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Doing Well by Doing Good 2005 Study Results
GOLIN HARRIS SURVEY REVEALS CORPORATE CITIZENSHIP CAN IMPACT BUSINESS PERFORMANCE
Second Annual Study Shows Consumers Feel Somewhat Better About Companies’ Corporate Citizenship Practices
CHICAGO (June 21, 2005) – Consumers believe companies are making improvements when it comes to corporate citizenship and that translates to an effect on the bottom line, according to a national opinion survey conducted by GolinHarris.
Forty percent of respondents to the survey of 3,500 Americans say that good corporate citizenship makes them more willing to do business with a company. The survey found that corporate citizenship can influence consumer opinion and behavior, and essentially turn consumers into brand champions. Respondents indicated that good corporate citizenship by a company or brand would inspire them to (in rank order):
1. Be willing to try the company’s products for the first time
2. Welcome the company into my community
3. Recommend the company’s products and services to friends and family
4. Improve overall trust for the company, its people and products
5. Improve overall opinion of the company’s reputation
The fact that corporate citizenship is a powerful influencer of consumer behavior is good news for American companies. Less encouraging is survey respondents’ perception of the performance of American business in corporate citizenship. Only 25 percent believe Corporate America is doing an “excellent” or “good” job in its commitment to corporate citizenship. But there is a glimmer of positive news: the number of people in the survey who responded that business is moving in the right direction in corporate citizenship showed a slight improvement – an increase to 28 percent from 24 percent last year.
“Our research shows that investing in corporate citizenship is a positive brand-building strategy, not merely a defensive brand-protection strategy,” said GolinHarris President and CEO Fred Cook. “Progressive brands realize that corporate citizenship is more than a ‘nice to have’ -- it’s a ‘must have’ activity for their success.”
In addition to giving their impressions of the general direction of corporate citizenship in this country, respondents were asked to rate the performance of 108 companies. From those ratings, GolinHarris developed a single score for each company, called the Corporate Citizenship Index, which enables comparisons between various brands and industry groups.
“Embracing corporate citizenship as an essential business strategy is what sets the top performing brands apart in the GolinHarris 2005 Corporate Citizenship Index,” said Rob Anderson, executive vice president of Change, the agency’s corporate social responsibility practice. “These brands have successfully demonstrated that their commitment to corporate citizenship is authentic, pervasive, and essential to what they stand for.”
This year, Johnson & Johnson topped the list. The top 10 performers are:
1 Johnson & Johnson
2 Ben & Jerry’s
3 Walt Disney Company (tie)
3 Whole Foods (tie)
5 SC Johnson
6 Kraft
7 3M (tie)
7 McDonald’s (tie)
7 Procter & Gamble (tie)
7 Southwest Airlines (tie)
So what constitutes a good corporate citizen? Respondents identified 12 key drivers that determine a company’s performance as a good corporate citizen, with how a company treats its employees as the number one driver. Following is an overview of the 12 corporate citizenship drivers (percentage of respondents ranking this attribute “very high” or “high”):
1. Values and treats its employees well and fairly (85%)
2. Executives and business practices are ethical, honest, responsible and accountable (83%)
3. Goes beyond what is required to provide safe and reliable products and services (75%)
4. Responsibly markets and advertises its products and services (72%)
5. Committed to social responsibility, economic opportunity, environmental protection, etc. (72%)
6. Listens to community or customer input before making business decisions (68%)
7. Is active an involved in the communities where it does business (68%)
8. Committed to diversity (gender, race, etc) in the workplace and its business practices (65%)
9. Company's products and services enhance peoples' lives (64%)
10. Corporate values and business practices are consistent with my own beliefs (62%)
11. Supports a cause or issue that has led to improvement and positive change (61%)
12. Donates or invests its fare share of profits, goods or services to benefit others (59%)
The impact of a company’s good corporate citizenship standing is not only dependant on its initiatives, but on its ability to communicate its commitments effectively. According to the survey, the top five most credible ways to learn about a company’s corporate citizenship are through:
1. People and organizations who have been helped or are personally involved in the company’s corporate citizenship
2. News coverage on television and radio
3. News coverage in newspapers and magazines
4. Partnering with non-profit organizations, educational institutions, government and other groups I trust, respect and admire
5. Community events, fundraisers, sponsorships, symbols of solidarity -- e.g., ribbons, bracelets, bumper stickers, etc.
About the Survey
Doing Well by Doing Good 2005: The Trajectory of Corporate Citizenship and American Business was designed by GolinHarris research and fielded through InsightExpress, a leading online market research firm. 3,500 online interviews were conducted with Americans between April 8 and May 3, 2005, with participant demographics weighted and balanced to provide a representative sample and conform to the 2000 US demographics. The margin of error is +/- 3% at 95% confidence.
About GolinHarris
Founded in 1956, GolinHarris is a full-service public relations firm, providing professional counsel and strategic communications programs to clients through 30 offices around the world. GolinHarris clients include American Legacy Foundation, McDonald’s Corporation, Toyota Motor Sales USA, Inc., Nintendo of America Inc., Texas Instruments, Sprint Corp., and the William Wrigley Jr. Co. GolinHarris is headquartered in Chicago. It is part of the Interpublic Group of Companies (NYSE: IPG). For more information – www.golinharris.com
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