how do company values affect consumer behavior?
I've noticed some interesting tidbits lately about how we respond to corporate actions that communicate social responsibility, and I'd welcome a chance to generate a dialogue about these issues. Take this poll, in the right sidebar of the Case (family) Foundation Spotlight, for instance: it asks, when is a company's commitment to a social issue most important? and suggests that the company's values might influence the products we buy, where we work, or how we invest. Which would you choose?
(Go ahead, click over there, and then come back and tell me! And if you have a hard time deciding, check out these Reebok sneakers, and let me know if you would be more likely to buy them because of the cause you'd be supporting....)
Another datapoint: the online shopping portals that are springing up to allow consumers to donate a portion of their purchases to worthy causes. The latest one I've come across is Alonovo, which allows each user to indicate which social and environmental issues are most important, and then get data about the companies which supply books, music, computers, electronics, etc. that you might want to buy. For instance, you can choose to buy products from companies which share their profits with employees, or which have a better representation of women and ethnic minorities on their boards.
A third datapoint: businesses which have fully embraced sustainability, like the ones that students in the green MBA program visit on field trips, or like Cleveland's own Great Lakes Brewing Company and nearby Wooster's Hartzler Dairy. Will the new business ideas emerging from the Entrepreneurs for Sustainability network in Northeast Ohio find that they are favored by consumers because of the values which guide their business development?
What do you think? Is this a blip, or a genuine trend?
Comments
As an avid consumer -- with four children who seem to be growing out of, well...everything...at a mind-boggling rate -- I find that our family is typically influenced by a "good buy" before that of "a good sell."
And I would venture to guess that most consumers, like me, realize that big companies, like Reebok, are in the business...to make a profit.
But, it's when companies show that they, too, can take heart by being a little more socially conscious that gets my attention, most everytime.
And if that's merely a blip...then other companies best get on the radar, because there are consumers out there (**waving**) who'd be more than happy to spend a little more on a company that shows it cares, especially when it's for a good cause.
And, perhaps even my business.
Hi Liz,
thanks for the comment. I agree -- most of the time, I'm looking for a good price, too, but.... if I'm buying something optional (like a specialized pair of shoes), then I am happy to spend more on a company that shows it cares.
-Sandy
Greetings Professor,
We are hoping to close the gap (no pun intended) on price, product quality and underlying supply chain behavior. With scale we will connect marketforce demand for products from manufacturers and merchants that embody a better balance of people, planet and profit.
We believe people want to be informed (in an easy manner) and the integration of Corporate Report Cards directly into the online shopping experience will lead to a better partnership between society and business.
We have a long road ahead in terms of acquisition and integration of more trusted data (for more comprhensive coverage). Also, while we think our effort will yield gradual, positive change there is still what Dr. Martin Luther King Jr. described as the "Fierce Urgency of Now". This is why we give 20% (in some cases 40%) of our revenue to prolific non-profit organizations selected by each member of the alonovo community.
Thanks for blogging about us --we rely upon earned media, the blogsphere and referrals for our growth so I am personally grateful.
George
Founder, alonovo.com