Global Consumers Support Companies Committed to Social Responsibility
Research insights
Global Consumers Support Companies Committed to Social Responsibility
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A recent study found that 55% of global online consumers across 60 countries are willing to pay more for products and services from companies that prioritize positive social and environmental impacts. The desire to support socially responsible brands is strongest in Asia-Pacific (64%), Latin America (63%), and the Middle East/Africa (63%). In North America and Europe, the numbers are lower, with 42% and 40%, respectively.
Consumers are clearly signaling that a brand's commitment to social responsibility is a major factor in their purchasing decisions. This growing trend presents businesses with the opportunity to create positive change while boosting brand loyalty.
The Global Survey on Corporate Social Responsibility, which surveyed 30,000 consumers, explored consumer interest in sustainable practices, which demographic groups are most supportive of these efforts, and the social causes driving their concerns.
The study revealed that more than half (52%) of global respondents have bought at least one product or service from a socially responsible company in the past six months. Latin America (65%), Asia-Pacific (59%), and the Middle East/Africa (59%) exceeded the global average. In North America and Europe, 4 in 10 respondents made a sustainable purchase during this period.
Sustainability and Corporate Social Responsibility (CSR) Can Improve Profitability
It’s easy to find consumers who say they care about the environment or social issues like extreme poverty. But do these values actually influence their buying decisions?
According to the survey, 52% of global respondents say their purchasing choices are influenced by packaging – specifically, whether it indicates the brand’s commitment to social and environmental causes. This concern for sustainable packaging is particularly strong in regions like Asia-Pacific (63%), Latin America (62%), and the Middle East/Africa (62%). However, in Europe (36%) and North America (32%), the numbers are somewhat lower.
To check if these expressed values align with actual sales, the study examined retail data across various categories in nine countries. The analysis focused on 20 brands that either made sustainability claims on their packaging or promoted their sustainability efforts through marketing. The results from a March 2014 year-over-year comparison showed an average sales increase of 2% for products with sustainability claims on their packaging and a 5% rise for those that marketed sustainability actions. On the other hand, 14 brands that did not highlight sustainability saw a sales increase of just 1%.
The "Sustainable Mainstream"
In an effort to better understand how attitudes and behaviors around sustainability are changing, the Natural Marketing Institute (NMI) conducted an online study across nine countries. The goal was to identify what drives different consumer segments toward sustainable practices.
The results revealed that two-thirds of the “sustainable mainstream” group, a combination of three out of five consumer segments, actively choose products from sustainable sources over conventional alternatives. These consumers are committed to buying eco-friendly products whenever possible and have taken personal steps to reduce their impact on global climate change. Furthermore, they tend to be loyal to companies that demonstrate a strong commitment to environmental and social responsibility.
Millennials (ages 21-34) are particularly responsive to sustainability efforts. Half of global survey respondents who are drawn to sustainability initiatives belong to this age group. Millennials represent 51% of those willing to pay a premium for sustainable products and 51% of those who check the packaging for sustainable labeling.
In certain regions, there are significant differences between younger and older consumers. In developing regions such as Asia-Pacific and the Middle East/Africa, Millennials are far more inclined toward sustainability than older generations. In these areas, Millennials are three times more likely to support sustainability actions than Generation X (ages 35-49) and up to twelve times more likely than Baby Boomers (ages 50-64).
Fenton stated, “Consumers no longer question whether they care about social impact. They show their commitment through their actions. Now, the challenge is for brands to create shared value by aligning with the right social causes and consumer segments.”
*Note: This survey was conducted with respondents who had online access across 60 countries. While the large-scale nature of the survey offers a broad view, it only reflects the habits of internet users, not the overall population. In developing markets with growing internet penetration, the audience may be younger and more affluent than the general population. Responses are based on self-reported behavior rather than actual data.
About the Global Survey
The Global Survey on Corporate Social Responsibility took place between February 17 and March 7, 2014, surveying over 30,000 consumers across 60 countries, including regions like Asia-Pacific, Europe, Latin America, the Middle East, Africa, and North America. The survey sample was designed to reflect the internet-using population in each country, with quotas for age and gender. It also has a margin of error of ±0.6 percent. This survey focuses solely on the behavior of respondents with internet access, and the minimum criteria for survey inclusion were 60 percent internet penetration or an online population of at least 10 million people. The Global Survey, which also includes the Global Consumer Confidence Index, has been conducted since 2005.
About The Retail Measurement Analysis
The retail sales data used in the report comes from stores that use electronic point-of-sale technology or teams of local field auditors. The data represents both consumable and non-consumable product categories across 34 brands in nine countries, covering the year ending March 2014. The countries included in this analysis are Canada, France, Hungary, Netherlands, Pakistan, Russia, South Africa, Thailand, and the U.K. Retailers in the global network, such as grocery, drug, convenience, and discount stores, share their sales data through various cooperation arrangements.
About the Natural Marketing Institute Study
The data from the Natural Marketing Institute (NMI) study in the report is based on an online survey conducted in June 2013 across nine countries: Brazil, China, India, South Africa, Germany, Japan, Russia, the U.K., and the U.S. Approximately 1,000 respondents were surveyed in each country, except in India and South Africa, where 1,500 respondents were included. The data was weighted to accurately represent the age and gender demographics of each country.