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In Canada, our brands face constant scrutiny by a new generation of environmentally and socially conscious consumers. Rather than seen this as a challenge to profitability, businesses should take this opportunity to align their Corporate Citizenship strategy with their business goals to build measurable brand value.
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1 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
The case for Corporate Citizenship in
Canada
2 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
Our world today
Consumers are demanding more and businesses must meet these rising expectations
3 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
New expectations
The world is moving toward a new center of balance, where impact is just as important as profits
4 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
At Interbrand, we believe…
Corporate Citizenship should be a mandatory consideration of a brand’s DNA that we can not deny.
5 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
We believe that a stakeholder’s impression of a company is defined by how it treats a series of six constituents
Government Employees Customers Suppliers Community Planet
…defines their perceived “Corporate Citizenship”
How a company treats….
6 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
How is value created?
“Corporate Citizenship aligned with Business Strategy drives Brand Value.”
7 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
Interbrand’s research on Corporate Citizenship
8 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
Interbrand did research to understand the impact of Corporate Citizenship across the customer journey
Purchase Choice Brand Favorability Brand Commitment Brand Advocacy
Measure the influence of CC on a stakeholders propensity to purchase one brand versus another
Measure the influence of CC on a stakeholders opinion of a brand
Measure the influence of CC on a stakeholders loyalty to buying one brand in the presence of competitors
Measure the influence of CC on a stakeholders propensity to advocate favorably on behalf of a brand
9 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
While corporate citizenship is important, many companies we spoke to have unanswered questions
“The studies that currently exist ask people directly how important Corporate Citizenship is and we know that they tend to over claim, so what is its real impact?”
“If Corporate Citizenship does influence stakeholders, where exactly on the customer journey does it have an impact?”
“Much has been written about how B2C purchasers feel about this area, but what about B2B purchasers?”
“This is seen as a cost internally how can we quantify what its real effect is in on our business and reputation?”
10 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
Interbrand’s research found that billions of dollars of brand value are tied to Corporate Citizenship
0.0
Source: IB BGB 2009 valuations and applied CC influence of purchase choice
1.5
1.0
0.5
Billion $ Brand value attributed to Corporate Citizenship
Total for these 15 companies is over $11 Billion
11 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
Top learnings from our study:
#1 People do form a holistic view of a company’s Corporate Citizenship activities
#2 Corporate Citizenship significantly impacts consumer brand opinion
#3 Corporate Citizenship impacts B2B purchasers even more than consumers
#4 Environmental attributes are less important than more altruistic initiatives
#5 The more considered the purchase the greater the effect of Corporate Citizenship
Interbrand’s view on macro trends reshaping
how brands need to behave
13 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
Trend No. 1
Trust in institutions, particularly corporations, continues to decline across the globe. As a result, customers are searching for honest and authentic brands.
http://www.marketingmag.ca/brands/consumer-trust-in-corporations-reaches-new-low-globescan-113880
$800M Revenue earned in 2012 by Etsy, the online marketplace for authentically handmade crafts3
Authenticity
Of Canadian consumers feel responsibility to purchase products that they think are socially and environmentally responsible1
88% 87% Of Canadian consumers are willing to act as brand ambassadors and give positive recommendations once they trust a brand2
14 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
Authenticity
SINGAPORE AIRLINES
Levi’s Patagonia
Hudson’s Bay Company
15 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
Trend No. 2
The access to information today has increased public awareness of socially related causes. Consequently, people are taking action with a greater purpose, one that goes beyond only generating a profit.
http://ipsos-na.com/news-polls/pressrelease.aspx?id=6167
67%
Of Boomers choose making a difference for others over personal success3
Purpose
Of employees across 24 countries including Canada believe it is important for their employer to be responsible to society and the environment1
80% 86M Times the KONY 2012 videos was watched within 4 weeks of its release)2
16 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
Purpose
Warby Parker
DoSomething.org
bullfrogpower
17 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
Trend No. 3
The mass adoption of technology and social media has allowed consumers to actively converse with others, both near and far. Consumers are now engaging with brands and causes in customized ways that allow them to establish their own rules of participation.
62%
Of people use social media to address or engage with companies around Corporate Citizenship1
Participation
Total dollars pledged (in millions) across the 73,620 projects launched on Kickstarter
$381M 35,472 Individuals or organizations have launched fundraising campaigns for charity:water since it launched in 2006
18 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
Participation
Kiva
Kickstarter
BRIKA
19 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
Trend No. 4
As the economy has faltered in several regions across the globe, people are empowered to pursue different projects, careers and lifestyles that provide a greater sense of fulfillment.
www.marketingmag.ca/brands/consumer-trust-in-corporations-reaches-new-low-globescan-113880
86% of young people, ages 9-30, across 24 countries, agree2
Empowerment
Of Canadian consumers would switch brands if one carried a cause and another did not1
91% 89% Of organizations rated the importance of sustainability strategy as important to very important in creating a positive brand that attracts top talent3
“My age group has the potential to change the world for the better”
20 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
Empowerment
Causes.com
(RED)
MEC
21 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
Trend No. 5
The private sector is playing a more visible role in society by embedding Corporate Citizenship into their business strategy and providing support for the cultural and structural changes that generate shared value.
of people globally believe business should place equal weight on societal issues and business issues2
Shared Value
Of CEOs believe that sustainability issues will be critical to the future success of their business1
93% 65% Of executives involved in corporate environmental strategy stated that their CFOs are involved in sustainability3
87%
28% of these people believe businesses are performing well today
22 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
Shared Value
Whole Foods
Unilever Canadian Tire
Starbucks
23 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
Three key takeaways for Canadian brands
1. Share your story. There is an inherent reluctance in Canada to broadcast achievements, presenting a missed opportunity to develop stronger relationships with all stakeholder of the brand
2. Set the standard. Canada is recognized globally for its progressive thinking, the world needs to learn the lessons of its success
3. Measure your impact. To remain committed, leaders need to understand the business outcomes attributable to their investments
25 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
For more information, contact:
Carolyn Ray, Interbrand Canada [email protected]