Sounds counterproductive, right? Giving back can actually help grow your business? Correct. Here’s some of the research to help make our case:
Endelman – Good Purpose 2012 Report
- Across 16 markets with 8,000 consumers – consumers reported that Purpose is here to stay. Since 2008, 86% report that companies should place at least equal emphasis on their social interests as on their business interests.
- When quality and price are equal, the most important factor influencing brand choice is Purpose. This outpaces design and innovation, and brand loyalty.
- Across the globe, the prominence of Purpose as a purchase trigger has risen 26% since 2008. In certain regions, that growth is even more pronounced: Japan (100%), China (79%), Netherlands (43%), India (43%), and Germany (36%) since 2010. Executed with honest intent and a long-term view, Purpose provides distinct competitive advantage.
- 72% of consumers would recommend a brand that supports a good cause over one that doesn’t; a 39% increase since 2008.
- 71% of consumers would help a brand promote their products or services if there is a good cause behind them; a growth of 34% since 2008.
- 73% of consumers would switch brands if a different brand of similar quality supported a good cause; a 9% increase since 2009.
Conecomm – 2015 Global CSR Study
- 80% of people would buy a product from an unknown brand if it has strong CSR commitments.
- 62% of consumers would work for a socially or environmentally responsible company, even if the salary was less than other companies
- 80% would tell friends and family about a company’s CSR efforts
- 76% would donate to a charity supported by a company they trust
- 72% would volunteer for a cause supported by a company they trust
- CSR is also a powerful differentiator at the register, as 90 percent of global consumers would switch brands to one that is associated with a good cause, given similar price or quality. This inclination to shop with an eye toward greater good has remained strong since 2011.
Unilever – Sustainable Brands Research
Unilever’s “sustainable living brands” — brands that Unilever says contribute to environmental and social sustainability — accounted for half the company’s growth in 2014 and grew at twice the rate of the rest of the business
Global Tolerance/Guardian Research
Almost half the workforce (42%) now want to work for an organisation that has a positive impact on the world, according to research carried out by consultancy Global Tolerance. The survey of more than 2,000 people in the UK found 44% thought meaningful work that helped others was more important than a high salary and 36% would work harder if their company benefitted society.
The change, it would appear, is being driven by the so-called millennials. Of those born between 1981 and 1996, 62% want to work for a company that makes a positive impact, half prefer purposeful work to a high salary, and 53% would work harder if they were making a difference to others.
University of Southampton Purpose Research
Working to benefit a good cause increases productivity by up to 30 per cent, according to the findings of a new study from the University of Southampton.
When workers are given a social incentive such as a charitable donation linked to their job, performance increases by an average of 13 per cent, rising to 30 per cent amongst those who are initially the least productive.
Over half of millennials are willing to take a 15% pay cut to work at a company that matches their ideals.
Gallup research
Gallup completed an Employee Engagement survey which covers all businesses, not just employee owned ones. They do a number of these surveys – an American based one and an international one. These stats come from the latter. Of those employees who say they are engaged, the firms they work for report:
- 20% better productivity
- 41% lower defects
- A 5% increase in total employee engagement equates to a 7 per cent increase in operating margin
Business in the Community/IPSOS Mori April 2015
Just a fifth of employees say they are proud to work for their organisation and just 22% feel good about their employer’s behaviour towards society.
Harvard Business Review – Putting the Service Profit Chain to work, 1994
The study examined companies in America like Southwest Airlines and others that had a great reputation and were successful.
What it found is that those organisations which put their people first, that really looked after them, had lower levels of staff turnover, had higher levels of training and, as a consequence of that, their customers were more loyal.
Because their customers were more loyal, they were more profitable and the businesses tended to succeed over the long-term.
Business & Philanthropy:
- Attracting the best talent is a large business concern. 67% of consumers say they prefer to work for socially and environmentally responsible companies showing there is a strong business case. (Source: Nielsen)
- More than 50% of Millennials believe that innovation and social development should be the primary purpose of business. (Deloitte)
- 90% of consumers say they are more likely to trust and be more loyal to companies that back causes. (Source: Conecomm)
- 25% of people say they want to start a business with a social mission built in (as high as 30% for 18-30 year olds) (Source: RBS)
A LinkedIn and Altimeter study showed that when employees feel inspired and empowered, they were 20% more likely to stay at a company. Losing and replacing a good employee costs companies between 70% and 200% of an employee’s annual salary, according to several estimates.
And those feelings matter to a company’s bottom line. Employees who are the most committed to their jobs put in 57% more effort on the job and are 87% less likely to resign, according to a study conducted by the Corporate Executive Board.
Achieve’s 2014 Millennial Impact Report
Other than compensation, the factors that most influence Millennials’ decision to stay with their current employer are: having their passions and talents used to the fullest (53%) and believing in the company’s mission and purpose (20%).
In one study, people who were satisfied in their jobs because they believed in what they were doing were found to have 16 percent better overall performance, 125 percent less burnout and 46 percent more job satisfaction than their peers.
A 2011 study comparing managers to Millennials (management still largely consists of older Gen Xers and Baby Boomers) found that only 28 percent of Millennials valued high pay at their jobs, compared to half of all managers. And yet a third of Millennials wanted their jobs to provide them with meaning, compared to just 12 percent of managers.
