Cone Communications has released the results of its new Corporate Social Return Trend Tracker showing that 86% of consumers are more likely to trust a company that reports its corporate social responsibility results.
In a statement, Cone Communications’ Executive Vice President Craig Bida said, “Stakeholders play more powerful roles than ever in a brand’s overall success or failure and they must be consistently engaged in a company’s CSR efforts and results from the outset. They need to feel a benefit. This mutual return will become the new table stakes for differentiating CSR efforts.”
Some of the other interesting insights from the research include:
- 84 percent of Americans hold companies accountable for producing and communicating the results of CSR commitments by going beyond the mission to robustly communicate progress against well-defined purpose.
- 82 percent say they are more likely to purchase a product that clearly demonstrates the results of the company’s CSR initiatives than one that does not.
- 84 percent recognize that for a company to make societal impact, it must also realize a business return, such as increased revenue or reduced costs
Importantly, the study also underscores continued consumer confusion regarding CSR and where to find the results and reports on CSR efforts. And documents how CSR efforts need to be communicated and more core to any company’s brand marketing efforts.
- 63 percent say they don’t know where to find information about a company’s CSR efforts and results
- 55 percent don’t understand the impact they are having when buying a product from a company that says it is socially responsible.
- 40 percent say they will not purchase a company’s products or services if CSR results are not communicated
“This shift in stakeholder expectations carries significant implications for companies engaged in CSR,” says Cone Communications’ Executive Vice President Jonathan Yohannan. “Purpose is no longer enough, and successful campaigns must demonstrate return for business, brand and society. ‘Proving purpose’ is the new mantra for effective CSR.” “Companies need to build customized output and outcome measurement components and identify projected stakeholder return at the outset of campaign development, and then track progress along the critical CSR pillars of business, brand and society,” adds Yohannan. “With the stakes so high, measurement can’t be an afterthought or add-on.”