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13 May 2009 Consumers increasingly concerned about brand ethicsSharon Greene, managing director of consultancy RISC International, spoke to edie about the need to engage consumers by understanding their motivations, rather than 'talking down' to them and assuming the brand knows best. She said that the internet had empowered consumers and shown them how to join forces with others who might share their frustrations about a brand. "20 years ago people would say 'I don't like it but what difference can I make'," she said. "But today people are connected and a motivated person can mobilise other people." She added that it is important to be aware that consumers are not going to stop buying the things they want any time soon, as for many shopping and acquiring new things would always remain a pleasure. But while consumption will inevitably continue, consumers are being increasingly motivated by ethical decisions and, where the choice was offered and quality remained high, would often opt for the more ethical brand. She said it was a mistake to pigeonhole consumers as being focused on a single issue, as the majority of people were now aware, and concerned about, a whole range of issues from the environmental to the social. Companies wanting to succeed in this arena needed to listen and respond, developing real relationships with their potential customers and would have to embed ethical practices deeper within their operations. She held up Cadbury's as one example of a company that had got it right, by making its Dairy Milk brand fair trade, rather than offering an alternative 'ethical' chocolate bar at a premium price. "The consumer gets to feel good about buying a product they might have bought anyway," she said. She also argued that ethical did not have to mean more expensive, and cited examples of the many companies that had cut their costs by looking at this agenda, from those who had achieved lower energy bills for those trying to cut their carbon emissions to those who had increased productivity on agricultural land through better engagement with farmers. Sam Bond Source: edie newsroom
This story is tagged as:
business | corporate social responsibility Click on a keyword to see more stories on that topic Click here to leave a commentCommentsCSR Elephants
By Mark H Sharon has exposed the potential folly of ignoring CSR from the eyes of the informed consumers perspective. This elephant in the room indicates that companies have lots more to do in this area. Go on any website and look for the evidence of active CSR, it exists in many of the obvious cases but very infrequently in my view. Often when it does exist it is tucked away in an obscure corner, why? Though CSR is not a label you just stick on, it is equally not difficult to do and fits comfortably with nearly every type and size of business. CSR gives a fantastic opportunity to illustrate the human side of business in way's that everyone can relate to and as Sharon states without costing any more if your creative about implementing it. Consumers faced with a buying decision between two competitive suppliers will easily, all things being equal go with the supplier that is actively walking the walk when it comes to CSR. I know ...[comment was too long] A long way to go By Lucy McSherry It is interesting that Cadbury's have been highlighted as an example of good practice in this article when they are one of the UK's leading users of unsustainable and largely unethically sourced palm oil, in a number of their products. Consumers awareness of not only where the products they consume come from but how the ingredients within those products are sourced need to be of increasing importance. Stricter regulations need to be enforced so that companies that are given the "fairtrade" label consider the wider implications of their products. By David Connor CSR is evolving rapidly and is here to stay. The most successful businesses of whatever sector are using CSR to gain a competitive advantage in a world where freedom to information is empowering customers. Sustainable consumption is almost an oxymoron but we as the human race aren't going to stop consuming overnight but we can quite easily be much more considerate to our natural resources. The step taken by Cadburys is a wonderful development. Not the answer on its own but a strong indicator to its competitors and similar organisations of the changing demands of consumers. Starbucks have agreed a similar partnership. When large mainstream brands take action like this it helps to raise awareness to the millions of consumers that wouldn't necessarily engage in these issues. The business world isn't perfect but then who is but the pace of acceleration around CSR et al is sorting the wheat from the organically grown chaff. http:/...[comment was too long] © Faversham House Group Ltd 2009. edie news articles may be copied or forwarded
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