This document discusses expectations for corporate social responsibility and sustainability. It provides insights from a survey of consumers in the US, UK, and France.
The key points are:
1) Consumers now expect corporations to take on roles beyond profit-making, such as driving social change and reducing poverty.
2) Most consumers believe corporations have as much responsibility as governments for social progress and view ethical conduct as important for business success.
3) Many consumers actively research company ethics and will change purchase decisions based on this information shared online.
4) Sustainable practices are increasingly seen as a competitive advantage, and the most successful future businesses will integrate sustainability.
2. For almost a decade Euro RSCG
has been creating impactful and
provocative work for EDF. The
current print campaign has been
cited by the APPM (News Magazine
and Press Awards).
Choosing a world with less CO2.
Because greenhouse gases are the main cause of global warming, EDF has chosen to produce energy that
generates very little CO2. To achieve this objective EDF is developing and renewing Europe’s leading nuclear
power and hydroelectric production facilities and investing heavily in renewable energy.
The future: it's in the choices we make every day
3. the future of the corpor ate br and | vol 4
Introduction: Rethinking the Role of the Corporation 2
More Power, More Responsibility 3
A New Way to Do Business: 10
Five Rules for the Corporate Brand of the Future
4.
5. 2
→ INTRODUCTION: RETHINKING THE ROLE OF THE CORPORATION
The corporate titans of earlier centuries would hardly recognize the modern-
day business world. Over the past century, we’ve seen corporations grow far
larger, more global, and more powerful–but, at the same time, more beholden
to multiple stakeholders, including the general public. Companies have
moved from primarily individual or family owned to shareholder owned and
board governed. Once omnipotent, chief executives now serve at the will of a
committee and are subject to the scrutiny and criticisms of people both within
and outside corporate walls. Profits are still at center, but they’re no longer the
only goal; CEOs of publicly traded companies are under tremendous pressure
to meet the needs of all stakeholders, not just shareholders.
The new pressures corporations face are due in large part to to the Internet and the democratization of media, corporations
a growing awareness of the impact—good or bad—these feel more approachable and accountable. Ordinary citizens
organizations can have on local, national, and international can find out just about anything they want about companies
affairs as well as on people’s everyday lives. Corporations have online, a platform that also allows consumers to “talk back”
grown so large that 37 of the world’s 100 largest economies to big business through blogs, message boards, product
are now businesses rather than nations, according to Swedish reviews, and the like. The entire relationship between
economist Johan Norberg. Greater size more often than not consumers and companies is changing as people rethink
translates into greater power, and that’s a real issue at a time the role corporations can and should play within local
when consumer confidence in corporations is at record lows. The communities and society as a whole.
2007 Gallup Poll found that only 18 percent of respondents had
This issue of Prosumer Report explores the future of the
a “great deal” or “quite a lot” of confidence in big business. This
corporate brand, with an emphasis on evolving consumer
lack of faith should come as no surprise given the past decade’s
expectations and demands. It draws on findings from Euro
string of corporate scandals, ranging from accounting fraud
RSCG Worldwide’s 2007 Future of the Corporate Brand
and abusive working conditions to contaminated food and
Study. The online survey was conducted by Market Probe
potentially lethal toys. Corporate corruption and malfeasance
International in three markets: the United States (n=700),
have moved beyond news headlines and into the broader
the United Kingdom (n=700), and France (n=450). Prosumer
culture, thanks to a steady slate of films focused on the evils
breakouts are included throughout the report to provide
of Big Business (e.g., Lord of War, The Constant Gardener,
insights into the influence these leading-edge consumers are
Syriana, Michael Clayton).
wielding among the general public and within the corporate
In this new environment, the public is more wary of corporations world.
but also has higher expectations of them. Even as some
companies have duped investors and ripped off or endangered
customers, others have taken a leading role in important issues
of the day, including the environment and human rights. Thanks
6. 3 t: total p: prosumers o: other
us uk france
More Power,
More Responsibility
As the influence of corporations grows and the power of nations decreases,
companies are expected to take on roles once relegated to government. This is
especially the case in those areas in which government intervention has been
seen as weak or ineffective. In the aftermath of Hurricane Katrina, for instance,
87 percent of Americans polled by Cone, Inc., expected corporations to play a
major role in rebuilding affected areas. Nearly two-thirds (62 percent) agreed
companies are better able than government agencies to respond effectively
to disasters.
businesses bear as much responsibility On a broader scale, corporations are now regarded as
as governments for driving positive important facilitators of social progress. In each of
social change
the three markets surveyed, large majorities agreed
businesses bear as much responsibility as government
for driving social change. What once might have been
t : 72% 71% 80% the view of a leftist fringe is now mainstream thinking.
Reducing extreme poverty around the globe is one
p : 82% 83% 67%
area in which corporate involvement is particularly
0 : 70% 68% 79% expected. In 2000, the United Nations pledged in its
“Millennium Declaration” to halve the proportion of
the world’s people living in extreme poverty by 2015.
It’s an objective that is in no way feasible without
the concerted involvement of many of the world’s
largest companies. It’s a huge undertaking, but one
with an enormous upside for business. Multinational
companies have already benefited greatly from the
creation and growth of upper and middle classes
in developing countries. But the real promise of
globalization lies not among the people who currently
consume, but among the billion or more others who
have thus far been excluded from the consumption
process. If this change is to take place, corporations
will need to drive it.
7. What’s a Prosumer?
Prosumers are the most influential men and women
within any market. Empowered by new technologies
and improved access to information, they have tipped
the scales of power away from manufacturers and
retailers, and toward themselves. They are highly
knowledgeable and demanding consumers who expect
their brand partners to acknowledge their value and
treat them accordingly. Prosumers typically make up
15 to 25 percent of any market. Euro RSCG Worldwide has
made them an ongoing focus, because, beyond their own
economic impact, prosumers influence the brand choices
of others. Simply put, what prosumers are doing today,
mainstream consumers are likely to be doing six to
18 months from now.
KEY PROSUMER TRAITS:
» Embrace innovation — curious » Are marketing savvy and plugged
to try new things, challenges, in to multiple media sources
and experiences
» Demand top-notch customer service
» Keen on new technology and gadgets and access to information
» Transport new attitudes, ideas, » Proactively seek to maximize control
and behavior — they are “human media” over their lives through information,
communication, and technology
» Pursue timeless value
» Constantly seek information and
» Recognize their value as consumers and opinions; eager to share their views
expect brand partners to do likewise and experiences with others
8. 5 The Tables Have Turned
“Big Brother is watching you.” It’s a phrase taken from George Orwell’s
1984 and has been in frequent use over the last half century. Whether
referring to the government or big business, the phrase has suggested ongoing
surveillance–and control–of the general population by overly powerful and intrusive
authority figures. Today, Orwell would likely be surprised by the extent to which the
tables have turned on corporations. For all the fears of big business tracking consumer
movements with digital cookies and RFID tags, the truth is that consumers are
keeping equally close (if not closer) tabs on corporations. Anyone with Internet
access can easily look up an annual report, track corporate movements, and
contribute to conversations about what a particular company or industry is doing
right or wrong. jetBlue learned the hard way how easily an angry customer armed
with a video-enabled phone can spread the word about corporate transgressions
or errors in judgment.
Having witnessed the damage big business can corporations have become a more
cause when left unchecked, a growing number of important part of our culture
people feel they have a right to monitor corporate
actions and take companies to task when they step
out of line. A majority of respondents in each of
t : 54% 53% 63%
the three markets acknowledge corporations’
increased cultural role and say they have become p : 66% 65% 67%
more interested in corporate conduct and brand
image over the past few years. Significant 0 : 51% 50% 61%
proportions, including more than half of
leading-edge prosumers, had actively sought out i have become more interested in
information about a company’s ethics in the few corporations’ conduct and brand
months prior to the survey. images over the past few years
Whether protesting the treatment of chickens
by KFC or denouncing Apple’s rapid discounting
of its new iPhone, ordinary people now have the t : 64% 53% 51%
wherewithal to force corporations to respond
to their complaints and demands. This puts p : 80% 75% 64%
significant power in the hands of consumers who
take the time to blog about a company, post a 0 : 60% 50% 47%
video about poor customer service on YouTube,
or slam a product on a customer-review site. within the last few months, i have
Consumers can now look beyond the glossy ads actively looked for information on
and rosy product statements, and find a very the reputation or ethics of a company
different truth. Euro RSCG’s survey shows that
substantial numbers of consumers have already
changed their minds about a potential purchase
as a result of information in blogs and other online t : 37% 38% 53 %
forums. The fact that prosumers score higher on
p : 56% 55% 72%
this count indicates it’s a trend likely to grow
stronger. 0 : 33% 35% 47%
over the last year, non-branded blogs or
forums made me change my mind about a
product or service i had intended to buy
t : 20% 26% 40 %
p : 36% 36% 43%
0 : 24% 24% 39%
9.
10. 7
Ethical Consumption: Survival of the Fairest
“Can you have an impact by making none at all? Why not?”
That’s more than just a tagline from Toyota’s new advertising campaign.
Consumers in the developed world are more aware today of the negative
consequences of capitalism and mass consumption. And they’re under
increasing pressure (societal and self-imposed) to limit the damage caused
by their personal consumption choices. This means making the “right”
purchase decisions and also influencing the behaviors of companies
hoping to obtain their business. In the United States and France, eight
in 10 consumers believe they have a responsibility to censure unethical
companies by avoiding their products. In all three markets, a majority have
already made a purchase decision based on a company’s conduct. Once again,
prosumers are taking the lead.
as a consumer, i have a responsibility to i have made a purchase decision
censure unethical companies by avoiding based on a company’s conduct
their products
t : 65% 58% 69%
t : 80% 69% 81%
p : 80% 73% 81%
p : 87% 79% 85%
0 : 61% 55% 65%
0 : 78% 66% 80%
11. 8
In this new context of doing business, companies have corporate reputation on social
no choice but to adapt. More and more, consumers are and environmental responsibility
is a key driver of confidence
factoring issues of ethics and social and environmental
responsibility into their purchase decisions—and
that applies to shareholding as well as personal
consumption. Morningstar reports there are 130 t : 80% 76% 86%
socially responsible investment funds today, with
$48.8 billion in assets, up from just 39 funds with p : 88% 87% 91%
$5.4 billion in assets a decade ago. Natural selection
is beginning to favor those companies that are 0 : 78% 73% 84%
integrating high ethical standards into
their policies and practices.
ethical conduct is a key factor
How are these good intentions translating in the real for good business
world? A 2004 report prepared for Wal-Mart
by McKinsey and Co., found that as many as
8 percent of Wal-Mart customers no longer shop there
because of “negative press.” The consultancy concluded t : 91% 76% 91%
the retail giant could gain 8 percent in financial value if
it were to improve its image to the level of competitor p : 96% 87% 95%
Target. Whether directly correlated or not, Wal-Mart
has since taken a leadership role in such areas as organic 0 : 90% 73% 90%
food, lower prescription prices, and sustainability.
Among other pledges, the company has committed to
reducing the energy needs of its existing stores the most successful and profitable
20 percent by 2009 and its overall CO2 emissions businesses in the future will be
those that practice sustainability
25 percent by 2012.
Once dismissed as unaffordable and unwise,
sustainable practices are now viewed by many, if not
most, companies as a competitive advantage. And t : 69% 73% 79%
there’s a growing body of evidence to back that up:
p : 78% 87% 88%
When investment research and advisory firm Innovest
back-tested a hypothetical portfolio of its Global 100 0 : 66% 70% 76%
Most Sustainable Firms against the MSCI World Index
from December 1999 through December 2005, it
found the Global 100 outperformed the broader index
by 7.11 percent. Numerous other studies corroborate
that positive environmental and social performance
can create financial success—increasing investor
confidence, strengthening brand recognition, and
boosting stock performance and competitiveness. GE’s
recent ecomagination initiatives, including a
pledge to double investment in clean technology
by 2010, have been credited with helping to increase
corporate earnings 11 percent in 2006.
12.
13. 10
A New Way to Do Business
Business as usual, as practiced in the last century, is insufficient in
today’s environment. Corporate strategies—including branding
strategies—must take into account the value accrued by a reputation
for social responsibility, as well as the very real disadvantages faced
by those companies that fall short in this regard. Where once CSR
activities were an adjunct relegated to the PR department, now they
are a core component of competitive business. Whether they regard
these practices as “caring capitalism” or pure self-interest, the most
successful companies of tomorrow will infuse elements of social and
environmental responsibility throughout their operations, from
human-resources practices and customer service to supply chains,
retail venues, and packaging.
5 Rules for RUL E 1: H AVE A PURPO S E it is important that companies stand
for something other than profitability
BEYOND P ROF I T
the Corporate
Consumers in the three markets
Brand of surveyed have made it clear:
t : 86% 81% 89%
the Future Business can no longer be just p : 96% 86% 95%
about profit. More than eight 0 : 83% 80% 87%
in 10 respondents believe it’s
important for a company to stand for the most important duty of a ceo is
to generate profits for shareholders
something other than profitability,
and only around one-third consider
shareholder profits the most important t : 37% 33% 33%
responsibility p : 40% 40% 34%
of the CEO. 0 : 36% 32% 33%
14. 11 Look at the most successful brands that have
emerged in recent decades, and you’ll find a
innovation is an important
factor for good business
common thread: Most of these companies have
been built on a strong and clearly articulated set
of beliefs and values. In the space of a decade, t : 84% 81% 95%
Google went from a college research project to a
company with a brand value estimated at more than p : 87% 92% 100%
$17 billion, all while seeking to live by its credos of
“Don’t be evil” and “Work should be challenging, and 0 : 83% 79% 93%
the challenge should be fun.” Whole Foods Market
has built its brand on a simple philosophy of “whole
foods, whole people, whole planet”—and, in doing a vision is an important
so, has managed to become the world’s fastest- factor for good business
growing retailer. Starbucks hasn’t just cornered the
world coffee-experience market; it’s done so while
promoting such values as Fair Trade, a respectful
work environment, diversity, and community t : 80% 75% 94%
involvement.
p : 82% 84% 98%
Three very different companies, but each one has
turned strong beliefs into a winning proposition. 0 : 79% 73% 93%
These companies don’t just stand out because they
are values centered; they stand out because they
profitability is an important
are creating new ways of doing business—and factor for good business
that is something today’s consumers value.
Both “innovative” and “visionary” are qualities
considered essential components of good
business in each of the markets surveyed. In t : 72% 64% 80%
fact, respondents ranked both those factors above
profitability. This makes sense at a time when p : 73% 75% 82%
consumers expect corporations to operate to the
0 : 71% 62% 79%
benefit of society at large and not just line the
pockets of executives and shareholders.
“Our communities project started out with thinking about
our mission—bringing health through food to a maximum
number of people—and our growing experience in
developing countries where that mission is often a huge
challenge. How can you bring products to a majority of
people when a third or a half of the population live below
the poverty line? Thinking along those lines has led us
to launch successful initiatives with our Affordability
Programs, putting our products and the health benefits
they provide within the reach of people
with very limited resources in China, Indonesia
and other countries.”
–CEO Franck Riboud,
Danone Annual Report 2006
15. 12 RULE 2: TREAT EMPLOYEES WELL
Inequitable treatment of employees was one of the major concerns expressed
by survey respondents, particularly in France. This reflects escalating frustration
over the widening gap between executive and mid- and bottom-tier salaries.
Twenty years ago, the ratio of CEO pay to average worker pay was approximately
10:1; today, it’s 282:1. In some industries, executive paychecks could be described
as obscene. In 2006 alone, for example, the top 25 hedge-fund managers took home
a combined $14 billion. A report in Alpha magazine noted that this was more than the
gross domestic products of Jordan or Uruguay that year. Three of the managers took
home in excess of $1 billion for their 52 weeks of labor.
big corporations do not share enough
profit with all employees
t : 59% 52% 75%
p : 55% 62% 82%
0 : 60% 49% 72%
companies aren’t doing enough to respect
the rights and needs of employees
t : 48% 39% 68%
p : 49% 42% 73%
0 : 47% 38% 66%
Some values-led corporations are working to boost
compensation at the lower end and constrain it
at the top. Whole Foods Market caps executive
salaries at 16 times the average pay of all full-time
workers. The cap was originally set at eight times the
average pay, but has since been increased to bolster
executive retention. CEO and founder John Mackey
reduced his salary to $1 in 2007 and has forgone
all future stock options and other compensation.
Approximately 93 percent of stock options granted
by Whole Foods has gone to employees who are not
executive officers.
16.
17. 14 RULE 3: PROTECT AND PROMOTE THE i find i admire businesses and business
leaders more these days
GREATER GOOD
The last few years have seen record-
t : 18% 27% 20%
shattering largesse on the part of
p : 19% 42% 14%
corporate moguls. Microsoft’s Bill Gates
has used his foundation to channel 0 : 18% 23% 22%
billions of dollars toward healthcare
and education around the globe, a over the past five years companies
and corporations...
cause to which investor Warren Buffett
have become more profitable
has pledged stock worth in excess of
$30 billion. Virgin founder Sir Richard
Branson has pledged $3 billion to t : 80% 80% 79%
fight global warming, while Intel p : 85% 84% 85%
cofounder Gordon Moore has invested 0 : 78% 79% 77%
some $5 billion in causes related to
conservation and science. Despite these
have become better positioned
high-profile cases, only about one-fifth to create positive social change
of Euro RSCG survey respondents in the
U.S. and France, and around a quarter of
t : 62% 63% 48%
the sample in the U.K. claim to admire
p : 76% 76% 45%
business and business leaders more
today. 0 : 59% 60% 48%
Why the disconnect? The consensus appears to be have raised their standards
that corporations have benefited enormously from
increased profits and power but that most have
not used those things to the benefit of anyone
but themselves. Eight in 10 respondents to Euro t : 39% 48% 58%
RSCG’s study note the increased profitability of
p : 46% 67% 61%
corporations, and more than six in 10 in the U.S. and
U.K. consider companies better positioned to effect 0 : 37% 44% 57%
social change. In sharp contrast, only a minority of
respondents in at least two of the three markets
believe corporations have raised their standards,
have become more accountable
become more accountable, or become more
philanthropic. Nearly one-third of the sample
in the U.S. and U.K., and just under half of
French respondents believe corporations in
t : 44% 57% 33%
general have failed to make meaningful charitable
contributions. And around a third in the U.S. and p : 47% 62% 39%
U.K., and seven in 10 in France believe companies
aren’t doing enough to prevent discrimination 0 : 43% 56% 32%
based on age, gender, race, or other grounds.
have become more philanthropic
t : 29% 29% 8%
p : 34% 40% 3%
0 : 28% 27% 10%
18. 15
French respondents, in particular, believe companies aren’t doing enough
corporations should be doing much more to in terms of...
drive social change. They want to see corporate working ethically with governments
executives work with governments to address key for the good of society
global issues, and they want to see more progress
in terms of helping developing countries through
trade. What they don’t want to see is corporations
interfering in political affairs for their own selfish t : 46% 41% 60%
benefit.
p : 48% 49% 69%
0 : 46% 39% 57%
encouraging mutually beneficial
trade with developing countries
t : 25% 36% 63%
p : 28% 42% 74%
0 : 24% 35% 59%
bringing about positive social change
t : 40% 35% 57%
p : 42% 41% 63%
0 : 40% 33% 55%
companies should avoid political actions
(lobbying, contributions, etc.) that
interfere with the democratic process
t : 52% 32% 58%
p : 59% 41% 68%
0 : 50% 30% 54%
19. 16
When the samples were asked on which issues companies
should focus their philanthropic efforts, the clear winners
were the environment (U.K. and France) and health (U.S.).
Corporate sponsorship of cultural and sporting events,
while common, is deemed far less important.
when a company is allocating funds for
philanthropic purposes, which of the
following should receive first, second,
and third priority?
health social issues
t : 54% 49% 35% t : 20% 19% 28%
p : 63% 63% 49% p : 17% 18% 31%
0 : 51% 51% 34% 0 : 21% 20% 27%
environment infrastructure in less-developed regions
t : 43% 51% 56% t : 7% 15% 13%
p : 43% 53% 59% p : 7% 18% 14%
0 : 43% 51% 55% 0 : 7% 14% 13%
education culture/art
t : 38% 30% 17% t : 5% 3% 7%
p : 37% 26% 23% p : 2% 3% 5%
0 : 38% 30% 15% 0 : 5% 3% 7%
research sports
t : 33% 29% 39%
t : 1% 4% 5%
p : 31% 29% 33% p : 0% 3% 3%
0 : 33% 29% 41% 0 : 1% 4% 6%
20. 17 RULE 4: THINK ABOUT THE ENVIRONMENT BEFORE,
NOT AFTER, YOU’VE DAMAGED IT
We’ve seen a real shift in the past couple of years, as people who never before thought
about such things have started bringing reusable bags to the grocery store, replacing
incandescent bulbs with CFLs, and paying attention to recycled content. This change in
attitude can be traced in large part to concern over global warming. Unlike some other
eco-threats (e.g., rainforest destruction, endangered species), global warming offers
plenty of scope for individual accountability and action. Numerous websites offer
“carbon calculators” for measuring and tracking one’s carbon footprint, and there’s a
growing market of products geared toward responsible living. In the United States,
some credit for this increased awareness can rightly go to Al Gore’s An Inconvenient
Truth, the fourth-highest-grossing documentary film ever. The movie clearly reached
a receptive audience: A companion book authored by Gore spent 38 weeks on the New
York Times bestseller list, including four weeks at #1. In France, environmentalist
and TV host Nicolas Hulot has spent the last 20 years speaking out against eco-
destruction; his latest book, Pour un Pacte Ecologique (“For an Ecological Treaty”),
also a bestseller, is considered to have had a significant impact on France’s 2007
presidential race.
Consumers expect companies to share their companies aren’t doing enough in terms of...
environmental concerns and aren’t yet satisfied
making environmental impact
with the results. Substantial minorities in the a core factor in corporate decisions
U.S. and U.K., and a clear majority of respondents
in France think corporations are falling short in
terms of factoring the environment into their
business decisions and paying fair value for their t : 47% 42% 68%
use of natural resources. This is of considerable
p : 49% 51% 77%
importance given that more than three-quarters of
respondents in each market are less likely to trust a
0 : 46% 40% 65%
company with a poor reputation for environmental
and/or social responsibility.
Toyota has emerged as a leader in this area, paying fair value for the company’s
use of natural resources
not just in terms of being eco-conscious but
also because of its success in rebranding itself as
such. The company has managed to capture
75 percent of the hybrid automotive market and is t : 42% 43% 63%
now extending its green approach to energy use,
recycling, and emissions offsets at its plants and p : 49% 49% 74%
other facilities. Its consumer outreach efforts have
included an extensive education and awareness 0 : 41% 42% 60%
tour, billboards touting gallons of gasoline saved
by hybrid drivers, and sponsorship of the Sundance
r e p u t a t i o n f o r e n v i r o n m e n t a l a n d/o r
Channel’s The Green—ongoing programming social responsibility is a somewhat
dedicated to environmental issues. or very important factor in my decision
to trust a company
t : 80% 76% 86%
p : 88% 87% 91%
0 : 78% 73% 84%
21. we face challenges
all over the world.
in Africa, it’s malaria.
Today, Africa’s economies are growing and contributing
significantly to the world’s energy supply.
But millions of African lives are still being affected by malaria,
a preventable disease that’s spread by infected mosquitoes.
With a presence in Africa for more than 100 years, ExxonMobil
is working to drastically cut the number of malaria cases
through sustained financial and on-the-ground support.
As people around the world mark Africa Malaria Day this year,
we’re partnering with many groups, including governments
and international health organizations, to combat malaria and
save lives. These efforts include everything from developing
new drugs to distributing insecticide-treated nets to places
where they’re desperately needed.
Because if we work together, we can all help ensure Africa
has a brighter future.
22. Euro RSCG has been the AOR for Veolia
since 2006. The current corporate
campaign has won several awards,
including an Effie for corporate
communication (2007) and best
Internet campaign ( Le Journal du
Net, 2007). The campaign launched
in Europe and will expand to the U.S.,
Australia, and the Middle East in 2008.
23. 20 RULE 5: RESPECT
CONSUMERS’ POWER
public opinion should drive a
company’s conduct and overall strategy
Today’s consumers know more about
t : 57% 63% 66%
business and brands–and want
p : 65% 70% 64%
to be kept in the loop. Beyond
knowing what their specific brand 0 : 53% 61% 66%
partners are up to, they expect
corporations in general to be businesses need to open a
dialogue with their consumers
forthcoming about their activities,
impact, and goals. Beyond that,
t : 80%
they believe companies should 78% 92%
behave according to the will of the p : 94% 89% 98%
people. Welcome to the Consumer 0 : 77% 75% 90%
Republic!
businesses must inform and
educate their consumers
t : 78% 72% 91%
p : 90% 83% 96%
0 : 75% 70% 89%
businesses must be completely
open and transparent
t : 65% 80% 82%
p : 70% 88% 88%
0 : 63% 78% 80%
it’s a positive thing for businesses
to publicize their corporate social
responsibility works, charitable
contributions, etc.
t : 73% 70% 76%
p : 88% 84% 83%
0 : 70% 67% 74%
24.
25. 22 To keep its customers and others informed, Stonyfield
Farm has hired a former journalist to run blogs on
Open communication with consumers and other
stakeholders is also important when things go
topics related to sustainability and health. GE made wrong. The modern-day consumer expects business
spreading the word to the public the fourth pillar of its leaders to be up front about corporate misdeeds and
ecomagination initiative. It’s been accomplishing this other crises, and to be proactive about undoing the
through its website and public forums, and has even damage caused. Advertising comes into play here,
invited customers to take part in “dreaming sessions” but the most important factor, according to the study
focused on devising potential solutions to specific respondents, is for the CEO to take ownership of the
issues. Purchases made with GE’s Earth Rewards credit crisis and accept responsibility for fixing it fast.
card earn greenhouse gas emissions credits, helping
cardholders reduce their personal carbon footprints
and feel they’re contributing to the fight against
global warming.
when a corporation has been going
through a crisis, what is the best
way to rehabilitate its image?
ceo acknowledging the crisis rebranding the company, as no one will
and taking immediate action ever entirely forget the wrongdoing
t : 47% 39% 35% t : 3% 3% 5%
p : 57% 35% 39% p : 5% 3% 4%
0 : 45% 40% 34% 0 : 2% 4% 5%
an advertising campaign admitting editorial and pr stories explaining
problems and showing how they will the company’s actions
make amends
t : 2% 4% 4%
t : 23% 29% 29%
p : 5% 5% 4%
p : 14% 35% 29%
0 : 2% 4% 4%
0 : 25% 27% 29%
other
having the ceo available to
answer the public’s questions
t : 3% 2% 2%
t : 10% 10% 15% p : 3% 1% 4%
p : 10% 14% 14% 0 : 3% 3% 2%
0 : 10% 10% 15%
continuing direct donations
to make amends as part of a
long-term commitment
t : 5% 5% 6%
p : 4% 7% 5%
0 : 5% 5% 7%
26. 23
CONCLUSION: CORPORATIONS AT A CROSSROAD
Today, corporations are at a crossroad. Companies that believe the new realities
are no more than a phase will continue to treat brand values as an adjunct
issue to be appended to their annual reports. They’ll donate money to
worthwhile causes, but those philanthropic goals won’t be reflected in
their corporate behavior. And they’ll continue to put off reform until the
regulators mandate change. As a consequence, they will lose out on the
considerable competitive advantage a better-than-average reputation brings.
Those corporate brands that will own the future As a growing segment of the business world
will behave quite differently: For them, social has come to realize, we have entered an era in
responsibility will be manifest throughout the which it’s no longer enough for companies to
brand and communicated in a single-minded vision. simply provide products and services, and operate
Corporate values will be pushed downward and within previously accepted standards of behavior.
outward from the board level and delivered in Consumers are asking their corporate partners to
actions, not words. These companies will avoid make a positive contribution to the world, while
recriminations over “excess success” by creating also helping them feel good as individuals about
profits that are purpose-driven. Their business the impact of their own consumption choices.
decisions will create financial wealth—for the People want to continue to enjoy the pleasure of
company and its shareholders—as well as social consumption, while also knowing their purchases
wealth for the larger population. These future- are contributing to the greater good—or at
focused companies won’t need to resist government least not detracting from it. The most successful
regulation or popular pressure; they’ll serve as corporate brands will be those that address these
standard-bearers, working in concert with NGOs twin pulls of selfishness and altruism, and help
and other stakeholders to build new, more ethical consumers feel that what’s good for them is also
practices. And they’ll invest in internal and external good for the world.
communications to drive meaningful change.
27. “Breathe in, breathe out…With us, choosing
mass transportation means choosing to
produce 10 times less greenhouse gases
and to consume five times less energy than
if you were driving your car. Love the city.”
RATP has been a client of Euro RSCG’s
since 2006.
Inspirez, expirez...
Avec nous, choisir les transports en commun, c’est choisir de produire 10 fois moins de gaz
à effet de serre et consommer 5 fois moins d’énergie que si vous utilisiez votre voiture.
28. Prosumer Reports is a series of thought leadership publications by Euro RSCG Worldwide – part of a
global initiative to share information and insights, including our own proprietary research, across the
Euro RSCG network of agencies and client companies.
Euro RSCG Worldwide is a leading integrated marketing communications agency and was the first
agency to be named Global Agency of the Year by both Advertising Age and Campaign in the same year.
Euro RSCG is made up of 233 offices in 75 countries and provides advertising,marketing, corporate
communications, and digital and social media solutions to clients, including, Air France, BNP Paribas,
Charles Schwab, Citigroup, Danone Group, Heineken USA, IBM, Kraft Foods, Lacoste, L’Oréal, Merck,
PSA Peugeot Citroën, Pernod Ricard, Reckitt Benckiser, sanofi-aventis, and Volvo. Headquartered
in New York, Euro RSCG Worldwide is the largest unit of Havas, a world leader in communications
(Euronext Paris SA: HAV.PA).
For more information about Prosumer Reports, please visit www.prosumer-report.com or contact
Naomi Troni, global chief marketing officer, at naomi.troni@eurorscg.com.
Follow us on Twitter @prosumer_report