOYEES TO TAKE PART 52% COMMUNICATE EFFORTS TO ADDRESS SOCIETAL ISSUES 51% ISSUE REPORTS ON ENVIRONMENT/SOCIAL EFFORTS 41% USE REVENUE TO PRODUCE MATERIALS THAT RAISE AWARENESS FOR SOCIETAL ISSUES 36% GLOBAL: Q50. What should CEOs or corporate leaders be doing to address societal issues in a genuine way? [SELECT ALL THAT APPLY] 16- country global total (Excludes Australia) 35
Societal Performance = The Human Factor Current Purchase Consideration Building Future Purchase IntentWorks to protect and improve the environment Treats employees wellCreates programs that positively impact the local Listens to customer needs and feedbackcommunity in which the company operatesHas ethical business practices Works to protect and improve the environmentTakes responsible actions to address an issue Has ethical business practicesor a crisisAddresses society’s needs in its everyday Takes responsible actions to address an issue or abusiness crisisListens to customer needs and feedback Places customers ahead of profits Creates programs that positively impact the localTreats employees well community in which the company operates Addresses society’s needs in its everydayPlaces customers ahead of profits business GLOBAL [REGRESSION ANALYSIS] Q56. How likely would you be to do the following in relation to a company that actively supports a good cause? (“Buy its products or services”) Q66-73. Below is a list of actions a company may take to address a societal issue. How important is it for a company to carry out each of the following actions when addressing a societal issue? Please use a nine-point scale where one means that the action is “not at all important” and nine means it is “extremely important” when addressing a societal issue. (Top 2 Box, Extremely Important) 16-country global total (Excludes Australia) 36
Be More HumanEarning a license to lead through Purpose is not justabout donating to a social issue….….it is about enlisting the comprehensive capabilitiesand resources of the company– from employees tosupply chain, community, customers andconsumers, R&D and product innovation, andcurrent and new NGOs - to bring new solutions tomarket and to impact societal issues.It is about understanding your role as a globalcitizen and using the company’s values to ultimatelybe more human:• To care about the wellbeing of the people in your company• To care about the wellbeing of the people associated with your company (like your suppliers and customers)• To care about the wellbeing of the community and the planet
Not IF, but HOW… LEAD Powerful programs are leader led CONSTRUCT Start with depth, not scale CUSTOMIZE Customize for local execution COLLABORATE Work with NGOs, colleagues, competitors MEASURE Build performance measures up front NARRATE Story, story, story ENGAGE Employees, partners, consumers EVOLVE Evolve programs to stay relevant 39
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