1. (NU) - If you’ve ever seen the
1980s movie “Wall Street,” you
probably recall Gordon Gekko
saying that “greed is good.”
He may have been a bit short-
sighted. Times are changing and
so are people’s attitudes about
corporate America. In fact, a re-
cent survey conducted by the in-
surance company Aflac suggests
Gekko’s days are numbered.
Survey Revelations
Here are some of the things
the study found:
• 79 percent of consumers be-
lieve companies that stay true to
their ethics and values outper-
form others in their field.
•When it comes to millennials,
who are 80 million strong with a
$200 billion annual purchasing
power, 92 percent are more likely
to patronize an ethical company.
• 81 percent of consumers are
more likely to purchase from cor-
porations that are active in phil-
anthropic efforts year-round as
opposed to only in times of need.
• 60 percent of investors
would sacrifice profit for ethical
standards when making long-
term investment decisions.
Companies Should Consider
So what is an effective cor-
porate philosophy when it
comes to social responsibility?
In a day of instant access to in-
formation, consumers -- many of
whom have been influenced by
such much-publicized issues as
Enron, bank scandals, high un-
employment and recession --
have become much more obser-
vant of the actions of corpora-
tions, and they’re skeptical.
To stay successful, companies
are going to have to shift their pri-
orities. Of course, profit is essen-
tial to stay in business, but there
are presently impediments to prof-
its that didn’t even exist 25 years
ago. For example, the study shows
millennials have vastly different
and stronger demands for corpo-
rate social responsibility (CSR)
and philanthropy than do those
who are over the age of 35. Inter-
estingly, parents share millennials’
desire to do business with compa-
nies that give back, while nonpar-
ents have greater indifference.
These are important considerations
in today’s environment.
Combining a greater demand
for social responsibility and the
fact that the sustained program is
preferred by consumers over the
opportunistic donations in times of
need, companies now must plan
their approach to CSR. Companies
that have lasting relationships with
philanthropic causes (asAflac does
with fighting children’s cancer) are
viewed with favor by a growing
portion of people affecting the
nation’s economy.
Corporate giving, however, is
not the only determinant of a com-
pany’s reputation. Respondents
also see integrity as extremely im-
portant, so an effective CSR phi-
losophy should promote the in-
tegrity of the company, which can
manifest itself in many ways.
One such factor is diversity.
In fact, 65 percent of respondents
agree that the higher a company’s
ethical standards, the more di-
verse the workplace will be.
Protect Your Rep
In today’s culture, businesses
that make mistakes are often scold-
ed on social media as being care-
less or unresponsive to the com-
munity. If a company is caught
cutting corners or is seen as less
than transparent, a steady drum-
beat of criticism can threaten its
very existence or cause significant
costs to overcome the infraction.
After all, the old saying “a
reputation is hard to earn but eas-
ily lost” is generally true. Com-
panies would do well to heed it.
Learn More
For more information about
the insurance company and its
support of childhood cancer re-
search and treatment, go to
www.aflac.com.
What a Business Stands for Can
Mean as Much as What It Does
BUSINESS
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