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Citizens Engage!

Edelman goodpurpose Report 2010

Table of Contents
Introduction Consumer Actionism Emerging Markets Take the Lead Purpose is the 5th P Green as Social and Economic Lever Citizen Consumer Insights Edelman and goodpurpose 2010

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...

86%

of global consumers believe that

business needs to place at least equal weight on societys interests as on business interests.
- Edelman goodpurpose Study 2010

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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 stakeholdersfrom consumers to investorshas increased its demands that businesses leverage their core competencies to help address social issues. This brochure is based on the insights and experience of Edelmans Purpose practitioners, as well as findings from the Edelman 2010 goodpurpose study. In 2010, the goodpurpose study was conducted in 13 countries: Brazil, Canada, China, France, Germany, 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. Page 2 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, consumers worldwide demonstrated their expectation that companies support both local and global causes, giving way to the rise of the Citizen Consumer. Pro-social efforts take many names across the spectrum of corporate and brand citizenship. At Edelman, we call these efforts Purpose: The synergy between an organization or a brands social and business mission made manifest through a strategic, differentiating idea and expressed along a continuum that includes product innovation, brand strategy, corporate positioning, supply chain compliance, marketing and communications.

69%

of respondents believe corporations are in a uniquely powerful position to make a positive impact on good causes.

Purpose is the strategic, emotional driving force behind an organization/brands core value proposition. Purpose imbues societal relevance, and a greater reason for being beyond profit, into every interaction 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 market. Key conclusions from the goodpurpose study: 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, serving 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 CANADA 500 CHINA 1000 FRANCE 500 GERMANY 500 INDIA 500 ITALY 500 JAPAN 500 MEXICO 500 NETHERLANDS 500 UAE 250 UK 500 US 1000

What do you stand for?

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

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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.

BUY its products or services RECOMMEND its products or services SHARE positive opinions and experiences

66% 66% 64%


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.

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Similarly, more than one-third of consumers would punish a company that doesnt 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 brands to make it easier for them to make a positive difference

63%

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Emerging Markets Take the Lead


In 2010, emerging markets outpaced those in the 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 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. Many emerging markets have developed economically while battling societal issues, demonstrating that profit and Purpose are not mutually exclusive.
GLOBAL 61%

More than 7 in 10 consumers in emerging markets would take action to support brands with social Purpose.

These insights are particularly relevant for 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.

GLOBAL 62%

INDIA 78%

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 doesnt.
BRAZIL 80%

I would help a brand to promote its products or services if there is a good cause behind them.
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Purpose is the 5th P


In an overcrowded market, Purpose stands out as a point of differentiation. When choosing between brands of equal quality and price, consumers worldwide reported that Purpose outweighs both design innovation and brand loyalty as the deciding factor. Moreover, Purpose provides a means of engagement 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 Purpose Design and Innovation Brand Loyalty
0 10

As a result, Purpose is no longer optional for leading brands and corporations. Instead, it is a new business imperative 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 societys interests, even if that means sacrificing shareholder value. Brands that differentiate themselves through authentic, sustained and well-executed programs can create brand 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, Purpose 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.

42% 31%
When choosing between two brands of equal quality and price... social Purpose is the number one deciding factor.

27%
20 30

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Green as Social and Economic Lever


In the 2010 goodpurpose study, protecting the environment ranked as the number one cause that consumers care about worldwide. Though differences exist in local markets, the persistent green trend indicates the necessity of adopting sustainable business practices. Going green is no longer optional in the minds of global, engaged consumers. Seventy-three percent of consumers worldwide reported that government and business need to work together more closely to ensure the environment is protected. In fact, consumers support legislation requiring corporations 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 firms fourth annual global study that explores consumer attitudes around social Purpose, including their commitment to specific social issues and their expectations of brands and corporations. The survey was conducted by StrategyOne and consisted of 20 minute interviews in 13 countries among 7,259 adults. Online interviews were conducted in Brazil, Canada, France, Germany, Italy, Japan, Mexico, The Netherlands, UAE, the United Kingdom and the United States. Face-to-face interviews were conducted in China and India. The study is representative of the country population, except in UAE, where it is representative of the online population. For more information visit: www.goodpurposecommunity.com. About Edelman Edelman is the worlds largest independent public relations firm, with wholly-owned offices in 53 cities and 3,700 employees worldwide. Edelman was named Advertising Ages top-ranked PR firm of the decade and one of its 2010 A-List Agencies and 2010 Best Places to Work; PRWeeks 2011 Large PR Agency of the Year and 2009 Agency of the Year; European Excellence Awards 2010 Agency of the Year; Holmes Reports Agency of the Decade and 2009 Asia Pacific Consultancy of the Year; and among Glassdoors top five 2011 Best Places to Work. Edelman owns specialty firms Blue (advertising), StrategyOne (research), Ruth (integrated marketing), DJE Science (medical education/publishing and science communications) and MATTER (sports, sponsorship and entertainment). Visit www.edelman.com for more information.

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www.goodpurposecommunity.com goodpurposeblog.com Carol.Cone@Edelman.com Mitch.Markson@Edelman.com Robin.Bruce@Edelman.com