One common pitfall in communicating corporate sustainability is as simple as language. Too often, companies talk to consumers about their sustainability efforts, how sustainable they are, and how they plan to be more sustainable. And, while we expect the readers of this article to know exactly what that means, chances are the average consumer’s understanding is a little shakier. In fact, nearly one-quarter of consumers indicate they’ve heard of the term “sustainability” but don’t know what it means, while 16% state they have never heard of the term. And, many more exhibit skepticism of the concept. So, in this month’s article from NMI, we will be exploring approaches consumers tell us they prefer for sustainability communications.
Of the portion of the population that is familiar with sustainability and thinks it has real meaning, most can identify at least one of the three following components: use of environmentally-friendly materials, use of environmentally-friendly manufacturing processes, or balancing societal and environmental concerns with a company’s need to maintain a profit. However, very few countries have a complete understanding of the term. Brazil and China do best — rather than just identifying one of the correct associations with the term, more people select more components, showing a broader and deeper understanding. Somewhat surprisingly, consumers in developed countries are least likely to have a complete understanding of what corporate sustainability means. This may be because there are movements within many developing countries for “sustainable development,” making it a more commonly used term.
It is also interesting to note that the types of materials used was most commonly selected among most developed countries (all except Italy and Japan), more often than the concept of balancing profit with society and the environment. Companies may more commonly talk about their environmental initiatives rather how they are balancing the triple bottom line. Additionally, the discussion of profit in conjunction with sustainability may be off-putting to these consumers.
Messengers & Messaging Channels
In addition to not understanding buzzwords like “sustainability,” consumer skepticism oftentimes creates a barrier. Enlisting a third party to reinforce a company’s actions often helps break down consumer skepticism and increase validity. Between about half to more than three-quarters of consumers in most countries would like to see some proof of sustainability efforts and even an outside endorsement of the company’s efforts as an unbiased validation. Notably, this is highest in Italy and Brazil, making an endorsement particularly important in these markets. Providing substantiation of claims will also differentiate from the competition and that differentiation is necessary in today’s crowded corporate citizenship market.
In the U.S. and UK, at least two-thirds of consumers look to non-profit organizations as objective endorsers of a company’s environmental efforts. In sharp contrast, all other countries, with the exception of Germany, prefer government endorsements. U.S. and Germany were least likely to select their government as a preferred endorser, which speaks to their overall skepticism and distrust in government, and the importance of finding non-profit allies in your sustainability efforts.
Moving from who the consumer would like to hear from to how the consumer would like to hear, Figure 3 shows that most interested consumers would like to learn about sustainability via a news story on TV, radio, newspaper or magazine. Product package was also commonly mentioned. Consequently, a government seal or endorsement that is communicated via the news media is a powerful combination for consumers.
Boycotting/Procotting
One of the reasons that communicating sustainability effectively is important is that consumers take action accordingly – both choosing and avoiding a brand based on what the consumer knows are increasingly common behaviors. As shown in Figure 4, Brazilians are most likely to do each regularly, followed by Italy and then other European countries. Perhaps surprisingly given American’s passion for democracy, US consumers are less likely to vote with their dollars than Europeans. And, even fewer in the Asia Pacific region (China and Japan) are regularly involved in these activities.
In a corporate climate that has been rife with controversy and distrust, boycotting and procotting send strong messages that consumers have the final say and will make their voices heard through their purchasing dollars. Of course, each consumer has a different value set, and one may choose to act based on a company’s stance in support of a particular issue while others may choose to act if a company opposed an issue. Of course, carefully picking issues to avoid this bifurcation and appeal to the widest array of consumers is important.
Conclusion & Preview
Consumer purchases are highly driven by whether or not a brand or company shares their unique set of values. And while many consumers are still confused and skeptical about companies’ self-proclaimed CSR initiatives, what they do know impacts their behavior. Specific sustainability communications, delivered by third parties, hold the most promise for getting the message through to consumers in a persuasive way. NMI will continue to explore these topics in its next article on eco labels.
*The LOHAS Consumer Trends Database® is the original and only global consumer tracking tool that explores sustainable consumption around the world through the LOHAS lens. The LCTDis an annual quantitative study focused on sustainability, corporate social responsibility, environmentalism, and social issues, among other topics. The study has been conducted in theU.S. since 2002, with subsequent global introductions.
*The following are sample sizes by country: Brazil=1,008; France=1,001; Germany=1,000; Italy=1,005; Japan=1,002; Russia=1,008; U.K. =1,000; U.S. =4,000; China=5,044, India=4,000
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Published Jan 19, 2012 12pm EST / 9am PST / 5pm GMT / 6pm CET