The case for Corporate Citizenship in Canada
- 1. The case for Corporate Citizenship in Canada 1 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
- 2. Our world today Consumers are demanding more and businesses must meet these rising expectations 2 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
- 3. New expectations The world is moving toward a new center of balance, where impact is just as important as profits 3 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
- 4. At Interbrand, we believe… Corporate Citizenship should be a mandatory consideration of a brand’s DNA that we can not deny. 4 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
- 5. We believe that a stakeholder’s impression of a company is defined by how it treats a series of six constituents How a company treats…. Government Employees Customers Suppliers Community Planet …defines their perceived “Corporate Citizenship” 5 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
- 6. How is value created? “Corporate Citizenship aligned with Business Strategy drives Brand Value.” 6 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
- 7. Interbrand’s research on Corporate Citizenship 7 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
- 8. Interbrand did research to understand the impact of Corporate Citizenship across the customer journey Purchase Choice Brand Favorability Brand 8 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014 Commitment Brand Advocacy Measure the influence of CC on a stakeholders propensity to purchase one brand versus another Measure the influence of CC on a stakeholders opinion of a brand Measure the influence of CC on a stakeholders loyalty to buying one brand in the presence of competitors Measure the influence of CC on a stakeholders propensity to advocate favorably on behalf of a brand
- 9. While corporate citizenship is important, many companies we spoke to have unanswered questions “This is seen as a cost internally how can we quantify what its real effect is in on our business and reputation?” 9 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014 “The studies that currently exist ask people directly how important Corporate Citizenship is and we know that they tend to over claim, so what is its real impact?” “If Corporate Citizenship does influence stakeholders, where exactly on the customer journey does it have an impact?” “Much has been written about how B2C purchasers feel about this area, but what about B2B purchasers?”
- 10. Interbrand’s research found that billions of dollars of brand value are tied to Corporate Citizenship Billion $ Brand value attributed to Corporate Citizenship 1.5 1.0 0.5 0.0 Source: IB BGB 2009 valuations and applied CC influence of purchase choice 10 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014 Total for these 15 companies is over $11 Billion
- 11. Top learnings from our study: #1 People do form a holistic view of a company’s Corporate Citizenship activities #2 Corporate Citizenship significantly impacts consumer brand opinion #3 Corporate Citizenship impacts B2B purchasers even more than consumers #4 Environmental attributes are less important than more altruistic initiatives #5 The more considered the purchase the greater the effect of Corporate Citizenship 11 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
- 12. Interbrand’s view on macro trends reshaping how brands need to behave
- 13. Trend No. 1 Trust in institutions, particularly corporations, continues to decline across the globe. As a result, customers are searching for honest and authentic brands. 88% 87% http://www.marketingmag.ca/brands/consumer-trust-in-corporations-reaches-new-low-globescan-113880 13 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014 $800M Revenue earned in 2012 by Etsy, the online marketplace for authentically handmade crafts3 Authenticity Of Canadian consumers feel responsibility to purchase products that they think are socially and environmentally responsible1 Of Canadian consumers are willing to act as brand ambassadors and give positive recommendations once they trust a brand2
- 14. Authenticity Hudson’s Bay Company 14 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014 SINGAPORE AIRLINES Levi’s Patagonia
- 15. Trend No. 2 The access to information today has increased public awareness of socially related causes. Consequently, people are taking action with a greater purpose, one that goes beyond only generating a profit. 80% 86M http://ipsos-na.com/news-polls/pressrelease.aspx?id=6167 15 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014 67% Of Boomers choose making a difference for others over personal success3 Purpose Of employees across 24 countries including Canada believe it is important for their employer to be responsible to society and the environment1 Times the KONY 2012 videos was watched within 4 weeks of its release)2
- 16. Purpose Warby Parker 16 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014 DoSomething.org bullfrogpower
- 17. Trend No. 3 The mass adoption of technology and social media has allowed consumers to actively converse with others, both near and far. Consumers are now engaging with brands and causes in customized ways that allow them to establish their own rules of participation. 35,472 $381M Individuals or organizations have launched fundraising campaigns for charity:water since it launched in 2006 17 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014 62% Of people use social media to address or engage with companies around Corporate Citizenship1 Participation Total dollars pledged (in millions) across the 73,620 projects launched on Kickstarter
- 18. Participation 18 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014 Kickstarter Kiva BRIKA
- 19. Trend No. 4 Empowerment As the economy has faltered in several regions across the globe, people are empowered to pursue different projects, careers and lifestyles that provide a greater sense of fulfillment. 91% 89% 86% of young people, ages 9-30, across 24 countries, agree2 Of Canadian consumers would switch brands if one carried a cause and another did not1 www.marketingmag.ca/brands/consumer-trust-in-corporations-reaches-new-low-globescan-113880 19 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014 Of organizations rated the importance of sustainability strategy as important to very important in creating a positive brand that attracts top talent3 “My age group has the potential to change the world for the better”
- 20. Empowerment Causes.com 20 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014 (RED) MEC
- 21. Trend No. 5 Shared Value The private sector is playing a more visible role in society by embedding Corporate Citizenship into their business strategy and providing support for the cultural and structural changes that generate shared value. 93% 65% of people globally believe business should place equal weight on societal issues and business issues2 Of CEOs believe that sustainability issues will be critical to the future success of their business1 21 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014 Of executives involved in corporate environmental strategy stated that their CFOs are involved in sustainability3 87% 28% of these people believe businesses are performing well today
- 22. Shared Value Unilever Canadian Tire Whole Foods 22 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014 Starbucks
- 23. Three key takeaways for Canadian brands 1. Share your story. There is an inherent reluctance in Canada to broadcast achievements, presenting a missed opportunity to develop stronger relationships with all stakeholder of the brand 2. Set the standard. Canada is recognized globally for its progressive thinking, the world needs to learn the lessons of its success 3. Measure your impact. To remain committed, leaders need to understand the business outcomes attributable to their investments 23 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014
- 25. For more information, contact: Carolyn Ray, Interbrand Canada carolyn.ray@interbrand.com 25 Interbrand Canada | The case for Corporate Citizenship in Canada| August 2014