Inclusive research offers more business opportunities by amplifying marginalized voices

By Chris Githaiga

The climate crisis- the story of our time- and the COVID-19 pandemic are two global challenges that have indisputably shaped how consumers, investors, employees, and many other stakeholders view and interact with brands. Corporate governance issues such as workforce diversity and inclusion, executives’ pay among others have also not lost their place when it comes to consumer and investors consciousness.

In the face of these challenges, socially conscious consumers and investors expect heightened accountability from executives on how their companies address a variety of issues related to Environment, Social and Governance (ESG). They are increasingly screening businesses through the ESG criteria to determine which brands to spend or invest in.

To the discerning consumer, how a company safeguards the environment, including corporate policies addressing global warming, how it manages its relationship with various stakeholders, and its leadership, audits and internal controls is critical in the purchasing decision. Those businesses that demonstrates commitment towards the ESG are therefore more likely to enhance their brand equity and improve their bottom lines.

A 2021 Ipsos survey for the Global Commons Alliance found that majority of people across the G20 are concerned about the state of nature, both today (58% say they are worried) and in relation to protecting it for future generations (61%). Moreover, 73% of people believe Earth is close to “tipping points” because of human action.

Most people across the G20 want to do more to protect and restore nature in future (83%). People in developing countries in the G20 are more likely to say they are willing to do more to protect nature than those in wealthy, developed nations. In addition, 69% of people across the G20 believe the benefits of action to protect the global commons outweigh the costs.

The study also revealed the energy system is one of the areas that need transformation with 59% of people across the G20 aware of need to embrace a radical shift from fossil fuels to environment friendly and clean energy resources.

One of the changes discussed in the survey is a move to wellbeing economies. It was discovered that there is a strong desire to move to such economies, with 74% agreeing that their country’s economy should prioritize the health and wellbeing of people and nature rather than focusing solely on profit.

About 71% said they support targets for achieving the protection and restoration of nature being based on science. However, only a third (32%) agreed that when choosing between products or services, it makes no difference to them if the business supplying them has set targets based on science to protect and restore nature.

Our survey focused on shared identity and values as planetary stewards, understanding the challenges to protecting and restoring nature, attitudes towards responsibility for the global commons, attitudes towards major, social transformation and the impact of COVID-19 on these, and attitudes actions supporting transformation.

A 2021 survey by PricewaterhouseCoopers revealed similar findings. The Consumer Intelligence Series survey on ESG indicates more than three quarters of consumers say they will reward companies for playing a greater role in accelerating progress on such concerns. Consumers and employees want businesses to invest in making sustainable improvements to the environment and society, not just comply with regulation.

An overwhelming majority said they’re prepared to reward or punish brands accordingly. In short, they are more likely to buy or work for organizations that share their values across the four pillars of ESG.

With the foregoing, it is not difficult to understand why organizations, be they private, public or non-profit, are on the race to ensure they integrate ESG in their business strategies and operations. Statistics are very clear that ESG is shaping the business landscape and has become a critical pillar of investment strategies that everyone is giving attention.

Indeed, the Ipsos 2021 Earth Day’s study found two-thirds of the global public say government and business will be failing employees, consumers, and citizens if they do not take the lead in influencing actions towards reducing global warming responsible for climate change. Globally, only 31% believe their market has a clear plan in place for how government, businesses, and people themselves are going to work together to tackle the crisis.

They have given governments and businesses clear mandate to act. The issue is how fast government and business can embed sustainability and climate action as well as the social and governance pillars of their well-being into present structures, or new ones that are being established.
According to a 2020 survey conducted by OnePoll on behalf of NAVEX Global in December, 64 % of respondents said their companies increased its focus on ESG in 2020. A similar number (63%) said their companies were planning to increase spending on ESG in 2021.

What is more outstanding about data from the survey is that 87% of respondents agree that a business’s brand reputation is impacted by performance against ESG metrics. Further, 81% agree that a publicly traded company’s ESG ratings would influence their personal investment decision about that company’s stock.

No truth can be far from these findings. Many studies have revealed that strong brands tend to have high environmental, social and governance ratings.
According to the State of Green Business 2021 Positive Impact, 53% of revenues of the 500 largest U.S. companies and 49% of revenues of the 1,200 largest global companies are generated in business activities that support Sustainable Development Goals (SDGs).  The SDGs outline a set of objectives to be achieved by 2030 that aim to end poverty, hunger, and inequality, while tackling climate change, improving health and education, and strengthening institutions globally.

There is, however, the criticism that the movement toward socially conscious investing that is increasingly gaining popularity only favors the big players in the industries since many ESG initiatives require additional overhead costs in the medium term which may not be affordable to the newbies.
Indeed, a 2022 study by The Conference Board in collaboration with ESGAUGE and Heidrick & Struggles show that smaller publicly traded firms remain on the sustainability-disclosure sidelines. But there is evidence that socially conscious consumers and investors expect every business irrespective of its size to do more when it comes not only to demonstrating commitment but also on reporting on ESG.

Many business leaders already understand the potential impact ESG investments have on their own business operations and their full value chain. The benefits cannot be gainsaid.

The challenge for every business entity or brand, however, is how to successfully adopt and implement a robust and forward-thinking consumer centric ESG strategy that will boost brand equity and revenues.

In our whitepaper on consumer consciousness published early this year, we note how businesses require a more holistic strategy, based on recent developments in neuroscience and data science/analytics to build a kind of consumer consciousness in an organization.

Such integrated, learning system that puts the consumer at the heart of the business requires three elements for a consumer conscious company: The availability and connectivity of consumer data, ability of a connected consumer data platform to create fresh, new consumer insights with appropriate analytical capabilities and the level of activation of these consumer insights and feedback of learnings to the consumer data platform.

Various companies are deploying different strategies to embed ESG in their operations and to get closer to the consumer. Some are focusing on acquiring vast amounts of consumer data like sales data, social media feeds and market research reports. Others focus on information technology systems to integrate available data on one platform. There is also use of market research to find interesting insights to help drive innovation, communication, or in-store activation. Use of digital one-on-one marketing to give consumers personalized offers has been on the rise especially in the digital age.

In an increasingly volatile world however, where market developments and consumer behaviors have become harder to predict, inclusive market research offers an invaluable solution.

In a shift from traditional research approaches which involved sampling a large consumer base with little regards to culturally and geographically diverse demographics, inclusive market research embraces diversity and inclusivity.
It casts a wider net in its sampling which involves reaching out to typically underrepresented minorities, irrespective of gender, age, race, sexual orientation, religion, or disability status.

By considering diversity of consumers to include those who may have been left out by conventional methodologies, this new trend in social market research can accurately reveal the preferences, motivations, and aspirations of vast array of consumers.

Data from inclusive social market research is what can give an accurate picture of what people value in different geographical areas and cultures. This enables brands to easily cut through the clutter and to amplify the voices of customers who are often marginalized, and to craft communications and product development strategies that engage more consumers in dialogue.

Organizations that employ an inclusive data-driven approach are therefore not only more likely to succeed in developing and implementing ESG strategies but are also to effectively craft effective stories that communicate their commitment and progress.

It is also a fact that companies with a high level of consumer consciousness are more aware and attuned to consumer needs and more agile to developing needs or market disruptions.

Forbes asserts that inclusive market research can yield innovative and forward-thinking insights to support inclusive product development with traditional primary market research tactics like surveys, interviews, focus groups and usability studies.
The key is, however, the intercultural competence of the market researchers which will lead them to an inclusive approach to research that relies on a diverse sample of respondents and employs cultural understanding to provide psychological safety for them. This enables you to gather open and honest responses.

To benefit from inclusive market research however, companies must first admit the diverse perspectives from which consumers view and use their products and services. This fact can only be appreciated when research methodology focuses on marginalized consumers. Those whose voices have been missing in marketing and communication strategies.

Then there must be a genuine effort to ensure inclusivity in the way the sampling and overall research is conducted. This includes a personal commitment by the researchers to bring on board the marginalized voices, use sensitive language that is not demeaning to the target communities and ensure there is no bias in creating the research survey. This can be achieved by assembling a diverse team of researchers.

Not all companies have the in-house capacity to conduct inclusive social marketing research due to the costs involved. Such investments however, as demonstrated here are outweighed by the benefits. It is therefore important that they enlist the services of experts in the field.

At Ipsos in Kenya, we have experts with thorough knowledge and deep understanding of the language and culture of specific underrepresented communities. This enables us to easily identify those within such groups who when engaged even through traditional research tactics can speak with authority on their needs and challenges and reflect the true picture of demographics.

**The author is the Managing Director at Ipsos in Kenya