consumer attitudes as a driver of purposeful business

Consumer Attitudes as a Driver of Purposeful Business

Caroline Holme@CarolineEHolmeDirector

GlobeScan

Rob Cameron@rob_cameron_Executive Director

SustainAbility

Agenda

1. Consumer perceptions on purpose

2. Stakeholder views on leadership

Public on PurposeInsights from global consumer research

September 2016

Why are we talking about purpose?

4

“Life's most persistent and urgent question is: ‘What are you doing for others?’

5

A persistent, almost pernicious, low level of trust in global companies

Q. Please tell me how much you trust each of the following institutions to operate in the best interest of our society. Would you say you have a lot of trust, some trust, not much trust, or no trust at all in…?

6

Growing support for regulations on business

7

A call for corporate torchbearers

Torchbearer: A person who leads

or inspires others in

working towards a

valued goal

8

What does the public think about purpose?

9

Survey Methodology

• Representative samples of approximately 1,000 adults per country in each of 25 countries

• Some urban-only surveying in certain developing countries

• Face-to-face and telephone interviewing between December 2015 and May 2016

Insight 1: A strong market for purpose

11

Two thirds of consumers value purpose

65%of CONSUMERS globally try to support brands that are purposeful

74%of CONSUMERSin Europe try to support brands that are purposeful

12

“To be truly successful, companies need to have a corporate mission that is bigger than making a profit.”

Marc Benioff, Salesforce

Insight 2: Purpose Drives Trust

14

What drives trust?

• Creating jobs• Providing high quality products at a

fair price• Being environmentally friendly• Treating employees well• Supporting charities and good

causes• Being open and honest• Being innovative• Having a corporate purpose

15

Purpose drives trust

16

“If the people who work for a business are proud of the business they work for, they’ll work that much harder, and therefore, I think turning your business into a real force for good is good business sense as well.”

Richard Branson, Virgin

Insight 3: Opportunities for leadership

18

Top 5 purposeful brands*No company receives more than 6% mentions in any region

19

But a majority of people are unable to name a company that has strong purpose

of people in Europeare UNABLE to name

a company with a strong purpose

64%

of people globallyare UNABLE to name

a company with a strong purpose

55%

20

1. Strong business case for purpose2. Purpose more effective for consumer

engagement than CSR3. Promising but early, fragile days

Where are the ‘torchbearers’?

The2016

SustainabilityLeadersAGlobeScan |SustainAbility Survey

InpartnershipwithSustainableBrands

23TheGlobeScan - SustainAbility Survey|The2016Sustainability LeadersinpartnershipwithSustainable Brands

Who Did We Ask? 907qualifiedsustainabilityexpertscompletedtheonlinequestionnairefromMarch23rdtoApril21st,2016.

Perceived Leadership 1992-Present


Non-State Actors Dominate Rankings of Past Performance

“Good performance” (4+5)

57

47

43

41

34

36

22

20

18

15

6

0 10 20 30 40 50 60

2016

NGOs

Social entrepreneurs

Research & academic orgs

Citizen-led mass movements

Multi-sectoral partnerships

The United Nations

City / local governments

Private sector

Multi-lateral organizations

Financial institutions

National governments

Question

How would you rate the performance of each of the following types of organizations in terms of its contribution to progress on sustainable development since the 1992 Earth Summit in Rio?


And Expectations of Government and the Private Sector Are Now Equal

% of Experts, First Choice + Second Choice

7

7

8

9

12

14

16

21

31

34

34

0 5 10 15 20 25 30 35

Question

In your opinion, who should lead the sustainable development agenda over the next twenty years?


Private sector


The United Nations



NGOs






Expectations for Future Leadership Target Government and Business

% of Total Mentions, Prompted

34

34

31

21

16

14

12

9

8

7

7

37

30

25

21

15

16

11

7

8

8

7

44

29

26

21

14

18

9

8

9

8

5

0 5 10 15 20 25 30 35 40 45

2016 2015 2012


Private sector


The United Nations



NGOs





Question

In your opinion, who should lead the sustainable development agenda over the next twenty years?


An Expectations-Performance Gap Persists

All Respondents

Leading Institutions | 3.92.2

Shou

ld b

e le

adin

g (m

entio

ns)


Partnerships & collaborations

Municipal governments

MLOs

UN

Mass social change

movements


Research & academia

Financial institutions NGOs

Should Not Lead | Low Performance Should Not Lead | High Performance

Should Lead | Low Performance Should Lead | High Performance

Private sector

Question

How would you rate the performance of each of the following types of organizations in terms of its contribution to progress on sustainable development since the 1992 Earth Summit in Rio?

Question

Question: In your opinion, who should lead the sustainable development agenda over the next 20 years?

Today’s Corporate Leaders


Unilever Remains in the Lead

% of Experts

3

3

3

3

3

6

6

6

6

10

10

17

43

0 10 20 30 40 50 60 70

UnileverPatagoniaInterfaceIKEATeslaNestléNaturaMarks & SpencerGeneral ElectricGoogleCoca-ColaBASFNike

56

25

Question

What specific companies do you think are leaders in integrating sustainability into their business strategy?


But Corporate Champions Have Changed Since 1997

Ranked Top 5 Companies, 1997–2016

Unilever

Patagonia

Interface

IKEA

Tesla

Dow

Monsanto

3M

DuPont

Shell

M&S Walmart

Body ShopBP Novo Nordisk

GE Natura

Toyota

Question

What specific companies do you think are leaders in integrating sustainability into their business strategy?


And Regions Have Local Leaders of Their Own

% of Experts, by Region

2

2

4

10

Interface

Nestlé

Unilever

Tata

55667810

16

StarbucksCoca-Cola

TeslaVancity

WalmartInterface

NikePatagonia

3

5

5

18

Coca-Cola

SABMiller

Unilever

Woolworths

3334

81315

46

H&MEcover

BASFBMW

NestléM&SIKEA

Unilever

2

8

10

47

SABMiller

Unilever

Itaú

Natura

Asia Africa Europe

North America Latin America

Question

What specific companies that are headquartered in your region do you think are leaders in integrating sustainability into their business strategy?


The Key Attributes: Values, Purpose, Business Model, Metrics

% of Experts, Prompted

7

11

19

25

26

30

30

31

32

37

38

0 10 20 30 40

Sustainability strategy is closely aligned with internal culture / values

Purpose integrated into core business via common brand promise

Pursuing business breakthrough model that drives net positive benefit

Applying ambitious goals and measures of performance

Leadership is vocally committed to sustainability

Expression of sustainability strategy through products

Collaborating with other organizations for system-level changes

Using brand to shift consumer behavior

Articulating vision for company's SD development

Clear commitment to transparency

Advocating for regulation/legislation to advance sustainability

Question

Please select the top 3 reasons that explain why you consider the company to be a leader and rank them in order of importance.

Thank You!