Consumer Demand for Cause-Marketing & CSR Initiatives
Thursday, 16th December 2010 at 10:43 am
Two new public opinion surveys in the US indicate that consumers want companies to engage in cause-marketing and CSR initiatives, and offers some interesting insights for charities partnering with corporates.
Two new public opinion surveys by US consultancy, Do Well Do Good, indicate that consumers demand that companies should engage in cause-marketing and corporate social responsibility (CSR) programs.
Over 88% of consumers think companies should try to achieve their business goals while improving society and then the environment and 83% of consumers think companies should support charities and Not for Profits with financial donations.
More than just general opinion questions, the surveys outline the extent to which consumers and employees of companies will act on their values. For example, the average American consumer will drive nearly 11 minutes out of their way to buy a cause-marketing product and 83% of employees would seriously consider leaving their job if their employer used child labor in sweatshop factories.
Do Well Do Good President James Epstein-Reeves says it is time to write the obituary on the idea of companies exist merely to return a profit to shareholders as consumers hold higher expectations of the companies they buy from and work for – profit is important, but so are principles.
The survey also presents new data on the "price elasticity of cause-marketing products" by outlining the additional amount, or premium, consumers are willing to pay for a product that supports a cause they care about. For example, a majority of consumers are willing to pay an additional $2.12 for a $1 cause-marketing product and for a $50 product consumers are willing to pay an extra $4.53.
The surveys also serve as a "playbook" for companies already engaged in cause-marketing and corporate social responsibility programs. For example, 35% of consumers dislike being asked to donate to charities at the register. Instead companies will have better luck getting consumers to participate in a cause-marketing program if an employee explains why the cause is important or if the company offers matching funds for donations.
Epstein-Reeves says as it relates to corporate social responsibility programs, recycling programs and preventing the employment of child labor are basic expectations of consumers.
The survey outlines over 17 different social and environmental initiatives consumers expect of "good companies" and companies consumers consider leaders. The Summary Reports are available for free on the company's web site: www.DoWellDoGood.net