March 2009: New survey reveals the importance of Corporate Responsibility to consumers in a downturn

New survey reveals the importance of corporate responsibility to consumers in a downturn

Major opportunity exists for companies to gain a competitive advantage if they communicate their social and environmental responsibilities Dublin, 25th March 2009: Companies who are socially and environmentally responsible can claim a major competitive advantage but they need to communicate their activities to Irish consumers, according to a new survey issued today by Business in the Community Ireland, a leading organisation dedicated to corporate responsibility. The 2009 Survey of Consumer Attitudes in Ireland towards Corporate Responsibility was commissioned by Business in the Community Ireland in conjunction with Ipsos MORI and it is the third such survey in the past decade, with previous versions taking place in 2003 and 2006. Click here to view survey report A key trend emerged from the survey, which was the vital need for companies to communicate what they are doing to consumers regarding social and environmental responsibility “A huge opportunity exists for companies who are engaging in socially and environmentally responsible business practices to come forward and claim that space. These are issues which are important to consumers so if a company gets it right, it can have a major impact on their competitive advantage”, said Ms. Roche. When forming a decision to buy a product or service, 8 out of 10 people in Ireland say that an organisation's commitment to social and environmental responsibility is important yet almost eighty percent (80%) of consumers could not name one company which treat staff well, give good customer service and are mindful of its impact on the environment. In addition, whilst ninety-two percent (92%) of consumers are taking individual actions to limit their own environment impacts, three out of four people (75%) could not name a company doing the same. Another key issue emerging from the survey was the importance of customer service. Over eighty percent (81%) of consumers said ‘Customer Service' was the most important factor when making a judgement about a company. This is an increase of 24 percentage points since the first survey took place in 2003. In addition this year, 69% said ‘Being Honest & Open' was important. When asked if they had made a decision not to buy from a particular company, over twenty percent (22%) of respondents said they had. This is one-fifth of potential consumers in Ireland. The main reason cited was ‘Poor After-Sales/Customer Service' at 22%. Interestingly, ‘High Prices/Too Expensive' came in second at 17%. “Good customer service is important to consumers in this country. In a recession, attracting or retaining the dissatisfied section of a consumer base may make the difference between trading or not”, commented Tina Roche, CEO of Business in the Community Ireland. Other key findings of the survey included: • 61% of consumers believe the government should make it part of legislation for a public organisation to issue an environmental/sustainability report • TV advertising (38%) is the main source where the Irish public finds out about the social and community activities of organisations. Press advertising (25%) and word of mouth (24%) closely followed. About the 2009 Survey of Consumer Attitudes in Ireland towards Corporate Responsibility This is the third in a series published by Business in the Community Ireland. The survey was carried out by research firm Ipsos MORI. In September/October 2008, IPSOS MORI's fieldforce interviewed 1,031 adults aged 16 and over in the Republic of Ireland. The sample was representative of the population by age, gender and region. Face-to-face interviews were conducted in respondents' homes.