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© Ipsos | IGRM_Wave 3 | Dec 2019 | Version 1 | Internal Use Only© Ipsos 2020
Date: March 2020
Ipsos Global Reputation MonitorExploring corporate responsibility
Trent Ross, Chief Research Officer, Corporate Reputation
Jason McGrath, SVP & Head of US Corporate Reputation
© Ipsos 2020
The Key Questions Answered
2
Which industries are leaders in corporate responsibility?
Data comes from:
Ipsos Global Reputation Monitor: August 2019, ratings of 150+ companies, across 25 countries, more than 20,000 respondents
Reputation Council: Annual interviews with 100+ communications executives from global companies around the world conducted by Ipsos Corporate Reputation
What is the value of corporate responsibility?
How do companies build corporate responsibility?
© Ipsos 2020
Corporations have a great ability to ‘do good’ in the world. This ability to do good is increasingly being married with a responsibility to do good and consumer pressure to do good.
Ipsos Corporate Reputation has new data on
● how industries are perceived when it comes to acting responsibly
● how perceptions of responsibility impact overall reputation, advocacy, and regulatory threats
● advice from our Reputation Council members (plus 20 years of Ipsos experience) on how companies can take a balanced approach to building corporate responsibility
Corporate sustainability or social responsibility programs have benefits beyond being a responsible member of the global community. In addition to delivering a reputational boost, carefully designed actions can:
● strengthen the long-term viability of the corporate value chain
● increase employee engagement
● improve relationships with special interest groups
Ipsos Corporate Reputation has 20 years of experience helping companies to shape their social responsibility and sustainability programs. This experience has demonstrated that effective engagement requires addressing the authenticity, credibility, and effectiveness of programs from both an internal and external perspective.
Overall Approach
3
Corporate Responsibility as a Strategic Imperative
© Ipsos 2020
Ipsos’ 20 years of experience indicates that drivers of trust generally fall into three categories for companies – core business (what you do), business management (how you do it), and responsibility or purpose (why you do it).
Responsibility must be treated as a strategic pillar. Too many companies treat responsibility as a generic obligation or something that is “nice to have.” Companies that approach responsibility from a strategic perspective that aligned with their purpose and values reap much greater rewards.
This study investigates the role of overall perceptions of responsibility on trust and business value; as well as what in turn drives perceptions of responsibility.
This study encompasses ratings of 174 companies across 9 industries in 25 countries.
Investigating the Responsibility Pillar
4
Pillars of Reputation
Trust
Core business
Business management Responsibility
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Perceptions of Responsibility vary tremendously by industry
5
Even companies in poorly regarded industries have a chance to stand out
37% 34% 31% 34%25%
33% 29% 31% 33%
60%66% 68%
73% 70%66%
72%
58% 61%
42% 45% 45% 48% 49% 49% 50% 51% 53%
Mining, Oil & Gas
Airlines Telecomms Food & beverage
Finance Pharma CPG Automotive Technology
Highest score
Lowest score
Average
Responsibility Range and Average | Global Scores
© Ipsos 2020
It is much more difficult for companies to be perceived as responsible in Europe and in North America than in Latin America or the Middle East/Africa.
Average Responsibility Rating by country
Cultural context matters for companies
6
53%
39%
58%65%
47%
APAC Europe LATAM MiddleEast/Africa
NorthAmerica
% Responsible
© Ipsos 2020
Reputation Council members believe that consumers’ self-interest will often trump reputational concerns about the company they’re buying from.
But members also see a growing trend, especially among activist millennials and Gen Z, and driven by ever-more available information, to factor a company’s reputation into their purchase decisions.
As such, Reputation Council members do NOT believe that, overall, consumers will ignore poor corporate behavior as long as they get products that are good and cheap.
Will consumers ignore poor corporate behaviour as long as they get products that are good and cheap?
7
Shared values
Yes19%
On the fence1%
No75%
DK, 5%
© Ipsos 2020
Responsibility contributes to trust, benefit of the doubt, and willingness to pay a premium
8
Responsible Companies are Trusted
9%20% 25%
73%86%
20%
36%
62%
80%87%
5% 9% 8%17%
29%
Very irresponsible Fairly irresponsible Neither Fairly responsible Very responsible
Trust Benefit of the Doubt Pay a Premium
© Ipsos 2020
The relationship between responsibility and trust holds true across industries
9
Responsibility and Trust
0%10%20%30%40%50%60%70%80%90%
100%
Airlines Automotive CPG Finance Food and beverage
Mining, oil and gas
Pharma Technology Telecomms
% Trust
Very irresponsible Fairly irresponsible Neither Fairly responsible Very responsible
Neutral attitudes on responsibility are not sufficient to create trust; positive trust requires a positive level of corporate responsibility
© Ipsos 2020
All types of advocacy, even soft advocacy, increase as perceptions of responsibility increase
10
Responsibility and Advocacy
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Visit website Share positive information on social media
Follow corporate social media
Apply for jobs Recommend products/services
Very irresponsible Fairly irresponsible Neither Fairly responsible Very responsible
© Ipsos 2020
Industries with higher average responsibility are less likely to be targeted for regulation
11
Regulation by responsibility%
resp
onsi
ble
% “too little regulation
Mining, oil and gas
BankingPharmaceuticals
Telecommunications
Food and beverage
Consumer product goods
Airlines
AutomotiveTechnology
35%
40%
45%
50%
55%
20% 25% 30% 35% 40%
© Ipsos 2020
Europe and North America have highest regulatory risk
12
Desire to regulate
38%35%35%34%33%
29%27%26%26%26%
46%45%47%47%50%56%59%
58%58%57%
16%20%18%19%17%15%14%
17%16%17%
Mining, oil and gasBanking
PharmaceuticalsInsurance
TelecommunicationsFood and beverage
Consumer product goodsAirlines
AutomotiveTechnology
Global Attitudes on Regulation
Too little About right Too much
APAC Europe LATAMMiddle East/Africa
North America
23% 45% 43% 27% 42%22% 43% 32% 25% 48%25% 46% 28% 19% 35%27% 41% 31% 25% 41%22% 37% 35% 25% 39%23% 35% 31% 25% 27%18% 32% 30% 25% 25%17% 29% 25% 21% 31%18% 32% 28% 19% 24%16% 33% 23% 17% 30%
% “Too little regulation”
© Ipsos 2020
Base: 113 Reputation Council members. April – August 2017
Active corporate responsibility is on the rise . . .”
13
More than half of global communications leaders (56%) say their consumers expect them to take a stand on socio-political issues, against a quarter (23%) who disagree
23% 56%
© Ipsos 2020
Companies that take a stand are much more likely to be viewed as responsible
14
Taking a stand
25% of companies are perceived to be taking a stand on issues that respondents care about.
There is little variation by industry with the low being 21% for airlines and the high being 30% for technology companies.
80%
41% 39%
77%
38% 40%
Yes No DK
Trust Responisble
Does this company take a stand on social issues that you care about?
© Ipsos 2020
Key points
● Corporate responsibility activities can be both an opportunity and risk, with Reputation Council members acknowledging both sides of the debate in equal measure.
● There is widespread acknowledgement that corporate responsibility is expected by consumers, but is also very hard to do well.
● Authenticity is the key, with campaigns that are true to your corporate values having the greatest chance of success.
Reputation Council members believe that businesses do have a license, or even an obligation, to take on the big socio-political and cultural issues of the day (the environment, tolerance and diversity, and social justice are most often mentioned).
In large part, Reputation Council members attribute this pressure to the growing expectations of customers, opinion formers and especially employees, who want to the understand more about a company’s purpose and values, before they invest their money, time or goodwill.
15
A balanced approach to corporate responsibility
© Ipsos 2020
Getting Responsibility Right
16
For our Reputation Council members, CSR has matured from simple corporate philanthropy into something more integrated, rigorous and genuinely aligned with the company’s purpose.
Achieving alignment requires an intentional approach to corporate social responsibility. A one size fits all approach to corporate responsibility does not work, each industry (and company) must match their actions to their underlying equities.
© Ipsos 2020
Getting Responsibility Right
17
Authenticity Credibility Effectiveness
Utilize business know -how to drive change
Focus on business value chain
In-line with company mission and brand
Co-creation with partners and interest groups
Alignment with external realities
Generate goodwill amongst consumers, employees, and public
Create social change
Drive business sustainability
© Ipsos 2020
Drivers of corporate responsibility vary considerably by industry
18
What Drives Perceptions of Corporate Responsibility?
Airlines Automotive CPG Finance Food & BevMining, Oil and Gas Pharma Tech Telecoms
Caring for the environment 0.44 0.56 0.65 0.43 0.60 0.58 0.62 0.51 0.51
Having a positive impact on society 0.44 0.49 0.56 0.58 0.58 0.52 0.58 0.55 0.55
Has ethical supply chains 0.42 0.55 0.51 0.49 0.56 0.56 0.55 0.59 0.59
Treating customers fairly 0.47 0.52 0.45 0.63 0.49 0.43 0.47 0.61 0.61
Being open about their business operations 0.42 0.44 0.47 0.55 0.55 0.53 0.44 0.63 0.63
Encouraging the responsible use/consumption of their products 0.39 0.52 0.53 0.45 0.55 0.45 0.56 0.53 0.53
Treating employees fairly 0.54 0.44 0.47 0.44 0.49 0.40 0.47 0.46 0.46
Contributing to the economy of this country 0.22 0.27 0.23 0.29 0.23 0.19 0.27 0.33 0.33
A one size fits all approach to corporate responsibility does not work, each industry (and company) must match their actions to their underlying equities.
It is much more important for the finance industry to treat people fairly (for instance) while technology and telecommunications/internet companies must focus on transparency and supply chains as well as treating customers fairly.
© Ipsos 2020
Base: 113 Reputation Council members. April – August 2017
Final thoughts
19
• Consumers and stakeholders increasingly demand that companies act responsibly in addition to providing goods and services.
• They are looking for leadership that places social progress (in whatever way they define it) at the heart of the corporate agenda.
• Corporate responsibility can be difficult and risky.
• But if responsibility actions reflect the social purpose and values of the business, and are backed up with evidence of action, the reward can be a powerful, positive impact on reputation and relationships.
© Ipsos | IGRM_Wave 3 | Dec 2019 | Version 1 | Internal Use Only© Ipsos 2020
COVID-19Business Expectations
© Ipsos 2020
Ipsos Ongoing Coronavirus Tracking
21
© Ipsos 2020
What level of threat do you think the coronavirus or COVID-19 poses to each of the following?
Perceived Threat of the Coronavirus/COVID-19 Is Inverse To Proximity
22
This situation is shifting rapidly, this data is from March 7-9, the weekend BEFORE the virus was declared a pandemic.
5%
6%
7%
6%
12%
21%
9%
8%
12%
12%
20%
27%
24%
26%
30%
31%
41%
32%
33%
35%
30%
29%
19%
13%
26%
22%
17%
16%
7%
4%
4%
4%
4%
5%
3%
2%
You personally
Your family
Your local community
Your job or business
Your country
The world
Very high High Moderate Low Very low DK
© Ipsos 2020
In the past month, have you done any of the following?
Despite Low Perceived Threat, People Nonetheless Are Taking Precautions
23
This situation is shifting rapidly, this data is from March 7-9, the weekend BEFORE the virus was declared a pandemic.
49%
38%
29%
9%
5%
4%
4%
30%
Started washing hands more frequently
Followed the news more closely
Bought canned goods and other non-perishable food items
Worked from home more frequently
Stopped taking public transportation
Canceled an international trip
Canceled a domestic trip
None of the above
© Ipsos 2020
In light of the coronavirus or COVID-19 outbreak, which of the following actions, if any, should companies take?
They Expect Companies To Be More Aggressive In Preventing Spread
24
This situation is shifting rapidly, this data is from March 7-9, the weekend BEFORE the virus was declared a pandemic.
44%
64%
66%
68%
70%
76%
Cancel domestic travel for employees
Encourage more teleworking among their employees
Provide health supplies to employees
Cancel international travel for employees
Provide paid leave to hourly workers in the event of illness
Provide job security to hourly workers in the event of illness
© Ipsos 2020
Which of the following actions, if any, has your company taken in response to the coronavirus or COVID-19 outbreak?
But Experience Of These Actions Does Not Meet Expectations
25
This situation is shifting rapidly, this data is from March 7-9, the weekend BEFORE the virus was declared a pandemic.
17%
25%
25%
25%
27%
27%
Canceled domestic travel for employees
Encouraged more teleworking among their employees
Provided job security to hourly workers in the event of illness
Provided paid leave to hourly workers in the event of illness
Canceled international travel for employees
Provided health supplies to employees Among employed respondents
© Ipsos 2020
How much responsibility do each of the following industries have when it comes to combatting the spread of the coronavirus or COVID-19?
Airlines and Pharmaceuticals Are Perceived To Have The Most Responsibility
26
This situation is shifting rapidly, this data is from March 7-9, the weekend BEFORE the virus was declared a pandemic.
47%
41%
34%
27%
27%
30%
28%
19%
18%
26%
25%
25%
28%
27%
24%
23%
18%
18%
19%
22%
26%
28%
28%
28%
28%
35%
34%
4%
7%
10%
9%
11%
11%
14%
14%
18%
4%
4%
6%
8%
7%
8%
7%
13%
12%
Airlines
Pharmaceuticals
Restaurants
Ride share companies
Grocery stores
News media companies
Packaged food companies
Social media companies
Banks
5 - a great deal 4 3 2 1 - none at all
For more insightand analysis from The Ipsos Corporate Reputation team
Visit reputation.ipsos.com
Follow us on Twitter at twitter.com/ipsosreputation
Further Information
Trent RossGlobal Chief Research Officer, Corporate Reputationt: +1 202-290-7685e: [email protected]
Jason McGrathHead of US Corporate Reputationt: +1 202-288-6497e: [email protected]
Thank You
