Consumer Attitudes and Motivation around Purpose-driven Business

Consumer)Attitudes)and)Motivation)around)Purpose3driven)Business

Carol&Cone,&On&Purpose&@carolconeWendy&Salomon,&Nielsen&@WendySalomon1Sebastian&Buck,&Enso&@sebastianbuckGrant&Garrison,&Goodcorps @goodcorpsRobert&Brown,&JUST&Capital&@justcapital_

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A"PRAGMATIC"LOOK"AT"THE"ROLE"OF"CSR IN"PROTECTING"&"GROWING"CORPORATE"

REPUTATION

Copyright"©2012"The"Nielsen"Com

pany."Confidential"

and"proprietary.

2

THE"COMINGJOFJAGE"OF"CORPORATE"SOCIAL"RESPONSIBILITY,"TRANSITIONING"TO"BOLDER"STORYTELLING"AND"IMPACTS""

J The"case"is"made.J Portfolios"of"programs,"

campaigns"and"partnerships"are"in"place.

J CSR"has"moved"out"of"its"silo,"earns"a"place"on"cJsuite"scorecards.

J And," it"feels"right"to"do" the"right"thing.

Impacts"On:

Reputation"&"Business"

EnvironmentThe World

Copyright"©2015"The"Nielsen"Company."Confidential"and"proprietary.

3

BUSINESS"ENVIRONMENT"IMPACT:"HOW"ARE"CSR EFFORTS"IMPACTING"OUR"REPUTATION?

GOVERNMENT REGULATORS

BUSINESSPARTNERS

MEDIA

NGOs"/"ADVOCACY"GROUPSFINANCIAL"

COMMUNITY

EMPLOYEES

CONSUMERS

OPINION"ELITES

SUPPLIERSFUTURE"TALENT

LICENSE'TO'OPERATE

Copyright"©

2015"The"Nielsen"Company."Confidential"and"proprietary.

4

48% 42% 38% 35%27%

54% 50%

28% 35% 38%29%

42% 41%30% 34%

26%

U.S.

Canada

Korea

Japan

Australia

Netherlands

Germany

U.K.

France

Italy

Spain

Mexico

Brazil

China

India

Russia

ESTABLISHED*MARKETS EMERGING*MARKETS

REPUTATION"CAN"SUPPORT"BUSINESS"GOALS,"OR"NOT

Source:Nielsen’s*Global*Reputation*Study*Among*Opinion*Elites

%*DECIDED*NOT*TO*DO*BUSINESS*WITH*A*COMPANY*IN*THE*PAST*YEAR*BECAUSE*OF*SOMETHING*THEY*LEARNED*ABOUT*HOW*THE*COMPANY*CONDUCTS*ITSELF

Copyright"©


5

CONSUMERS

CSR’S"IMPACT"ON"OVERALL"REPUTATION"EQUITY/RISK"VARIES"DRAMATICALLY"BY"STAKEHOLDER

VISION/*LEADERSHIP

FINANCIAL*PERFORMANCE

WORKPLACE*ENVIRONMENT

SOCIAL*RESPONSIBILITY

PRODUCTS*&*SERVICES

ETHICS* &*TRUST

POLICY*MAKERS FUTURE*HIRES INVESTORS

MEDIA

COMMON*REPUTATION*DIMENSIONS

COMMON*PATTERNS:**WEIGHT*OF*EACH*DIMENSION*IN*DRIVING*REPUTATION

Copyright"©


6

Is*a*well*run*and*managed* company

Benefits* communities*where*it*operates

Offers* high*quality* products* and*services

Is*transparent* in*its*operations/practices

PATH"TO"STRONG"REPUTATION"DIFFERS"AROUND"THE"WORLD,"AS"DOES"HOW"CSR"BEST"BROUGHT"TO"LIFE"

ESTABLISHED*MARKETS

EMERGING*MARKETS

Is*a*well*run*and*managed*company

Is*a* company* I*trust

Has* a*strong/effective* senior*leadershipIs*a* company* I*admire*and* respect

Helps*stimulate* the*economy*

Is*a* stable*and* financially* secure*company

Is*a* company* I*trust

Has* a*strong/effective* senior*leadership

Plays* a* valuable* social*role

Is*transparent* in*its*operations/practices

Operates*with* high*ethical*standardsSECO

NDA

RYTO

PPR

IMAR

YCOMMON*REPUTATION*DRIVERS*

Copyright"©


7

67%

63%

57%

57%

55%

41%

33%

37%

43%

43%

45%

59%

China

India

United"States

Brazil

U.K.

Germany

52%

DOING"WHAT’S" RIGHT PUBLICITY

MORE"BOLDLY"TELLING YOUR"CSR STORY:"A"SMART"BUT"NUANCED"CHALLENGE

Believe"companies" today"“have"senior"executive"leaders"that"are"truly"committed"

to"social"responsibility”

GENERAL*PUBLIC

CORPORATE*EXECUTIVES

31% 60%

COMPANIES*ARE*MOTIVATED*BY:

Copyright"©


8

To"Continue" the"Conversation:Wendy"Salomon

646.831.6775"/"[email protected]

1 © 2016, JUST CAPITAL. ALL RIGHTS RESERVED.

justcapital.comfacebook.com/justcapitalfoundationtwitter.com/justcapital_

Sustainable Brands ConferenceNovember 8, 2016


CAPITALISM IS ALL ABOUT PROFIT, RIGHT?

Thereisoneandonlyonesocialresponsibilityofbusiness– touseitsresourcesandengageinactivities designedtoincreaseitsprofitssolongasitstayswithintherulesofthegame,whichistosay,engagesinopenandfreecompetitionwithoutdeceptionorfraud

Milton Friedman


CAPITALISM IS ALL ABOUT PROFIT, RIGHT?

Thereisoneandonly onesocial responsibility ofbusiness – touseitsresourcesandengage inactivities designed toincreaseitsprofitssolong asitstayswithintherulesofthegame,whichis tosay, engages inopenandfreecompetitionwithoutdeceptionorfraud

Milton Friedman

Theworstcrimeagainstworkingpeopleisacompanywhichfailstooperateataprofit

SamuelGompers


A NARROW FOCUS ON PROFIT LEADS TO UNFAVORABLE OUTCOMES

Justice,onthecontrary,isthemainpillarthatupholdsthewholeedifice.Ifitisremoved,thegreat,theimmensefabricofhumansociety,thatfabricwhichtoraiseandsupportseemsinthisworld,ifImaysayso,tohavebeenthepeculiaranddarlingcareofNature,mustinamomentcrumbleintoatoms.

AdamSmithTheTheory ofMoralSentiments


42

52

62

74

74

61

Very Liberal

Liberal

Moderate

Conservative

Very Conservative

None of the Above

54

51

57

67

71

75

18-24

25-34

35-44

45-54

55-64

65+

11%

52%

24%

6%7%

Completely Agree Generally AgreeGenerally Disagree Completely DisagreeDon't Know

”Agree” in all instances refers to combined results of “Completely Agree” and “Generally Agree”

AMERICANS AGREE: WHAT’S GOOD FOR BUSINESS IS GOOD FOR AMERICA


54

61

55

58

54

58

51

47

Less than $25,000

$25,000 to $34,999

$35,000 to $49,999

$50,000 to $74,999

$75,000 to $99,999

$100,000 to $149,999

$150,000 to $199,999

$200,000+

5%

18%

17%

25%

31%

4%

Much More Just Somewhat More Just

Neither More Just Nor Less Just Somewhat Less Just

Much Less Just Don't Know

48

56

54

54

61

61

18-24

25-34

35-44

45-54

55-64

65+

YET, AMERICAN BUSINESSES HAVE BECOME LESS JUST


MEASURING JUST CORPORATE BEHAVIOR IS IMPORTANT

68%

28%

3% 1%

Very Important Somewhat Important

Not Too Important Not At All Important

98

99

98

96

90

90

Very Liberal

Liberal

Moderate

Conservative

Very Conservative

None of the Above


MOST AMERICANS SAY THEY WOULD ACT ON INFORMATION

41%

43%

9%

4% 3%

Very Likely

Somewhat Likely

Not Very Likely

Not At All Likely

Don't Know

PurchasingDecisions

56%32%

6%3% 3%

Very Likely

Somewhat Likely

Not Very Likely

Not At All Likely

Don't Know

Job Seeking

53%31%

7%

4% 4%

Very Likely

Somewhat Likely

Not Very Likely

Not At All Likely

Don't Know

Investing


JUST CAPITAL’S MISSION

To address the root causes of today’s social, economic and

environmental inequalities and challenges, the full resources of the

$15 trillion private sector must be deployed. This requires:

• Finding a common definition of JUST corporate behavior

• Defining clear guidance on issues companies should prioritize

• Identifying credible information and tools to help market participants take action and measure progress

• Market signals which are strong enough to incentivize and reward JUST companies

JUST CAPITAL

Employees

Consumers

CommunitiesCorporations

Shareholders


WHAT WE DO

Listento the Public

• Which issues are most important to Americans?

We conduct focusgroups and large-scale surveys to assess Americans’ definition of JUST business behavior. Our work is unbiased andbalanced to the US census.

DetermineHow & what to

measure

•How do we fairly measure companies?

Based on the American public’s views, we define metrics which measure the key components of JUST corporate behavior.

Gatherdata

• What companydata do we need?

We identify, collect, and create models to estimate data tomap to the metrics.

Rankcompanies

• Which companies are most JUST?

We us that data to measure the performance of the 900 largest publicly traded corporations in America.

Fosterchange

• How can data enable change?

We’re creating abusiness intelligence platform which enables employees, consumers, leaders and the general public to make choices towards more JUST companies over time.


According to JUST Capital’s 2015 and

2016 surveys, the issues most frequently

important to the American public’s

perceptions of just behavior related to:

Employees

Leaders

Customers

Community

The Planet

Investors

Leadership & Ethics 17.2%

Environmental Impact 5.0%

Worker Pay & Benefits 25.5%

Product Attributes 5.6%

Customer Treatment 7.4%

Domestic Job Creation 5.6%

Worker Treatment 24.0%

Supply Chain Impact 4.1%Investor Alignment 3.9%Community Well-Being 1.7%

RESULTS OF OUR SURVEY: DRIVERS OF JUSTNESS


MEASURING JUSTNESS: OUR RANKING MODEL

WorkerPay&Benefits 25.5% Worker

Treatment 24.0% Leadership&Ethics17.2%

CustomerTreatment 7.4% ProductAttributes 5.6% Domestic

JobCreation 5.6% Environ-mentalImpact

5.0% SupplyChainImpact 4.1% InvestorAlignment 3.9% CommunityWell-Being 1.7%

PaysaFairWage 7.7%

DNDiscr Hire/Fire/Promo

6.7% FollowsLaws&Regulations

6.1% DoesNotDiscrCustTreatment

2.2% MakesQualityProducts

3.1% CreatesJobsinUS 5.6% HasEnvResponsibleMgt

1.8% NoSuppwAbusiveConditions

1.9% TransparentAccurateFinlReport

2.3% StrongRelationshipwComm

1.3%

PaysaLivingWage 5.5%

ProvidesSafeWorkplace

6.3% HasLeaderswithIntegrity

4.8% ProtectsCustomerPrivacy

2.1% MakesProdBeneficialtoEnvHealth

2.6% MinimizesPollution 1.7%

NoBzwRepressiveGovts

1.2% ProfitableLongTerm 1.0% ContributesCharitableCauses

0.4%

DoesNotDiscriminateinPay

4.1% RespectsWorkers 5.9%

IsTruthfulinAdv&Labeling

3.2% MaintainsStrongRelwCust

1.6% UsesResourcesEfficiently

1.5% NoConttoConflictAbroad

1.0% ProvidesInvestorReturn

0.6%

PaysWorkers/CEOFairly 3.1%

HandlesGrievancesFairly

2.1% PaysFairShareofTaxes

2.7% ProvidesPairPrice&SalesTerms

1.5%

SponsorsHealthInsurance

2.5% ProvidesEducation&Training

1.6% MinimizesPoliticalSpending

0.5%

PrepsforRetirement 1.4%

PromotesWork-LifeBalance

1.4%

ProvidesPaidTimeOff 1.2%


OUR BELIEFS

We believe in capitalism. And we believe in justness. We believe that fusing the two together creates a whole far greater than the sum of its parts -- fair and balanced markets with the power to drive growth, innovation and progress for all. We believe the American people know what is best for themselves, their families and their communities. We believe in listening to them. We believe companies can and should be measured by issues that are more durable than short-term profits. We believe they want this too.

We stand for putting justness on par with profits. We stand for fairness, for balance and access to opportunity. We stand for transparency. We stand for an economy that reflects the values of all citizens, and acts as a bastion of their rights and privileges. We stand for humanity and giving people a voice.

We are citizens. We are workers and executives. We are consumers and investors. We are the choices we make.

Together, we are the invisible hand.

We are


Thank you.

justcapital.comfacebook.com/justcapitalfoundation twitter.com/justcapital_

enso.co / worldvalue#worldvalue

Creating World Valueenso


People are more powerful than ever.

Geolocated links between Wikipedia articles / Oliver Beauchesne


Scaling Business + Impact

Brand→ people

Traditional

People → people (empowered by brand)

Future



Methodology


Combined these results to determine the Brand World Value Index.

Methodology

Fielded by Quadrant Strategies; 3 waves of 1,000 each; 3,000 total. Rated 149 brands.

NOTE:“Never heard of brand” respondents do not rate brands on other metrics.Alignment, Support and Purchase are all “net” scores that subtract out respondents that rate the brand bottom box on that metric.


UPSHome DepotCoca-ColaMicrosoftYMCASave The ChildrenColgateFedExSubwayCVS PharmacyLowe’sWorld Wildlife FundSamsungNewman’s OwnTargetAppleFacebookBen & Jerry’sDoritosNestleLAY’SWikipediaSonyMcDonald’sGeneral ElectricWhole FoodsLiptonYoplaitTrader Joe’sWalmart

LEGOYahooEbayCanonProcter & GambleNIKEPetfinderKrogerVerizonTOMSPepsiPaneraSunChipsFordHewlett-PackardMasterCardNBCAT&TSeventh GenerationChevroletIntelSouthwest AirlinesKINDStarbucksIKEAThe North FaceL’OréalLevi StraussPandoraAnnie’s Homegrown

AdidasEtsyChobaniToyotaHondaState FarmAllstateChase BankHonest CompanyAmerican AirlinesESPNFitbitNPRAlwaysREIClif BarPatagoniaPampersIBMChipotleBarbieT-MobileTwitterGeicoOracleCaterpillarTime WarnerUnited AirlinesDelta Air LinesKickstarter

GoodwillAmazonGoogleKellogg’sPayPalDisneyGirl Scouts of AmericaKraftJohnson & JohnsonDove

123456789

10

111213141516171819202122232425262728293031323334353637383940

414243444546474849505152535455565758596061626364656667686970

7172737475767778798081828384858687888990919293949596979899

100

101102103104105106107108109110111112113114115116117118119120121122123124125126127128129130

MediumThomson ReutersZapposLinkedInAxeUniqloTeslaSpotifyLyftComcastPfizerAmerican ExpressMethodSolarCityVenmoUnileverH&MLockheed MartinEileen FisherExxonMobilBoeingVirginBudweiserKhan Academy(RED)Wells FargoCiscoBank of AmericaChevronUber

131132133134135136137138139140141142143144145146147148149

BMWRalph LaurenCitiOne CampaignCoorsMorgan StanleyVolkswagenVICESnapchatHeinekenAudiAirbnbSalesforce.comMiller LiteLululemonGoldman SachsRed BullMonsantoMarlboro

2016 Brand World Value Index


Lowe’sWorld Wildlife FundSamsungNewman’s OwnTargetAppleFacebookBen & Jerry’sDoritosNestle

LAY’SWikipediaSonyMcDonald’sGeneral ElectricWhole FoodsLiptonYoplaitTrader Joe’sWalmart

GoodwillAmazonGoogleKellogg’sPayPalDisneyGirl Scouts of AmericaKraftJohnson & JohnsonDove

UPSHome DepotCoca-ColaMicrosoftYMCASave The ChildrenColgateFedExSubwayCVS Pharmacy

123456789

10

11121314151617181920

21222324252627282930

31323334353637383940

2016 Brand World Value Index

enso.co / worldvalue#worldvalue 9

TOMS + Nike


TOMS + Nike


TOMS + Nike, Rank by Segment


Awareness of Purpose & Active Support

Awareness of Purpose

Goodwill

Monsanto

Marlboro

Annie’s Homegrown

Active Support


Awareness of Purpose & Active Support

Awareness of Purpose

How to increase purpose awareness?

Active Support

How to increase purpose awareness and support?

How to activate purpose?How to increase purpose support?


enso.co/WorldValue

[email protected]

14

Over the past 10 years, we’ve seen the nature of GOOD shift.

WHERE WE’RE COMING FROM

GOOD FOR US + GOOD FOR THE WORLD

Across nine indexes of what makes a “good” company, only six brands appeared more than once in the top 10.

Google - 3x

BMW - 2x

Volkswagen -2x

Biogen - 2x

Coca Cola - 2x

Wegmans - 2x

OUR ORIGINAL APPROACH

We analyzed and generated insights from 2k+ images posted by a curated group of interesting people who don’t do this for a living.

THE IMAGES ILLUSTRATED KEY QUESTIONS

How can organizations be useful to them in resolving these

dilemmas?

Which products, stories or calls to action can help

audiences answer these questions?

What’s on people’s minds

as they seek “good”?

Questions can have different answers.

Trends close down the conversation.

Questions open the conversation.

Trends can be understood.

Questions can be interpreted.

Trends can wane and get taken down.

Questions can’t be taken down.

WHY QUESTIONS

How do we stay calm and in the moment?

MINDFULNESS

How do we share the journey of what we’re making?

LEARNING & KNOWING

How do we bring nature into our increasingly urban experience?

US & NATURE

How can we do more with less? What do we really need?

THE ESSENTIALS

How do we celebrate and share growing female empowerment?

EQUALITY & EMPOWERMENT

How can we change our frames?EQUALITY & EMPOWERMENT

Do good better.

www.good.is | [email protected]

Thank&you!

Your&Feedback&is&Invaluable!

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