Read about the growing importance of Gen Y and social responsibility for your brand.

1. 5 Reasons Why Millennial-Focused Brands
Cannot Afford to Ignore Social Responsibility
At AI, our extensive experience providing
Ethical Audit Programs for some of
the world’s largest brands and retailers
has given us unique insights into ensuring
ethical supply chains worldwide.

2. www.AsiaInspection.com - © 2016 2
“
Millennials
are the
largest generation
alive today,
counting 1.8 billion
people globally.”
Toms. Patagonia. Lush Cosmetics. What do these brands have in common?
They all target Millennials, and they’re winning by making social responsibility
one of their top priorities.
In the past, it was not uncommon for companies to source goods from
overseas with little concern for who was making them, or for the labor
conditions they were manufactured in. With the rise of socially conscious
Millennial consumers, it’s clear that brands can no longer afford to ignore
ethical compliance throughout their global supply chains.
Millennials' buying decisions are heavily influenced by social responsibility,
more so than those of any other demographic. Here are five reasons why
companies need to be aware of the issues that matter to this group.
1. Millennials are a huge group with growing
purchasing power
Millennials, also known as Gen Y, are typically defined as those born
between 1980 and 1995. Their influence on today’s global economy can
hardly be overstated, offering huge profit potential for companies that win
their business:
• Millennials are the largest generation alive today, counting 1.8 billion globally.1
• Millennials account for over $1 trillion in consumer spending in the United
States alone, and around $10 trillion globally.2,3
• Millennials will outpace Baby Boomer earnings by 2018, when their
spending power is forecasted to exceed $200 billion worldwide and $2.5
trillion in the US.4
MILLENNIAL SPENDING HABITS5,6,7
58%
purchase, on average,
at least one luxury
item a year ,
compared to 25%
of Baby Boomers.
45%
Male Millennials
annually compared to
older generations.
SPEND
TWICE
CLOTHING
AS MUCH ON
love to shop,
compared to 40% overall.
47%
$$
of femaleMillennialsshopforclothingmorethan twice
monthly, compared to 36% of non-Millennials.

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2. Millennials hold brands to a high standard of
social responsibility
Social responsibility plays an important role in Millennial buying habits. In
fact, 87% of Millennials are more willing to purchase products with a social
or environmental benefit, and don't hesitate to switch brands in favor of one
they consider more ethical.8
However, when the Millennial consumer is satisfied by the brand's product
and CSR efforts, they tend to develop strong brand loyalty. A 20159
report
shows that 60% Millennials are often or always loyal to their chosen brands,
especially when they feel that the company behind it listens to their feedback.
These figures show that socially responsible companies can strongly benefit
from a good relationship with Millennials, and vice versa:
• 91% of Millennials would switch brands to one associated with a cause;
• 88% would stop buying a brand's products if they learned of the company's
unethical or deceptive practices;
• 82% would tell their friends and family about the CSR efforts of a brand
they support;
• 86% want companies to tell them more about their efforts to operate more
responsibly.8
3. Millennials care about multiple social issues
Compared with other generations, Millennials are concerned with a higher
number of social issues. Their formative years took place in the era of
unprecedented globalization and child labor scandals. They are also the
first generation to grow up with “cause marketing” carried out by companies
in support of a wide variety of causes, from anti-trafficking to world hunger.
These factors have shaped their expectations for companies – namely, that
businesses should solve social problems, not make them worse. In fact,
86% of Millennials expect that companies must do more than make a profit,
but also address social and environmental issues.8
Among the top issues that Millennials are expecting companies to address are:
• Economic development
• Poverty and hunger
• The environment
• Human rights
• Education5
“
86% of
Millennials
expect that
companies must
do more than make
a profit, but also
address social
and environmental
issues.”

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4. Millennials are willing to pay more for ethically
sourced goods
Research shows Millennials will open their wallets more readily for ethically
sourced goods. More than half of Millennials seek out products with social
responsibility benefits and will choose them over unethically produced
goods.5
Additionally, among the 55% of global consumers willing to pay extra
for socially responsible products, roughly half are Millennials.10
While low-cost retailers remain popular, unethical manufacturing practices
continue to generate negative headlines for many of them. Millennials are
more likely to leave a brand after learning about its unethical conduct,
because they believe that their choice of brands paints a picture of them as
a person.11
This is also why they tend to actively seek out ethical labels and
cause-oriented companies.
For example, look at the popularity of Toms, a company that donates a pair of
shoes for each pair purchased at regular price.Abase model pair of Toms sells for
$48–which may seem a relatively high price for fairly simple shoes, but one that
consumers are willing to pay, knowing that their extra expense funds a charitable
act rather than the brand's bottom line. In addition to their giving programs, Toms
alsoemphasizessupplychaintransparency,regularlyauditingtheirmanufacturers
to prevent unethical labor practices.12
This example clearly shows that higher
prices do not deter Millennial consumers from ethically sourced goods.
5. Social media gives Millennials massive influence
on other buyers
If there was one defining attribute of Millennials, it would be their use of
technology and social media. Not only do Millennials make decisions based
on social media perceptions, but they can also use social networks to
directly confront a company about irresponsible practices, launch petitions
or boycotts, and quickly spread negative word-of-mouth advertising.
• Social media is a key outlet for Millennials' activism. Roughly two-thirds
of Millennials use social media to engage companies on social issues.
Even more importantly, 26% of them take to social media to share negative
information about companies that fail to live up to their commitments.8
• Millennials are constantly connected. Millennials spend an average of
5.4 hours on social media daily. Facebook remains a popular platform for
getting news, but the younger side of the Millennials is shifting towards
other social networks, such as Twitter, Tumblr, and Reddit.13,14,15
• Millennials wish to genuinely engage with brands. Brands that use
social media for transparent and authentic communication will get more
attention from the Millennials. On the contrary, companies that are overly
promotional, self-centered or dishonest will have a hard time connecting
with this group.16
“
26% take to
social media
to share negative
information
about companies
that fail to live
up to their
commitments.”

5. www.AsiaInspection.com - © 2016 5
THE RISE OF THE MILLENNIAL INFLUENCER
U.S. Millennials visit
social media sites daily
6 10IN
are less likely to
purchase from
brands their friends
disapprove of
1 4IN
saytheyinfluencethe
buyingdecisionsof peers
andothergenerations
3 4
OUT
OF


#Child!abor share negative information about
companies on social media
26% 
7:30 PM
?
Millennials are also known for being strongly influenced by peer perceptions,
with 90% trusting their friends for product recommendations,17
and 1 in 4
being less likely to purchase from brands their friends disapprove
of.18
This influence is not limited to the same generation: Millennials also
frequently influence their parents' buying decisions.
Now more than ever, consumers are leveraging social media to effect
positive change. A Facebook campaign challenging Hershey on child
labor issues collected over 50,000 petition signatures, ultimately forcing
the company to change its practices.19
Interestingly, Hershey had
already signed an agreement promising to fight child slavery in the
industry, over ten years ago, but only took real action when faced with
social media pressure.20
How to Build an Ethical Supply Chain
Meaningful progress and transparency in corporate social responsibility
requires active engagement in your brand's supply chain – namely, auditing,
corrective action, re-auditing and monitoring the findings.
Key capabilities to look for in ethical audit service providers include:
(( Total supply chain transparency. Audits should not only ensure ethical
compliance, but also verify the GPS coordinates of finished goods
against the factory coordinates, to prevent unauthorized subcontracting.
(( Real-time supply chain intelligence. Online supplier management
provides brands with a centralized platform to track KPIs and high-risk
issues, helping them make better sourcing decisions faster. Online reports
should include clear grading and category scoring, plus benchmark data
by country and industry, for easy comparison.
Child and Forced
Labor in the World
168 Million
Child laborers worldwide
85 Million
Child laborers
performing hazardous
work
21 Million
Victims of forced labor
globally

6. www.AsiaInspection.com - © 2016 6
(( Closed-loop audit protocols that include a corrective action plan.Too many
disasters result from problems that were identified but never fixed. Having a
defined follow-up strategy is crucial to ensuring issues are actually solved.
EDUCATE & TRAINMEASURE & CORRECTENGAGE
• Ensure visibility into your supply chain and know who your high and low
performing suppliers are.
• Suppliers implement AI’s Corrective Action Plan.
Withdraw Supplier?
Potential 2nd
Follow-up
Approved for 1 year
Desktop Review
RED
AMBER
GREEN
GREEN
Action Plan +
Follow-up Audit
Desktop
Review
Initial Audit
Full Re-audit
RED
AMBER
GREEN
AsiaInspection is committed to these best practices, performing more
than 10,000 ethical audits annually. AsiaInspection programs adhere to
internationally recognized SA8000 or Sedex (SMETA) standards, offering
additional options based on the Ethical Trading Initiative(ETI), Global Social
Compliance Programme (GSCP)or client-specific protocols.
To learn more about how ethical audits can help protect your reputation
with Millennial consumers, check out more of our other free resources at
www.asiainspection.com/whitepapers or email us at info@asiainspection.com.

7. www.AsiaInspection.com - © 2016 7
About AsiaInspection
AI is a global leading quality control and compliance service provider
that partners with brands, retailers and importers around the world to
secure, manage, and optimize their supply chain.
AI performs Supplier Audits Programs, Product Inspections, and
Laboratory Testing. Clients from over 100 countries worldwide benefit
from web-based mobile friendly account management, fast scheduling,
and highly competitive all-inclusive pricing: $309 for Product Inspections
and $629 for Factory Audits.
AI guarantees on-site arrival within 48 hours of booking, and a same-
day inspection report available online.
With over 800 inspectors and auditors classified by product range, and
account managers speaking over 20 languages.
Connect with us
sales@asiainspection.com
www.AsiaInspection.com
NOTES
1. U.S. Census Bureau International Database, 2012
2. Brookings Institution, "11 FactsAbout the Millennial Generation," June 2, 2014 (http://www.brookings.
edu/blogs/brookings-now/posts/2014/06/11-facts-about-the-millennial-generation)
3. Total Youth Research, "Millennials and Their $1 Trillion Buying Power," June 4, 2015 (http://www.
totalyouthresearch.com/millennials-buying-power)
4. Forbes, "The Millennial Customer Has $200 Billion To Spend (But Wants A New Style Of
Customer Service)," January 21, 2015 (http://www.forbes.com/sites/micahsolomon/2015/01/21/
the-millennial-customer-has-arrived-has-200-billion-to-spend-and-wants-a-new-style-of-customer-
service/#33cb7ed1717b)
5. Shullman Research Center, “Millennials Attitudes Towards Shopping,” 2013.
6. Boston Consulting Group, “Millennial Passions,” November 2012.
7. Luxury Daily, "Millennials more likely to purchase luxury items: report," May 29, 2015 (http://www.
luxurydaily.com/millennials-more-like-to-purchase-luxury-items-report)
8. Cone Communications, 2015 Cone Communications Millennial CSR Study, 2015 (http://www.
conecomm.com/new-cone-communications-research-confirms-millennials-as-americas-most-
ardent-csr-supporters)
9. Elite Daily, Millennial Consumer Trend 2015 Study, 2015 (http://elitedaily.com/news/business/elite-
daily-millennial-consumer-survey-2015/)
10. Nielsen, “Investing in the Future: Millennials Are Willing to Pay Extra for a Good Cause,” June 23,
2014.
11. Fortune, "Why Ethical Brands Must Engage More: Millennials," October 6, 2015 (http://fortune.com/
contentfrom/2015/10/06/ethical-brands-engage-millennials/ntv_a/gd4BATQoEAfxgFA/)
12. Toms, http://www.toms.com/supply-chain-transparency.
13. Entrepreneur, “Want to Reach Millennials? This is How They Spend Their Time,” October 9, 2014.
14. American Press Institute, How Millennials Get News: Inside the Habits of America’s First Digital
Generation, March 2015.
15. American Press Institute, "How Millennials Use and Control Social Media," march 16, 2015 (https://
www.americanpressinstitute.org/publications/reports/survey-research/millennials-social-media/)
16. Forbes, "5 Ways Successful Brands Win With Millennials On Social Media," January 26, 2016 (http://
www.forbes.com/sites/laurenfriedman/2016/01/26/5-ways-successful-brands-win-with-millennials-
on-social-media/#c85ff4d1ae00)
17. Cuker, "Millennials: Marketing for the Next Generation," October 15, 2015 (http://www.cukeragency.
com/blog/2015/10/15/millennials-marketing-next-generation/)
18. Boston Consulting Group, The Reciprocity Principle, January 2014.
19. Business Insider, “Group Used Facebook to make Hershey Act on Child Slavery,” February 1, 2012.
20. YaleGlobal, “Can Social Media Campaigns End Child Labor?” February 10, 2012.