The spread of social awareness that has been seeping through investment strategies and corporate governance is apparently taking hold among consumers, even at a time when people are buying on the cheap wherever they can.
Edelman, the global PR firm, has released the results of a survey it conducted through a segment of its company called “goodpurpose,” in which 68 percent of 6,000 consumers worldwide said they would remain loyal to a brand during a recession if it supports a good cause. I happen to believe that most companies that have developed a set of social principles that it incorporates into the operation of its business would stick with them even during a business downturn. If they’re committed to those principles they’re committed to them.
But the goodpurpose findings are also significant when you consider that for the past four or five months sales have been plunging at most retailers. The most notable exception to all that is WalMart, where business has remained brisk and customers are willing to – tragically – trample the sales help to get their hands on a bargain.
The second annual Edelman goodpurpose study also found that 80 percent of the 6,000 respondents also said that during a recession it is still important for brands and companies to set aside money for social purpose. Ordinarily I would discard this sort of result. It’s easy to spend other people’s money. Asking if it’s still important for companies to keep giving for the good of society during a recession is like asking if they should still believe in peace on Earth when their country’s at war. Of course.
But it seems as though most of the respondents believe they bear some responsibility as well. About 71 percent of those consumers queried say that when they think about the economic downturn, they have either given the same or more time and money to good causes. Nearly 90 percent feel it’s their duty to contribute to a better society and the environment. About 82 percent said they can personally make a difference by supporting good causes, and 83 percent said they are willing to change their own consumption habits to help make tomorrow’s world a better place.
If you’re a socially responsible investor – particularly one who is an active shareholder –reports such as these help make the case that business and ethics can build customer loyalty.