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Citizens Engage!   Edelman goodpurpose® Study 2010
                   FOURTH ANNUAL GLOBAL CONSUMER SURVEY
“We Make a Living
By What We Get,
But We Make a Life
By What We Give”

  Winston Churchill
THE RISE OF GLOBAL CITIZENSHIP


                                                                                    Social media
         86% of global consumers                                                 continues to drive
         believe that business needs to                                            social purpose
         place at least equal weight on
         society’s interests as on business’
         interests.                                                              A Purpose “Reset”
                                            Edelman 2010 goodpurpose® Study




                           Global issues are                                     Emerging markets
                            local concerns                                         take the lead


Q33. (Equal weight + more weight on society’s interests) Global (excludes UAE)
THE RISE OF THE “CITIZEN CONSUMER”


                                Global citizens unite
                             around disaster in Haiti in
                             unprecedented numbers
                                                           COP 15 Copenhagen Summit
                                                           considered a failure




Outpouring of support for                                           Citizen journalism
local communities affected                                           spreads support
by BP crisis                                                              for Iran
GOVERNMENTS RESPOND

   UK Tories launch big society




                                  India’s Parliament introduces Bill to
                                  require largest companies to donate 2%
                                  of their net profits to CSR activities.
BUSINESS PUTS PURPOSE OUT FRONT

Performance with Purpose

“Our belief that our financial
success — Performance —
must go hand-in-hand with our
social and environmental
responsibilities — our Purpose.”

                      Indra Nooyi
                      Chairman &
                      CEO, PepsiCo.
A PURPOSE “RESET”?

                                                 BACK TO BASICS?: Jobs and economic development
                             Will marketing
Can purpose                    change from
                          selling more widgets
drive profit?              to providing more
                                substance?




                             Is less
    guynameddave.com/
    100-thing-challenge

                                                 Is purpose becoming institutionalized
                           now more?             across corporate and marketing
                                                 spectrum?
WHAT CONSUMERS HAVE TO SAY…                                      FOURTH ANNUAL
                                                                 GLOBAL CONSUMER STUDY
                                                                 2010
                                                                           US
                                                                           1000
        CANADA                                                             CHINA
            500                                                            1000
         MEXICO                                                            INDIA
            500                                                            500
          BRAZIL                                                           JAPAN
             500                                                           500
              UK                                                           UAE
              500                                                          250
         FRANCE                                                            GERMANY
             500                                                           500
 NETHERLANDS                                                               ITALY
          500                                                              500
StrategyOne surveyed 7,000+ consumers across 13 countries, aged 18-64
EMERGING MARKETS TAKE THE LEAD
Citizens in the world’s fastest growing markets – China, India, Brazil,
Mexico – have outpaced their peers as most engaged in supporting good
causes.
“CONSUMERS IN BRAZIL,
CHINA, INDIA AND MEXICO ARE
MORE LIKELY TO PURCHASE
AND PROMOTE BRANDS THAT
SUPPORT GOOD CAUSES,
OUTPACING THEIR PEERS IN
THE WEST.”
EMERGING MARKETS ARE MOST WILLING TO BUY BRANDS THAT SUPPORT
 GOOD CAUSES
                                                  Consumers who
                                                  buy a brand that
                                                  supports a good
                                                  cause at least
                                                  every twelve
                                                  months.




Q20. (Net: at least every twelve months)
EMERGING MARKETS TAKE ACTION TO SUPPORT SOCIAL PURPOSE BRANDS
                                   INDIA
                                   78%       “I would switch brands if a different
                                   GLOBAL    brand of similar quality supported a
                                   62%
                                                                     good cause.”

                                   CHINA
                                   77%         “I am more likely to recommend a
                                   GLOBAL       brand that supports a good cause
                                   62%                    than one that doesn’t.”
    More than 7 in 10 consumers
    in the emerging markets        BRAZIL
                                   80%         “I would help a brand to promote
    would take action to support   GLOBAL   their products or services if there is a
                                   61%
    social purpose brands.                             good cause behind them.”

Q16. (Top 2 box, Agree)
EMERGING MARKETS EXPECT BRAND INVOLVEMENT IN GOOD CAUSES


                                             “I have more trust in a
                                             brand that is ethically
                                             and socially
  8 in 10 consumers in the
                                             responsible.”
  India, China, Mexico and
  Brazil expect brands to
                                             Brazil: 81%
  donate a portion of their
                                             China: 78%
  profits to support a good
                                             Mexico: 78%
  cause.
                                             India: 77%

                                              Global: 65%


Q17. & Q16. (Top 2 box, Agree)
THE FIFTH “P” OF MARKETING IS PURPOSE
Purpose is now the fifth “P” of marketing. It is a vital addition to the age-
old marketing mix of Product, Price, Placement and Promotion.
GLOBALLY, SOCIAL PURPOSE REMAINS KEY PURCHASE MOTIVATOR

                                                     When choosing between two
                                                     brands of equal quality and
                                                     price…

                                                     Social purpose continues to rank
                                                     as the number one deciding factor
                                                     for global consumers above
                                                     design, innovation and brand
                                                     loyalty.




Q23. (First ranked response) Global (excludes UAE)
CONSUMERS TAKE ACTION TO SUPPORT COMPANIES WITH PURPOSE


  66%
                     BUY its products or services


  66%
                     RECOMMEND its products or services


  64%
                     SHARE positive opinions and experiences


Q39-44. (Top 2 box, Likely) Global (excludes UAE)
CONSUMER WILLINGNESS TO PROMOTE BRANDS WITH A CAUSE JUMPS

“I would help a brand to promote their
products or services if there is a good
cause behind them.”

                                    +9
                                                                                    GAP RED




Q16. [TRACKING] (Top 2 Box, Agree) Global (excludes Mexico, the Netherlands, UAE)
… BUT ALSO WILLING TO PUNISH




Q45-49. (Top 2 box, Likely) Global (excludes UAE)
CONSUMER ACTIONISM
Consumers want to work alongside brands and corporations to
develop the best ideas for solving the world’s problems, then tackle
them head on.
CONSUMERS FEEL MORE EMPOWERED TO SUPPORT GOOD CAUSES

 Which one of the following entities do you think should be doing the most to
 support good causes?

                 -10




                                                        +5




Q7. [TRACKING] Global (excludes Mexico, the Netherlands, UAE)
CONSUMERS WANT TO PARTNER WITH BRANDS



 71% believe brands and
 consumers could do more to
 support good causes by
 working together



 63% want brands to make it
 easier for them to make a
 positive difference


Q17. & Q16. (Top 2 Box, Agree) Global (excludes UAE)
CONSUMERS EXPECT CORPORATIONS TO INVEST IN PURPOSE

   64% believe it is no longer enough
   for corporations to give money;
   they must integrate good causes
   into their everyday business




                                                61% have a better opinion of
                                                corporations that integrate good
                                                causes into business, regardless of
Q32. (Top 2 Box, Agree) Global (excludes UAE)
                                                why they do so
GREEN AS ECONOMIC LEVER
Citizens believe that sustaining the environment can help grow the
economy.
“GREEN IS GREEN”




 71% of global consumers
 believe projects that protect
 and sustain the environment
 can help grow the economy

 Demand highest in emerging
 markets and US.



Q57. (Top 2 Box, Agree) Global (excludes UAE)
GOVERNMENT AND CORPORATIONS MUST PLAY ROLE

 72% expect corporations
 to take actions to
 preserve and sustain the
 environment

 73% agree government
 and business need to
 work together more
 closely to ensure the
 environment is protected


Q32. & Q57. (Top 2 Box, Agree), Global (excludes UAE)
PUBLIC SUPPORT FOR ENVIRONMENTAL LEGISLATION IS STRONG



                                                64% would support legislation that requires
                                                corporations to meet certain environmental
                                                standards even if it would negatively impact a
                                                corporation’s profits

                                                62% would support legislation that requires
                                                government to fund partnerships between public
                                                and private organizations to help protect the
                                                environment


Q57. (Top 2 Box, Agree) Global (excludes UAE)
SO, HOW CAN YOU ENGAGE?




   Helping brands and companies
   integrate purpose into their core business
   proposition and marketing efforts.
THE GOODPURPOSE POINT OF VIEW

                                       People, companies, and brands working together to
            “MUTUAL SOCIAL
  APPLY     RESPONSIBILITY”
                                       take action and effect positive social change for mutual
                                       benefit



            YOUR BUSINESS PURPOSE TO   Identify your social issue, and ownable,
 MATCH      A HIGHER SOCIAL PURPOSE    galvanizing idea




                                       Foster a deeper emotional connection and develop
 ENGAGE     YOUR PUBLIC                sustainable brand loyalty




            “RETURN ON                 Conversation, Participation, Membership,
MEASURE     INVOLVEMENT”               Purchase, Repurchase
“BE THE CHANGE YOU WANT TO SEE IN THE WORLD.”
MAHATMA GANDHI

  “BE THE CHANGE YOU WISH TO SEE IN THE WORLD.”
   MAHATMA GANDHI

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goodpurpose® Study 2010

  • 1. Citizens Engage! Edelman goodpurpose® Study 2010 FOURTH ANNUAL GLOBAL CONSUMER SURVEY
  • 2. “We Make a Living By What We Get, But We Make a Life By What We Give” Winston Churchill
  • 3. THE RISE OF GLOBAL CITIZENSHIP Social media 86% of global consumers continues to drive believe that business needs to social purpose place at least equal weight on society’s interests as on business’ interests. A Purpose “Reset” Edelman 2010 goodpurpose® Study Global issues are Emerging markets local concerns take the lead Q33. (Equal weight + more weight on society’s interests) Global (excludes UAE)
  • 4. THE RISE OF THE “CITIZEN CONSUMER” Global citizens unite around disaster in Haiti in unprecedented numbers COP 15 Copenhagen Summit considered a failure Outpouring of support for Citizen journalism local communities affected spreads support by BP crisis for Iran
  • 5. GOVERNMENTS RESPOND UK Tories launch big society India’s Parliament introduces Bill to require largest companies to donate 2% of their net profits to CSR activities.
  • 6. BUSINESS PUTS PURPOSE OUT FRONT Performance with Purpose “Our belief that our financial success — Performance — must go hand-in-hand with our social and environmental responsibilities — our Purpose.” Indra Nooyi Chairman & CEO, PepsiCo.
  • 7. A PURPOSE “RESET”? BACK TO BASICS?: Jobs and economic development Will marketing Can purpose change from selling more widgets drive profit? to providing more substance? Is less guynameddave.com/ 100-thing-challenge Is purpose becoming institutionalized now more? across corporate and marketing spectrum?
  • 8. WHAT CONSUMERS HAVE TO SAY… FOURTH ANNUAL GLOBAL CONSUMER STUDY 2010 US 1000 CANADA CHINA 500 1000 MEXICO INDIA 500 500 BRAZIL JAPAN 500 500 UK UAE 500 250 FRANCE GERMANY 500 500 NETHERLANDS ITALY 500 500 StrategyOne surveyed 7,000+ consumers across 13 countries, aged 18-64
  • 9. EMERGING MARKETS TAKE THE LEAD Citizens in the world’s fastest growing markets – China, India, Brazil, Mexico – have outpaced their peers as most engaged in supporting good causes.
  • 10. “CONSUMERS IN BRAZIL, CHINA, INDIA AND MEXICO ARE MORE LIKELY TO PURCHASE AND PROMOTE BRANDS THAT SUPPORT GOOD CAUSES, OUTPACING THEIR PEERS IN THE WEST.”
  • 11. EMERGING MARKETS ARE MOST WILLING TO BUY BRANDS THAT SUPPORT GOOD CAUSES Consumers who buy a brand that supports a good cause at least every twelve months. Q20. (Net: at least every twelve months)
  • 12. EMERGING MARKETS TAKE ACTION TO SUPPORT SOCIAL PURPOSE BRANDS INDIA 78% “I would switch brands if a different GLOBAL brand of similar quality supported a 62% good cause.” CHINA 77% “I am more likely to recommend a GLOBAL brand that supports a good cause 62% than one that doesn’t.” More than 7 in 10 consumers in the emerging markets BRAZIL 80% “I would help a brand to promote would take action to support GLOBAL their products or services if there is a 61% social purpose brands. good cause behind them.” Q16. (Top 2 box, Agree)
  • 13. EMERGING MARKETS EXPECT BRAND INVOLVEMENT IN GOOD CAUSES “I have more trust in a brand that is ethically and socially 8 in 10 consumers in the responsible.” India, China, Mexico and Brazil expect brands to Brazil: 81% donate a portion of their China: 78% profits to support a good Mexico: 78% cause. India: 77% Global: 65% Q17. & Q16. (Top 2 box, Agree)
  • 14. THE FIFTH “P” OF MARKETING IS PURPOSE Purpose is now the fifth “P” of marketing. It is a vital addition to the age- old marketing mix of Product, Price, Placement and Promotion.
  • 15. GLOBALLY, SOCIAL PURPOSE REMAINS KEY PURCHASE MOTIVATOR When choosing between two brands of equal quality and price… Social purpose continues to rank as the number one deciding factor for global consumers above design, innovation and brand loyalty. Q23. (First ranked response) Global (excludes UAE)
  • 16. CONSUMERS TAKE ACTION TO SUPPORT COMPANIES WITH PURPOSE 66% BUY its products or services 66% RECOMMEND its products or services 64% SHARE positive opinions and experiences Q39-44. (Top 2 box, Likely) Global (excludes UAE)
  • 17. CONSUMER WILLINGNESS TO PROMOTE BRANDS WITH A CAUSE JUMPS “I would help a brand to promote their products or services if there is a good cause behind them.” +9 GAP RED Q16. [TRACKING] (Top 2 Box, Agree) Global (excludes Mexico, the Netherlands, UAE)
  • 18. … BUT ALSO WILLING TO PUNISH Q45-49. (Top 2 box, Likely) Global (excludes UAE)
  • 19. CONSUMER ACTIONISM Consumers want to work alongside brands and corporations to develop the best ideas for solving the world’s problems, then tackle them head on.
  • 20. CONSUMERS FEEL MORE EMPOWERED TO SUPPORT GOOD CAUSES Which one of the following entities do you think should be doing the most to support good causes? -10 +5 Q7. [TRACKING] Global (excludes Mexico, the Netherlands, UAE)
  • 21. CONSUMERS WANT TO PARTNER WITH BRANDS 71% believe brands and consumers could do more to support good causes by working together 63% want brands to make it easier for them to make a positive difference Q17. & Q16. (Top 2 Box, Agree) Global (excludes UAE)
  • 22. CONSUMERS EXPECT CORPORATIONS TO INVEST IN PURPOSE 64% believe it is no longer enough for corporations to give money; they must integrate good causes into their everyday business 61% have a better opinion of corporations that integrate good causes into business, regardless of Q32. (Top 2 Box, Agree) Global (excludes UAE) why they do so
  • 23. GREEN AS ECONOMIC LEVER Citizens believe that sustaining the environment can help grow the economy.
  • 24. “GREEN IS GREEN” 71% of global consumers believe projects that protect and sustain the environment can help grow the economy Demand highest in emerging markets and US. Q57. (Top 2 Box, Agree) Global (excludes UAE)
  • 25. GOVERNMENT AND CORPORATIONS MUST PLAY ROLE 72% expect corporations to take actions to preserve and sustain the environment 73% agree government and business need to work together more closely to ensure the environment is protected Q32. & Q57. (Top 2 Box, Agree), Global (excludes UAE)
  • 26. PUBLIC SUPPORT FOR ENVIRONMENTAL LEGISLATION IS STRONG 64% would support legislation that requires corporations to meet certain environmental standards even if it would negatively impact a corporation’s profits 62% would support legislation that requires government to fund partnerships between public and private organizations to help protect the environment Q57. (Top 2 Box, Agree) Global (excludes UAE)
  • 27. SO, HOW CAN YOU ENGAGE? Helping brands and companies integrate purpose into their core business proposition and marketing efforts.
  • 28. THE GOODPURPOSE POINT OF VIEW People, companies, and brands working together to “MUTUAL SOCIAL APPLY RESPONSIBILITY” take action and effect positive social change for mutual benefit YOUR BUSINESS PURPOSE TO Identify your social issue, and ownable, MATCH A HIGHER SOCIAL PURPOSE galvanizing idea Foster a deeper emotional connection and develop ENGAGE YOUR PUBLIC sustainable brand loyalty “RETURN ON Conversation, Participation, Membership, MEASURE INVOLVEMENT” Purchase, Repurchase
  • 29. “BE THE CHANGE YOU WANT TO SEE IN THE WORLD.” MAHATMA GANDHI “BE THE CHANGE YOU WISH TO SEE IN THE WORLD.” MAHATMA GANDHI