Global Social Responsibility Report March-2012

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Global Social Responsibility Report March-2012

  1. 1. A Nielsen Report The Global,Socially-Conscious Consumer March 2012
  2. 2. WHO IS THEGLOBAL, SOCIALLY-CONSCIOUS CONSUMER? YOUNGER GREEN 63% under the age of 40 66% think companies should support the environment $ Willing to pay more for socially-responsible products/servicesAround the world, companies have invested time, talent New findings from a Nielsen survey of more than 28,000 onlineand treasure in social and environmental efforts for a range respondents from 56 countries around the world provide freshof complementary reasons. For many companies, cause insights to help marketers better understand the right audience formarketing—the use of social and environmental efforts to cause marketing activities, which programs resonate most stronglybuild a brand and increase profits—has been a secondary if not with this audience, and what marketing methods may be mostprimary motivation. effective in reaching these consumers.Cause marketing won’t work with all customer segments— In the study, respondents were asked if they prefer to buy productssome simply don’t care—but previous research suggests that and services from companies that implement programs that givethere is a segment of socially-conscious consumers who back to society. Anticipating a positive response bias, respondentscause marketers ought to pay attention to1. But who are were also asked whether they would be willing to pay extra forthese socially-conscious consumers? What causes are most those services. For the purposes of this study, Nielsen defines theimportant to them? What’s the best way to reach them? “socially-conscious consumer” as those who say they would be willing to pay the extra.See W. Thomas Anderson, Jr. and William H. Cunningham, “The Socially Conscious Consumer,” Journal of Marketing, Vol 36 (July, 1972), pp. 23-3112 Copyright © 2012 The Nielsen Company.
  3. 3. Nearly Half of Consumers Will Carewith their WalletNielsen’s survey started by confirming what other studies have pay extra than those in North America and Europe. Overall, aboutsuggested, that the majority of consumers, today, express a general one-third of European and North American consumers say they arepreference for companies making a positive difference in the world2. willing to pay extra for products and services from companies thatTwo thirds (66%) of consumers around the world say they prefer to have implemented programs to give back to society, while at leastbuy products and services from companies that have implemented half of respondents in the other regions are.programs to give back to society. That preference extends to other In the study, the highest concentration of socially-consciousmatters, too: they prefer to work for these companies (62%), and consumers were found in the Philippines, where 68 percent ofinvest in these companies (59%). A smaller share, but still nearly respondents said they were willing to pay extra for products andhalf (46 percent) say they are willing to pay extra for products and services from companies that had implemented programs to giveservices from these companies, the “socially-conscious consumers,” back to society. By contrast, just 20 percent of respondents in theas defined and focused upon in this report. Netherlands indicated their willingness to do so.According to Nielsen’s survey, global, socially-conscious consumers While cultural bias is not factored into the survey results, regionaltend to be younger: 63 percent are under the age of 40, compared to differences support previous hypotheses about unique regional55 percent of all respondents. In general, Nielsen’s survey shows that perceptions of corporate social responsibility. In parts of Europe, thereyounger consumers are more likely to spend extra for products and may still be a tendency on the part of consumers to view corporationsservices from socially-responsible companies. Fifty-one percent of all primarily as economic players3. In Asia, these findings correspond withrespondents aged 15 to 39 are willing to pay extra for such products increasing corporate attention to corporate social responsibility andand services compared to 37 percent of all respondents over age 40. its impact on performance4. Additionally, since Nielsen’s measure ofThere are also important regional differences in the social social consciousness includes willingness to pay more for goods andconsciousness of consumers with consumers in Latin America, the services, regional variations—and demographic variations—includeMiddle East/Africa and Asia-Pacific stating a stronger willingness to fundamental differences in price sensitivity. Figure 1. % of consumers who prefer to buy from, work for, and invest in companies that give back to society MIDDLE EAST/AFRICA Buy their products 77% 75% 70% 64% 55% NORTH AMERICA LATIN AMERICA ASIA PACIFIC Work for them 73% 72% 66% 56% 54% EUROPE Invest in them 75% 72% 63% 55% 47% % of Consumers willing to pay extra for product and services from companies that give back to society 49% 53% 55% 35% 32% Source: Nielsen Global Survey of Corporate Citizenship, Q3 20112 See Cone Communications and Echo Research, “2011 Cone/Echo Global CR Opportunity Study,” October 2011 and Edelman,“2012 Edelman Trust Barometer,” January 20123 See Isabelle Maignan and David A. Ralston, “Corporate Social Responsibility in Europe and the U.S.,” Journal of International Business Studies,Vol 33 (3rd Quarter, 2002), p497-5144 See Yan Cheung et al, “Does Corporate Social Responsibility Matter in Asian Emerging Markets?” Journal of Business Ethics, Vol 92 (March 2010), p401-413 Copyright © 2012 The Nielsen Company. 3
  4. 4. Not All Causes are Equal in Consumers’ EyesThere are innumerable worthy causes for brands to support, but responsibility topics, 66 percent of socially-conscious consumerseffective cause marketing requires strategic prioritization. To identified environmental sustainability as a cause companiesmaximize ROI on cause marketing efforts, companies need to should support. This preference may be a byproduct of extensiveidentify the most relevant causes to their business. One component efforts already underway by brands to “green” their portfolio andis the expectation consumers have of the specific brand in question, associate themselves with this cause.but a more fundamental question is ‘which causes are most The next most important cause to 56 percent of socially-important to socially-conscious consumers overall?’ conscious consumers may be less obvious: improvements toThe survey results indicate that socially-conscious consumers science, technology and math education. Eradicating extremecare most about environmental sustainability. From a list poverty and hunger is also a priority for this segment, with 53of 18 causes that included the United Nations’ Millennium percent of socially-conscious consumers believing brands shouldDevelopment Goals5 as well as other prominent corporate social play a role in the cause. Figure 2. % of socially-conscious consumers who think companies should support these specific causes Which of these causes do you think companies should support? Increase access to cultural Reduce child mortality 38% institutions (such as the arts, museums and performances) 38% Improve maternal health Combat non-communicable diseases such as cardiovascular diseases, cancers, chronic lung diseases and diabetes 39% Promote racial, ethnic and cultural inclusiveness 39% 43% Undertake development Develop a global partnership projects that benefit the for development communities around their 43% Combat HIV/AIDS, offices or manufacturing units 44% Malaria and other diseases 44% Achieve universal Protect animals 45% primary education 46% Increase access Promote gender equality Ensure environmental and empower women to technology sustainability 66% 50% 45% Increase access to clean water Improve Science, Technology, 48% Engineering and Math training and education Support small business 56% and entrepreneurship Eradicate extreme poverty and hunger 50% 53% Provide relief following natural disasters See Appendix for top causes by region, age and gender Source: Nielsen Global Survey of Corporate Citizenship, Q3 2011 52% Socially-conscious consumers defined as those who expressed willingness to pay extra for products and services from companies that have implemented programs to give back to society.Eight time-bound goals set at the 2000 United Nations Millennium Summit. More at www.un.org/millenniumgoals/54 Copyright © 2012 The Nielsen Company.
  5. 5. Connecting with the Socially-Conscious ConsumerOne of the challenges of cause marketing is effectively reaching the know (95%), while also looking for opinions and information postedsocially-conscious consumer. In order for a customer to behave by other consumers online (76%), slightly more so than the globaldifferently based on a brand’s social and environmental investments, online survey average (92% and 70%, respectively).  Among paid,they must first be aware of them. third-party advertising channels, socially-conscious consumers most trust outdoor, TV and print media, though they tend to be moreIn cause marketing efforts, basic trust in chosen advertising vehicle trusting of advertising across channels. may be even more important than advertising at large. Consumershave grown increasingly sensitive to “greenwashing,” the idea This survey confirmed the importance of social media in causethat a brand will artificially inflate its environmental or even social marketing.  Socially-conscious consumers are more likely thaninvestments for consumers. consumers overall to trust ads found on social networks and they were also more likely than total respondents (59% vs. 46%) to sayWhen it comes to advertising and recommendations, socially- they use social media when making a purchase decision.conscious consumers trust recommendations from people they Figure 3. % of socially-conscious consumers who trust various forms of advertising To what extent do you trust the following forms of advertising (“Trust completely” or “Trust somewhat”)? Socially-Conscious Consumers % Difference Global Online Average 95% Recommendations from people I know 92% 3% 76% Consumer opinions posted online 70% 9% 65% Branded websites 58% 12% 65% Editorial content such as newspaper articles 58% 12% 57% Emails I signed up for 47% 21% 56% Brand sponsorships 47% 19% 56% Billboards and other outdoor advertising 50% 12% 55% Ads on TV 47% 17% 55% Ads in magazines 47% 17% 54% Ads in newspapers 46% 17% 50% Ads on radio 43% 16% 48% Ads before movies 41% 17% 48% Ads served in search engine results 40% 20% 47% TV program product placements 40% 18% 46% Ads on social networks 36% 28% 45% Online video ads 36% 25% Display Ads (Video or banner) on mobile devices 43% (smartphones, tablet devices - i.e., iPad) 33% 30% 41% Online banner ads 33% 24% 37% Text (SMS) ads on mobile phones 29% 28% Source: Nielsen Global Survey of Corporate Citizenship, Q3 2011 Socially-conscious consumers defined as those who expressed willingness to pay extra for products and services from companies that have implemented programs to give back to society. Copyright © 2012 The Nielsen Company. 5
  6. 6. Smarter Cause MarketingNot all consumers expect companies to care about socialresponsibility, but those that do can be segmented andunderstood in ways that allow brands to engage in causemarketing which appeals to the right consumers, with the rightcauses and through the right marketing channels. This reportprovides just one new layer of insight in the exploration of thesocially-conscious consumer.For marketers, this report provides guideposts to betterunderstand your customers’ social consciousness in order torefine your cause marketing efforts and create more sharedvalue for your brand and society. For cause organizations, thisreport presents the opportunity to further make the case thatconsumers will reward partnering brands for implementingprograms to give back to society. “For Nielsen, the continued exploration of this topic is aresponsibility we take seriously: to our global clients and toour communities, who should mutually benefit from a betterunderstanding of the socially-conscious consumer. Better understand your customers’ social consciousness in order ” to refine your cause marketing efforts6 Copyright © 2012 The Nielsen Company.
  7. 7. Appendix Figure 4. Top 10 causes ranked by region among "socially-conscious" consumers Which of these causes do you think companies should support? Eradicate extreme poverty and hunger Develop a global partnership for Protect animals development Achieve universal primary education Support small business and Combat non-communicable diseases such entrepreneurship as cardiovascular diseases, cancers, Promote gender equality and chronic lung diseases and diabetes empower women Increase access to clean water Increase access to technology Reduce child mortality Provide relief following natural disasters Promote racial, ethnic and cultural Improve maternal health inclusiveness Increase access to cultural institutions (such as the arts, museums and performances) Combat HIV/AIDS, Malaria and Improve Science, Technology, Engineering other diseases and Math training and education Undertake development projects that benefit the communities around their Ensure environmental sustainability offices or manufacturing units MIDDLE EAST/ MIDDLE EAST/ ASIA PACIFIC EUROPE AFRICA LATIN AMERICA NORTH AMERICAASIA PACIFIC AMERICA AMERICA AFRICA EUROPE NORTH LATIN Source: Nielsen Global Survey of Corporate Citizenship, Q3 2011 Socially-conscious consumers defined as those who expressed willingness to pay extra for products and services from companies that have implemented programs to give back to society. Copyright © 2012 The Nielsen Company. 7
  8. 8. Figure 5. Top 10 causes ranked by gender among "socially-conscious" consumers 4. region and age among "socially-conscious" consumers Which of these causes do you think companies should support? Eradicate extreme poverty and hunger Develop a global partnership for Protect animals development Achieve universal primary education Support small business and Combat non-communicable diseases such entrepreneurship as cardiovascular diseases, cancers, Promote gender equality and chronic lung diseases and diabetes empower women Increase access to clean water Increase access to technology Reduce child mortality Provide relief following natural disasters Promote racial, ethnic and cultural Improve maternal health inclusiveness Increase access to cultural institutions (such as the arts, museums and performances) Combat HIV/AIDS, Malaria and Improve Science, Technology, Engineering other diseases and Math training and education Undertake development projects that benefit the communities around their Ensure environmental sustainability offices or manufacturing units MEN WOMEN 20 25–29 20–24 30–34 35–39 UNDER35–39 40–44 45–49 50–54 55–59 60–64 65 AND OVER Source: Nielsen Global Survey of Corporate Citizenship, Q3 2011 Socially-conscious consumers defined as those who expressed willingness to pay extra for products and services from companies that Source: Nielsen Global Survey of Corporate Citizenship, Q3 2011 have implemented programs to give back to society. Socially-conscious consumers defined as those who expressed willingness to pay extra for products and services from companies that have implemented programs to give back to society.8 Copyright © 2012 The Nielsen Company.
  9. 9. Countries in the Study: Greece RomaniaArgentina Hong Kong RussiaAustralia Hungary Saudi ArabiaAustria India SingaporeBelgium Indonesia South AfricaBrazil Ireland South KoreaCanada Israel SpainChina Italy SwedenChile Japan SwitzerlandColombia Latvia TaiwanCroatia Lithuania ThailandCzech Republic Malaysia TurkeyDenmark Mexico United Arab EmiratesEgypt Netherlands United KingdomEstonia New Zealand UkraineFinland Norway United StatesFrance Pakistan VenezuelaGermany Peru Vietnam Philippines Poland PortugalAbout the Nielsen Global Survey About NielsenThe Nielsen Global Survey of Corporate Nielsen Holdings N.V. (NYSE: NLSN) isCitizenship was conducted in August/ a global information and measurementSeptember 2011 and polled more than company with leading market positions28,000 consumers in 56 countries in marketing and consumer information,throughout Asia Pacific, Europe, Latin television and other media measurement,America, the Middle East, Africa and online intelligence, mobile measurement,North America. The sample has quotas trade shows and related properties.based on age and sex for each country Nielsen has a presence in approximatelybased on their Internet users, and is 100 countries, with headquarters in Newweighted to be representative of Internet York, USA and Diemen, the Netherlands.consumers and has a maximum margin For more information, visitof error of ±0.6%. This Nielsen survey is www.nielsen.com.based on the behavior of respondents withonline access only. Internet penetrationrates vary by country. Nielsen uses aminimum reporting standard of 60percent Internet penetration or 10Monline population for survey inclusion. TheNielsen Global Survey, which includes theGlobal Consumer Confidence Survey, wasestablished in 2005.For more information, please contact your Nielsen representative orNic Covey, VP Corporate Social Responsibility, Nielsen, +1 312-385-6718 or nic.covey@nielsen.com Copyright © 2012 The Nielsen Company. All rights reserved. Nielsen and the Nielsen logo are trademarks or registered trademarks of CZT/ACN Trademarks, L.L.C. Other product and service names are trademarks or registered trademarks of their respective companies. 12/4752

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