Corporate social responsibility inspires consumer sales & confidence
Submitted by Shannon on Tue, 10/21/2008 - 17:21.
According to a recent report from the Boston College Carroll School of Management Center for Corporate Citizenship, a company’s investment in social responsibility is strongly correlated with its level of consumer support. In its ranking of the top 50 US companies that the public distinguishes for corporate social responsibility, top spots went to Google, Campbell Soup Co., Johnson & Johnson, Walt Disney, and Kraft Foods Inc.
Corporations earning top spots were distinguished by their high social responsibility index (SRI) scores, which include criteria such as Citizenship, Governance, and Workplace. Interestingly, nearly all of the top 25 spots went to consumer-oriented companies, with Berkshire Hathaway as the only top-tier business-to-business focused company.
In a time in which ‘word of mouth’ recommendations drive business success, companies – especially those with a consumer focus – should seek to improve their corporate social responsibility profile. 65.7% of the survey’s respondents would recommend the top 20 socially responsible companies to others, compared to only 25.9% who would recommend the bottom 20 companies. Importantly, over one-fourth of respondents would expressly not recommend companies that are not perceived as socially responsible.
In the consumer products segment, the consumer is, well, king. The study’s finding of a strong correlation between a company’s corporate social responsibility and both consumer support and reputation speak to the continued – and growing – importance of sincere initiatives and marketing efforts for corporate social responsibility.
Corporations earning top spots were distinguished by their high social responsibility index (SRI) scores, which include criteria such as Citizenship, Governance, and Workplace. Interestingly, nearly all of the top 25 spots went to consumer-oriented companies, with Berkshire Hathaway as the only top-tier business-to-business focused company.
In a time in which ‘word of mouth’ recommendations drive business success, companies – especially those with a consumer focus – should seek to improve their corporate social responsibility profile. 65.7% of the survey’s respondents would recommend the top 20 socially responsible companies to others, compared to only 25.9% who would recommend the bottom 20 companies. Importantly, over one-fourth of respondents would expressly not recommend companies that are not perceived as socially responsible.
In the consumer products segment, the consumer is, well, king. The study’s finding of a strong correlation between a company’s corporate social responsibility and both consumer support and reputation speak to the continued – and growing – importance of sincere initiatives and marketing efforts for corporate social responsibility.
