A new survey by Landor Associates, Penn Schoen Berland and Burson-Marsteller measured consumer perceptions of corporate social responsibility practices and ranked companies that are the most responsible. Results showed that despite the recession, 75% of consumers believe social responsibility is important, and 55% of consumers said they would choose a product that supports a particular cause against similar products that don't. The survey found that 70% of consumers are willing to pay a premium for products from socially responsible companies. This gives companies the opportunity to differentiate themselves amongst their competitors by using this marketing strategy of communicating how they give back to their employees, communities and the environment.
Perceptions of social responsibility have dropped in the industries of health care, financial services, and automotive, whereas it has been rising in apparel, an industry that a decade ago was viewed as one of the most irresponsible.
However, even though 38% of respondents reported that they would spend the same or more on products or services from socially responsible companies, more than half of consumers are do not even know or are unsure of the meaning of CSR, which stands for corporate social responsibility. Many consumers seem to get sucked into events, such as the earthquake in Haiti, of which companies play off of their sympathy.
Just how how weight does social responsibility have when you purchase a product, and how sincere are companies when they utilize this marketing strategy?
http://www.adweek.com/aw/content_display/news/strategy/e3id9db7bed8e9402cbfb822466e4855c09
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Corporate social responsibility must not be overlooked. I think too often people forget that companies are "citizens" themselves, not just profit-maximizers. Firms commit themselves to creating value for their consumers and promoting well-being for society, as well as making profits. Public deception is also ill-advised because consumers are also much more saavy then before with the rise of information technology. Blogs, podcasts, Youtube, social networking site, and surveys allow for immediate and continuous evaluation of a company's products and image. So in the case of companies faking to care about catastrophic occurences, such as the Haitian earthquake, I doubt many consumers are fooled by firms' "sympathy."
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