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According to a new study from Cone, Inc., eight in 10 Americans say that corporate support of causes wins their trust in that company, a 21% increase since 1997.
While support of social issues can improve trust in a company, Cone’s research also shows that Americans stand ready to act against companies that behave illegally or unethically. The consequences for business can be devastating and long-term – those surveyed would be likely to respond in a variety of ways if they were to find out about a company’s negative practices:
• Consider switching to another company’s products or services (90%)
• Speak out against that company among my family and friends (81%)
• Consider selling my investment in that company’s stock (80%)
• Refuse to invest in that company’s stock (80%)
• Refuse to work at that company (75%)
• Boycott that company’s products or services (73%)
• Be less loyal to my job at that company (67%)
As research results continue to demonstrate, Americans have grown to expect companies to play a more active role in addressing the needs of our society:
|
2004 |
2001 |
1993
|
| It is acceptable for companies to involve a cause or issue in their marketing |
72% |
70% |
66% |
Where Americans stand prepared to punish companies they perceive as having negative practices, they will also reward those companies who meet their high expectations with their business:
|
2004 |
2002 |
1999 |
1993
|
| I am very/somewhat likely to switch from one brand to another that is about the same in price and quality, if the other brand is associated with a cause |
86% |
84% |
65% |
66% |
In addition, Americans are willing to act in a variety of ways beyond product purchases:
| A company’s commitment to a social issue is important when I decide… |
2004 |
2002 |
| Which companies I want to see doing business in my local community |
85% |
84% |
| Where to work |
81% |
77% |
| Which products and services to recommend to other people |
74% |
75% |
| Which stocks or mutual funds to invest in |
70% |
66% |
Report says companies must talk more about their cause-related efforts
Some companies have recognized the positive impact of supporting social issues, and have aggressively communicated their efforts over the past few years. At the same time, many other companies have traditionally been reluctant about such communications, seeing them as boastful. An overwhelming majority of Americans (86%) want companies to talk about their efforts, but only four in 10 say companies are doing that well.
“These facts side-by-side are a mandate,” says Cone. “For senior executives, they are a mandate for action on social issues. For marketing executives, they are a license to communicate the company’s commitment and efforts.”
One of the results of increased communications by certain companies is that when asked, more Americans can name a good corporate citizen. Cone’s longitudinal research shows a dramatic rise in recall. In 2004, 80% of respondents were able to name a company that stands out in their mind as a strong corporate citizen, as compared to 49% in 2001 and 24% in 1999.
Cause-related efforts must be part of larger corporate citizenship
Cone’s research shows that while communicating support for social issues is impactful, Americans value other positive corporate actions even more:
• Quality of products and services (98%)
• Fair-priced products and services (97%)
• Employee benefits (93%)
• Laws and regulations (93%)
• Human rights and manufacturing (93%)
• Support of a social issue (80%)
“This suggests to us that advertising support of social issues without ‘walking the talk’ in other areas can be counterproductive and poor business strategy,” says Cone.
The report presents the findings of a telephone survey conducted among a national probability sample of 1,033 adults in October 2004. To learn more about the study, go to http://www.coneinc.com/Pages/pr_30.html. |
