GOODPURPOSE




Edelman goodpurpose® 2012
GLOBAL CONSUMER SURVEY
Fifth Global Consumer Study 2012
What consumers have to say…
       CANADA                                                              INDIA
           500                                                             500

         BRAZIL                                                            CHINA
            500                                                            500

             US                                                            JAPAN
            500                                                            500

             UK                                                            UAE
            500                                                            500

        FRANCE                                                             GERMANY
           500                                                             500

   NETHERLANDS                                                             ITALY
           500                                                             500

       BELGIUM                                                             INDONESIA
            500                                                            500

     SINGAPORE                                                             MALAYSIA
           500                                                             500

      StrategyOne surveyed 8,000 consumers across 16 countries, aged 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 people's self-esteem           78%
                            Supporting animal rights       74%
                        Supporting the creative arts     67%




                                                                            3
But, Differences Exist in Local Markets (US)
               Alleviating hunger and homelessness                91%
                 Improving the quality of healthcare              91%
                   Supporting human and civil rights              90%
           Stopping relationship violence and abuse              89%
                                  Reducing poverty               89%
             Ensuring access to safe drinking water              89%
                     Equal opportunity to education             88%
                         Protecting the environment             87%
Fighting the spread of global disease and pandemics            86%
                             Aiding in disaster relief         86%
  Encouraging tolerance for people who are different          85%
                           Supporting animal rights        78%
               Helping to raise people's self-esteem      77%
                        Supporting the creative arts     76%
The Me in We                     The Reengineering
                                 of Brand Marketing


                    5 Years of
                   goodpurpose

The New
Purpose Bull Markets         The “License to Lead”

                                                      5
5 Years of Purpose
The Reengineering of Brand Marketing
The Power of Purpose
From product innovation and R&D, to
supply chain optimization and 360
marketing, our study reveals it is the
power of Purpose that is helping to drive
consumer preference in a world where
trust in corporations is low and
differentiation between brands is
negligible
The Reengineering of Brand Marketing




                                       8
Profit + Purpose: The New Normal
It is OK for brands to support good causes and make money at the same time

                                   +33%
   90%

   80%                                                    76%
                                           70%
   70%                      68%

   60%       57%

   50%

   40%

   30%

   20%
             2008           2009           2010           2012




                                                                       9
Social Purpose as Purchase Trigger
When quality and price are the same, Social Purpose most important factor

     60%

                             + 26%          53%

     50%

             42%       43%                           Growth from 2010
                                     41%
     40%
                                                     •   Japan (100%)
                                                     •   China (79%)
                                                     •   Netherlands (43%)
     30%
                                                     •   Germany (36%)
                                                     •   India (43%)
     20%
            2008      2009           2010   2012



                                                                             10
Global Consumers Prefer Purpose
                        2008         52%

           RECOMMEND      2009               64%

                            2010            63%
                                                          + 39%
                              2012                  72%


                        2008          53%

             PROMOTE      2009              59%
                                                          + 34%
                            2010             62%
                              2012                  71%




                          2009
               SWITCH
                                              67%

                            2010            63%
                                                          + 9%
                              2012                  73%




                                                                  11
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




         32%               47%
        AT LEAST          AT LEAST
        MONTHLY           MONTHLY




                                         12
License to Lead
Building Future Performance on Societal Actions
The New Imperative
Rather than merely exercising their
“license to operate,” leading brands
and corporations of the future must
move beyond operational imperatives
and social add-on‟s to establish their
“license to lead.”
Business vs. Society
87% globally believe business should place at least equal weight on business and society

        94%   91%   90%   90%   89%
  87%                                 87%   87%   87%   87%   86%   85%   84%   84%   84%   83%
                                                                                                  79%




                                                                                                   15
Business is Struggling to Meet Expectations
Only 28% believe business is performing well in addressing societal issues
                                                                             58%
                                                                       49%
                                                             42% 42%


 28%                                                   30%
                                             26% 27%
                         21% 22% 23% 23% 25%
                 18% 20%
       13% 15%




                                                                                   16
Performance Gap in Addressing Societal Issues
Gap could drive disillusionment, disengagement and distrust

          87%                                        Performance
          believe business                           lacking on
          should place                               addressing
          at least equal                             societal issues
          weight on societal
          issues and
          business issues




                               Only 28%
                               believe business is
                               performing well


                                                                       17
The Role of the CEO
CEOs must think proactively about using their business to address issues


   CREATE SOCIALLY RESPONSIBLE AND INNOVATIVE PRODUCTS              56%

       MAKE A LONG-TERM COMMITMENT TO SOCIETAL ISSUES              55%

                  PUBLICALLY SUPPORTING SOCIETAL ISSUES            55%

                      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%




                                                                           18
What Should Companies be Doing?
50%+ believe companies should donate a portion of profits or products/services to
address societal issues
                          DONATING A PORTION OF PROFITS                      51%
                         DONATING PRODUCTS OR SERVICES                       50%
                     CREATING NEW PRODUCTS OR SERVICES                      49%
                    PROVIDING EDUCATIONAL INFORMATION                      47%
                         WORKING WITH THE GOVERNMENT                      45%
                      OFFERING PROGRAMS FOR EMPLOYEES                     45%
                                  PARTNERING WITH NGOS                   43%
                       ENABLING EMPLOYEES TO VOLUNTEER                   42%
                           ORGANIZING CONSUMER EVENTS                   41%
                  COLLABORATING WITH OTHER COMPANIES                  36%
SOCIAL NETWORK FOR CONSUMERS TO ADDRESS SOCIETAL ISSUES         28%
                        EMPLOYEE FUNDRAISING PROGRAMS           27%
             CREATING SOFTWARE/MOBILE FUNDRAISING APPS    19%
         CREATING SOFTWARE/MOBILE COMMUNICATION APPS      19%

                                                                                    19
Consumers will praise…and punish
           Company that does NOT
      actively support a good cause
                                                 _ +            Company that actively
                                                                supports a good cause
Increase from 2010                                                                                 Increase from 2010
      +7
                            44%                                                              76%        +9
                     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




                                                                                                                        20
Punishment Goes Public




                         21
The More You Know
It is critical for companies to make consumers aware of their efforts

        92%   90%   88%   87%   87%   86%   84%   84%
  80%                                                   80%
                                                              76%
                                                                    73%   73%   73%   72%   70%   68%




                                                                                                        22
Societal Performance = The Human Factor
 Current Purchase Consideration                           Building Future Purchase Intent
Works to protect and improve the environment         Treats employees well

Creates programs that positively impact the local
                                                     Listens to customer needs and feedback
community in which the company operates

Has ethical business practices                       Works to protect and improve the environment

Takes responsible actions to address an issue
                                                     Has ethical business practices
or a crisis
                                                     Takes responsible actions to address an issue or a
Addresses society‟s needs in its everyday business
                                                     crisis

Listens to customer needs and feedback               Places customers ahead of profits

                                                     Creates programs that positively impact the local
Treats employees well
                                                     community in which the company operates

Places customers ahead of profits                    Addresses society‟s needs in its everyday business



                                                                                                          23
Take Note: Be More Human




                           24
The New “Purpose Bull Markets”
Bullish on Purpose
Consumers in Rapid Growth
Economies (RGEs) have much
higher expectations of and
engagement with brands and
corporations on societal issues.
Who are the Purpose Bull Markets?


               INDIA          BELGIUM
   CHINA        BRAZIL           ITALY FRANCE
      MALAYSIA                    NETHERLANDS
   INDONESIA             VS       JAPAN GERMANY
               UAE                 US
                                          UK

                                                  27
Empowered to Make a Difference
                      Purpose Bull Markets   Purpose Bear Markets

             COMPARED TO FIVE YEARS AGO,                                  63%
  ‘PEOPLE LIKE ME’ NOW HAVE MORE POWER
                                                      29%
     AND INFLUENCE TO MAKE A DIFFERENCE



                   THE RESPONSIBILITY OF                            56%
          ‘PEOPLE LIKE ME’ HAS INCREASED                    37%




                                                                                28
Passion in Action
Bull Market consumers contrast those in Bear Markets
                             Purpose Bull Markets     Purpose Bear Markets

 I HAVE MORE TRUST IN A BRAND THAT IS ETHICALLY AND                                                83%
                SOCIALLY RESPONSIBLE                                                66%

      I AM MORE LIKELY TO RECOMMEND A BRAND THAT                                                  82%
     SUPPORTS A GOOD CAUSE THAN ONE THAT DOESN'T                                   64%

 I WOULD HELP A BRAND PROMOTE ITS PRODUCT/SERVICES                                                81%
                IF IT HAD A GOOD CAUSE                                             63%

        I WOULD SWITCH BRANDS IF A DIFFERENT BRAND                                               80%
                 SUPPORTED A GOOD CAUSE                                              67%

   I WANT BRANDS TO MAKE IT EASIER FOR ME TO MAKE A                                              79%
              DIFFERENCE IN THE WORLD                                          62%

 BRANDS CAN SUPPORT GOOD CAUSES AND MAKE MONEY                                                  78%
                AT THE SAME TIME                                                          72%

   I WANT BRANDS TO DO MORE FOR ME THAN PROVIDE A                                          73%
                      PRODUCT                                                57%




                                                                                                         29
Responsibility at Work
Bull Market consumers are more likely to donate and personally participate
                      Purpose Bull Markets   Purpose Bear Markets


                                                                                63%
                        DONATED MONEY
                                                                          52%


          VOLUNTEERED AT AN EVENT IN MY                             44%
                            COMMUNITY                 23%

                                                                    44%
           DONATED MY TIME OR EXPERTISE
                                                      23%


      PARTICIPATED IN FUNDRAISING EVENTS                26%
   SPONSORED BY A BRAND OR CORPORATION
                                                12%




                                                                                      30
Paying for Purpose
Bull Market consumers more willing to pay a premium for Purpose
       80%
             71%

                   55% 55% 54%
 43%                             44% 42%
                                         39% 38%
                                                 35% 34%
                                                           30% 30% 29% 29% 28%




                                                                                 31
Preference in Practice
Bull Market consumers‟ cause-related purchases


               84%
              AT LEAST        62%
               YEARLY        AT LEAST

                                                                                         57%
                             MONTHLY
                                                  37%
                                                                                       AT LEAST
                                                 AT LEAST
                                                 MONTHLY                                YEARLY



                              22%                 19%
                           EVERY SIX TO 12    EVERY SIX TO 12
                              MONTHS             MONTHS


                         Bull Markets        Bear Markets
                                              *Note: „At least yearly‟ NET may not add to the total due to rounding




                                                                                                                      32
But…activity not limited to offline
Technology in societal action
           At least monthly Internet use             Use mobile at least yearly
                 82%
                       76%   78%               76%
                                         73%           71% 72%   69% 71%
                                                                            66% 66%
                                   60%
     55%
           45%




                                                                                      33
Discovering the “Me in We”




                             34
Defining the Me in We
 As the disparity between the haves
 and have not‟s continues, more
 and more consumers are
 discovering the me (personal
 need) in the we (the common
 good)…Purpose Gets Personal.




                                      35
The Globalization of Need
      Because of the global recession, societal issues are hitting close to home
    Unable to pay                                          Unable to
       medical        Reduced     My salary   Reduced
                                  decreased                donate as
     expenses or    spending on
                                                                           85%
                                               leisure   much money to
        afford          food                  shopping   societal issues
      healthcare
                                                                           of those surveyed
                                                                           around the world
.                                                                          say they have
                                                                           been affected by
                                                                           the economic
                                                                           downturn in some
                                                                           way.




                                                                                         36
Balancing Me and We
       Sales




         52%          of global consumers
                      believe it‟s equally
                      important to address
                      issues that impact me
                      personally and society
                      overall.


                                               37
Me: Empowered
„People like me‟ now have more power and influence to make a difference

        77%
              73%
                    66%
                          58% 57% 57%

  44%                                   47%
                                              41% 39%
                                                      37% 36%
                                                                29% 26%
                                                                          21% 20% 20%




                                                                                    38
Me: On the Rise
Who should be most responsible to address societal issues?
              People Like Me      Government
  80%
                                                                       In the US, “people like me” are most
                                                                       responsible to address societal issues
          73%
                   68%
                           62%
                                   59%
                                           56%     56%     55%    54%                                                             54%
                                                                          52%       51%
                                                                                            48%     47%
                                                                                                            43%
                                                                                                                    40%
                                                                                                          36%             35%

                                                                                          24%     25%             26%
                                                                        20%                                                 22%
                                 18%             17%     18%     18%          17%
                         16%             15%                                                                                    19%
                14%
        10%
 3%




                                                                                                                                        39
Me: Involved
Personal involvement in good causes on the rise in most markets, except US

                                         2010        2012
                +5
                     94%
               89%

                              +6          +10
                                   69%

                                                                   +9
                                               65%
                            63%

                                                                                +6
                                                      60%
   56%   55%                             55%
                                                            53%
                                                                        48%

                                                                                            +7
                                                                                    44%

                                                        -7
                                                                  39%         38%

                                                                                                26%
                                                                                          19%



   Global       China      Netherlands    Brazil        US        Germany      Italy       Japan




                                                                                                      40
Purpose is Personal
Economic uncertainty is redefining what we consider “cause”




                                                              41
Me: in Action
                     of global consumers take part in
     89%             activities to address societal issues.


       72% in US                                77% of Chinese
 recycle regularly                              donated money


    63% of Brazilians
voiced their concerns                            75% of Germans
                                                 take actions to
                                                 conserve energy
Turning Insights into Action
5 Years of Learning

   1   Purpose key driver in reengineering brand marketing

   2   Purpose definitive purchase trigger

   3   Largest growth markets bullish on Purpose

   4   Operational excellence + societal performance rewarded

   5   Corporations earn License to Lead via Purpose




                                                                44
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

                                                             45
What‟s Your Purpose?




                       46
47

Edelman Good Purpose 2012

  • 1.
  • 2.
    Fifth Global ConsumerStudy 2012 What consumers have to say… CANADA INDIA 500 500 BRAZIL CHINA 500 500 US JAPAN 500 500 UK UAE 500 500 FRANCE GERMANY 500 500 NETHERLANDS ITALY 500 500 BELGIUM INDONESIA 500 500 SINGAPORE MALAYSIA 500 500 StrategyOne surveyed 8,000 consumers across 16 countries, aged 18+
  • 3.
    Consistent Commitment; DiverseOpportunity 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 people's self-esteem 78% Supporting animal rights 74% Supporting the creative arts 67% 3
  • 4.
    But, Differences Existin Local Markets (US) Alleviating hunger and homelessness 91% Improving the quality of healthcare 91% Supporting human and civil rights 90% Stopping relationship violence and abuse 89% Reducing poverty 89% Ensuring access to safe drinking water 89% Equal opportunity to education 88% Protecting the environment 87% Fighting the spread of global disease and pandemics 86% Aiding in disaster relief 86% Encouraging tolerance for people who are different 85% Supporting animal rights 78% Helping to raise people's self-esteem 77% Supporting the creative arts 76%
  • 5.
    The Me inWe The Reengineering of Brand Marketing 5 Years of goodpurpose The New Purpose Bull Markets The “License to Lead” 5
  • 6.
    5 Years ofPurpose The Reengineering of Brand Marketing
  • 7.
    The Power ofPurpose From product innovation and R&D, to supply chain optimization and 360 marketing, our study reveals it is the power of Purpose that is helping to drive consumer preference in a world where trust in corporations is low and differentiation between brands is negligible
  • 8.
    The Reengineering ofBrand Marketing 8
  • 9.
    Profit + Purpose:The New Normal It is OK for brands to support good causes and make money at the same time +33% 90% 80% 76% 70% 70% 68% 60% 57% 50% 40% 30% 20% 2008 2009 2010 2012 9
  • 10.
    Social Purpose asPurchase Trigger When quality and price are the same, Social Purpose most important factor 60% + 26% 53% 50% 42% 43% Growth from 2010 41% 40% • Japan (100%) • China (79%) • Netherlands (43%) 30% • Germany (36%) • India (43%) 20% 2008 2009 2010 2012 10
  • 11.
    Global Consumers PreferPurpose 2008 52% RECOMMEND 2009 64% 2010 63% + 39% 2012 72% 2008 53% PROMOTE 2009 59% + 34% 2010 62% 2012 71% 2009 SWITCH 67% 2010 63% + 9% 2012 73% 11
  • 12.
    Purchase Frequency „At LeastMonthly‟ 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 32% 47% AT LEAST AT LEAST MONTHLY MONTHLY 12
  • 13.
    License to Lead BuildingFuture Performance on Societal Actions
  • 14.
    The New Imperative Ratherthan merely exercising their “license to operate,” leading brands and corporations of the future must move beyond operational imperatives and social add-on‟s to establish their “license to lead.”
  • 15.
    Business vs. Society 87%globally believe business should place at least equal weight on business and society 94% 91% 90% 90% 89% 87% 87% 87% 87% 87% 86% 85% 84% 84% 84% 83% 79% 15
  • 16.
    Business is Strugglingto Meet Expectations Only 28% believe business is performing well in addressing societal issues 58% 49% 42% 42% 28% 30% 26% 27% 21% 22% 23% 23% 25% 18% 20% 13% 15% 16
  • 17.
    Performance Gap inAddressing Societal Issues Gap could drive disillusionment, disengagement and distrust 87% Performance believe business lacking on should place addressing at least equal societal issues weight on societal issues and business issues Only 28% believe business is performing well 17
  • 18.
    The Role ofthe CEO CEOs must think proactively about using their business to address issues CREATE SOCIALLY RESPONSIBLE AND INNOVATIVE PRODUCTS 56% MAKE A LONG-TERM COMMITMENT TO SOCIETAL ISSUES 55% PUBLICALLY SUPPORTING SOCIETAL ISSUES 55% 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% 18
  • 19.
    What Should Companiesbe Doing? 50%+ believe companies should donate a portion of profits or products/services to address societal issues DONATING A PORTION OF PROFITS 51% DONATING PRODUCTS OR SERVICES 50% CREATING NEW PRODUCTS OR SERVICES 49% PROVIDING EDUCATIONAL INFORMATION 47% WORKING WITH THE GOVERNMENT 45% OFFERING PROGRAMS FOR EMPLOYEES 45% PARTNERING WITH NGOS 43% ENABLING EMPLOYEES TO VOLUNTEER 42% ORGANIZING CONSUMER EVENTS 41% COLLABORATING WITH OTHER COMPANIES 36% SOCIAL NETWORK FOR CONSUMERS TO ADDRESS SOCIETAL ISSUES 28% EMPLOYEE FUNDRAISING PROGRAMS 27% CREATING SOFTWARE/MOBILE FUNDRAISING APPS 19% CREATING SOFTWARE/MOBILE COMMUNICATION APPS 19% 19
  • 20.
    Consumers will praise…andpunish Company that does NOT actively support a good cause _ + Company that actively supports a good cause Increase from 2010 Increase from 2010 +7 44% 76% +9 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 20
  • 21.
  • 22.
    The More YouKnow It is critical for companies to make consumers aware of their efforts 92% 90% 88% 87% 87% 86% 84% 84% 80% 80% 76% 73% 73% 73% 72% 70% 68% 22
  • 23.
    Societal Performance =The Human Factor Current Purchase Consideration Building Future Purchase Intent Works to protect and improve the environment Treats employees well Creates programs that positively impact the local Listens to customer needs and feedback community in which the company operates Has ethical business practices Works to protect and improve the environment Takes responsible actions to address an issue Has ethical business practices or a crisis Takes responsible actions to address an issue or a Addresses society‟s needs in its everyday business crisis Listens to customer needs and feedback Places customers ahead of profits Creates programs that positively impact the local Treats employees well community in which the company operates Places customers ahead of profits Addresses society‟s needs in its everyday business 23
  • 24.
    Take Note: BeMore Human 24
  • 25.
    The New “PurposeBull Markets”
  • 26.
    Bullish on Purpose Consumersin Rapid Growth Economies (RGEs) have much higher expectations of and engagement with brands and corporations on societal issues.
  • 27.
    Who are thePurpose Bull Markets? INDIA BELGIUM CHINA BRAZIL ITALY FRANCE MALAYSIA NETHERLANDS INDONESIA VS JAPAN GERMANY UAE US UK 27
  • 28.
    Empowered to Makea Difference Purpose Bull Markets Purpose Bear Markets COMPARED TO FIVE YEARS AGO, 63% ‘PEOPLE LIKE ME’ NOW HAVE MORE POWER 29% AND INFLUENCE TO MAKE A DIFFERENCE THE RESPONSIBILITY OF 56% ‘PEOPLE LIKE ME’ HAS INCREASED 37% 28
  • 29.
    Passion in Action BullMarket consumers contrast those in Bear Markets Purpose Bull Markets Purpose Bear Markets I HAVE MORE TRUST IN A BRAND THAT IS ETHICALLY AND 83% SOCIALLY RESPONSIBLE 66% I AM MORE LIKELY TO RECOMMEND A BRAND THAT 82% SUPPORTS A GOOD CAUSE THAN ONE THAT DOESN'T 64% I WOULD HELP A BRAND PROMOTE ITS PRODUCT/SERVICES 81% IF IT HAD A GOOD CAUSE 63% I WOULD SWITCH BRANDS IF A DIFFERENT BRAND 80% SUPPORTED A GOOD CAUSE 67% I WANT BRANDS TO MAKE IT EASIER FOR ME TO MAKE A 79% DIFFERENCE IN THE WORLD 62% BRANDS CAN SUPPORT GOOD CAUSES AND MAKE MONEY 78% AT THE SAME TIME 72% I WANT BRANDS TO DO MORE FOR ME THAN PROVIDE A 73% PRODUCT 57% 29
  • 30.
    Responsibility at Work BullMarket consumers are more likely to donate and personally participate Purpose Bull Markets Purpose Bear Markets 63% DONATED MONEY 52% VOLUNTEERED AT AN EVENT IN MY 44% COMMUNITY 23% 44% DONATED MY TIME OR EXPERTISE 23% PARTICIPATED IN FUNDRAISING EVENTS 26% SPONSORED BY A BRAND OR CORPORATION 12% 30
  • 31.
    Paying for Purpose BullMarket consumers more willing to pay a premium for Purpose 80% 71% 55% 55% 54% 43% 44% 42% 39% 38% 35% 34% 30% 30% 29% 29% 28% 31
  • 32.
    Preference in Practice BullMarket consumers‟ cause-related purchases 84% AT LEAST 62% YEARLY AT LEAST 57% MONTHLY 37% AT LEAST AT LEAST MONTHLY YEARLY 22% 19% EVERY SIX TO 12 EVERY SIX TO 12 MONTHS MONTHS Bull Markets Bear Markets *Note: „At least yearly‟ NET may not add to the total due to rounding 32
  • 33.
    But…activity not limitedto offline Technology in societal action At least monthly Internet use Use mobile at least yearly 82% 76% 78% 76% 73% 71% 72% 69% 71% 66% 66% 60% 55% 45% 33
  • 34.
  • 35.
    Defining the Mein We As the disparity between the haves and have not‟s continues, more and more consumers are discovering the me (personal need) in the we (the common good)…Purpose Gets Personal. 35
  • 36.
    The Globalization ofNeed Because of the global recession, societal issues are hitting close to home Unable to pay Unable to medical Reduced My salary Reduced decreased donate as expenses or spending on 85% leisure much money to afford food shopping societal issues healthcare of those surveyed around the world . say they have been affected by the economic downturn in some way. 36
  • 37.
    Balancing Me andWe Sales 52% of global consumers believe it‟s equally important to address issues that impact me personally and society overall. 37
  • 38.
    Me: Empowered „People likeme‟ now have more power and influence to make a difference 77% 73% 66% 58% 57% 57% 44% 47% 41% 39% 37% 36% 29% 26% 21% 20% 20% 38
  • 39.
    Me: On theRise Who should be most responsible to address societal issues? People Like Me Government 80% In the US, “people like me” are most responsible to address societal issues 73% 68% 62% 59% 56% 56% 55% 54% 54% 52% 51% 48% 47% 43% 40% 36% 35% 24% 25% 26% 20% 22% 18% 17% 18% 18% 17% 16% 15% 19% 14% 10% 3% 39
  • 40.
    Me: Involved Personal involvementin good causes on the rise in most markets, except US 2010 2012 +5 94% 89% +6 +10 69% +9 65% 63% +6 60% 56% 55% 55% 53% 48% +7 44% -7 39% 38% 26% 19% Global China Netherlands Brazil US Germany Italy Japan 40
  • 41.
    Purpose is Personal Economicuncertainty is redefining what we consider “cause” 41
  • 42.
    Me: in Action of global consumers take part in 89% activities to address societal issues. 72% in US 77% of Chinese recycle regularly donated money 63% of Brazilians voiced their concerns 75% of Germans take actions to conserve energy
  • 43.
  • 44.
    5 Years ofLearning 1 Purpose key driver in reengineering brand marketing 2 Purpose definitive purchase trigger 3 Largest growth markets bullish on Purpose 4 Operational excellence + societal performance rewarded 5 Corporations earn License to Lead via Purpose 44
  • 45.
    Not IF, butHOW… 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 45
  • 46.
  • 47.