australia presentation: 2012 goodpurpose® study
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GOODPURPOSE
Edelman goodpurpose® 2012
GLOBAL CONSUMER SURVEY Exploring consumer attitudes around social purpose including their commitment to social issues and their expectations of brands and corporations
Global survey reveals 4 key trends
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Societal Performance Builds Future Trust Future trust is centered around a company's societal performance – or Purpose
4
Consumer Participation in Societal Issues Soars However Australians Less Likely to Take Action to Support Good Causes
5
Purpose Gets a Whole Lot More Personal Personal Need Trumps Common Good for Aussies
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The Reengineering of Brand Marketing Purpose is now a clear purchase trigger
Fifth Global Consumer Study 2012
UK 500
FRANCE 500
CANADA 500
BRAZIL 500
NETHERLANDS 500
BELGIUM 500
SINGAPORE 500
GERMANY 500
ITALY 500
INDIA 500
CHINA 500
JAPAN 500
UAE 500
US 500
INDONESIA 500
MALAYSIA 500
AUSTRALIA 1000
StrategyOne surveyed 8,000 consumers across 16 countries, aged 18+ in January/February, 2012
New in 2012, Catalyst Research surveyed 1,000+ consumers across Australia, aged 18+ in March, 2012
Global data points included in this report exclude Australia.
hungry concerned vocal empowered
An Evolving “Consumer”
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86% of global consumers believe that business needs to place at least equal
weight on society’s interests as on business’ interests.
GLOBAL: Q49. Thinking about society’s interests and business’ interests, how much weight should each interest have in business decisions? (Net: At least
equal weight on society’s interests) 10-country global total (excludes Belgium, Indonesia, Malaysia, the Netherlands, Singapore, UAE and Australia)
A Shifting Marketplace
The Arrival of the “B Corp” The Reinvention of Brand
Marketing The Adoption of Shared
Value
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Top brands and companies more committed than ever.
A New Imperative
Rather than merely
exercising their “license to
operate,” leading brands
and corporations of the
future must move beyond
operational imperatives
and social add-on’s to
establish their “license to
lead.”
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1. Consumer Participation in Societal Causes Soars
of global consumers take part in activities to address societal issues.
63% of Brazilians
voiced their
concerns
72% in US
recycle regularly
75% of Germans take actions to conserve energy
77% of Chinese
donated money
89%
40% of Australians
signed a petition
supporting an issue
online or in person
GLOBAL: Q25. Q25. Which, if any, of the following activities have you taken part in over the past year to address societal issues? [SELECT ALL THAT APPLY]l; 16-country global total – NET ‘Take part in any activities to
address societal issues’. Brazil - Voiced my concerns during conversations with other people, China - Donated money; Q26. Which, if any, of the following actions do you engage in on a regular basis? [SELECT ALL THAT
APPLY] US and Germany
AUSTRALIA: Q9. Which, if any, of the following activities have you personally taken part in over the past year, to address society and community issues? (PLEASE SELECT ALL THAT APPLY)
Half of us are personally involved in a cause
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48% OF AUSTRALIANS ARE
PERSONALLY
INVOLVED IN A CAUSE
AUSTRALIA: Q8. Are you personally involved in supporting a cause? (Yes, No, Don’t Know)
Involvement in good causes is much more prevalent amongst Rapidly Growing Economies
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CHINA INDIA
MALAYSIA BRAZIL
UAE VS
US UK
FRANCE
NETHERLANDS
ITALY BELGIUM
JAPAN INDONESIA
GERMANY
Consumers in Rapid Growth Economies
(RGEs) have much higher expectations of
and engagement with brands and
corporations on societal issues.
Societal activity starts to moves online
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38% of Australians used the internet or mobile technology to support a cause
20%
Posted information about a cause or issue
18%
Emailed someone about an issue
12%
Communicated with people via social networks
8%
Participated in a movement or strike
via social media or the Internet
AUSTRALIA: Q9: Which, if any, of the following activities have you personally taken part in over the past year, to address society and community issues?
[TICK ALL THAT APPLY]
2. Purpose Gets Personal
.
Reduced leisure
shopping 85% of those
surveyed
around the
world say they
have been
affected by the
economic
downturn in
some way.
The Globalisation of Need Because of the global recession, societal issues are hitting close to home
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Unable to donate as
much money to societal
issues
My salary decreased
Reduced spending on
food
Unable to pay medical
expenses or afford
healthcare
GLOBAL: Q29: Q29. Has the global economic downturn affected you in any of the following ways? [SELECT ALL THAT APPLY] 16-country global total
(Excludes Australia)
Discovering the Me in We
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Consumers are developing and
demonstrating personal values
amidst today’s persistent
economical challenges and
cultural upheaval.
More and more consumers are
discovering the me (personal
need) in the we (the common
good)
…Purpose Gets Personal.
67%
74%
78%
80%
82%
83%
83%
83%
84%
84%
86%
86%
89%
89%
Supporting the creative arts
Supporting animal rights
Helping to raise people's self-esteem
Fighting the spread of global disease and pandemics
Encouraging tolerance for people who are different
Supporting human and civil rights
Alleviating hunger and homelessness
Aiding in disaster relief
Reducing poverty
Stopping relationship violence and abuse
Equal opportunity to education
Ensuring access to safe drinking water
Protecting the environment
Improving the quality of healthcare
Consistent Commitment; Diverse Opportunity
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GLOBAL: Q8-21. [TRACKING] How much do you personally care about the following good causes? (Top 2 Box, Care a great deal/Somewhat) 16-country
global total (excludes Australia)
Issues that matter to Aussie’s are closer to home
74% - Improving the quality of healthcare
73% - Stopping violence & abuse
70% - crime reduction & crime
prevention
65% - access to water & water management
AUSTRALIA: Q4 – 7: How important are the following issues to you. (Environmental, economic and safety; equality and social inclusion; health, education and
arts). [Ranking: Not important, Not very important, somewhat important, very important, don’t know]. [Top Box ‘very important’ issues].
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The top three environmental issues:
1. Access to water and water management (65%)
2. Sustainable food product and security (60%)
3. Recycling and waste management (55%)
The least important issue: Biodiversity (27%)
The top three economic and safety issues:
1. Crime reduction and prevention (70%)
2. Unemployment and job security (61%)
3. Housing and rental affordability (60%)
The least important issue: Fair Work Policy (55%)
The top three equality and social inclusion issues:
1. Stopping violence and abuse (73%)
2. Encouraging tolerance for different people (54%)
3. Reducing poverty (52%)
The least important issue: Reducing social isolation
(27%)
The top three health, education and arts issues:
1. Improving the quality of healthcare (74%)
2. Ensuring access to healthcare services (69%)
3. Disease prevention and awareness (65%)
The least important issue: supporting creative arts
(music, art, literature, dance) (22%)
Looking deeper into what matters to Australians
AUSTRALIA: Q4 – 7: How important are the following issues to you. (Environmental, economic and safety; equality and social inclusion; health, education and
arts).[Ranking: Not important, Not very important, somewhat important, very important, don’t know]. [Top Box ‘very important’ issues].
Top Ranking Social Causes in Australia (Top Box, Very Important)
Sales Balancing Me and We
of global consumers believe it’s equally important to address issues that impact me personally and society overall.
52%
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GLOBAL: Q27. In general, is it more important for you [ROTATE:] to “address causes and issues that impact you personally” or to “address causes and
issues that impact society overall”? 16-country global total (% who say it is EQUALLY important to address causes and issues that impact me personally and
society overall) (Excludes Australia)
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3. The Reengineering of Brand Marketing
The Power of Purpose
It is the power of Purpose that
is helping to drive consumer
preference in a world where
trust in corporations is low and
differentiation between brands
is negligible.
Profit + Purpose: The New Normal
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It is OK for brands to support good causes and make money at the same time
+33% since 2008
69% AUSTRALIANS
AGREED
GLOBAL: Q40-46. [TRACKING] Below are some things that people have said about supporting good causes. How much do you agree or disagree with each
of the following statements? “IT IS OK FOR BRANDS TO SUPPORT GOOD CAUSES AND MAKE MONEY AT THE SAME TIME” (Top 2 Box, Agree) 10-country
global total (excludes Belgium, Indonesia, Malaysia, the Netherlands, Singapore, UAE and Australia)
AUSTRALIA: Q14) Below are some things that people have said about supporting good causes and companies. How much do you agree or disagree with
each of the following statements? “IT IS OK FOR BRANDS TO SUPPORT GOOD CAUSES AND MAKE MONEY AT THE SAME TIME”(Top 2 Box, Strongly Agree,
Tend to Agree)
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Social Purpose as Purchase Trigger When quality and price are the same, Social Purpose most important factor
GLOBAL: Q48. [TRACKING] Now, if you had to choose between two brands that were the same in quality and price, please rank the following remaining
factors from 1 to 3 in the order that would affect your decision when selecting a brand where 1 is the most important factor and 3 is the least important. 10-
country global total (excludes Belgium, Indonesia, Malaysia, the Netherlands, Singapore, UAE and Australia) (% WHO RANKED SOCIAL PURPOSE FIRST). Note:
In the question, “social purpose” is defined as: Benefits others through charity or selfless acts
Purpose = dollars
Brands aligning themselves with an
authentic purpose and cause are not
only securing more consideration, but
they are also earning their dollars and
support.
58 percent of Australians would switch
brands if a different brand of similar
quality supported a good cause.
AUSTRALIA: Q14. Below are some things that people have
said about supporting good causes and companies. How
much do you agree or disagree with each of the following
statements? (Top 2 Box, Strongly Agree, Tend to Agree)
Consumers Prefer Purpose
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Global
GLOBAL: Q40-46. [TRACKING] Below are some things that people have said about supporting good causes. How much do you agree or disagree with each of
the following statements? (Top 2 Box, Agree) 10-country global total (excludes Belgium, Indonesia, Malaysia, the Netherlands, Singapore, UAE and Australia)
AUSTRALIA: Q14. Below are some things that people have said about supporting good causes and companies. How much do you agree or disagree with each
of the following statements? (Top 2 Box, Strongly Agree, Tend to Agree)
2010
2009
2012
PROMOTE
SWITCH
2008
2009
2010
2012
53%
59%
62%
71%
+ 34%
+ 9% 67%
63%
73%
2008
2009
2010
2012
RECOMMEND + 39%
52%
64%
63%
72%
59% AUSTRALIANS AGREED
52% AUSTRALIANS AGREED
58% AUSTRALIANS AGREED
68% of Australians say they are more likely to purchase a product knowing that a portion of the
money would go to a good casue
Purchase Frequency
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‘At Least Monthly’ purchases of
cause-supporting brands increased
by 47% from 2010 - 2012
2012
EVERY 6 TO 12
MONTHS
19%
AT LEAST
MONTHLY
47%
2010
AT LEAST
MONTHLY
32%
EVERY 6 TO 12
MONTHS
34%
GLOBAL: Q47. [TRACKING] On average, how often do you buy a brand that supports a good cause? (At
least monthly NET, Every 6-12 months NET) 10-country global total (excludes Belgium, Indonesia,
Malaysia, the Netherlands, Singapore, UAE and Australia)
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However, Aussie brands are not doing a great job in communicating
their commitment to purpose.
1 in 3
If Australian companies can make consumers aware of their efforts
to address societal issues, Australia’s purchase intent may climb
closer to the global average.
84%
57%
AUSTRALIA: Q10. On average, how often do you buy a product that supports a good cause? (AT LEAST ONCE A YEAR or DON’T KNOW)
GLOBAL: Q47. On average, how often do you buy a brand that supports a good cause? (AT LEAST ONCE A YEAR) (Excludes Australia)
Australians said they did not know if they had purchased a
product that supported a good cause.
of global consumers say they purchase a product that supports a
good cause at least yearly.
of Australians said they purchased a product that supports a good
cause once a year.
License to Lead 4. Building Future Performance on Societal Actions
83% of Australians
believe business
should place
at least equal
weight on
societal issues
and business
issues
Only 29% believe business is
performing well
Performance
lacking on
addressing
societal issues
Performance Gap in Addressing Societal Issues Gap could drive disillusionment, disengagement and distrust
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AUSTRALIA: Q12 How important do you believe it is for business in general to be addressing society and community issues? (Top 2 Box, Very
Important/Important)
AUSTRALIA: Q13 Thinking about the ways you believe business in general should be addressing societal issues, how would you rate business in general’s
performance in addressing societal issues? (Top 2 Box, Excellent/Good)
Consumers will praise…and punish
53%
48%
44%
44%
44%
44%
45%
57%
73%
76%
76%
INVEST IN IT
SHARE POSITIVE OPINIONS AND EXPERIENCES
BUY ITS PRODUCTS/SERVICES REFUSE TO BUY PRODUCTS/SERVICES
RECOMMEND ITS PRODUCTS/SERVICES CRITICIZE IT TO OTHERS
NOT WANT TO WORK FOR IT
NOT INVEST IN IT
WANT TO WORK FOR IT
Company that does NOT
actively support a good cause
_ + Company that actively
supports a good cause
PAY A PREMIUM FOR ITS PRODUCTS/SERVICES
SHARE NEGATIVE OPINIONS AND EXPERIENCES
+ 9
+ 9
+ 8
+ 4
+ 7
+ 11
+ 7
+ 7
+ 5
Increase from 2010 Increase from 2010
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GLOBAL: Q54-59. [TRACKING] How likely would you be to do the following in relation to a company that actively supports a good cause? (Top 2 box, likely)
Q61-65. [TRACKING] How likely would you be to do the following in relation to a company that does NOT actively support a good cause? (Top 2 box, likely)
10-country global total (excludes Belgium, Indonesia, Malaysia, the Netherlands, Singapore , UAE and Australia)
51%
50%
49%
47%
45%
45%
43%
42%
41%
36%
28%
27%
19%
19%
DONATING A PORTION OF PROFITS
DONATING PRODUCTS OR SERVICES
CREATING NEW PRODUCTS OR SERVICES
PROVIDING EDUCATIONAL INFORMATION
WORKING WITH THE GOVERNMENT
OFFERING PROGRAMS FOR EMPLOYEES
PARTNERING WITH NGOS
ENABLING EMPLOYEES TO VOLUNTEER
ORGANIZING CONSUMER EVENTS
COLLABORATING WITH OTHER COMPANIES
SOCIAL NETWORK FOR CONSUMERS TO ADDRESS SOCIETAL ISSUES
EMPLOYEE FUNDRAISING PROGRAMS
CREATING SOFTWARE/MOBILE FUNDRAISING APPS
CREATING SOFTWARE/MOBILE COMMUNICATION APPS
What Should Companies be Doing?
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COMMUNICATE IT!
80% of global
consumers believe it
is important for
companies to make
them aware of its
efforts to address
societal issues.
GLOBAL: Q36. What should companies be doing to address societal issues? [SELECT ALL THAT APPLY] 16-country global total (Excludes Australia)
Q98. How important is it for companies to make you aware of their efforts to address societal issues? (Top 2 Box, Important NET) 16-country global
total (Excludes Australia)
Donating profits, products or services seen as most important action
The Role of the CEO
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CEOs must think proactively about using their business to address issues
USE REVENUE TO PRODUCE MATERIALS THAT RAISE AWARENESS FOR SOCIETAL ISSUES
ISSUE REPORTS ON ENVIRONMENT/SOCIAL EFFORTS
COMMUNICATE EFFORTS TO ADDRESS SOCIETAL ISSUES
MOTIVATE EMPLOYEES TO TAKE PART
PUBLICALLY SUPPORTING SOCIETAL ISSUES
MAKE A LONG-TERM COMMITMENT TO SOCIETAL ISSUES
CREATE SOCIALLY RESPONSIBLE AND INNOVATIVE PRODUCTS
36%
41%
51%
52%
55%
55%
56%
GLOBAL: Q50. What should CEOs or corporate leaders be doing to address societal issues in a genuine way? [SELECT ALL THAT APPLY] 16-
country global total (Excludes Australia)
Works to protect and improve the environment
Creates programs that positively impact the local community in which the company operates
Has ethical business practices
Takes responsible actions to address an issue or a crisis
Addresses society’s needs in its everyday business
Listens to customer needs and feedback
Treats employees well
Places customers ahead of profits
Current Purchase Consideration Building Future Purchase Intent
Treats employees well
Listens to customer needs and feedback
Works to protect and improve the environment
Has ethical business practices
Takes responsible actions to address an issue or a crisis
Places customers ahead of profits
Creates programs that positively impact the local community in which the company operates
Addresses society’s needs in its everyday business
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Societal Performance = The Human Factor
GLOBAL [REGRESSION ANALYSIS] Q56. How likely would you be to do the following in relation to a company that actively supports a good cause? (“Buy its
products or services”) Q66-73. Below is a list of actions a company may take to address a societal issue. How important is it for a company to carry out each of
the following actions when addressing a societal issue? Please use a nine-point scale where one means that the action is “not at all important” and nine means it
is “extremely important” when addressing a societal issue. (Top 2 Box, Extremely Important) 16-country global total (Excludes Australia)
Be More Human Earning a license to lead through Purpose is not just
about donating to a social issue….
….it is about enlisting the comprehensive capabilities
and resources of the company– from employees to
supply chain, community, customers and
consumers, R&D and product innovation, and
current and new NGOs - to bring new solutions to
market and to impact societal issues.
It is about understanding your role as a global
citizen and using the company’s values to ultimately
be more human:
• To care about the wellbeing of the people in your
company
• To care about the wellbeing of the people
associated with your company (like your
suppliers and customers)
• To care about the wellbeing of the community
and the planet
Turning Insights into Action
Not IF, but HOW…
Customize for local execution
Work with NGOs, colleagues, competitors
Build performance measures up front
Story, story, story
Evolve programs to stay relevant
Employees, partners, consumers
Start with depth, not scale
Powerful programs are leader led LEAD
CONSTRUCT
CUSTOMIZE
COLLABORATE
MEASURE
NARRATE
EVOLVE
ENGAGE
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