Everybody seems to talk about sustainability and corporate social responsibility these days, I found an interesting study about it. A part from the ethical point of you, is the market asking for a more conscious management of companies? If so, what should the companies do?
According to Nielsen Study DOING WELL BY DOING GOOD published in June 2014 being green and responsible pays. But are the companies aware about these results? If so..
Nielsen polled 30,000 consumers in 60 countries via the Internet to take a pulse on:
• How passionate consumers are about sustainable practices when it comes to purchase considerations.
• Which consumer segments are most supportive of ecological or other socially responsible efforts.
• The social issues/causes that are attracting the most concern.
“It’s no longer a question if consumers care about social impact. Consumers do care and show they do through their actions. The question is ‘how is your brand effectively creating shared value by marrying the appropriate social cause and consumer segments?’.”
Half of respondents around the world (49%) say they actively engage in volunteer work and/or donate monetarily to organizations involved in social and environmental programs, with participation highest in the largely developing regions of the Middle East/Africa (59%), Asia-Pacific
(58%) and Latin America (46%).
The top 6 causes (of the 20 included in the study), for which 50 percent or more global respondents indicate extreme concern, include:
1)increasing access to clean water,
2)improving access to sanitation,
3) eradicating extreme poverty and hunger,
4) combating non-communicable diseases,
5) ensuring environmental sustainability and
6) reducing child mortality.
“Strategies need to be built in harmony with consumer expectations and the social drivers that matter most to them and not solely based on what a company thinks they should do.”
I agree with the study results there are many opportunities to “go green” or indeed “go social”, but you need to understand your brand’s core equity to determine how far you can credibly stretch into the space.
The best initiatives are those that appeal to a heterogeneous group of buyers, but a keen focus on your most passionate (and profitable) consumer segments is also vital.
While many consumers may perceive sustainable products to cost more, you need to understand your optimal price point and the impact on volume and profit.
Are you in tourism sector? See the example of NH Hotel
Nielsen Website: http://www.nielsen.com/us/en/insights/news/2014/it-pays-to-be-green-corporate-social-responsibility-meets-the-bottom-line.html
Would you like to read the full Nielsen Study DOING WELL BY DOING GOOD? Click here to request it.
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