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Citizens Engage! Edelman goodpurpose Report 2010
Citizens Engage!
Citizens Engage!

Edelman goodpurpose ® Report 2010

Citizens Engage! Edelman goodpurpose Report 2010

Table of Contents

Introduction

2

Consumer Actionism

4

Emerging Markets Take the Lead

6

Purpose is the 5th P

7

Green as Social and Economic Lever

8

Citizen Consumer Insights

9

Edelman and goodpurpose 2010

9

Table of Contents Introduction 2 Consumer Actionism 4 Emerging Markets Take the Lead 6 Purpose is
Table of Contents Introduction 2 Consumer Actionism 4 Emerging Markets Take the Lead 6 Purpose is
Table of Contents Introduction 2 Consumer Actionism 4 Emerging Markets Take the Lead 6 Purpose is

86% of global consumers believe that business needs to place at least equal weight on society’s interests as on business’ interests.

- Edelman goodpurpose ® Study 2010

Introduction

Around the world, we are witnessing rising levels

of consumer engagement with social issues as well as heightened expectations of the role that corporations and brands should play. A growing

body of influential stakeholders—from consumers

to investors—has increased its demands that

businesses leverage their core competencies to help address social issues.

A distinct shift occurred in the 2010 study results:

Consumers in emerging economies surpassed Western consumers in their involvement in social issues and support of brands and corporations

engaged in Purpose. Nevertheless, consumer s

worldwide demonstrated their expectation that

companies support both local and global causes, giving way to the rise of the “Citizen Consumer.”

This brochure is based on the insights and

experience of Edelman’s Purpose practitioners, as well as findings from the Edelman 2010 goodpurpose ® study. In 2010, the goodpur pose study was conducted in 13 countries: Br azil, Canada, China, Fr ance, Ger many, India, Italy, Japan, Mexico, The Netherlands, UAE, United Kingdom and USA, with 7,259 consumers aged 18-64. The study explores consumer attitudes towards Purpose, including their commitment to specific issues and

their expectations of brands and corporations.

Pro-social efforts take many names across the

spectrum of corporate and brand citizenship.

At Edelman, we call these efforts Pur pose:

The synergy between an organization or a brand’s

social and business mission made manifest through

a strategic, differentiating idea and expressed along a continuum that includes product innovation, brand strategy, cor porate positioning, supply chain

compliance, mar keting and communications.

Introduction Around the world, we are witnessing rising levels of consumer engagement with social issues as
69% of respondents believe corporations are in a uniquely powerful position to make a positive impact
69% of
respondents believe
corporations are in
a uniquely powerful
position to make a
positive impact on
good causes.
Page 2

• Purpose is the strategic, emotional driving force behind an or ganization/brand’s core value proposition.

• Purpose imbues societal relevance, and a greater reason for being beyond profit, into every inter action

with stakeholders.

• Purpose provides a filter and focus to key internal and external activities driving innovation and leadership.

• Purpose answers the question: What do you stand for?

…And Purpose is changing the way brands and corporations must “go to mar ket.”

Key conclusions from the goodpurpose study:

What do you stand for?

Consumer Actionism – There is a global commitment to social concerns and a demand that organizations integrate Purpose into their business models.

Emerging Markets Take the Lead – Consumer activism in most emerging markets around the globe surpasses that of the West.

Purpose is Central to Marketing – Purpose is a vital addition to the traditional marketing mix, ser ving as a new point of differentiation.

Green as Social and Economic Lever – Corporations are expected to take a stand on environmental issues; going green is no longer simply a cause , it is a “must-have” with tangible economic benefits.

Methodology

BRAZIL 500

FRANCE 500

ITALY 500

CANADA 500

GERMANY 500

JAPAN 500

NETHERLANDS 500

UK 500

CHINA 1000

INDIA 500

MEXICO 500

UAE 250

US 1000

StrategyOne surveyed 7,000+ consumers across 13 countries, aged 18-64

Page 4

Consumer Actionism

As consumers’ relationships with social issues evolve, so do expectations for the private sector. A growing interest in cause, coupled with new channels of communication, has prompted the rise of “Citizen Consumers” – individuals who seek deeper involvement with social issues and expect brands and corporations to provide a means of engagement.

It is no longer enough for a corporation to simply donate to a cause, but rather it must integrate Purpose into its everyday business. Sixty-nine percent of consumers believe that corporations are in a uniquely powerful position to make a positive impact in the world.

Page 4 Consumer Actionism As consumers’ relationships with social issues evolve, so do expectations for the
Page 4 Consumer Actionism As consumers’ relationships with social issues evolve, so do expectations for the
Page 4 Consumer Actionism As consumers’ relationships with social issues evolve, so do expectations for the
BUY its products or services 66% RECOMMEND its products or services 66% SHARE positive opinions and
BUY its products
or services
66%
RECOMMEND its
products or services
66%
SHARE positive opinions
and experiences
64%
0
10
20
30
40
50
60
70

Citizen consumers’ growing interest in cause,

along with the power to promote brands

through social media, creates a mutually beneficial

relationship between profit and Purpose. Consumers

are willing to take action with companies that actively

support a good cause.

Page 4 Consumer Actionism As consumers’ relationships with social issues evolve, so do expectations for the

Similarly, more than one-third of consumers would punish a company that doesn’t actively support a good cause by criticizing it to others, refusing to buy its products or services and/or sharing negative experiences.

What are the implications for brands/corporations?

Align Purpose with products and services Develop authentic Purpose for both business and social impact Purpose must be a long-term commitment embedded into overall business strategy

Believe brands and consumers could do more to support good causes by working together 71% Want
Believe brands and consumers
could do more to support good
causes by working together
71%
Want brands to make it
easier for them to make
a positive difference
63%
0
10
20
30
40
50
60
70
80

Page 6

Page 6 GLOBAL 62% Emerging Markets Take the Lead More than 7 in 10 consumers In
GLOBAL 62%
GLOBAL
62%

Emerging Markets Take the Lead

More than 7 in 10 consumers

In 2010, emer ging mar kets outpaced those in the

in emerging markets would

West in their relationship with Purpose. Mexico and Brazil reported the highest percentages of

consumers that are “more involved” with causes now than they were a year ago. Eighty-one percent of respondents in India and eighty-nine percent in

take action to support brands

with social Purpose.

  • INDIA

78%

These insights are particularly relevant for

China said that they are personally involved in supporting a good cause. Consumers in the above markets are more likely than other surveyed countries to buy and promote the products and services of brands that support good causes.

multinational companies entering new markets, as

it presents the opportunity to cultivate an engaged

and Purpose-oriented consumer base as disposable incomes continue to increase. Pairing profit with

Purpose in such markets can also trigger innovations

in products and services worldwide.

Many emerging markets have developed economi- cally while battling societal issues, demonstr ating that profit and Purpose are not mutually exclusive.

“I would switch brands if a different brand of similar quality supported a good cause.”

GLOBAL

62%

CHINA

77%

“I am more likely to recommend a brand that supports a good cause than one that doesn’t.”

GLOBAL

61%

BRAZIL

80%

“I would help a brand to promote its products or services if there is a good cause behind them.”

Page 6 GLOBAL 62% Emerging Markets Take the Lead More than 7 in 10 consumers In
Page 6 GLOBAL 62% Emerging Markets Take the Lead More than 7 in 10 consumers In
Page 6 GLOBAL 62% Emerging Markets Take the Lead More than 7 in 10 consumers In

Purpose is the 5 th P

In an overcrowded market, Pur pose stands out as

a point of differentiation. When choosing between

brands of equal quality and price, consumer s world-

wide reported that Purpose outweighs both design

innovation and brand loyalty as the deciding factor.

Moreover, Pur pose provides a means of engage-

ment between consumer and brand that cannot be

fulfilled through the traditional 4 Ps of marketing:

Product, Price, Place (distribution) and Promotion.

Purpose provides an emotional connection with consumers and opportunities for consumers to work with brands towards common goal. Purpose

thus joins as the 5th P of the age-old marketing mix.

Social 42% Purpose Design and 31% When choosing between two Innovation brands of equal quality and
Social
42%
Purpose
Design and
31%
When choosing between two
Innovation
brands of equal quality and
price
social Purpose is the
Brand
27%
...
number one deciding factor.
Loyalty
0
10
20
30
40
50
Page 7

As a result, Pur pose is no longer optional for leading br ands and corporations. Instead, it is a new business imper ative with the potential to galvanize consumers. The 2011 Edelman Trust Barometer ® found that the majority of respondents in every country agreed that

“Corporations need to create shareholder value in a way that aligns

with society’s interests, even if that means sacrificing shareholder value .”

Purpose is the 5 P In an overcrowded market, Pur pose stands out as a point
Purpose is the 5 P In an overcrowded market, Pur pose stands out as a point

Brands that differentiate themselves through authentic, sustained and well-executed progr ams can create br and

ambassadors prepared to champion a company rather than its competitors.

What are the marketing implications for brands and companies?

• When quality and price are equal, Pur pose is a critical purchase motivator that can differentiate a company

within a crowded space.

Purpose provides deeper engagement and the ability to forge meaningful relationships with stakeholders.

Consumers will take action to support companies with Purpose by recommending their products and services.

Purpose can ignite the passion of individuals toward a brand.

Purpose is the 5 P In an overcrowded market, Pur pose stands out as a point
Purpose is the 5 P In an overcrowded market, Pur pose stands out as a point
Purpose is the 5 P In an overcrowded market, Pur pose stands out as a point

Green as Social and Economic Lever

In the 2010 goodpurpose study, protecting the environment r anked as the number one cause that consumers care about worldwide. Though differences exist in local mar kets, the per sistent green trend

Green as Social and Economic Lever In the 2010 goodpurpose study, protecting the environment r anked

indicates the necessity of adopting sustainable business practices. Going green is no longer optional

in the minds of global, engaged consumer s. Seventy-three percent of consumer s worldwide

reported that government and business need to work together more closely to ensure the

environment is protected. In fact, consumer s suppor t legislation requiring cor porations to meet certain environmental standards even if it might negatively impact profits.

In addition to consumer interest in sustainability, more than two-thirds of respondents worldwide believe projects that protect and sustain the environment can help grow

the economy.

What insights can we draw about environmental expectations of brands/corporations?

• High consumer expectations necessitate that businesses integrate environmental responsibility

into their core operating tenets.

Brands and corporations are expected to work with government to ensure protection of the environment.

Proactive environmental engagement can result in economic growth.

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Citizen Consumer Insights

When creating programs, consider that Citizen Consumers:

  • 1. Feel empowered to support social issues

  • 2. Want brands to place at least equal weight on societal and business interests

  • 3. Believe that corporations and government must work together to solve social issues

  • 4. Consider many global issues to be local issues

  • 5. Count on companies to have environmental initiatives and support other causes as well

  • 6. Expect investment in an authentic Purpose through integrated support in addition to financial contributions

  • 7. Punish brands that do not have Purpose

  • 8. Desire to be part of the solution by partnering with brands

  • 9. Take concrete actions to support brands with Purpose

  • 10. Use Purpose as a critical purchase motivator

Edelman and goodpurpose 2010

About the 2010 Edelman goodpurpose ® study

The 2010 Edelman goodpurpose ® study is the firm’s fourth annual global study that explores consumer attitudes around social Purpose, including their commitment to specific social issues and their expectations of br ands and corporations. The sur vey was conducted by Str ategyOne and consisted of 20 minute inter views in 13 countries among 7,259 adults. Online inter views were conducted in Br azil, Canada, Fr ance, Germany, Italy, Japan, Mexico, The Netherlands, UAE, the United Kingdom and the United States. Face-to-face inter views were conducted in China and India. The study is representative of the countr y population, except in UAE, where it is representative

of the online population. For more information visit: www.goodpurposecommunity.com.

About Edelman

Edelman is the world’s largest independent public relations firm, with wholly-owned offices in 53 cities and 3,700 employees worldwide. Edelman was named Adver tising Age’s top-r anked PR firm of the decade and one of its “2010 A-List Agencies” and “2010 Best Places to Wor k;” PRWeek’s “2011 Lar ge PR Agency of the Year” and “2009 Agency of the Year ;” European Excellence Awards’ “2010 Agency of the Year ;” Holmes Repor t’s “Agency of the Decade” and “2009 Asia Pacific Consultancy of the Year ;” and among Glassdoor’s top five “2011 Best Places to Wor k.” Edelman owns specialty firms Blue (advertising), Str ategyOne (research), Ruth (integrated marketing), DJE Science (medical education/publishing and science communications) and MATTER (spor ts, sponsor ship and enter tainment). Visit www.edelman.com for more information.

To receive notification of new research and news, join the goodpurpose community at www.goodpurposecommunity.com and visit our blog at goodpurposeblog.com.

Page 9 Citizen Consumer Insights When creating programs, consider that Citizen Consumers: 1. Feel empowered to
www.goodpurposecommunity.com goodpurposeblog.com Carol.Cone@Edelman.com Mitch.Markson@Edelman.com Robin.Bruce@Edelman.com

www.goodpurposecommunity.com

goodpurposeblog.com

Carol.Cone@Edelman.com

Mitch.Markson@Edelman.com

Robin.Bruce@Edelman.com