5 Key findings from Nielsen’s global CSR report

Today I wanted to share some of the key data from the 2014 Nielson Global Corporate Social Responsibility about CSR attitudes around the world. Sometimes we may be guilty of living in a bubble and presume that our top CSR business concerns in North America are simply echoed by the rest of the world. To that end and others the report is very illuminating showing that attitudes and concerns in North America are very similar to Europe but elsewhere around the world there are certainly quite different viewpoints.

The entire report is definitely worthy of your time but I wanted to focus on what I consider to be five of the key findings below. What you learn will hopefully surprise you.

Before we look at the differences what is clear is that CSR is now a global activity which companies and consumers both appreciate can make great strides in tackling many of the environmental issues that impact the planet. I’m certain that the same data from ten or even five years earlier would look dramatically different but according to the survey this year from 30,000 consumers in 60 different nations there is much better awareness than ever before. Consider these findings from the composite numbers;

67% prefer to work for socially responsible companies | 55% will pay extra for good and services from companies committed to positive environmental practices | 52% check product packaging to ensure sustainable impact.

While there is certainly room for improvement on all three rates above, it shows that a general ‘state of awareness’ is now a global standard. What we’ll see next is that those concerns fluctuate from continent to continent.

Consumers will pay more for brands with a social mission: The litmus test for socially aware consumers is surely what they are prepared to spend on goods and services that are provided by companies that have a clear and defined social plan. Globally that numbers rests at a healthy 55% saying yes but that’s far from being a standard rate of acceptance. Regionally, respondents in Asia-Pacific (64%), Latin America (63%) and Middle East/Africa (63%) far exceed that global average and have shown increases of 9, 13 and 10 percentage points, respectively, since 2011. Very interesting to see that the rates are much lower in North America (42%) and Europe (40%). Does this mean that consumers in these markets feel that goods should cost the same regardless of a social mission, or perhaps that essentially all companies should be providing a defined CSR strategy at work that within existing costs. The difference in rates are quite remarkable no matter how you interpret them.

Consumers in Asia, Latin America and Middle East/Africa are more likely to make purchases from socially responsible companies. I’m fairly sure that this one will surprise you as it did me. While the global rate for making a purchase from a socially responsible business within the last six months rests at 52%, respondents in Latin America (65%), Asia-Pacific (59%) and Middle East/Africa (59%) easily exceed the global average. Meanwhile in North America and Europe just 40% say they have made a sustainable purchase in the past six months. My defensive streak suggests perhaps the definition of a socially responsible purchase was interpreted differently in North America and Europe, or it could be that we’re falling well behind the curve!

Packaging makes a difference, but less so in North America and Europe. There were again major differences in the importance of packaging and labelling influencing a consumer to support a socially conscious brand. Overall for more than half of global respondents (52%) in the survey, purchasing decisions were very dependent on the packaging, with consumers saying they check the labeling first before buying to ensure the brand is committed to positive social and environmental impact. Sustainable purchase considerations are most influenced by the packaging in Asia-Pacific (63%), Latin America (62%) and Middle East/ Africa (62%) and to a lesser extent in Europe (36%) and North America (32%). Again I’m left wondering why there would be such marked differences, is more research done prior to ‘shopping’ in Europe and North America perhaps?

Family and Friends influence consumers. Very similar data to the example above then which shows that globally some 47% will rely on their social circles before choosing a brand to ensure that it has eco-friendly attributes or contributes to a social good. Those in the Middle East/Africa (62%) and Asia-Pacific (59%) are most influenced by family and friends, while those in Latin America (45%), North America (29%) and Europe (28%) are less likely to consider these sources. As you can see there are some major cultural differences in how we acquire our information around the world, another factor is internet access rates.

Interpretation of ‘Environmental Concerns’ differs globally. For me this was perhaps the most telling statistic from the whole report. In North America we tend to feel that the most important element of a winning CSR formula is a commitment by the business to environmental sustainability, reducing waste and using fewer natural resources – all the while creating less pollution and treating employees properly. Of course that’s a very natural position to take but what the survey shows is that in the other major markets the concerns are very different (see chart above) as ‘improving access to clean water’ and ‘improving access to sanitation’ are globally the largest areas of concern. It’s very telling information and shows that much of what we take for granted in most of the markets who will read this blog is by no means a guarantee locally elsewhere. When did you last read a CSR plan or product packaging that wrote extensively about improving public access to clean water for a product on the shelves in the USA or Canada?

I hope that you find some of this data as thought provoking as I did and that it helps to explain the very different attitudes and actions relating to CSR around the world in 2014 in different markets. You can access the full report from Nielsen via this link.

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