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MUTUALLY BENEFICIAL MARKETING
TAKES FLIGHT
How companies, brands and consumers are elevating social
purpose to build trust, good business and shared interests
New findings from the Year-3 (2009) Edelman goodpurpose study
MOMENTUM GROWING FROM ALL CORNERS




© 2007 by Erik Pitti
http://w ww.flickr.com/photos/epitti/874046207/sizes/l/
GLOBAL CALL FOR PUBLIC SERVICE AND SOCIAL PURPOSE




United States Government – www.whitehouse.gov
© 2009 Danone S.A. – http://www.danone.com
© 2009 National Conference for Volunteering and Service – http://www.youtube.com/watch?v=USaa5ZqAG6E
© Style Rookie 2008-2009 – http://tavi-thenewgirlintown.blogspot.com
China.com – http://www.china.com
GLOBAL CALL FOR PUBLIC SERVICE



                                                                                                                        “   We can no longer afford
                                                                                                                            indifference to the suffering
                                                                                                                            outside our borders, nor can
                                                                                                                            we consume the world's
                                                                                                                            resources without regard to
                                                 http://www.flickr.com/photos/changedotgov/3062277288/in/photostream/       effect. For the world has
                                                                                                                                   “
OFFICE OF PUBLIC ENGAGEMENT CREATED                                                                                         changed, and we must change
Our commitment to openness means more than simply                                                                           with it…
informing the American people about how decisions
are made. It means recognizing that government does
not have all the answers, and that public officials need                                                                     U.S. President Barack Obama
to draw on what citizens know.
                             President Obama, 1/21/09
 United States Government – www.whitehouse.gov
FRANCK RIBOUD, CEO, DANONE




            “It is in the interest of the enterprise to take care of
            the economic and social environment. To create value
            for shareholders but also to create value and wealth
            for customers, employees and regions where the
            companies operate because our company is an
            economic and social project.”
                                         Franck Riboud, CEO, Danone


© 2009 Danone S.A. – http://www.danone.com
“By reducing energy intensity alone, China can save
                                                                                              620 million tons of standard coal in the five-year
                                                                                              period (2005-2010), equivalent to cutting 1.5 billion
                                                                                              tonnes of carbon dioxide emissions.”… “ We will
                                                                                              vigorously develop renewable energy…”
                                                                                                                       Chinese President Hu Jintao



United States Department of Defence
http://www.dodmedia.osd.mil/DVIC_View/Still_Details.cfm?SDAN=DFSD0407946&JPGPath=/Assets/2004/Air_Force/DF-SD-04-
07946.JPG
GOOD CITIZENSHIP CREATES TRUST
Question: Would trust a company more or less for taking each of the following actions?
                                          Trust employees well                                                                          94%
                Keep producing quality products and services                                                                            93%
                   Transparent and honest business practices                                                                            93%
                        Communicate frequently and honestly                                                                            91%
                                          Create and keep jobs                                                                        90%
                                        Drive better innovation                                                                       89%
                   Make progress on environmental initiatives                                                                  82%
     Partner with third parties to solve major global problems                                                                 82%
                        Increase profitability and performance                                                                 82%
                          Commit resources to the public good                                                                  81%
      Reduce the gap between CEO and average workers pay                                                                  78%
                          Pay senior executives mostly in stock                                                          75%
    Communicate messages through multiple media channels                                                           70%
                 Eliminate financial incentives for taking risks                                                   70%
                                                Discount pricing                                                  69%
                                               CEO appearances                                                    69%
                                    Increase shareholder value                                                66%
                                         Protect profit margins                                 43%
Informed publics ages 25-64 in six countries                       0%   10%   20%   30%   40%   50%   60%   70%     80%         90%     100%
Responses 6-9 only on 1-9 scale; 9 = highest
SIGNIFICANT CHANGES AFOOT:


                                                      Social purpose is the
                                                      new social status


Brands are expected to play greater
role in social issues and companies
expected to devote equal attention                         Mutual Social Responsibility
to society and business needs                              and Return on Involvement are
                                                           shifting the CSR/Cause
                                                           conversation



Consumer values shift: economic
and values reset (less may really
be more)

© 1979 Chuck Patch
http://www.flickr.com/photos/65484951@N00/147942902
THE EVOLVING ENVIRONMENT…




                                    Working
                                    Together
Higher expectations: Companies, to contribute to Consumers desire to give more.
    Brands & Government           the greater      comPASSION & community
                                  social good



  Using the global recession as an opportunity   Purchase decisions beyond price
WHAT DO CONSUMERS SAY, DO
AND DEMAND OF BRANDS


Survey says…


© 2008 by CRASH:candy
http://www.flickr.com/photos/crash-candy/2299508056
3RD ANNUAL GLOBAL CONSUMER STUDY
                             OCTOBER 2009


         CHINA                                                           UK
          1000                                                           500
        JAPAN                                                            FRANCE
           500                                                           500
     CANADA                                                              GERMANY
         500                                                             500
           U.S.                                                          ITALY
           1000                                                          500
       BRAZIL                                                            INDIA
          500                                                            500

StrategyOne surveyed 6,000+ consumers across ten countries, aged 18-64
2009 GOODPURPOSE STUDY AREAS


     Most important changes             Social purpose is the
         from last year                   new social status




Overcoming Obstacles:   Higher expectations    Compassion Rising:
  Global Recession       from government,      Consumers want to
                        companies & brands      contribute more
WHY ITS MORE IMPORTANT THAN EVER TO PUT MEANING INTO MARKETING

                                                       Only 16% of people find contentment from the
                                                       shopping experience (last year it was 25%)
                                                       71% think brands/companies spend too much on
                                                       advertising and marketing and should put more into
                                                       good causes – last year 62% did
                                                       64% of consumers would recommend a brand that
                                                       supports a good cause – up from 52% last year (up
                                                       26% in Germany, 10% in the UK)
                                                       59% of consumers would help a brand promote its
                                                       products if there was a good cause behind it (up
                                                       from 53% last year)
© 2009 by Alex "eflon"
http://www.flickr.com/photos/23094783@N03/3478318349
WHAT CAUSES DO CONSUMERS PERSONALLY CARE ABOUT?
                             Protecting the environment                                                                  91%
                     Improving the quality of healthcare                                                                89%
                                        Reducing poverty                                                              87%
                   Alleviating hunger and homelessness                                                               86%
                         Equal opportunity to education                                                              86%
                 Promoting societal health and wellness                                                              85%
                                            Disaster relief                                                          85%
                       Supporting human and civil rights                                                             83%
  Building understanding and respect for other cultures                                                             81%
                                  Supporting labor rights                                                           81%
   Fighting the spread of global disease and pandemics                                                          80%
                    Helping to raise people's self-esteem                                                      78%
                                Supporting animal rights                                                      76%
  Supporting the creative arts (music, art, literature etc)                                             68%
                                                              0%   10%   20%   30%   40%   50%   60%   70%    80%    90%   100%
MAKE MONEY AND DO GOOD IS A WIN-WIN

68% of consumers globally are fine with brands that support good causes and
make money too

           100%


            80%
                           80%
                  68%             67%    66%      64%      60%
            60%


            40%


            20%


              0
                  Global   U.S.   U.K.   Italy   Germany   France
A NEW VALUE PROPOSITION: CONSISTENT FOR 2-YEARS RUNNING

When choosing between two
brands of similar quality &
price, a social purpose ranks
highest at
43% and is placed higher in
order of importance above
design & innovation (34%) and
brand loyalty (24%)
BRAND NEW FINDINGS/NEW QUESTIONS




© 2009 by Christopher Han Kim
http://www.flickr.com/photos/hanx40d/3865640200
PRICE IS ONLY THE TIP OF THE ICEBERG




                                                     PRICE




                                                             ENVIRONMENT


                                                                           SOCIAL PURPOSE



                                                                                            GOOD REPUTATION



© 2005 Rita Willaert
http://www.flickr.com/photos/14417999@N00/76566707
SOCIAL PURPOSE IS NEW SOCIAL STATUS

If cost were not a factor, which of the following would you prefer to have?




                              A Luxury Car
                                                                       A Large Home
               A Hybrid Car
                                  33%             An Environmentally
                                                                             30%
                    67%                             Friendly Home

                                                       70%
SOCIAL PURPOSE IS THE NEW SOCIAL STATUS

If cost were not a factor, which of the following items would you prefer to have?
Designer brand (31%) vs. a brand that supports the livelihood of local producers (69%):

56% of
respondents
desire a job
that allows                                                        31%
them to give
                                   44%
back to society       56%
vs. 44% who                                                69%
value personal
achievement
success more
SOCIAL PURPOSE IS THE NEW SOCIAL STATUS

68% of people feel it is
becoming more unacceptable in
their local community not to:

 Make efforts to show concern
  for their environment

 Make efforts to live a
  healthy lifestyle




© 2007 by Dolan Halbrook
http://www.flickr.com/photos/reneeanddolan/392373236
CONSUMERS ARE SETTING HIGHER EXPECTATIONS
ON GOVERNMENT, COMPANIES, AND BRANDS




© 2008 Nicki Varkevisser
http://www.flickr.com/photos/27015396@N08/2824142858
WHICH ENTITY SHOULD BE DOING THE MOST TO SUPPORT GOOD CAUSES?


          80%


          60%
                  52%

          40%


          20%
                                12%            9%            8%           7%
            0
                Government   Corporations   Charities   People like me   NGO’s
COMPANIES EXPECTED TO DO MORE….

A shift from a shareholder to
stakeholder society is apparent
Over half of consumers (56%) believe
the interests of society and the
interests of businesses should have
equal weight in business decisions
66% of people globally (67% in the U.S.,
Canada, France and 69% India) believe it
is no longer enough for corporations to
simply give money away to a good
cause; they need to integrate good
causes into their day-to-day business
© 2008 by “scalespeeder”
http://www.flickr.com/photos/scalespeeder/2636055455
AND THE REWARDS?

                                                  59% of people globally (61% in the U.S., 51% in
                                                  Germany, 58% in Italy, 64% in India, 65% in China,
                                                  52% in Japan) have a better opinion of corporations
                                                  that integrate good causes into their business,
                                                  regardless of the reasons why they do so

                                                  Nearly two thirds of people (65%) have more trust in
                                                  a brand that is ethically and socially responsible

                                                  During this recession, 57% of consumers believe a
                                                  company or brand has earned their business
                                                  because they have been doing their part to support
                                                  good causes
© 2008 by “ambert”
http://www.flickr.com/photos/amberlea/143056960
EXPECTATIONS ON BRANDS ARE HIGH

                                              Nearly six out of ten
                                              consumers (58%) are
                                              looking for brands to do
                                              more for them than just
                                              provide them with a
                                              product or service


                                              64% of consumers say
                                              they expect brands today
                                              to do something to
                                              support a good cause
© 2006 by Bil Laio
http://www.flickr.com/photos/liao/225298277
SWITCH STRATEGY?

63% of consumers want brands to make it easier for them to make a positive
difference in the world
Two out of three people (67%) would switch brands if a different brand of
similar quality supported a good cause




© 2006 by Henk Koopmans
http://www.flickr.com/photos/henk_koopmans/2732110245
INCREASED AWARENESS OF BRANDS CONTRIBUTION TO GOOD CAUSES

AWARENESS OF BRANDS ACTIVELY               60% of people believe that
SUPPORTING GOOD CAUSES
                                           product brands actively
                                           support good causes
  80%
                                           44% of people are aware of
  60%
                                           brands that actively support
                  +11                      good causes through their
                             44%
  40%
            33%
                                           products and services, up from
                                           33% in 2008
  20%


    0
         2008 Awareness   2009 Awareness
OVERCOMING OBSTACLES…


Global recession



© 2009 by “Aprendiz de Amélie “
http://www.flickr.com/photos/aprendizdeamelie/3749295639
THE GLOBAL RECESSION IS CREATING LIMITATIONS…

                                                70% agree their ability to give money to
                                                community causes has been limited to
                                                the current state of the economy

                                                33% of people have given less financial
                                                support due to the current economic
                                                down turn.
                                                     This rises to 51% among U.S.
                                                     respondents.
                                                Of the 15% of people less involved in
                                                good causes this year, the effects of the
                                                global economic crisis is the leading
                                                reason to be less involved with 51%
                                                stating not having enough money
© 2008 by Stefan Jansson
http://www.flickr.com/photos/steffe/473337417
HOWEVER, PEOPLE ARE STILL GIVING…

31% of people are more involved in good causes than a year ago

53% of people have given more time in support of good causes
this year because they have not been able to give as much money


56% of people have tried to do more to support good causes in the past year
because charities and other non-profit organizations have suffered in this
economic environment
BRANDS ARE PROVIDING PEOPLE WITH AN OPPORTUNITY TO CONTINUE GIVING

In the past year, six                               GAINING MORE THAN
out of ten consumers                                JUST
(61%) have bought a                                 PROFITS…
brand that supports a
good cause even if it                               During the recession, 65%
was not the cheapest                                of people have remained
brand.
                                                    loyal to a brand or
                                                    company because it
                                                    supports a good cause




© 2007 by World Bank Photo Collection
http://www.flickr.com/photos/worldbank/1526479474
CONSUMERS WANT TO CONTRIBUTE MORE TO
THE GREATER SOCIAL GOOD




2007 Llima Orosa
http://www.flickr.com/photos/83681952@N00/1351327769
EXPECTATIONS ON ONESELF

Eight out of ten people ….




Are willing to change their consumption habits if it can help make tomorrow’s
world a better place to live (83%)
Believe supporting a good cause makes them feel better about themselves (82%)
MOTIVATIONS BEHIND SUPPORTING A GOOD CAUSE

                       52% of people are personally involved in supporting
                       a good cause
                       People sited the following reasons for becoming more
                       involved in a good cause this past year:
                           44% wanted to make a difference
                           30% found a good cause they liked a great deal
                       Eight in ten feel they can personally make a
                       difference by supporting a good cause (80%)


                                   comPASSION
CHANGING LANDSCAPE:
NEW TERMS AND APPROACHES
PUSH THE RESET BUTTON…




2007 Chris Phillips
http://www.flickr.com/photos/chrisphillips/526501990/
IN THE ERA OF TOP-DOWN-COMMUNICATIONS

                           WIDGET CO.
  CSR WAS ALL ABOUT                     BRAND MARKETING WAS
                                                  ALL ABOUT
  Effective messages to
  external stakeholders                     Building brand/product
  like NGOs                              awareness and preference
                                        with consumers – based on
  Defending the                          relevant brand positioning
  corporation,
  earning trust                           Communicating brand DNA
  Corporate behavior                          Brand is the hero but
                                                     brand is static
                            AUDIENCE
                               =
IN THE ERA OF THE CROSS-INFLUENCING ENVIRONMENT:
ENTER THE SOCIALIZED BRAND

CSR + Brand                                              Brand becomes
Marketing move                                            a catalyst and
together                                                    needs to be
                                                              socialized




           It is all about mutual benefit and mutual purpose
TIME FOR A NEW SOCIAL PURPOSE BUSINESS PARADIGM
                                           Mutual Social          MUTUAL SOCIAL
                                           Responsibility
                                            (for brands           RESPONSIBILITY: brands,
 CAUSE-RELATED                                  and               companies and consumers
 MARKETING: partnerships                    companies)            actively working together to
 between for-profits and                                          effect enduring positive social
                                            Consumer
 non-profits that create                  Empowerment             change
 promotional and                         Brand Democracy
                                       Brand Personalization
 fundraising opportunities
                                     Company’s New Social Role
                                          and Relevance
                                      Corporation in Trust Flux              Corporate
              Cause –                                                           Social
              Related                  Build bridge between                 Responsibility
             Marketing               CSR and Brand Marketing                      +
                                                                            Philanthropy

CORPORATE SOCIAL RESPONSIBILITY: a commitment by business to mitigate risk, bolster
reputation and create opportunities by being a good (corporate) citizen. Includes compliance,
environment, health and safety policies, as well as corporate philanthropy to societal well-being
A MUTUAL SOCIAL RESPONSIBILITY INITIATIVE



                                                 goodpurpose =
                                                  Helping brands and
                                                companies put purpose
                                            closer to their core proposition



 People, companies and brands working together to take action and
 effect positive social change for mutual benefit
POINT OF VIEW
                  Return on Involvement

                  Foster Emotional Bond

                       Engage Public

                       Ownable Idea

                         Mutual
                         Social
                      Responsibility


                      Purpose Driven
                   Build Mutual Trust &
                       Mutual Benefit
                Build brand loyalty / Sustain
                        Relationship

                   Profit Meets Purpose
NEW R.O.I.?

   Financial: reason to buy and profit incentive


   Brand differentiation + stakeholder engagement


   Halo effect and pride


   Brand catalyst for consumers


   Why not “Return On Involvement?”

ROI metric: conversation, interaction, co-creation, involvement, membership, brand loyalty, purchase and re-purchase
BRANDS ARE STEPPING IN AND STEPPING IT UP
BRANDS AND COMPANIES WEIGHING IN MANY DIFFERENT WAYS…
FIVE KEY CONCLUSIONS

         1             Consumers want brands to pay equal
                       attention to both social and business
                       concerns                                WE CANNOT AFFORD TO WAIT
         2             Social purpose can be a key driver in
                       energizing consumers to recommend
                       and promote a brand
        3              Social purpose platform must be
                       authentic and reflect core brand
                       purpose and premise (rational and/or
                       emotional)
         4             MSR is the new CSR for brands:
                       Partnership and Participation
         5             Return on Involvement must be
                       credible and measurable
© 2007 by “Mc Morr “
http://www.flickr.com/photos/9223655@N07/654271199

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MUTUALLY BENEFICIAL MARKETING TAKES FLIGHT

  • 1. MUTUALLY BENEFICIAL MARKETING TAKES FLIGHT How companies, brands and consumers are elevating social purpose to build trust, good business and shared interests New findings from the Year-3 (2009) Edelman goodpurpose study
  • 2. MOMENTUM GROWING FROM ALL CORNERS © 2007 by Erik Pitti http://w ww.flickr.com/photos/epitti/874046207/sizes/l/
  • 3. GLOBAL CALL FOR PUBLIC SERVICE AND SOCIAL PURPOSE United States Government – www.whitehouse.gov © 2009 Danone S.A. – http://www.danone.com © 2009 National Conference for Volunteering and Service – http://www.youtube.com/watch?v=USaa5ZqAG6E © Style Rookie 2008-2009 – http://tavi-thenewgirlintown.blogspot.com China.com – http://www.china.com
  • 4. GLOBAL CALL FOR PUBLIC SERVICE “ We can no longer afford indifference to the suffering outside our borders, nor can we consume the world's resources without regard to http://www.flickr.com/photos/changedotgov/3062277288/in/photostream/ effect. For the world has “ OFFICE OF PUBLIC ENGAGEMENT CREATED changed, and we must change Our commitment to openness means more than simply with it… informing the American people about how decisions are made. It means recognizing that government does not have all the answers, and that public officials need U.S. President Barack Obama to draw on what citizens know. President Obama, 1/21/09 United States Government – www.whitehouse.gov
  • 5. FRANCK RIBOUD, CEO, DANONE “It is in the interest of the enterprise to take care of the economic and social environment. To create value for shareholders but also to create value and wealth for customers, employees and regions where the companies operate because our company is an economic and social project.” Franck Riboud, CEO, Danone © 2009 Danone S.A. – http://www.danone.com
  • 6. “By reducing energy intensity alone, China can save 620 million tons of standard coal in the five-year period (2005-2010), equivalent to cutting 1.5 billion tonnes of carbon dioxide emissions.”… “ We will vigorously develop renewable energy…” Chinese President Hu Jintao United States Department of Defence http://www.dodmedia.osd.mil/DVIC_View/Still_Details.cfm?SDAN=DFSD0407946&JPGPath=/Assets/2004/Air_Force/DF-SD-04- 07946.JPG
  • 7. GOOD CITIZENSHIP CREATES TRUST Question: Would trust a company more or less for taking each of the following actions? Trust employees well 94% Keep producing quality products and services 93% Transparent and honest business practices 93% Communicate frequently and honestly 91% Create and keep jobs 90% Drive better innovation 89% Make progress on environmental initiatives 82% Partner with third parties to solve major global problems 82% Increase profitability and performance 82% Commit resources to the public good 81% Reduce the gap between CEO and average workers pay 78% Pay senior executives mostly in stock 75% Communicate messages through multiple media channels 70% Eliminate financial incentives for taking risks 70% Discount pricing 69% CEO appearances 69% Increase shareholder value 66% Protect profit margins 43% Informed publics ages 25-64 in six countries 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Responses 6-9 only on 1-9 scale; 9 = highest
  • 8. SIGNIFICANT CHANGES AFOOT: Social purpose is the new social status Brands are expected to play greater role in social issues and companies expected to devote equal attention Mutual Social Responsibility to society and business needs and Return on Involvement are shifting the CSR/Cause conversation Consumer values shift: economic and values reset (less may really be more) © 1979 Chuck Patch http://www.flickr.com/photos/65484951@N00/147942902
  • 9. THE EVOLVING ENVIRONMENT… Working Together Higher expectations: Companies, to contribute to Consumers desire to give more. Brands & Government the greater comPASSION & community social good Using the global recession as an opportunity Purchase decisions beyond price
  • 10. WHAT DO CONSUMERS SAY, DO AND DEMAND OF BRANDS Survey says… © 2008 by CRASH:candy http://www.flickr.com/photos/crash-candy/2299508056
  • 11. 3RD ANNUAL GLOBAL CONSUMER STUDY OCTOBER 2009 CHINA UK 1000 500 JAPAN FRANCE 500 500 CANADA GERMANY 500 500 U.S. ITALY 1000 500 BRAZIL INDIA 500 500 StrategyOne surveyed 6,000+ consumers across ten countries, aged 18-64
  • 12. 2009 GOODPURPOSE STUDY AREAS Most important changes Social purpose is the from last year new social status Overcoming Obstacles: Higher expectations Compassion Rising: Global Recession from government, Consumers want to companies & brands contribute more
  • 13. WHY ITS MORE IMPORTANT THAN EVER TO PUT MEANING INTO MARKETING Only 16% of people find contentment from the shopping experience (last year it was 25%) 71% think brands/companies spend too much on advertising and marketing and should put more into good causes – last year 62% did 64% of consumers would recommend a brand that supports a good cause – up from 52% last year (up 26% in Germany, 10% in the UK) 59% of consumers would help a brand promote its products if there was a good cause behind it (up from 53% last year) © 2009 by Alex "eflon" http://www.flickr.com/photos/23094783@N03/3478318349
  • 14. WHAT CAUSES DO CONSUMERS PERSONALLY CARE ABOUT? Protecting the environment 91% Improving the quality of healthcare 89% Reducing poverty 87% Alleviating hunger and homelessness 86% Equal opportunity to education 86% Promoting societal health and wellness 85% Disaster relief 85% Supporting human and civil rights 83% Building understanding and respect for other cultures 81% Supporting labor rights 81% Fighting the spread of global disease and pandemics 80% Helping to raise people's self-esteem 78% Supporting animal rights 76% Supporting the creative arts (music, art, literature etc) 68% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
  • 15. MAKE MONEY AND DO GOOD IS A WIN-WIN 68% of consumers globally are fine with brands that support good causes and make money too 100% 80% 80% 68% 67% 66% 64% 60% 60% 40% 20% 0 Global U.S. U.K. Italy Germany France
  • 16. A NEW VALUE PROPOSITION: CONSISTENT FOR 2-YEARS RUNNING When choosing between two brands of similar quality & price, a social purpose ranks highest at 43% and is placed higher in order of importance above design & innovation (34%) and brand loyalty (24%)
  • 17. BRAND NEW FINDINGS/NEW QUESTIONS © 2009 by Christopher Han Kim http://www.flickr.com/photos/hanx40d/3865640200
  • 18. PRICE IS ONLY THE TIP OF THE ICEBERG PRICE ENVIRONMENT SOCIAL PURPOSE GOOD REPUTATION © 2005 Rita Willaert http://www.flickr.com/photos/14417999@N00/76566707
  • 19. SOCIAL PURPOSE IS NEW SOCIAL STATUS If cost were not a factor, which of the following would you prefer to have? A Luxury Car A Large Home A Hybrid Car 33% An Environmentally 30% 67% Friendly Home 70%
  • 20. SOCIAL PURPOSE IS THE NEW SOCIAL STATUS If cost were not a factor, which of the following items would you prefer to have? Designer brand (31%) vs. a brand that supports the livelihood of local producers (69%): 56% of respondents desire a job that allows 31% them to give 44% back to society 56% vs. 44% who 69% value personal achievement success more
  • 21. SOCIAL PURPOSE IS THE NEW SOCIAL STATUS 68% of people feel it is becoming more unacceptable in their local community not to:  Make efforts to show concern for their environment  Make efforts to live a healthy lifestyle © 2007 by Dolan Halbrook http://www.flickr.com/photos/reneeanddolan/392373236
  • 22. CONSUMERS ARE SETTING HIGHER EXPECTATIONS ON GOVERNMENT, COMPANIES, AND BRANDS © 2008 Nicki Varkevisser http://www.flickr.com/photos/27015396@N08/2824142858
  • 23. WHICH ENTITY SHOULD BE DOING THE MOST TO SUPPORT GOOD CAUSES? 80% 60% 52% 40% 20% 12% 9% 8% 7% 0 Government Corporations Charities People like me NGO’s
  • 24. COMPANIES EXPECTED TO DO MORE…. A shift from a shareholder to stakeholder society is apparent Over half of consumers (56%) believe the interests of society and the interests of businesses should have equal weight in business decisions 66% of people globally (67% in the U.S., Canada, France and 69% India) believe it is no longer enough for corporations to simply give money away to a good cause; they need to integrate good causes into their day-to-day business © 2008 by “scalespeeder” http://www.flickr.com/photos/scalespeeder/2636055455
  • 25. AND THE REWARDS? 59% of people globally (61% in the U.S., 51% in Germany, 58% in Italy, 64% in India, 65% in China, 52% in Japan) have a better opinion of corporations that integrate good causes into their business, regardless of the reasons why they do so Nearly two thirds of people (65%) have more trust in a brand that is ethically and socially responsible During this recession, 57% of consumers believe a company or brand has earned their business because they have been doing their part to support good causes © 2008 by “ambert” http://www.flickr.com/photos/amberlea/143056960
  • 26. EXPECTATIONS ON BRANDS ARE HIGH Nearly six out of ten consumers (58%) are looking for brands to do more for them than just provide them with a product or service 64% of consumers say they expect brands today to do something to support a good cause © 2006 by Bil Laio http://www.flickr.com/photos/liao/225298277
  • 27. SWITCH STRATEGY? 63% of consumers want brands to make it easier for them to make a positive difference in the world Two out of three people (67%) would switch brands if a different brand of similar quality supported a good cause © 2006 by Henk Koopmans http://www.flickr.com/photos/henk_koopmans/2732110245
  • 28. INCREASED AWARENESS OF BRANDS CONTRIBUTION TO GOOD CAUSES AWARENESS OF BRANDS ACTIVELY 60% of people believe that SUPPORTING GOOD CAUSES product brands actively support good causes 80% 44% of people are aware of 60% brands that actively support +11 good causes through their 44% 40% 33% products and services, up from 33% in 2008 20% 0 2008 Awareness 2009 Awareness
  • 29. OVERCOMING OBSTACLES… Global recession © 2009 by “Aprendiz de Amélie “ http://www.flickr.com/photos/aprendizdeamelie/3749295639
  • 30. THE GLOBAL RECESSION IS CREATING LIMITATIONS… 70% agree their ability to give money to community causes has been limited to the current state of the economy 33% of people have given less financial support due to the current economic down turn. This rises to 51% among U.S. respondents. Of the 15% of people less involved in good causes this year, the effects of the global economic crisis is the leading reason to be less involved with 51% stating not having enough money © 2008 by Stefan Jansson http://www.flickr.com/photos/steffe/473337417
  • 31. HOWEVER, PEOPLE ARE STILL GIVING… 31% of people are more involved in good causes than a year ago 53% of people have given more time in support of good causes this year because they have not been able to give as much money 56% of people have tried to do more to support good causes in the past year because charities and other non-profit organizations have suffered in this economic environment
  • 32. BRANDS ARE PROVIDING PEOPLE WITH AN OPPORTUNITY TO CONTINUE GIVING In the past year, six GAINING MORE THAN out of ten consumers JUST (61%) have bought a PROFITS… brand that supports a good cause even if it During the recession, 65% was not the cheapest of people have remained brand. loyal to a brand or company because it supports a good cause © 2007 by World Bank Photo Collection http://www.flickr.com/photos/worldbank/1526479474
  • 33. CONSUMERS WANT TO CONTRIBUTE MORE TO THE GREATER SOCIAL GOOD 2007 Llima Orosa http://www.flickr.com/photos/83681952@N00/1351327769
  • 34. EXPECTATIONS ON ONESELF Eight out of ten people …. Are willing to change their consumption habits if it can help make tomorrow’s world a better place to live (83%) Believe supporting a good cause makes them feel better about themselves (82%)
  • 35. MOTIVATIONS BEHIND SUPPORTING A GOOD CAUSE 52% of people are personally involved in supporting a good cause People sited the following reasons for becoming more involved in a good cause this past year: 44% wanted to make a difference 30% found a good cause they liked a great deal Eight in ten feel they can personally make a difference by supporting a good cause (80%) comPASSION
  • 37. PUSH THE RESET BUTTON… 2007 Chris Phillips http://www.flickr.com/photos/chrisphillips/526501990/
  • 38. IN THE ERA OF TOP-DOWN-COMMUNICATIONS WIDGET CO. CSR WAS ALL ABOUT BRAND MARKETING WAS ALL ABOUT Effective messages to external stakeholders Building brand/product like NGOs awareness and preference with consumers – based on Defending the relevant brand positioning corporation, earning trust Communicating brand DNA Corporate behavior Brand is the hero but brand is static AUDIENCE =
  • 39. IN THE ERA OF THE CROSS-INFLUENCING ENVIRONMENT: ENTER THE SOCIALIZED BRAND CSR + Brand Brand becomes Marketing move a catalyst and together needs to be socialized It is all about mutual benefit and mutual purpose
  • 40. TIME FOR A NEW SOCIAL PURPOSE BUSINESS PARADIGM Mutual Social MUTUAL SOCIAL Responsibility (for brands RESPONSIBILITY: brands, CAUSE-RELATED and companies and consumers MARKETING: partnerships companies) actively working together to between for-profits and effect enduring positive social Consumer non-profits that create Empowerment change promotional and Brand Democracy Brand Personalization fundraising opportunities Company’s New Social Role and Relevance Corporation in Trust Flux Corporate Cause – Social Related Build bridge between Responsibility Marketing CSR and Brand Marketing + Philanthropy CORPORATE SOCIAL RESPONSIBILITY: a commitment by business to mitigate risk, bolster reputation and create opportunities by being a good (corporate) citizen. Includes compliance, environment, health and safety policies, as well as corporate philanthropy to societal well-being
  • 41. A MUTUAL SOCIAL RESPONSIBILITY INITIATIVE goodpurpose = Helping brands and companies put purpose closer to their core proposition People, companies and brands working together to take action and effect positive social change for mutual benefit
  • 42. POINT OF VIEW Return on Involvement Foster Emotional Bond Engage Public Ownable Idea Mutual Social Responsibility Purpose Driven Build Mutual Trust & Mutual Benefit Build brand loyalty / Sustain Relationship Profit Meets Purpose
  • 43. NEW R.O.I.? Financial: reason to buy and profit incentive Brand differentiation + stakeholder engagement Halo effect and pride Brand catalyst for consumers Why not “Return On Involvement?” ROI metric: conversation, interaction, co-creation, involvement, membership, brand loyalty, purchase and re-purchase
  • 44. BRANDS ARE STEPPING IN AND STEPPING IT UP
  • 45. BRANDS AND COMPANIES WEIGHING IN MANY DIFFERENT WAYS…
  • 46. FIVE KEY CONCLUSIONS 1 Consumers want brands to pay equal attention to both social and business concerns WE CANNOT AFFORD TO WAIT 2 Social purpose can be a key driver in energizing consumers to recommend and promote a brand 3 Social purpose platform must be authentic and reflect core brand purpose and premise (rational and/or emotional) 4 MSR is the new CSR for brands: Partnership and Participation 5 Return on Involvement must be credible and measurable © 2007 by “Mc Morr “ http://www.flickr.com/photos/9223655@N07/654271199