New research from Porter Novelli finds that 89% of executives think purpose-driven enterprises have a competitive advantage. So it's not surprising that 80% believe that taking a stand on social issues is a business imperative.
But the same research points out that consumers may not be entirely onboard as only 70% say businesses have a responsibility to address social justice issues. (Mahoney, 2020)
A study from sproutsocial.com found that 78% of Liberals want brands to take a stand versus 52% of Conservatives. (2018)
Data also suggests that younger generations, i.e. Millennials and Gen Z are more influenced by cause marketing than are older generations. (2014)
In fact, buying a brand based on the causes it supports may be the best example we have of the role emotions play in decision-making. So, how does it affect you?
Can you think of an instance where you bought a brand because of a stand they take on social issues? What about the opposite scenario? Have you stopped buying a brand due to social issues? When is product performance more important than causes to you? Do you think your favorite paper towel brand needs to take a stand? What if they took one you disagree with? And how does price enter into the equation?
Mahoney, S. (2020, September 25) Research: New Urgency Of Purpose. mediapost.com. retrieved September 29, 2020, from https://www.mediapost.com/publications/article/356264/research-new-urgency-of-purpose.html?edition=
(2018, January 9) #BrandsGetReal: Championing Change in the Age of Social Media. sproutsocial.com. retrieved September 29, 2020, from https://sproutsocial.com/insights/data/championing-change-in-the-age-of-social-media/
(2014, August 26) CSR Reputation Affects Purchase Decisions, Millennials Say. marketingcharts.com. Retrieved September 29, 2020, from https://www.marketingcharts.com/brand-related-45217
9 comments:
I think that most of the people my age and even myself and besides some Millennials should certainly buy a product based on the course it supports. I can count numerous occasions where I have purchased a brand, not because I needed or preferred it to another, but because it kept a course. For many other people in this generation and me, we make numerous decisions based on our feelings. We could associate buying something with what that buyer makes us feel through their actions. Equally, it is straightforward to quit purchasing a product or even transfer my purchases to an entirely different organization juts because one does not stand on social issues. To me, product performance is more critical than causes when I need that product, especially for personal use, such as my paper towel brand. I am not so worried about the stand it does or doesn't take because I like its performance as a product. If they took one I disagree with, I would probably still prefer it because I am already impressed by the quality and a favourable price. If it were costly and low rate, I would want it to take a stand.
The argument that purpose-driven enterprises may have a competitive advantage is quite understandable. Why, because human beings have very many preferences, and there is no telling what they might want from their favourite brand. But, that making a purchase decision based entirely on causes is straight-up wrong and misguided. Supposing a company is taking a stand because they know the consumers will like it, and the product they are promoting with that stand is on the ground of low quality? Who would be to blame for that? I would personally never buy to stop buying a brand because of philosophies and causes. I am more inclined towards product performance. Take, for instance, my favourite paper towel, I was always buying it until the quality changed, and I swapped my choices. Not because of a cause, but for my quality preference, no matter how expensive it was.
If the statistics from Oreo are anything to go by I think companies should consider participating in social issues. Oreo made a campaign a while ago on Gay Pride which was presented as a post on Facebook. It was a risk when they took this stand but it was worth it. It yielded a lot of engagement more than any other advert that Oreo has ever released. The popularity of this cookie increased because although it was not a common trend then, they still chose to give their contribution on a social issue (Claridge, 2014).
“Up to 87 percent of millennials and a staggering 94 percent of Gen Z expect companies to address pressing social and environmental issues” (Sourcing Journal, 2019). With millennials and Gen Z, they have grown up at a time when there have been a handful of social issues like child labor, lack of corporate governance, and economic crises. These groups are more aware of their rights and they seek to hold companies responsible for the environment and social issues. I would pick a brand that supports social issues over any other but they also have to keep their quality in check. Companies should not neglect performance in the name of CSR. This income is what enables them to participate in social issues like educating the poor in the community.
Claridge, P. (2104). [infographic] How Oreo Took a Controversial Stand and Achieved an Epic Social Media Win. Retrieved from https://blog.unmetric.com/infographic-how-oreo-took-a-controversial-stand-and-achieved-an-epic-social-media-win
Sourcing Journal. (2019). What Millennials and Gen Z Think of Your Brand’s CSR Efforts, and What You Can Do About It. Retrieved from https://sourcingjournal.com/topics/sustainability/qima-social-environmental-issues-165663/
Xiaoyu Zheng
I do agree that the decision of choosing a brand based on the causes it supports is affected by our emotions. My example for this is about choosing the app to make my payments — There are two main payment apps in China: Alipay and WeChat pay, these two are essentially the same for me to make my payments. However, I choose Alipay as my payment app because Alipay is supporting a tree planting program called Ant Forest. All the Alipay users can contribute their parts to this program by simply using the app to make payments.
An opposite scenario for me is that I stopped going to a chain restaurant in China called “Green Tea” after their irresponsible dispose with the problem of their kitchens’ unqualified hygiene. While the exposure of their problem created a hot social topic about the worries of the popular restaurants’ hygiene on the Chinese internet, the restaurant did an awful PR job to explain and make changes, which stopped me from going to this restaurant.
To me, when the price of the product is relatively high, I would consider more about the actual product performance rather than the causes it supports. I think that we should be more rational when buying expensive products. In this case, I don’t think my favorite paper towel brand needs to take a stand because buying cheap paper towels does not require much rationality for me. As long as the brand does not do something harmful to the environment, I’m OK with it.
I do not believe that companies should have to take a stand on social issues. But, they should be open and consider that we keep choosing their services or goods and because of that be more open to the possibilities of making changes in our society. Personally, I stopped consuming Chick-fil-A because I heard from my "tribe" that Chick-fil-A supports Trump. As a fast-food restaurant mainly consumed by poor and middle-class individuals. It is like they are turning their back on the ones keeping them afloat. This situation for me made a sentimental connection it was not just political. I thought of Trump's political agenda and how he expresses himself of my "tribe" minorities. For me, it is also about values (Lehrer 57). I do not think I would consume Chick-fil-A until further notice.
Rairis Morrobel
I think the reason why millennials and gen Zers value corporate social responsibility more than the older generation is the negative effect these generations have to face if we fail to act properly as soon as possible. As a member of gen Z, climate change draws my attention since I was a kid. I constantly see the danger of global warming and was kind of forced to see the ugly side of human evolution. Following it, now we see a lot of news about racial and gender equality, discrimination, hazardous working conditions in developing countries... Thus when younger generations see a company that does the right thing, it makes us think the company is part of us. A lot of negative information exposure from a very young age makes us think we have to change injustice over human beings and the environment as a member of living creatures that live on this planet.
I think it really depends on the individual whether he/she will buy the product based based on social issues because we always tend to buy products that we think are beneficial for us. The blog clearly said, Millennials and Gen Z are more influenced by cause marketing than are older generations, however, what if there is no other alternatives. Personally I care about marketing in a way that points out social issues and creates awareness but it might not make any sense to someone.
I don’t necessarily have a preferred paper towel brand. However, if I had to choose I would choose Bounty and Costco’s Kirkland brand. They both seem to have, similar if not the same product performance as one another. Prior to this moment, I don’t think I’ve ever considered if the paper brand I choose should have a stand on social issues.
Aside from paper towels, I can think of a time when I was deeply interested in organizations, with a focus on consumer goods; apparel. My thought is that retailers would need to be mindful of the impact they had in communities they were making agreements with or even building in. There was a time in my life where I was mindful of the clothes I purchased. The reason behind this drastic change was because some of the big retailers such as Nike, Zara, Burberry, and H&M were some of the brands that were found in a pile of debris in a the Dhaka District in Bangladesh.
Can you think of an instance where you bought a brand because of a stand they take on social issues? All the time. Especially these last few years. Gay rights, MeToo and BLM have brought out the social conscience of some companies.
What about the opposite scenario? I don’t need for brands to feel one way or the other. When they do it forces me into a decision making process.
Have you stopped buying a brand due to social issues? Haven’t been to Chick-fil-A since it came out that they supported an anti-LGBTQ agenda.
When is product performance more important than causes to you? I believe Amazon is overall not the healthiest thing for the U.S. I believe that wealth inequality is a social issue. They are one of the great perpetrators in America. They have crushed a lot of local shops. The don’t pay enough taxes and they provide low paying jobs. I can’t stop using Amazon though.
Do you think your favorite paper towel brand needs to take a stand? No. What if they took one you disagree with? I would switch to a different brand, 100%.
And how does price enter into the equation? The price would have to be dramatically different for me to not switch away from a brand that supports something I find egregious.
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