Many companies today are making a conscious effort to put sustainable practices into action. They’re well aware that doing so not only helps the environment and society, it can also create goodwill for their reputations and contribute positively to their brands’ health and performance. Green initiatives can also save money: Reducing packaging materials, minimizing transportation costs, and installing energy-efficient lighting are just some of the ways environmentally savvy companies are cutting costs. But the bottom line is not just about profitability—it’s also about a culture change.
But do consumers really care about conscious capitalism when it comes to buying decisions? Are they willing to pay more for products and services that come from companies that engage in actions that further some social good?
You’d be hard-pressed to find a consumer who said he or she didn’t care about the environment, or extreme poverty around the world. But does care convert to action when it comes to buying decisions? Assuming a positive ratio between a stated willingness to pay and an actual willingness to open one’s wallet, the survey found that the answer is yes for a growing number of consumers around the world.
Willingness to pay more
More than half (55%) of global respondents in NielsenIQ’s corporate social responsibility survey say they are willing to pay extra for products and services from companies that are committed to positive social and environmental impact—an increase from 50% in 2012 and 45% in 2011. Regionally, respondents in Asia-Pacific (64%), Latin America (63%), and Middle East/Africa (63%) exceed the global average and have increased 9, 13, and 10 percentage points, respectively, since 2011.