Corporate social responsibility is practiced by companies dedicated to making a positive social or environmental impact on society. In addition to helping the environment and society, it can also create goodwill for their reputations and contribute positively to their brand’s health and performance. In New Zealand two-thirds think more highly of a company that supports worthy causes and nearly three-fifths feel increased loyalty to that brand.
You’d be hard pressed to find a Kiwi who said he or she didn’t care. But does care convert to action when it comes to buying decisions?
Over half of consumers said when buying a product or service from a company it is very important to them that the company shows a high level of social and or environmental responsibility and nearly a third of New Zealanders buy from companies for this reason each month.
Consumers are willing to support a brand because of their ‘go green’ or ‘go social’ credentials but are they willing to pay more? Latest insights show that two in five Kiwis will and that 22% bought a product or service from a company supporting a worthy cause in the last month even though it was slightly more expensive.
There’s been growth in grocery products with clear positioning around the Environment, household cleaning products with eco labelling saw a 20% increase in value sales when compared to a year ago. Shoppers are paying on average nearly $4 more per litre for eco-friendly household cleaners, a price premium of over 50%.
More and more consumers expect corporations to be socially responsible. It enables you to differentiate your brand and effectively create shared value by marrying the appropriate social cause and your consumer segments.
To succeed in sustainability keep this five-part approach top of mind for your brand strategies:
1. VISION. Be clear and actionable
2. ENDORSEMENT. Get adoption and action from senior leadership
3. STRATEGY. Focus on outward messaging and consistent cause messaging
4. ACCOUNTABILITY. Use key performance indicators, internally and externally
5. MEASUREMENT. Quantify program outcomes and return on investment