For the released polling data from PSB, click here
In a recently released study by Penn, Schoen & Berland Associates (in conjunction with Landor and Burson Marsteller), consumers are prodded to see if a company’s green efforts make a difference in their minds and at the store. This study shows that, not surprisingly, people say they are willing to pay more for socially responsible companies or take home less pay to work for these same companies but cannot identify any companies that truly stick out.
The Marketplace:
When it comes to paying more for a ‘socially responsible product,’ 86% of respondents say they would, at least, spend $1 more on the purchase (based on a $100 purchase.) Further, over one-third is willing to pay at least 16% more to purchase a socially responsible product, quite a difference. However, when it comes to identifying socially responsible brands, there are no clear winners. Wal-Mart, Coca-Cola, Johnson & Johnson, and Microsoft score the highest when asked; however, these companies are cited 8% of the time in Wal-Mart’s case and 4% for the others – not a stunning display of public support.
This lack of public knowledge of socially responsible companies is also shown in the lack of knowledge about which brands are the most socially responsible. Comparing respondent’s perception of brands on a CSR index compared to the CRO 100 (a comprehensive index measuring the practices of brands and companies), Apple scores rather low with consumers, at 68, but the second highest on the CRO at 206. It seems that consumers’ perceptions of brands, when it comes to CSR, are not correlated with the actual CSR efforts of the company itself, which can create a problem for those companies attempting to create a value proposition using their CSR initiatives.
The Workplace:
At the work place, 56% of respondents believe that working for ‘a company that is socially responsible’ makes some difference (21% believe it makes a significant difference.) 25-34 year old and 35-49 year olds seems to put the most stock in working for a socially responsible company, with 62% and 61%, respectfully, saying it makes a difference. Another interesting trend emerges in income segmentation. Among people making less than $35,000 a year, only 52% believe that it is important to work for a socially responsible company; meanwhile, 58% of those making over $100,000 a year believe it makes a difference – not that surprising, given the current economic climate.
In these rough economic conditions, 40% of respondents said they would be willing to take at least a 1% cut in pay to work for a socially responsible company, while 15% were willing to take at least a 6% cut in pay. This might be a growing trend with 21% of young people age 18-24 and 28% of respondents’ age 25-34 saying they would take cuts of at least 6% to work for a socially responsible company.
Side note: More and more in polling data, I have seen a disconnect between young people (18-24 or 18-29) and middle-aged people (25-34 or 29-39). While the middle aged seem more idealistic and ‘liberal’ this new generation of young people seems a bit more self-centered and ‘conservative.’ Hopefully, I will get a chance to explore this further in another post. As of right now, this is just a generic observation – hopefully to be flushed out soon.
But, while people are willing take home less pay to work for a socially responsible company, 71% cannot name any socially responsible practices of their employers. However, again we see the young-middle complex, where 70% of 18-24 year olds cannot name a practice that is socially responsible but only 64% of people aged 25-34 can’t name such a practice. Overall, though, employees are unaware of their employer is doing when it comes to social responsibility creating a disconnect between their desire to work for a socially responsible company and their current place of employment.
Communicating to Capitalize on CSR:
Companies that value CSR can clearly profit from their stance; however, if consumers do not know a brand is socially responsible, they won’t be willing to pay extra for its products. When it comes to stressing its CSR values, emphasizing fair, just, and equal treatment of employees, environmentally responsible practices, and community outreach and philanthropy top the list of what consumers are looking for in a company they consider socially responsible, at 20, 17, and 10% respectively. Furthermore, companies looking to increase sales through CSR messaging should focus on ‘honesty and trustworthiness,’ ‘treating employees fairly,’ ‘ethical leadership,’ and ‘community values and philanthropy.’ Among statements that will most likely influence consumers, these are the CSR messages that rank above average and, if a company is looking to tap into the extra profit afforded to socially responsible companies, these are the messages they need to send to their consumers.
Overall, people are interested in social responsibility when it comes to their purchases and employment, but companies need to do a better job providing the consumers and employees with the CSR they want a company to perform and communicating those types of CSR initiatives to the prospect. If a company can succeed in doing that, they may see an increase in sales and gain a better position at the bargaining table.
