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)

Corruption concerns in developing world pose challenge for business

While problems such as the ongoing crisis in the Eurozone, climate change, and unrest in the Middle East preoccupy governments around the world as 2012 begins, GlobeScan’s regular monitoring of global concern over a range of issues highlights that it is more immediate and everyday problems that are often at the forefront of citizens’ minds.

In GlobeScan’s annual tracking research, corruption once again emerges as one of the global problems considered to be most serious. It is also the problem that citizens are most likely to cite when asked which global problems they have discussed with their friends and family over the past month.

As this map shows, corruption tops the list of “most talked about” problems in a range of developing and emerging economies, including Peru in South America, Ghana and Egypt in Africa, Turkey in Europe, and India and Indonesia in Asia. Corruption is also often cited as a barrier to getting to grips with many of the other global problems that, as GlobeScan’s tracking shows, preoccupy many global citizens.

Taking a strong and public stand against corruption will be an important element in what businesses need to do to demonstrate their relevance to citizens’ lives, help build public trust, and maintain their social licence to operate.

 

Finding from the GlobeScan Radar, Wave 2, 2011 

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

Public respect falls for nine of twelve industrial sectors

At the end of 2011, the external environment for business has rarely been more challenging. With the Eurozone crisis unresolved, the economic headwinds that have been afflicting most of the world’s industrialised economies continue to blow – and recent data on Brazil’s economy in the last quarter suggest they may be spreading to the BRIC economies that until now have been enjoying buoyant economic growth. At the same time, pressure to regulate to ensure environmental and social responsibility is on the rise.

GlobeScan’s tracking of public respect for business across a number of sectors illustrates that at a time when consumers have little to spend and jobs are scarce, businesses are finding it hard to retain public esteem. In nine of the twelve sectors that GlobeScan tracks, respect has fallen across twelve developed and developing economies, with falls particularly sharp for food (with prices on the rise), banking (suffering from diminished consumer trust since the bailouts in 2008) and oil (thanks to a combination of high prices and environmental impact worries).

To regain consumer respect, these sectors will need to show in 2012 that they are able to deliver affordable products and services in tough economic times, while keeping one step ahead of consumer expectations on social and environmental responsibility.

 

Finding from the GlobeScan Radar, Wave 2, 2011 

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)

Ahead of Rio+20, governments on back foot

Government leaders have fallen well behind leaders of NGOs, corporations, and multilateral organizations in advancing the sustainability agenda ahead of the Rio+20 Summit, according to GlobeScan and SustainAbility’s recent survey of experts in the field. GlobeScan and SustainAbility surveyed over 500 sustainability experts from across 60+ countries on the sustainability performance of key players at the Rio+20 Summit. With experts giving high marks to NGO leaders on advancing the sustainability agenda, middling ratings to corporate leaders and leaders of multilateral … “Ahead of Rio+20, governments on back foot”

Ethical Consumers Preferring the Carrot Over the stick

The latest GlobeScan tracking data suggest that a shift may be taking place among ethical consumers, from a focus on punishing irresponsible companies to one characterized by rewarding those companies seen as socially or environmentally responsible.

Since the early years of the last decade, there has been a marked increase in self-reported rewarding and punishing of companies on ethical grounds by consumers across 14 developing and industrialized countries. The numbers punishing companies have been much more volatile, however, likely driven by the periodic emergence of high-profile scandals affecting individual companies. But since 2005 such punishment, rather than reward, has been the dominant expression of ethical consumerism.

This picture now appears to have changed, with the numbers punishing companies for bad practices falling away, while those rewarding responsible companies remain stable. This is probably a consequence, at least in part, of increased consumer choice of ethical products in many sectors—though economic factors may also be at play in the sharp decline in those refusing to buy from irresponsible companies.

 

Finding from the GlobeScan Radar, Wave 1, 2011

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

Sustainability Experts’ Views: Resource Agenda Will Continue to Dominate

Energy issues are seen by sustainability experts as the most important sustainable development challenge facing their country, the latest findings from the SustainAbility Survey reveal. But the findings also highlight some significant differences from region to region in perceptions of what the pressing issues are, and confirm that use of resources of all kinds is likely to dominate the agenda as emerging economies continue to develop.

Several times a year, GlobeScan and SustainAbility interview a panel of experts from around the world who work on sustainability issues within corporations, NGOs, academia, government departments, and scientific institutions. They are regularly asked to predict what the most critical sustainability issues will be over the months and years to come.

Energy is mentioned as the most urgent issue in North America, Europe, and emerging markets. While climate change emerges as the second most important issue in North America, in emerging markets water issues are seen to be nearly as critical as energy. Emerging markets are also more concerned than their industrialized-world peers about poverty and inequity, as well as deforestation and land use issues.

The results also show that European experts are more likely to be concerned about economic issues in the context of the ongoing Eurozone debt crisis, while awareness of sustainable development challenges is more frequently seen as an urgent issue by North Americans.

 

Finding from The 2011 GlobeScan/SustainAbility Survey (read the press release / read the full report)

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