While some brands live and thrive by their ESG principles, others claim to walk the walk while only ever talking the talk.
Consumers want the brands they buy from to take a stand on social, environmental and sometimes even political causes – and there is a growing body of evidence to support the trend.
Here, CX Network looks at five figures that prove the business case for ethical operations.
45 percent
In Shep Hyken’s annual study Achieving Customer Amazement 2022, 45 percent of 1,000 consumer respondents said they believe it is important for a company to support a social cause that is also important to their customers.
In the current climate of inflation, supply crunches and reduced budgets, a cause can resonate with customers in new ways – it could even inspire them to look beyond price, Hyken says.
“Customers who buy from brands that support causes – brands that are ‘ethical’ – these customers overlook the potential lapses in service because the company is trying to do good in a world where the customer has the same philosophy,” Hyken explains.
£122bn
The Ethical Consumer Markets Report 2021 found a continued increase in ethical consumer spending and finance in the UK. In fact, there has been near 24 percent increase in ethical consumer spending and finance from 2019 to 2020, with the size of the market now standing at £122bn.
Steve Murrells, CEO of the Co-op Group which co-produced the report, said: "Our Ethical Consumerism Report is a barometer on consumer behavior – and shoppers are turning up the heat by boycotting businesses which fail to act on ethical or social concerns. The report is a warning to brands that they must do business a better way for workers, communities and the planet. But it also offers clear evidence to policy-makers that they can positively influence change."
71 percent
A 2021 report from the Economist Intelligence Unit revealed online searches for sustainable goods increased by 71 percent between 2016 and last year. In its global study with the Worldwide Fund for Nature, EIU said this proves how consumers have changed their buying habits over recent years.
EIU also said corporations are responding, particularly in the cosmetics, pharmaceutical, fashion and food sectors.
“Covid-19 has produced irreparable losses, and emphasized the extent of our interdependence with the natural world,” says Marcelo Behar, the VP of sustainability and group affairs for Natura & Co.
“Consumers are becoming increasingly knowledgeable about nature preservation and sustainable production cycles, and this trend in the report shows no signs of slowing. The adoption of sustainable practices in business is not just about improving sustainability credentials, it makes business sense. Whilst there may be a cost to mitigating against these risks, this cost is far less than the cost of not acting,” Behar added.
10-25 years of age
While some would expect older generations to be more aware of environmental collapse, this is not the case. Study after study has found that it is Gen Z – those currently aged between 10 and 25 years of age – who most frequently demand sustainable brands and products.
In fact, a WeForum study published in early 2022 found that three quarters of Generation Z respondents prefer to base buying decisions on sustainability of the product, rather than prestige of the brand. Furthermore, Gen Z spending on sustainable brands and products has increased 24 percent since 2019 and their views are now influencing other generations, too.
80 percent
According to CX Network’s own research, 80 percent is the share of CX practitioners that have noticed their customers becoming more conscious of sustainability.
The Global State of CX 2022 report confirmed a 'progression' in customers desiring better sustainability practices, as well as convenience, over the past 12 months. In fact, when it comes to choosing companies to buy products and services from, customers are scrutinizing ESG claims more than ever.
For example, just over 80 percent of survey respondents said this awareness of company ethics now influences their buying decisions.
“Sustainability is no longer just nice to have, but definitely a need to have,” says Michael Stausholm, the founder of Sprout, which developed the world’s first plantable pencil. “Consumers want to purchase products from companies that make a difference.”
Read the full report here.