the case for corporate citizenship in canada

1 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014

The case for Corporate Citizenship in

Canada


Our world today

Consumers are demanding more and businesses must meet these rising expectations


New expectations

The world is moving toward a new center of balance, where impact is just as important as profits


At Interbrand, we believe…

Corporate Citizenship should be a mandatory consideration of a brand’s DNA that we can not deny.


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….


How is value created?

“Corporate Citizenship aligned with Business Strategy drives Brand Value.”


Interbrand’s research on Corporate Citizenship


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


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?”


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


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


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


Authenticity

SINGAPORE AIRLINES

Levi’s Patagonia

Hudson’s Bay Company


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


Purpose

Warby Parker

DoSomething.org

bullfrogpower


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


Participation

Kiva

Kickstarter

BRIKA


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”


Empowerment

Causes.com

(RED)

MEC


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


Shared Value

Whole Foods

Unilever Canadian Tire

Starbucks


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


For more information, contact:

Carolyn Ray, Interbrand Canada [email protected]

the case for corporate citizenship in canada

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