Consumers' Definition of Socially Responsible Runs
Counter to Established Beliefs
May 31, 2006
WASHINGTON -- More than environmental stewardship and philanthropy,
nearly one in two Americans believe the most important proof of
corporate social responsibility is treating employees well.
A national opinion survey found that American consumers have their own
views on corporate social responsibility that run counter to established
beliefs.
"Our research reflects an exciting coming-of-age for consumers, as they
are more empowered than ever to assess and react to corporate social
responsibility issues," said National Consumers League President Linda
Golodner. "Activists and consumer watchdog groups remain important
opinion leaders, but rank-and-file Americans are becoming more
knowledgeable than ever on socially responsible behavior, and this trend
will influence businesses and increasingly benefit society."
Americans Define CSR in Ways Most Relevant to Them
The survey found that 76 percent of American consumers agree that to be
socially responsible, companies should place employee salary and wage
increases above making charitable contributions. Similarly, the survey
found that 76 percent believe that a company's treatment of its
employees plays a big role in consumer purchasing decisions.
"What American consumers are telling us -- perhaps influenced by ongoing
coverage of corporate layoffs and employee-benefit reductions -- sheds
new light on how we view corporate social responsibility," said
Fleishman-Hillard Chairman and Chief Executive Officer John D. Graham.
"If companies want to maintain and strengthen their reputations, it will
be essential for them to invest actively and visibly in their employees.
It is also more important than ever to understand the online resources
that Americans are using to learn about companies and their track
records for corporate social responsibility."
Values Matter
Average Americans feel strong about buying products from or working for
a company whose values are aligned with their own personal values.
Survey respondents say it's "extremely" or "very" important to work for
(79 percent), buy products and services from (65 percent), and socialize
with (72 percent) those who have similar values and principles.
"The study findings are especially welcome because they demonstrate that
the brand of CSR that most corporations favor simply isn't enough to
impress most consumers," said Mal Warwick, chair of the Social Venture
Network and co- author of Values-Driven Business: How to Change the
World, Make Money, and Have Fun. "The consumer attitudes reported in
this study reflect more closely an approach to social responsibility
called the 'triple bottom line,' in which people, planet, and profit are
balanced. Rather than detract from the traditional bottom line, this
approach, requiring policies that actively favor the key stakeholders in
a business -- its employees, its customers, its suppliers, its
community, and its environment, as well as its owners -- makes that
business more competitive."
Corporate America Receives Low Marks for CSR Performance
While Americans believe that social responsibility is important, only 21
percent give U.S. corporations top marks for being socially responsible.
When asked to rate how companies are performing compared with two to
three years ago, only 30 percent believe that companies are doing a
"somewhat better" or "a lot better" job of being socially responsible.
The Internet Is Transforming the CSR Landscape
Use of Internet technology is changing the way people learn about and
determine which companies are socially responsible, the survey found.
Almost half of the respondents (47 percent) say they have used the
Internet to learn about the extent to which a company is or is not being
socially responsible. The survey results also demonstrate that 53
percent of Americans believe that their own online research is one of
the most credible means by which to shape their opinions on deciding
whether U.S. companies are being socially responsible.
The research indicates that a new generation of online activists is
emerging that cuts across many socioeconomic groups in the arena of
corporate social responsibility. Going online to learn and advocate for
social issues appears to be increasingly a mainstream activity of the
average American.
The survey found that 58 percent of survey respondents said that because
of the increased availability of online resources and information, they
(or other people like them) are "more informed" about companies' records
for social responsibility than they were a few years ago.
The survey also found a positive relationship between active Internet
use and engagement in social responsibility. About two-fifths of those
using the Internet have sent e-mail to a company about its products or
services (41 percent) or to an elected state or federal official about
an issue (38 percent). Americans who frequently use online resources
were also more aware of global standards. |
