What drives a company’s reputation for responsibility – and how sector affects it

GlobeScan’s public attitudes tracking shows that the corporate world as a whole continues to suffer from a lack of trust in the eyes of consumers. Companies, and global ones in particular, are far less trusted than NGOs, and nearly half of citizens when polled this year were unable to call to mind a socially or environmentally responsible company when asked to do so.

However, the latest analysis of our findings reveals that the companies that are named as socially or environmentally responsible tend to cluster in a number of key sectors – with food companies the most frequently mentioned as socially responsible, and accounting for 13 percent of the total. As our chart this week shows – and as befits a highly consumer-facing sector, personal experience of a food company’s products or services is highly influential in making people feel that it is socially responsible, with advertising not far behind as a key information channel for communicating a sense of social responsibility.

Interestingly, though, it appears that a controversial sector does not have to be a bar to a positive reputation for responsibility for a company. Despite being rated as one of the least responsible sectors overall, oil companies are third most likely to be cited as examples of environmentally responsible companies (by 5%, same as electronic equipment / electrical appliances companies). Here, however, the consumer experience is far less significant in driving this perception, and news reports are the most significant channel by some distance – well ahead of the experience people have when filling up their cars. This highlights the need for companies seeking to engage consumers around issues of corporate responsibility to adapt the information channels they prioritize carefully according to their sector, or risk wasting precious time and budget.

 

Finding from the GlobeScan Radar, Wave 1, 2012 

For more information on this finding, please contact Sam Mountford (Read Bio)

Trust Wins Over Ethical Consumers

Published by The Financial Times on June 25th, this letter was in written by GlobeScan Chairman, Doug Miller, in response to a June 7th article entitled “In search of the elusive ethical consumer”.   Michael Skapinker’s “In search for the ethical consumer” was good as far as it went, but missed a couple of key points. The corporate interest in the ethical consumer that he outlines is well founded. It is a significant and growing segment of the consumer marketplace, currently in the range … “Trust Wins Over Ethical Consumers”

Developing world consumers more upbeat about economic impact of a Green Economy

It is often asserted that a responsible approach towards the environment is a luxury that emerging economies—with large proportions of their populations often remaining in poverty—are unable to afford, and that their top priority must be economic growth, whatever the cost.

However, GlobeScan’s and SustainAbility‘s most recent survey of global consumers, conducted in collaboration with National Geographic, shows that those in emerging economies are even more likely than their developed-world peers to reject the notion that environmental responsibility and economic prosperity are mutually exclusive.

The survey among consumers across 17 countries asked them to say whether they thought a Green Economy would be more or less effective than today’s economy in addressing a range of environmental and social challenges—and found that, globally, consumers thought a Green Economy would be more effective in all areas except for the creation of low-paying jobs.

Consumers in emerging economies are much more optimistic about the overall impact of a Green Economy than those in industrialized countries—particularly on “improving quality of life.” In those emerging economies, net expectations of the Green Economy’s effectiveness at “improving quality of life” are nearly 20 points higher than in developed economies. Similarly, the Green Economy’s effectiveness at “increasing long-term economic growth,” “reducing poverty,” and “creating high-paying jobs” is rated much more highly in emerging economies than in industrialized ones, as this chart shows.

Emerging-economy governments—notably in China—having taken a hard-line stance against tougher environmental targets in international climate negotiations in the past, but these findings suggest that they may be underestimating their peoples’ ability to take a long-term view.

 

Finding from a recent Regeneration Roadmap press release on Green Economy.  

For more information on this finding, please contact Sam Mountford (Read Bio)

International Polls Of Sustainability Experts And The Public Emphasize Growing Need For Private Sector Leadership On Sustainable Development

8 in 10 experts fear that governments will not take action short of catastrophe Download the Press Release (PDF) LONDON, UK, 6 June 2012 – As world leaders prepare to gather at the G20 and Rio+20 conferences later this month, two major global surveys released today by GlobeScan and SustainAbility find that expert and public confidence in national governments when it comes to governments’ ability to tackle global economic, environmental and social challenges are at severe lows. The findings suggest national … “International Polls Of Sustainability Experts And The Public Emphasize Growing Need For Private Sector Leadership On Sustainable Development”

Global Consumer Sentiment Remains Polarized

GlobeScan’s most recent tracking of consumer confidence around the world confirms that to talk about “global” economic sentiment is somewhat misleading.

The polarized picture we have noted in recent years continues, with consumers in the world’s major industrialized economies remaining predominately downbeat, while those in some of the major emerging economies are more likely to feel positive about their financial situation.

Notably, despite increasing talk of an economic slowdown, Chinese consumers appear much more upbeat about their financial situation than they did in 2011. The situation in India is more balanced, although those who report that their financial situation is better than last year still outnumber those who feel worse off than a year ago.

The contrast with the G7 is stark. If the recent improvement in US unemployment figures is translating into less negative sentiment among consumers there, the same cannot be said in France or, particularly, the UK, where sentiment remains heavily negative. There is little sign that Western consumers are ready to be the motor of any sustained economic recovery.

 

Finding from the GlobeScan Radar, Wave 1, 2012 

For more information on this finding, please contact Sam Mountford (Read Bio)

Awareness of corporate CSR activity among public has stalled

Despite the ever-increasing attention being paid by many companies to developing and communicating a responsible approach to business, there is little evidence that consumers are connecting with the CSR and sustainability efforts being made by the corporate world.

GlobeScan’s international tracking reveals that the number of consumers across 26 countries who said they knew a lot about what companies were doing to improve their social and environmental performance actually decreased slightly between 2009 and 2011, while the proportion saying they were not well informed increased.

While this may reflect greater focus on companies’ financial performance (and job losses) during the recession, it may also reflect the disconnect that continues to exist in many companies between marketing and communications functions and CSR/sustainability functions. Our research suggests that many consumers and stakeholders have not yet been engaged by the way companies try to show what they are doing to be more responsible, and view corporate claims in this area with continuing skepticism.

 

Finding from the GlobeScan Radar, Wave 1, 2011 

For more information on this finding, please contact Sam Mountford (Read Bio)

Experts Split on Whether Growth and Sustainable Consumption Compatible

Recent GDP figures from some of the world’s major economies suggest that prospects for a return to sustained growth in the global economy remain uncertain. But many have also questioned whether a return to pre-crisis rates of economic expansion is even desirable, given the apparent link between GDP growth and negative environmental consequences such as rapid natural resource depletion and increased carbon emissions.

GlobeScan and SustainAbility’s regular tracking of specialists in sustainability around the world suggests that experts are split on whether economic growth can be reconciled with sustainable consumption. Those polled recently were divided on the question, with 40 percent agreeing that there was an “inherent conflict” between economic growth and sustainable consumption, and 43 percent disagreeing.

The findings reveal a difference in perspective on either side of the Atlantic. The North American experts polled are more optimistic that aspirations for growth can be reconciled with sustainable consumption, with 51 percent disagreeing that there is an inherent conflict between the two, and only 34 percent agreeing. In Europe, by contrast, experts are much less sure, with those who see a fundamental conflict between the two goals (44%) slightly outnumbering those who think they are reconcilable (40%).

Either way, with anemic growth rates in most of the G7 economies, the challenge for responsible companies is more likely, for now, to be focused on how to remain profitable yet sustainable in a flat economy.

 

Finding from The 2011 GlobeScan/SustainAbility Survey 

For more information on this finding, please contact Sam Mountford (Read Bio)

Experts rate activist tactics focused on key business value drivers as most effective

The last year has seen an increased profile for activism of all types. Sometimes this has manifested against the practices of corporations (such as the ongoing Occupy movement) while at others the targets are governments, as with the Arab Spring and Wikipedia’s online protest against proposed US anti-piracy legislation.

GlobeScan and SustainAbility recently polled an international panel of experts in sustainability on what they considered the most effective activist tactics to be. As the chart above shows, the panel (drawn from businesses, NGOs, government and academia) rated tactics that focus on key business value drivers as the most effective in influencing corporate behaviour: product boycotts (or on the flip-side, preferential purchasing) for their impact on sales and shareholder activism for its effect on access to capital. The most confrontational tactic – civil disobedience – is seen as the least effective by some distance, while the more collaborative method of dialogue with companies is rated the second-least effective.

With experts also rating socially responsible investors – a group in a particularly strong position to shape companies’ business value drivers – as the most important audience for businesses and government to pay attention to, the pressure on companies to respond to different agendas as they move towards sustainability looks likely to increase.

 

Finding from The 2011 GlobeScan/SustainAbility Survey 

For more information on this finding, please contact Sam Mountford (Read Bio)

Sustainability experts back ‘choice editing’ to hasten transition to sustainable consumption

Sustainability experts strongly believe that companies have a duty to practice “choice editing” for consumers, the lastest GlobeScan/SustainAbility tracking reveals.

GlobeScan and SustainAbility regularly poll a panel of experts in sustainability issues across businesses, NGOs, government, and academia on emerging trends in sustainability. The panel was polled during September about their perspective on sustainable consumption, and the results reveal that while experts feel strongly that sustainable consumption is achievable, they have doubts about the degree to which it is compatible with economic growth, and also feel that companies have a duty to hasten the transition by restricting the choices available to consumers. Nearly four in five (78%) think that businesses have a duty to offer sustainable product lines instead of, rather than as well as, unsustainable ones.

With sustainable options still associated with premium pricing in many sectors, this perspective is likely to be challenging for companies, particularly during hard economic times, but it reflects how the terms of the debate are shifting. Another challenge is that GlobeScan consumer tracking also reveals that many people are skeptical about the claims that companies make for the responsible credentials of their products, citing “greenwash” as a major barrier to adopting more responsible consumer behavior. Sustainability champions within businesses will need to address both these issues if “choice editing” is to become a reality.

 

Finding from The 2011 GlobeScan/SustainAbility Survey 

For more information on this finding, please contact Sam Mountford (Read Bio)