Corporate Social Responsibility (CSR)
Consumer Awareness and Use of Internet to Research Claims Has Grown
Oct 2, 2008
Public relations firm Fleishman-Hillard, with the National Consumers League, a consumer advocacy group, gathered information for a benchmark study of U.S. consumer attitudes about corporate social responsibility (CSR) in 2005. They followed up in 2006 to see if there were changes. A larger group of consumers was interviewed for a 2007 follow-up study.
The messages to corporations are clear. Consumers expect companies to be more socially responsible. They expect CSR to go beyond making financial contributions. Consumers even feel that government should be more involved in ensuring better corporate citizenship. The report also warned businesses to pay attention to consumer use of the Internet, the top media used by consumers to assess business CSR claims.
Corporate Responsibility to Community
Consumers feel that corporate responsibility means commitment to community. But what does it mean to be more committed to the community? What do consumers expect? They expect companies to volunteer time or effort. Also, by providing jobs with living wages they demonstrate greater responsibility to their communities.
The reporters felt that corporate downsizing probably contributed to consumers equating “community commitment” with jobs and wages. The economic downturn in 2008 may increase the number of consumers who feel that companies need to show their commitment most directly by providing good jobs to people in the community.
In the study’s earlier years, when the individuals surveyed had not been as concerned about losing their jobs, they equated corporate responsibility more strongly with environmental action and charitable giving.
Environment Still Important
Even given the growing concern for job security, consumers are increasingly concerned about the environment. More than ever, consumers understand climate change and feel the impact of shrinking supplies of natural resources. Consumers expected corporations to show their commitment to the environment through direct action.
Corporate American Not Meeting Expectations
The survey showed consumers perceive U.S. corporate CSR to be average. Interestingly, however, they feel that businesses closer to their home are doing a better job.
Customers who are more aware of global challenges are fueled in their belief that corporations are not stepping up to their social responsibility because of what they hear or read in media sources.
The study reports concern for the “tipping point” when consumers will want to see government become more involved to ensure business acts in a more socially responsible manner.
The Role of Government
Eighty-two percent of consumers felt that government should be more involved in shouldering a portion of the energy, environment, and healthcare burden. In industries such as pharmaceuticals, chemicals, food, and energy, government oversight plays a more important role.
Beyond U.S. government involvement, the respondents felt the need for global standards to ensure CSR. The report warns corporate readers, “Consumers’ increasing support for global standards and government intervention suggests that CSR may be rising in importance as an issue of which corporations should be aware and for which they should have a plan.”
Consumers Get Information about CSR from the Internet
Consumers, empowered by the Internet, are researching corporate citizenship. Discussions on the web are used to seek information about whether or not companies are acting in socially responsible ways. Fifty-four percent of respondents said they used use the web to research CSR.
The numbers of consumers using the Internet to research companies through independent sources and search engines is growing. These research tools are surpassing friends, family, word-of-mouth, and traditional media sources, including television, in importance.
Consumers are also using the Internet to send out information about CSR. They send e-mail messages, forward e-mail, and launch campaigns to advocate for their position or cause.
What Should Corporations Do?
Now more than ever they must be proactive. Corporations must monitor consumer perceptions on the Internet and in other arenas and become genuinely involved with their community.
Corporations should not expect that consumers will be getting their information from company-generated sources alone. A great number of consumers will be skeptical and will check up on any claims. Therefore, companies need to look for new ways to inform consumers about their social responsible actions, which are increasingly perceived as more jobs, better salaries, environmentally responsible activity, and local interaction.
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