U.S. Consumers, Employees Want Socially Conscious Companies

More than two-thirds of Americans say they consider a company’s business practices when deciding what to buy, while American workers in increasing numbers say they want their employers to support a social cause or issue, according to the 2007 Cone Cause Evolution Survey, reports MarketingCharts.

Its latest “Cause Branding” and corporate responsibility research indicates an evolution in consumer thinking about the ways businesses interact with society, according to Cone LLC, an Omnicom Group strategy and communications agency.

Business practices are now an additional purchasing influence for approximately one-third of American shoppers; another third consider both social issues and business practices when deciding what to buy; and an overwhelming majority of Americans (85 percent) say they would switch to another company’s products or services if a problem with business practices were uncovered, according to the study.

Some findings from the survey:

• Long-term support of social issues is a major brand differentiator for consumers:
  • Americans’ expectations of companies are at an all time high: 83 percent say companies have a responsibility to help support causes
  • 92 percent acknowledge they have a more positive image of a company that supports a cause they care about.
  • 87 percent are likely to switch from one brand to another (price and quality being about equal) if the other brand is associated with a good cause - an increase of more than 31 percent (from 66 percent) since 1993.
• Americans also consider a company’s commitment to social issues when deciding the following:
  • Which companies they want to see doing business in their communities, 86 percent (vs. 58 percent in 2001)
  • Where to work, 77 percent (vs. 48 percent in 2001)
  • Which stocks or mutual funds to invest in, 66 percent (vs. 40 percent in 2001)
• However, slightly less than a third (30 percent) have told a family member or friend about a product or company after hearing about a company’s commitment to social issues - a decline of 30 percent (vs. 43 percent) since 2004.
• Meaningful commitment to causes is highly important to employees:
  • American employees’ expectations of companies have increased dramatically: 72 percent wish their employers would do more to support a cause or social issue - up 38 percent (vs. 52 percent) since Cone’s last survey in 2004.
  • Employees familiar with their companies’ cause programs indicate the following:
    • They are proud of their companies’ values, 88 percent
    • They feel a strong sense of loyalty to their companies, 89 percent
    • It is important for their companies to provide them with opportunities to become involved in causes, 93 percent

MarketingCharts provides more findings from the Cone study.