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1CONSUMERS WHO CARE Copyright © 2013 The Nielsen Company

C o n s u m e r s W h o C a r eAnd SAy They’ll RewARd CompAnieS wiTh TheiR wAlleTS August 2013

3Copyright © 2013 The Nielsen Company

Do Consumers Care about soCial impaCt?In the year and a half since Nielsen first published “The Global, Socially-

Conscious Consumer” report, which examined consumer interest in

corporate social impact, models of corporate responsibility have continued

to evolve. The concept of creating shared value, introduced by Michael

Porter and Mark Kramer, has caught on as companies emphasize their

ability to make an impact through their core operations, in some ways

de-emphasizing a separate “social responsibility” agenda. John Mackey

and Raj Sisodia made a similar case for companies in their 2012 book

Conscious Capitalism, which celebrated the “innate potential of business

to make a positive impact on the world.”

These concepts, which can be viewed as part of a broader sustainable

development agenda, aim to integrate social impact into the heart of

corporate strategy. Meanwhile, traditional corporate philanthropy—gifts

of cash, goods and services to non-profit organizations—also continues

to grow.1 Somewhere between traditional corporate philanthropy and

the emerging shared-value ideal, brands continue to align business and

social interests through cause-marketing opportunities: using social

and environmental efforts to increase consumer engagement. IEG, a

sponsorship consultancy, estimates that cause-marketing sponsorships

reached $1.7 billion in 2012 in North America alone, and this investment

will increase in 2013.2

Nielsen recently surveyed more than 29,000 online respondents in 58

countries to see whether any of this matters to consumers. As in 2011,

we used stated willingness to spend more on goods and services from

companies that have implemented programs to give back to society as a

proxy for how much consumers care about brand investments in social

impact. The results provide one simple gauge for whether consumers

care—about cause marketing, shared value, conscious capitalism or

other pursuits of corporate social impact—and they help to quantify the

growing desire among consumers to reward those companies they view

as socially responsible.

AbouT The GlobAl Survey MeThodoloGy

The findings in this survey

are based on respondents

with online access across

58 countries. While an

online survey methodology

allows for tremendous

scale and global reach,

it provides a perspective

only on the habits of

existing Internet users,

not total populations. In

developing markets where

online penetration has not

reached majority potential,

audiences may be younger

and more affluent than

the general population of

that country. Additionally,

survey responses about

purchasing habits

are based on claimed

behavior, rather than

actual metered data.

1 Committee Encouraging Corporate Philanthropy, “A Sneak Peak at Corporate Giving Trends,” June 2013

2 IEG, “2013 Sponsorship Outlook,” January 2013

4 CoNSuMerS Who CAre

Consumers inCreasingly CareIn the latest survey, half of all respondents (50%) said they would be

willing to reward companies that give back to society by paying more for

their goods and services—up from 45 percent in 2011. The percentage

of respondents who agreed increased among both males and females

and all age breaks covered. While respondents under age 30 are still the

most likely to say they’d spend more, the attitudes among respondents

ages 40 to 54 are shifting most rapidly. Among consumers ages 40-44,

for instance, 50 percent agreed that they would spend extra for goods and

services from companies giving back to society, up from just 38 percent

two years ago.

“While cause-marketing programs seem to resonate most strongly among

younger respondents, the rapid change in sentiment among middle-aged

consumers expands the cause opportunity for brands,” said Nic Covey,

vice president of corporate social responsibility at Nielsen. “Today, brands

can confidently focus purpose messaging on both younger and older

consumers.”

5Copyright © 2013 The Nielsen CompanyCoNSuMerS Who CAre

Willing to spend more by demographic group

Source: Nielsen Global Survey on Corporate Social Responsibility, Q3 2011 and Q1 2013

Percent who agree and strongly agree

2011

UNDER 2021 TO 2425 TO 2930 TO 3435 TO 39

40 TO 4445 TO 4950 TO 5455 TO 5960 TO 64

65 AND OVER

AGES

44%53%52%49%51%38%39%37%38%33%32%

49%55%56%53%53%50%47%48%43%42%34%

2013 CHANGE FROM 2011 / 2013 100%

GLOBAL AVERAGE - 50%FEMALE - 47%

MALE - 53%GLOBAL AVERAGE - 45%

FEMALE - 43%MALE - 47%

20132011

6 CONSUMERS WHO CARE

geography mattersCompanies will have an easier time finding consumers willing to pay

extra in India and the Philippines than in Russia, Belgium or Estonia. The

density of respondents willing to spend more on products and services

from companies that give back varies considerably across the 58 countries

Nielsen examined. Broadly speaking, European respondents were less

likely to pay more for goods and services from companies that “give

back”—just 36 percent of consumers in the region said they would do

so. Meanwhile in India, the Philippines, Thailand, and Indonesia, more

than two-thirds of respondents said they’d pay extra. A significant three-

quarters of respondents in India agreed that they would do so.

What makes consumers in India nearly three times more likely to reward

companies that give back than those in Estonia and Belgium? Existing

high citizen expectations of corporate social responsibly (CSR) may be

the reason. Expectations in India are so great that a bill working its way

through parliament contains a clause mandating CSR investments from

certain companies3. Conversely, a broader cynicism toward business

seems to prevail in Europe. A study released by the European Commission

earlier this year showed that 41 percent of citizens in European Union

member countries felt that the overall influence of companies on society

was negative, more than citizens in other major economies4.

“In countries where skepticism toward corporate social responsibility runs

high, cause-marketers face an uphill battle,” said Covey. “In these markets,

especially, social impact programs must be incontestably authentic to a

company’s business objectives, vision and values.”

3 Ministry of Corporate Affairs, Government of India, “The Companies Bill, 2012,” December 2012

4 European Commission, “How Companies Influence Our Society: Citizens’ View,” April 2013


INDIAPHILIPPINES

THAILANDINDONESIA

EGYPTVIETNAM

PERUPAKISTAN

VENEZUELACOLOMBIA

MALAYSIACHINA

SOUTH AFRICABRAZIL

MEXICOBULGARIA

CHILEHONG KONG

SAUDI ARABIASINGAPORE

GREECESLOVAKIA

ARGENTINAAUSTRIA

UNITED ARAB EMIRATESPORTUGAL

SWITZERLANDISRAEL

ITALYUNITED STATES

TAIWANTURKEY

ROMANIAIRELAND

LATVIAHUNGARY

SWEDENNEW ZEALANDSOUTH KOREA

SPAINGERMANY

CANADADENMARK

NORWAYPOLAND

AUSTRALIALITHUANIA

UKRAINECZECH REPUBLIC

UNITED KINGDOMJAPAN

FRANCENETHERLANDS

FINLANDCROATIA

RUSSIABELGIUMESTONIA

56%68%60%56%57%64%51%60%54%59%56%64%34%46%54%NA54%50%47%40%31%NA42%41%49%38%39%36%38%36%43%48%38%36%25%32%34%32%44%31%27%33%30%37%30%31%28%28%28%27%25%27%20%31%36%29%26%31%

75%71%68%66%64%64%62%61%60%60%60%59%55%55%54%53%53%52%52%52%52%50%50%50%49%46%46%44%44%44%43%43%42%42%42%42%41%41%41%40%38%38%37%37%37%37%36%35%32%32%31%31%31%31%31%29%28%27%

2011 2013 CHANGE FROM 2011 / 2013 100%

groWing Willingness to spend more on products

from socially-responsible companies

Source: Nielsen Global Survey on Corporate Social Responsibility, Q3 2011 and Q1 2013


8 CoNSuMerS Who CAre

What they’ll say anD What they’ll DoOf course it’s unlikely that all respondents who said they will spend more

money on goods and services from companies that implement programs

to give back actually will spend more. This is why we look at this metric

as a broader proxy. For starters, it’s unclear how many opportunities

consumers actually have to make this choice, today. At the moment of

truth—at the store, online and elsewhere—consumers have little clarity

around which companies have programs to give back and which ones

don’t. In the aforementioned European Commission study, just 36 percent

of citizens felt they were informed about what companies do to behave

responsibly toward society in their country.

Still, about four out of 10 global respondents in Nielsen’s survey reported

that they have rewarded companies that give back. Forty-three percent of

respondents globally agreed they spent more on products and services

from companies that have implemented programs to give back to society

(just 7 percent fewer than said they would be willing). Men were slightly

more likely to have done so than women (45 percent compared to 41

percent), and—as with willingness—younger respondents were more

likely than older respondents to say that they have done so.

9CoNSuMerS Who CAre Copyright © 2013 The Nielsen Company

self-reported purchasing from socially-responsible companies

UNDER 2021 TO 2425 TO 2930 TO 3435 TO 39

40 TO 4445 TO 4950 TO 5455 TO 5960 TO 64

65 AND OVER

AGES

45%48%52%48%45%41%36%37%33%33%20%

2013 100%

GLOBAL AVERAGE - 43%FEMALE - 41%

MALE - 45%


(Spent More in the Past 6 Months)

Source: Nielsen Global Survey on Corporate Social Responsibility, Q1 2013


Source: Nielsen Global Survey on Corporate Social Responsibility, Q1 2013

Looking at different rates of claimed purchase behavior by country, we

again see Asia-Pacific countries such as Indonesia (56%), Thailand (66%),

and the Philippines (64%) demonstrating commitment to products and

services from socially-responsible companies. Interestingly, a look at the

countries with a high willingness to pay more, but lower rates of actually

paying more for products and services from companies that give back,

reveals countries that are uniquely ripe for cause marketing programs.

In Slovakia, for instance, 50 percent of respondents said they would be

willing to spend more, but just 22 percent said they had actually done so

(a 28-point gap). Similar spreads existed in Bulgaria (53 percent willing,

but 31 percent who had), Peru (62 percent willing, and 42 percent who

had), and Hong Kong (52 percent willing, but just 32 percent who had).

largest gap betWeen Willingness to spend more

and self-reported purchasing

SLOVAKIABULGARIA

PERUHONG KONG

ARGENTINAEGYPT

DENMARKCZECH REPUBLIC

ISRAELVENEZUELA

50%53%62%52%50%64%37%32%44%60%

22%31%42%32%31%46%19%15%27%44%

SPENT MORE IN PAST 6 MONTHS

65%

WILLING TO SPEND MORE



engaging soCially-ConsCious ConsumersGlobally, Nielsen information shows that the share of consumers

interested in companies that have implemented programs to give back

to society is growing. Willingness to spend more on products and

services from companies that have given back increased in 43 out of the

58 countries Nielsen measured. Across demographic groups, too, social-

consciousness is a growing factor in the purchase process.

“Today, the question is not whether consumers care about social impact,

but which ones, how much and how to appeal to them,” said Covey. “The

answer isn’t necessarily a traditional cause-marketing campaign—general

responsibility, sustainable innovation and purpose messaging might

also engage these consumers. No matter the approach, savvy brands are

figuring out how to hit this nerve.”

To get started, first compare your brand’s consumer segments and

markets against the rates of social-consciousness found in this report.

Are your customers more or less likely to care? Next, determine whether

traditional modes of cause-marketing or “transactional philanthropy”

can and should be authentically executed by your brand. Alternatively or

in addition, are there messages of core purpose and shared value that

the brand could more deliberately communicate to consumers? When

effectively conveyed, a powerful purpose demonstrating shared value

ought to be more effective and sustainable than a stand-alone cause effort

any day, but this approach will not work for every brand and category.

Find ways to appeal to this segment of consumers and your brand is

bound to reap rewards and feel good about it along the way.


Argentina 66%

Australia 89%

Austria 80%

Belgium 81%

Brazil 46%

Bulgaria 51%

Canada 83%

Chile 59%

China 40%

Colombia 60%

Croatia 71%

Czech Republic 73%

Denmark 90%

Egypt 36%

Estonia 78%

Finland 89%

France 80%

Germany 83%

Greece 53%

Hong Kong 75%

Hungary 65%

India 11%

Indonesia 22%

Ireland 77%

Israel 70%

Italy 58%

Japan 80%

Latvia 72%

Lithuania 65%

Malaysia 61%

Mexico 37%Netherlands 93%

New Zealand 88%

Norway 97%

Pakistan 15%

Peru 37%

Philippines 32%

Poland 65%

Portugal 55%

Romania 44%

Russia 48%

Saudi Arabia 49%

Singapore 75%

Slovakia 79%

South Africa 17%

South Korea 83%

Spain 67%

Sweden 93%

Switzerland 82%

Taiwan 75%

Thailand 30%

Turkey 46%

United Arab

Emirates 71%

United Kingdom 84%

Ukraine 34%

United States 78%

Venezuela 41%

Vietnam 34%

AbouT The NielSeN GlobAl Survey

The Nielsen Global Survey on Corporate Social Responsibility was

conducted between February 18 and March 8, 2013 and polled more

than 29,000 online consumers in 58 countries throughout Asia-Pacific,

Europe, Latin America, the Middle East, Africa and North America. The

sample has quotas based on age and sex for each country based on their

Internet users, and is weighted to be representative of Internet consumers

and has a maximum margin of error of ±0.6%. This Nielsen survey is

based on the behavior of respondents with online access only. Internet

penetration rates vary by country. Nielsen uses a minimum reporting

standard of 60 percent Internet penetration or 10M online population for

survey inclusion. The Nielsen Global Survey, which includes the Global

Consumer Confidence Index, was established in 2005.

iNTerNeT PeNeTrATioN

Source: Internet World Stats, June 30, 2012


AbouT NielSeN Nielsen Holdings N.V. (NYSE: NLSN) is a global information and

measurement company with leading market positions in marketing

and consumer information, television and other media measurement,

online intelligence and mobile measurement. Nielsen has a presence in

approximately 100 countries, with headquarters in New York, USA and

Diemen, the Netherlands.

For more information, visit www.nielsen.com.

Copyright © June 2013 The Nielsen Company. All rights reserved. Nielsen

and the Nielsen logo are trademarks or registered trademarks of CZT/

ACN Trademarks, L.L.C. Other product and service names are trademarks

or registered trademarks of their respective companies. 13/6744

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