Seven out of 10 customers in India prefer to conduct business with companies that have implemented socially responsible programmes, according to a Nielsen study.
The new report from the global information and measurement company also notes that education is the most popular social cause among consumers. Three in five consumers identified focus on education, with special reference to science and math, as a key social cause companies should embrace.
Nielsen’s Global Corporate Citizenship Survey shows that 55 per cent of Asia Pacific (APAC) consumers are even willing to pay extra for products and services from companies that have implemented programmes to give back to society. This stands higher than the global average of 46 per cent.
Consumers have also indicated that they would also prefer to work with those companies that have indulged in these programmes. Around 66 per cent of APAC consumers said they would work with firms that give back to society. In India, over half of the consumers surveyed are willing to pay more for products of business houses that adopt social causes.
“Increasingly, consumers are expecting companies to take responsibility for their immediate environment and society around them,” said Piyush Mathur, president of Nielsen (India region). “It is important for marketers to understand the profile and expectations of these consumers to forge a deeper bond that goes beyond their immediate products and services.”
The study showed that over two in five socially-conscious online consumers in India are willing to accept lower wages if they work for a company that has programmes that aim to positively impact society.
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As an understanding of age, over eight in ten respondents under the age of 20 indicated they were willing to accept a lower compensation, if the company supported society enhancing causes.
“According to consumers surveyed, Indian companies should take up causes that impact the economy and have a long-term sustainable outlook,” said Mathur. “These should also have an impact on the economy with a focus on increasing the talent pool through the right training. So while other causes are also important, consumers feel that companies have the expertise and knowledge to lend into streams that they can optimally benefit.”
The Nielsen survey also showed that the highest concentration of socially-conscious consumers is in the Philippines, where 68 per cent of respondents are willing to pay extra for products. The lowest concentration is in the Netherlands, where the pertinent percentage was 21.
| WHAT CUSTOMERS WANT A survey of consumers who prefer to buy products, work for and invest in firms that give back to the society | |||||
| Latin America | Middle East/Africa | Asia Pacific | North America | Europe | |
| Buy their products | 77 | 75 | 70 | 64 | 55 |
| Work for them | 73 | 72 | 66 | 56 | 54 |
| Invest in them | 75 | 72 | 63 | 55 | 47 |
| Source: Nielsen Global Survey of Corporate Citizenship, Q3, 2011 Note: All figures are in % | |||||
The Nielsen Global Survey of Corporate Citizenship was conducted between August 31 and September 16 last year, polling more than 28,000 online consumers in 56 countries throughout Asia Pacific, Europe, Latin America, the Middle East, Africa and North America.