Creating a Loyal Consumer:The Impact of Corporate Social Responsibility and Education

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IntroductionThe importance of corporate social responsibility (CSR) has grown over the last several years.1 Consumers

increasingly value companies not just by what they produce, but how responsibly they operate as a business. Many

organizations engage in some form of giving back to society, addressing an environmental, social or economic need.

But the specific impact of CSR efforts on a company’s reputation, brand loyalty, and bottom line remains unclear.

This paper addresses the importance of CSR in brand reputation and what areas of social impact are most important to

consumers. We look specifically at those who say education is an essential part of corporate social responsibility and find

that they are more likely than others to be engaged with and loyal to brands.

The results presented are from a survey conducted through SurveyMonkey Audience. A survey of 705 adults who had made a purchase

from a superstore in the last 6 months was conducted from August 4-7, 2017. The margin of error is 3.8%

1Crane, Andrew and Matten, Dirk and Spence, Laura J., Corporate Social Responsibility in a Global Context (September 1, 2013). Chapter in: Crane,

A., Matten, D., and Spence, L.J., 'Corporate Social Responsibility: Readings and Cases in a Global Context', 2/e. Abingdon: Routledge, pp. 3-26 .

About the AuthorMeg Moyer, Vice President of Research, EVERFI

At EVERFI, Meg researches the interplay between education, financial institutions, and social factors in

influencing financial capability. She also measures the impact of financial education courses on learners using

assessment and survey data, providing reports of course impact to sponsors, districts, and schools around the

country. Prior to EVERFI, Meg held a similar role assessing the impact of online and offline educational programming

for youth sports coaches. Meg holds a degree in economics from the University of Virginia and an MBA from San

Diego State University.

Learn more about EVERFI and

Corporate Social Responsibility

at everfi.com/CSR or call

202-919-4464

About EVERFIUsing today’s technology to connect learning to

the real world, EVERFI partners with organizations

across the globe to equip their communities with

the skills needed for success in the 21st century.

These courses reach millions of learners a year,

from elementary school students to adults.

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Key Findings

• About three-quarters (76%) of consumers say engagement in the broader community is

important to brand reputation.

• Nearly half (46%) of consumers say companies have an obligation to take action to

improve societal problems.

• Six-in-ten consumers want companies to spend their CSR budgets on education, the most

of any item tested on our surveys.

• More than six-in-ten consumers (66%) say companies have an obligation to invest in the

future workforce through education.

Education-concerned consumers are more likely than those not concerned with education to be loyal to and

engaged with companies. Those who value education in a company’s social impact efforts are more likely to spend

more money on a product even when a more affordable option exists, recommend a brand to a friend, follow a brand

on social media, download their app and donate to a charity that brand supports.

The Value of Corporate Social ResponsibilityWhile many companies engage in CSR efforts,

their value to consumers and the effect of CSR on

purchasing decisions is far from clear.

We asked respondents how important a range

of issues were to a company’s reputation.

Unsurprisingly, elements tied closely to the product

scored the highest, with nearly all respondents

saying quality, reliability and consistency are

important to reputation.

Building social capital and engaging in the

community are also viewed as important, though.

About three-quarters of consumers say how the

company engages in the broader community is

important to their reputation.

3/4

46%

6 in 10

66%

0

20

40

60

80

100

What is Important to a Company’s Reputation?

98% 97%

76%

Quality Reliability and consistency

Community engagement

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Not only is CSR viewed as an important part of reputation,

but many see it as a responsibility for companies. Nearly half

(46%) of consumers say companies have an obligation to

take actions to improve societal problems, even if they are

not related to their business operations. Consumers have

identified corporate social responsibility as an important part

of brand reputation and further, many believe companies have

a requirement to engage in these socially beneficial efforts.

Customers may say corporate social responsibility is

important to them, but does community engagement actually

have an effect on purchasing decisions? According to our

survey, about six-in-ten consumers (58%) say the social impact

of the company is important when deciding which product to

buy. For many customers, CSR and reputation are important

factors when they decide where to spend their money.

Education’s Role in Corporate Social ResponsibilityCompanies have a range of options when considering where

to spend their CSR budgets. Of the six potential areas tested

in our survey, the largest number of consumers wanted to see

CSR budgets spent on education. Six-in-ten said they want

their favorite brand to use their CSR budget on education.

Consumers who value

education are more likely to

be engaged with and loyal to

companies.

46% think companies have an obligation to take actions to improve societal

problems, even if it is not related to their

business operations

42% think companies do not have an obligation to improve societal problems

that are unrelated to their business operations

Where would you like to see your favorite brand spend their CSR budget?

Education Environment Poverty/Economic equality

0

10

20

30

40

50

6060%

53%

47%

28%

19% 19%

Social justice/Human rights

The arts Health and sports

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Additionally, majorities of consumers say education is a crucial part of any CSR model. Over three-quarters (78%) of

consumers say it is important that education be a part or remain a part of CSR models.

And consumers not only want education to be a part of CSR models, they say companies have a responsibility

to invest in it. Nearly two-thirds (66%) of consumers say companies have an obligation to invest in the future

workforce through education. On the other hand, just a quarter say companies do not have an obligation to provide

education to students who may or may not work for them one day.

Education-Concerned Customers: Engaged and LoyalNot only do more than three-quarters of consumers want education to be a part of companies’ CSR budgets, but the

consumers who value education are more likely to be engaged and loyal customers. We asked consumers whether

they were likely to engage in six measures of brand loyalty.

Consumers who said education is an important part of a CSR

model were more likely to do all six actions than consumers

who did not think education is an important part of a CSR

model. For example, 76% of education-concerned consumers

say they are likely to spend more money on a brand even

when a more affordable options exists, compared with just

59% of those who do not think education is an important part

of a CSR model. Education-concerned consumers are high-

value customers. Investing in attracting these customers via

education efforts can pay off for companies in the form of

increased engagement and ongoing loyalty.

66% think companies have an

obligation to invest in the future workforce through education

How likely are you to engage with a brand?

Recommend that brand to a friend

89%

Spend more money, despite more affordable options

Donate to a charity that that brand supports

Follow that brand on social media

Download that brand’s mobile app

Share news about that brand on social media

81%

76%

59%

52%

18%

48%

26%

47%

25%

42%

20%

Education is an important part of a CSR model

Education is not an important part of a CSR model

Respondents that Responded:

EVERFI is the leading education technology company that provides learners of all ages education for the real world through

innovative and scalable digital learning.

everfi.com/CSR