executive summary: 2009 edelman goodpurpose® study

8/2/2019 Executive Summary: 2009 Edelman goodpurpose Study

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2009 Edelman goodpurpose TM Repor A 10-country social purpose study of peoples expectations of corporations, brands and themselv

U.S., China, Canada, U.K., Germany, Italy, France, Brazil, Japan and India

PUT MEANING INTO MARKETING &

PROFIT THROUGH PURPOSE


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INTRODUCTION

We conducted our third annual goodpurpose study of 6,000 people in 10 countries to track andpeoples expectations of companies and brands, as well as their own attitudes and actions, towarsocietal challenges such as the environment, health, poverty, education and the arts.

We found that people are placing increasing demands on companies, brandsand themselvestincrease their social commitment, with more than half of our respondents globally saying they bcompany or brand has earned their business because it has been doing its part to support good cacountries like China, India and Brazil leading the way.

As companies and brands become catalysts for social change, traditional corporate social responbrand marketing are moving closer togethercreating a new model of engagement based on mutfor mutual benet.

The data from Edelmans 2009 goodpurpose survey provides companies and brands with insig

into this values shift and engaging their stakeholdersincluding vendors, employees, NGOs, regcustomersto achieve both their business and societal goals.

KEY CONCLUSIONS FROM THE STUDY INCLUDE:

People want brands to pay equal attention to both social and business concerns.

The majority of people now believe that the interests of both society and business should hain business decisions, fusing prot with purpose.

Mitch Markson,Chief Creative Ofcer,Founder/President,Edelman

goodpurpose

Alan VanderMolen,President,

Asia Pacic


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Mutual Social Responsibility is premised on partnership andparticipation.

Today, people expect to be involved in positive social change. Introducingmutual social responsibilitywhere companies, brands and people worktogether to effect long-term positive social change for mutual benet.

Social purpose is the new social status.Consumers are shifting away from traditional status symbols like bighouses, luxury cars and designer brands toward identication with socialpurpose brands, as a majority of people are willing to change consumptionhabits if it can help make the world a better place to live.

Social purpose is a key driver in energizing people to recommendand promote a brand.

Businesses are creating new markets by engaging and partnering withall their stakeholders around their social purpose.

The prolonged recession is driving new ways to participate andnew attitudes toward marketing.

The majority of respondents say the global recession has limited theirability to give money to community causes, but they are giving more timeto support good causes. In fact, 71% of all people globally believe thatbrands spend too much money on advertising or marketing and theyshould put more money into some good cause or social purpose.

Social purpose must be authentic and reect theand brands core proposition.

The purpose must be authentic to the core valuebrand, and be relevant to all stakeholders and arms CSR and cause-related brand marketing a

Return on involvement, like return on investmemeasurable and credible.

The traditional marketing model aimed at selliis moving toward a new model in which brandsconsumers, enabling them to get involved.

KEYS TO MUTUAL SOCIAL RESPONSIBILITY

Align business purpose with higher social purp

Empower all stakeholdersfrom vendors and iand customersto be involved.

Enable people to adopt daily responsible behavaccessible and easy.

Provide a measurable, direct impact.

Be, Do and Share: vision, action and exchang


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ALIGN CSR AND BRAND MARKETING

Today, 66% of people globally say that it is no longer enough for businessesto give money to causes; they want good causes integrated into dailybusiness operations (country breakdown, gure 1).

The future of corporate social responsibility (CSR) and cause marketing isthe opportunity to put purpose closer to the center of a corporations anda brands core proposition. By aligning a companys CSR with its brandmarketing activities, corporations will more effectively engage stakeholdersi.e., employees, government, NGOs and consumersin working together toeffect lasting change on societal issues such as the environment, healthcareand education.

Determining an authentic social purpose platform involves listening to theexpectations of all stakeholders; aligning with business strategies to reectthe brand or company DNA; ensuring a credible, measurable return oninvolvement; and becoming a trusted partner that facilitates the opportunityfor people to make a positive impact on the world.

GLOBALLY:

56% of people feel the interests of society and should have equal weight in business decisions

54% prefer a job in a company that gives back offers great personal achievement.

65% are more likely to trust a company that ad

59% have a better opinion of corporations that into their business, regardless of the reasons wh


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Figure 1

Higher expectations are being placed on businessesto integrate good causes into their day-to-day operatio

67%63%

66%

57%

67%

59%

67%

% Agree: It is no longer enough for corporations to simply give money away to good cauthey need to integrate good causes into their day-to-day business.

U.S. Canada U.K. France Germany Italy China Japan

100%

90%

80%

70%

60%

50%

40%

30%

20%

0%

10%

Shells FuelSave Challengein Europe helped more than100,000 people learn to savefuel in the rst week alone.

SustainableEnergy Irelands The Power of Oneinitiative engagesconsumers on how

to become more energy efcient.


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63%

74%

61%

67%

58%

62%

% Agree: I would switch brands if a different brand of similar quality sup

U.S. Canada U.K. France Germany Italy China

100%

90%

80%

70%

60%

50%

40%

30%

20%

0%

10%

Consumers would switch brands to help support a g

People are willing to advocate for and purchase brands thatsupport a good cause. In fact, two out of three people (67%)globally stated they would switch brands if a competitor of

similar quality supported a cause (country breakdown, gure 2).

We found that during a recession, peoples interest incontributing nancially to good causes declines, but theirattraction to brands and companies that allow them to makemeaningful and direct change does not. We consider thisan era of citizen involvement. Brands should move beyondone-way, cause-related marketing to mutually benecialpurpose marketing by engaging consumers to support causesthat are meaningful to both the company and the consumer.

GLOBALLY:

58% of people are looking for brands to do more than providethem with a product or service (country breakdown, gure 3).

64%reaching 89% in Brazilexpect brands to dosomething to support a good cause (gure 3).

65%peaking in Brazil at 84%have more trust in abrand that is ethically and socially responsible.

GREAT EXPECTATIONSFigure 2


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Consumers place high expectations on brands to delivermore than product value

Demand highest in Brazil and India

60%

53%

76%

62%

55%

62%

57%

66%

60%

66%63%

57%53%

58%58%55%

42%

89%

75%

58%

% Agree: I expect brands today to do somethingto support a good cause.

% Agree: Im looking for brands to do morethan just provide me with a product.

U.S. Canada U.K. France Germany Italy China Japan India Brazil

100%

90%

80%

70%

60%

50%

40%

30%

20%

0%

10%

Figure 3

generatiobeauty steworkshopimprove the lives

PepsiCo

Partnerinspecializematerials fwith the Ba co-operPepsiCo caccessori


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The study found that while people care about a considerable number of causes, protectingthe environment (91%) and improving the quality of healthcare (89%) are the top two globalconcerns (gure 4). But in the U.S., poverty and healthcare top the environment. This indicates

that across all 10 countries, signicant opportunities exist to engage consumers by linkingbrands and companies with social causes that people think are worthwhile and that align withthe DNA of the brand or company.

In the U.S., people care most passionately about alleviating hunger and homelessness (93%).

In China and India, an equal opportunity to education (96%, 97% respectively) and protectingthe environment (97%, 95% respectively) are what people personally care about the most.

In Germany, France and the UK, protecting the environment is the highest concern(85%, 90%, 87% respectively).

In Brazil, 96% of people care about protecting the environment and improving the qualityof healthcare.

WHAT CAUSES DO PEOPLE CARE ABOUT?

reusable bottletap water.


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Figure 4

What causes do consumers personally care about?

Protecting the environment

Improving the quality of healthcare

Reducing poverty

Alleviating hunger and homelessness

Equal opportunity to education

Promoting societal health and wellness

Disaster relief

Supporting human and civil rights

Building understanding and respect for other cultures

Supporting labor rights

Fighting the spread of global disease

Helping to raise peoples self-esteem

Supporting animal rights

Supporting the creative arts 68%


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For companies and brands, doing good and making moneycan go hand-in-hand, as 61% of people83% in Chinahave bought a brand that supports a good cause even if it

wasnt the cheapest.

GLOBALLY:

64% of people say they would recommend a brand thatsupports a good cause, a 12-point increase from 2008(country breakdown, gure 5).

59% would help a brand promote its products if therewas a good cause behind itincreasing by six points inthe last twelve months (country breakdown, gure 6).

58%peaking at 82% in Indiachoose to buy brandsthat support good causes because they cannotnancially support good causes on their own.

When choosing between two brands that are thesame in quality and price, 43%reaching 71% inBrazilare more interested in the social purpose of acorporation or brand than design or innovation (34%)and brand loyalty (24%).

PROFIT MEETS PURPOSE

2008

63%

47%

+16

59%

72%

65%

58%

50%

2009

+12

47%

% Agree: I am more likely to recommend a brand that supports a good c

53%

40%

+10

39%

+26 59%

+13

57

U.S. Canada U.K. France Germany Italy China

100%

90%

80%

70%

60%

50%

40%

30%

20%

0%

10%

Brands that support good causes have a word ofadvantage over those that dont

This advantage has increased signicantly in most markets

Figure 5


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Support for good causes can help create brand advocatesParticularly true in North America, Italy and developing markets

of Brazil, India and China

good in ththe Quapartner Quaker ahelped feacross the

JJMC (JoMedical Ccommunifree hospequips peinformatieducate th2008

61%

48%

+13

75%

65%

+10

56%

45%

35%

+10

61%

69%

51%49%

42%

70%

82%

+12

2009

50%

% Agree: I would help a brand promote their products or services if there is a good cause behind them.

49%

41%

47%

54%

+15

66%


100%

90%

80%

70%

60%

50%

40%

30%

20%

0%

10%

Figure 6


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INVOLVE PEOPLE THROUGH THEIR ACTIONS

Despite the recession, people are turning to companies, organizations and brands linked toa social purpose as a way to contribute their own resources, both time and money, to helpsolve social challenges. As such, they are partnering with companies and brands that are:

authentic and put purpose at the core of their corporate/brand promise

credible and relevant to them as individuals

engaging in their efforts

measurable so they can see the impact of their actions

GLOBALLY:

63% of people86% in Brazilare looking to brands that make it easier for them tomake a positive difference in the world.

While the recession has created limitations, with 70% saying that it has restricted theirability to give money to community causes and 33% (51% in the U.S.) giving lessnancial support, 53% have donated more time (country breakdown, gure 7).

Starbucks

more than onevolunteer timecoffee lovers aparticipate.

midst of massBMW launcheacross the couto preserving c


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Figure 7

The U.S. is the only country where the majority of people indicate giving less nancial support to good causesdue to the economic downturn; consumers in China, India and Brazil are most likely to indicate giving more time

51%

% indicating they have given less financial supportof good causes due to current economic downturn

22%23%

17%

31%28%

44%

39%

46%

30%

% Agree: I have given more time in support ofbecause I have not been able to giv

49%

58%

41%38%

32%36%


100%

90%

80%

70%

60%

50%

40%

30%

20%

0%

10%

U.S. Canada U.K. France Germany Italy C


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Majorities in most countries pra hybrid car over a luxury c

We have shifted from the age of immediate gratication to the age of immediate justication.

In fact, 83% of respondents are willing to change consumption habits if itcan help make the world a better place to live, indicating a trend away fromtraditional social status symbols like luxury goods in favor of brands witha social purpose.

People around the world are now wearing, driving, eating and living theirsocial purpose (gures 8, 9 and 10).

GLOBALLY:

Twice as many people would prefer a hybrid car (67%) to a luxury car(33%), with Japan and France preferring hybrids the most (89% and 84%,

respectively). For example, as of November 2009, Prius sales in the U.S.have increased by 10.3% compared to this time last year. (Source: Toyota)

69% would rather have a brand that supports the livelihood of localproducers over a luxury brand (31%); people in North America, Europe,Japan and Brazil show overwhelming support for local producers.

70% would prefer to live in an environmentally-friendly home asopposed to 30% who would opt for merely a large house.

SOCIAL PURPOSE IS THE NEW SOCIAL STATUS

69%

31%

81%

19%

51%

49%

84%

16%

63%

38%

75%

25%

Prefer hy

U.S. Canada U.K. France Germany Italy Chin

100%

90%

80%

70%

60%

50%

40%

30%

20%

0%

10%

Prefer luxury car

Figure 8


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Tavi, a 13-year-old fashion blogger from Chicago, opens upher eBay store and instantly starts raising money for Darfur.

TOMS Shoes giveto a child in need for e

76%

24%

46%

54%

87%

13%

62%

38%

67%

33%

49%

51%

83%

17%

69%

31%

83%

17%

79%

21%

Prefer large home Prefer environmentally-friendly home


100%

90%

80%

70%

60%

50%

40%

30%

20%

0%

10%

Majorities in most countries preferan environmentally-friendly home

over merely a large home

Strong majorities in most countra brand that helps support the liof local producers over a design

85%

15%

88%

12%

49%

51%

86%

14%

83%

17%

87%

13%

Prefer designer brand Prefer brand that helps support the

U.S. Canada U.K. France Germany Italy C

100%

90%

80%

70%

60%

50%

40%

30%

20%

0%

10%

Figure 9 Figure 10


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We have moved away from top-down communications, where the marketing andcommunications of brands and companies were one-directional. Companies are nowengaging, informing and empowering individuals to leverage their own social networks

for social purpose, online and ofine.

In addition to family and friends, people typically turn to various forms of t raditionalmedia, including television news and newspapers, to learn about causes, particularlyin China and India (gure 11).

Of the people who joined a cause on a social networking site and/or followed a causeon a microblogging site, 47%reaching 88% in Chinabecame more involved in agood cause after learning about it on a site such as Facebook or Twitter.

ENGAGE PEOPLE IN YOUR PURPOSE Social NetworPurpose Thsocial media aand cause marapplications frand Twitter. Cas well:

BetCitSocCau


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HOW PEOPLE WANT TO ENGAGE WITH AND BE INFORMED ABOUT SOCIAL PURPOSFigure 11

24 %

Television news Family or friends

42 %

22 %

34 %

60 %

45 %

32 %

47 %

31 %

27 %

50 %

63 %

71 %

31 %

46 %

77 %

33 %

15 %

26 %

39 %

34 %

50 %

15 %

26 %

46 %

39 %

31 %

39 %

26 %

42 %

38 %39 %

34 %

53 %

41 %

54 %

26 %

39 %

65 %

57 %

Local newspaper Television shows

U.S. Canada U.K. France Germany Italy China Japan In

100%

90%

80%

70%

60%

50%

40%

30%

20%

0%

10%

Top 5 Sources Globally: Television news, family or friends, local newspaper, television shows, television advertisemen


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Like return on investment, return on involvement can be quantied and measuredto show demonstrable impact. Return on involvement is evaluated by conversation,interaction, co-creation, involvement, membership, brand loyalty, purchase and

re-purchase, and can be fueled by social purpose. People arent just buying aproduct or service, they are buying the opportunity to make an impact, and at avery personal level.

Increasingly, corporations are changing the way they conduct their philanthropicefforts and are now applying market principles to address and measure the impactof their efforts (gure 12).

CALCULATING RETURN ON INVOLVEMENT

It is in the interest of the enterprise to take

care of the economic and social environment. To create value for shareholders but alsoto create value and wealth for customers,

employees and regions where the companiesoperate because our company is an

economic and social project.Franck Riboud, CEO,Danone

Figure 12

Mutual SResponsi

R e t u r n o n In

F o s t e r E m o t

E n ga g e

O w na b l

P r o f i t M e e t

P u r p o s e

B u i l d B r a n d L o y a lt y / S

B u i l d M u t u a l T r u s t


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About the Edelman goodpurpose Study The 2009 goodpurpose survey was elded among consumers ages 18-64 across 10 countries from Julyto August 2009. The research rm StrategyOne conducted an online survey in all countries except India andChina, where the survey was conducted face-to-face. The survey sampled 6,026 adults in the U.S., China,Canada, U.K., Germany, Italy, France, Brazil, Japan and India. Results were weighted to the national censusrepresentation in each country with a margin of error being:

6,000 consumers were surveyed online, weighted to the nationalcensus representation in each country with margin of error being:

10 countries 6000 +/- 1.3% margin of error

U.S. or China 1000 +/- 3.1% margin of error

Other countries 500 +/- 4.4% margin of error

For more information about social purpose marketing, visit www.goodpurposecommunity.com, follconversation on Twitter @LIVEgoodpurpose or join us on Facebook at www.facebook.com/goodpurpose


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executive summary: 2009 edelman goodpurpose® study

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