Corporate ‘fairness’ in the areas of prices, wages and working conditions now heavily influence whether or not a consumer will buy a sustainable brand or not, confirmed new research.
In fact, fair prices, fair wages and fair working conditions now leads the list of sustainability features most likely to influence a consumer’s choice to buy a sustainable brand. Treatment of employees and the workforce is rapidly emerging as a new core pillar of an organisation’s sustainability commitment.
For many consumers today, sustainability not only means climate and conservation, but also fairness and corporate citizenship, according to two new surveys carried out by The Harris Poll in association with The Conference Board. This expanded definition of sustainability – which includes social factors – are increasingly driving consumer “sustainable” purchasing decisions.
Although the public can see the progress made in corporate sustainability, they want companies to further step up their efforts. The first of the two surveys, Sustainability Features That Sway US Consumers Are Changing, which examines what motivates consumers most to buy sustainable brands, found that despite environmental topics, climate, pollution and conservation being most associated with sustainability, these factors aren’t necessarily what drive sustainable purchases.
FAIR WAGES & WORKING CONDITIONS
According to the report, consumers increasingly view sustainability in terms of all-around corporate citizenship. Two years ago, sustainability was largely equated with environmental friendliness. Today, fair prices and fair wages have joined conservation, climate change and alternative energy among the top five features consumers selected from a list of associations with sustainability.
In fact, fair prices, fair wages, fair working conditions leads the list of sustainability features most likely to influence a consumer’s choice to buy a sustainable brand. With this in mind, brands have an opportunity to better communicate about worker welfare, which could yield incremental purchases and greater willingness to pay a price premium, noted the report. Communications can include messages about worker welfare and labour conditions on packaging and product labels, as well as pictures and videos of workers to create a human connection.
SUSTAINABILITY & CLIMATE CHANGE
Additionally, responsiveness to particular sustainability features is strongly shaped by consumer demographics. Opinions diverge most sharply by political leaning, followed closely by urbanicity level, age and race. Other divides like income and gender are much less stark.
Climate change offers a case in point regarding demographic divides. More than 70% of urban and Gen Z respondents said that a brand’s actions on climate would influence their purchasing choices “very much” or “quite a bit.” The proportion drops to under 45% among rural and Boomer respondents. By contrast, the gaps between men and women and high- and low-earners are relatively minor.
SUSTAINABLE PROGRESS
The second of the two reports, US Consumers Want Business to Do More on Sustainability, reveals how consumers view the progress made on sustainability across an array of industries. As in 2019, consumers continue to see utilities, technology and food companies as leaders in sustainability, confirmed the report. A more eclectic list – home builders, automakers, restaurants, pharmaceutical maker, and home appliance makers – followed close behind.
However, consumers believe every industry, government department and NGO can do more; even those whose performance they already rank highest today. For example, while 48% believe utility companies are making a positive impact today, 73% believe they need to change to become sustainable.
In short, no company can afford to rest on its laurels; consumers are likely to expect faster progress moving forward. Partnering with established or emerging initiatives; and showing a willingness to collaborate with competitors for the common good can signal a company’s commitment to stakeholders, noted the report. Moreover, alliances within and across sectors can lead to cost-effective solutions in the private sector. Additionally, partnering with public entities could facilitate better-targeted policies, incentives, and government-supported research, including for big societal challenges such as clean transportation, for example.
The recognition of corporate sustainability’s impact has room to grow, especially among certain demographic groups. Older, rural, and white consumers are least likely to believe corporations are making a positive impact; reflecting the demographic divide above. More surprisingly, women (38%) are also considerably less likely than men (49%) to react positively. These findings indicate a potential for companies to find suitable ways to extend and refine sustainability messaging beyond the younger, more urban consumers already on board.
FAIRNESS & CORPORATE CITIZENSHIP
“For today’s consumers, sustainability increasingly means not only climate and conservation but also fairness and corporate citizenship,” commented Denise Dahlhoff, Senior Researcher at The Conference Board. “Our study reveals how these perceptions and attitudes are uneven across demographic groups, with younger and urban consumers most receptive to sustainability messages. It paints a rich, granular picture of the features that can drive more consumers to consider buying sustainable products going forward.”
Adding to her comments, Rob Jekielek, Managing Director at The Harris Poll, said: “Our research with The Conference Board reinforces the unique sustainability inflection point we’re seeing with American consumers. An organisation’s environmental footprint and impact still matter, but treatment of employees and the workforce is rapidly emerging as a new core pillar and proof point for showcasing an organisation’s sustainability impact today.”
In fact, the majority of consumers worldwide have changed their mind about buying from a company because of unethical business practices, or a lack of action on issues like climate change and diversity and inclusion, according to another recent study. Click here to read more.
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