Multi-Year Study Finds 21% Increase in Americans Who Say Corporate Support of Social Issues is Important in Building Trust

Business Wire, Dec 8, 2004

BOSTON -- An Overwhelming Majority of Americans Want Companies to Talk More About Their Efforts

Executives worried about a poisoned business climate and corporate mistrust can look at the latest findings of an 11-year research poll for a solution. The 2004 Cone Corporate Citizenship Study shows that eight in 10 Americans say that corporate support of causes wins their trust in that company, a 21% increase since 1997.

"Our report is the nation's longest study of American attitudes toward corporate support of social issues," says Carol Cone, CEO of Cone, a Boston-based strategic marketing firm. "This study, in a series of research spanning over a decade, shows that in today's climate, more than ever before, companies must get involved with social issues in order to protect and enhance their reputations."

Americans Will Punish Bad Corporate Behavior

While support of social issues can improve trust in a company, Cone's research also shows that Americans stand ready to act against companies that behave illegally or unethically. The consequences for business can be devastating and long-term - those surveyed would be likely to respond in a variety of ways if they were to find out about a company's negative practices:

--Consider switching to another company's products or services (90%)

--Speak out against that company among my family and friends (81%)

--Consider selling my investment in that company's stock (80%)

--Refuse to invest in that company's stock (80%)

--Refuse to work at that company (75%)

--Boycott that company's products or services (73%)

--Be less loyal to my job at that company (67%)

Americans Will Reward Companies Who Meet Their Expectations

As research results continue to demonstrate, Americans have grown to expect companies to play a more active role in addressing the needs of our society:

2004 2001 1993
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It is acceptable for companies to involve a cause or
 issue in their marketing                                72%  70%  66%
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Where Americans stand prepared to punish companies they perceive as having negative practices, they will also reward those companies who meet their high expectations with their business:

2004 2002 1999 1993
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I am very/somewhat likely to switch from one brand
 to another that is about the same in price and
 quality, if the other brand is associated with a
 cause                                              86%  84%  84%  85%
----------------------------------------------------------------------

In addition, Americans are willing act in a variety of ways beyond product purchases:

A company's commitment to a social issue is
important when I decide                                      2004 2002
----------------------------------------------------------------------
Which companies I want to see doing business in my local
 community                                                    85%  84%
----------------------------------------------------------------------
Where to work                                                 81%  77%
----------------------------------------------------------------------
Which products and services to recommend to other people      74%  75%
----------------------------------------------------------------------
Which stocks or mutual funds to invest in                     70%  66%
----------------------------------------------------------------------

Companies Must Talk More About Their Cause-Related Efforts

Some companies have recognized the positive impact of supporting social issues, and have aggressively communicated their efforts over the past few years. At the same time, many other companies have traditionally been reluctant about such communications, seeing them as boastful. An overwhelming majority of Americans (86%) want companies to talk about their efforts, but only four in 10 say companies are doing that well.

"These facts side-by-side are a mandate," says Cone. "For senior executives, they are a mandate for action on social issues. For marketing executives, they are a license to communicate the company's commitment and efforts."

One of the results of increased communications by certain companies is that when asked, more Americans can name a good corporate citizen. Cone's longitudinal research shows a dramatic rise in recall:

2004 2001 1999 1993
----------------------------------------------------------------------
Americans who can name a company that stands out
 in their mind as a strong corporate citizen        80%  49%  24%  26%
----------------------------------------------------------------------

In this year's study, of those who were able to name a strong corporate citizen, Wal-Mart was mentioned most frequently, and is the only company to have broken away from the others. The retailer has experienced a significant jump in recognition over the 11 years of Cone's research: