Ethical purchasing squeezed by recession, but companies will continue to invest in company responsibility (CR)
As the economy continues to dominate public concerns[1], Ipsos research shows the importance of company responsibility in people’s purchasing has declined sharply this year. When choosing a purchase, only around a quarter (26%) of the British public think it is very important that a company shows a high degree of social responsibility, compared to 43% in 2008 (in fact, we haven’t seen a ‘very important’ figure that low since 1997). A further 48% say it is fairly important, bringing the total ‘important’ figure to 74% – down from 83% in 2008. So while a majority still think ethical purchasing is important to some degree, the intensity of people’s opinion has seen a particularly marked decline.
Nevertheless, the majority of companies and of some key stakeholders working in this field believe that companies will continue to invest in corporate responsibility. Asked whether companies will continue to invest in corporate responsibility despite a tougher economic climate, 85% agree they will do so among Ipsos’s Reputation Council (senior communications professionals within companies), 70% agree among Corporate Responsibility Experts (CR commentators and advisory organisations) and 64% agree among NGOs (UK-based non-governmental organisations, e.g. campaigners and charities).
The Board is more likely to need convincing, however: 57% of Captains of Industry agree companies will continue to invest in corporate responsibility despite a tougher economic, lower than the other groups but still a majority view.
Milorad Ajder, Head of Ipsos’s Reputation Centre, commented:
“Consumers are, of course, looking to do more with less just like companies. This has led to some dilution of corporate responsibility in their purchasing behaviour as people often equate ethical purchasing with premium prices. However, the issue has clearly not gone away and still remains an important consideration.”
He added:
“While some consumers may have been distracted from ethical purchasing concerns while they struggle to cope with the recession, the long-term pressures on companies to act responsibly remain. Those companies best-placed to capitalise on the recovery will be those which are seen to have stood by their principles during the tough times, emerging with their reputations intact.”
Technical Notes to Editors 1. A nationally representative quota sample of 1,011 British adults aged 16+ was interviewed throughout Great Britain on the Ipsos Omnibus, across 157 sampling points. Interviews were carried out using CAPI (Computer Assisted Personal Interviewing), face-to-face in respondents’ homes between 4 and 10 September 2009. Data have been weighted to reflect the known national population profile. 2. This is compared to 2008 data: a nationally representative quota sample of 1,016 British adults aged 16+ was interviewed throughout Great Britain, face-to-face in respondents’ homes between 7 August and 4 September 2008. The findings from previous years are based on c. 1,000 GB adults 16+, interviewed each year using the same methodology. 3. The findings on ‘Companies will continue to invest in corporate responsibility despite a tougher economic climate’ (% responding ‘strongly agree’ plus % ‘tend to agree’) are based on:
- 40 Reputation Council members (communications professionals from leading European companies, interviewed by telephone February/March 2009)
- 20 Corporate Responsibility Experts (from membership organisations, think tanks, commentators and spokespeople, interviewed by telephone July/August 2009)
- 22 NGOs (senior representatives on business responsibility from a range of campaigning organisations and charities, interviewed by telephone July/Aug 2009)
- 100 Captains of Industry (MDs, Chairmen, CEOs and other Board Directors from FTSE 500 companies, interviewed face-to-face Sep-Dec 2008)
