CSR has come to the forefront in establishing values and ethical principles among companies, especially within the last two decades. According to BNet Today, “corporate social responsibility (CSR) refers to business decision-making based on ethical values, compliance with legal standards, and respect for communities, their citizens and environment.” But this isn’t a post about terminology; rather, I’m bringing up the issue of apathy among consumers and stakeholders in the Unites States regarding this issue.
A company must appease key stakeholder groups in order to stay afloat, including consumers, investors, community members, and potential employees. Social performance is important, and just like any communication professional, a company must know their audience.
As consumers, you and I are not only the most visible group but also the most influential. Meaning, that if we don’t like something, we can complain, and it makes news. With this kind of power, what exactly are we doing with it? Do American consumers care about CSR, or better yet, could they even define it?
I bring up United States consumers specifically because there is indeed a discrepancy among their opinions and those of consumers in other parts of the world regarding CSR. For example, a CSR Europe study in 2000 found that in 12 countries, 70 percent of the consumers surveyed said that a company’s commitment to social responsibility is “important to them” when making a decision about buying a product or service. One fifth of those would be willing to pay more for a product they believe is socially and environmentally responsible and two-thirds of respondents believe that the responsibility of addressing pressing social issues lies increasingly with large companies. All in all, the study shows that the demonstration of greater corporate citizenship is important to European consumers.
In another 2000 study conducted in France, Germany and the United States, willingness to support responsible businesses was far greater among the French and the German consumers. However, American consumers were found to value corporate economic responsibilities…but not so much legal and ethical issues, which concerned their European counterparts.
So what does this mean? For one, it shows that CSR really hasn’t hit home in the United States like it has in Europe, therefore consumers don’t really see it as a priority. Economic issues (money is always the bottom line) plagues Americans much more than environmental, social and legal responsibility. But whose fault is this? European consumers care about CSR because European corporations and governments make it a priority; they hold themselves accountable for their customers, therefore, it’s part of the dialogue. Until Starbucks came around, I had never even considered a company to have social responsibilities beyond selling a quality product at a competitive price.
The trend is definitely catching on in the United States. And since companies like Starbucks and General Electric are doing their part in practicing sustainability and other ethical standards, shouldn’t there be a cry of outrage against pharmaceutical companies that continually fall short in practicing ethical standards? American consumers need to look to Europe’s example and abandon this problem with apathy. Figure out what’s important to you and your family and refuse to settle for anything less.
A company must appease key stakeholder groups in order to stay afloat, including consumers, investors, community members, and potential employees. Social performance is important, and just like any communication professional, a company must know their audience.
As consumers, you and I are not only the most visible group but also the most influential. Meaning, that if we don’t like something, we can complain, and it makes news. With this kind of power, what exactly are we doing with it? Do American consumers care about CSR, or better yet, could they even define it?
I bring up United States consumers specifically because there is indeed a discrepancy among their opinions and those of consumers in other parts of the world regarding CSR. For example, a CSR Europe study in 2000 found that in 12 countries, 70 percent of the consumers surveyed said that a company’s commitment to social responsibility is “important to them” when making a decision about buying a product or service. One fifth of those would be willing to pay more for a product they believe is socially and environmentally responsible and two-thirds of respondents believe that the responsibility of addressing pressing social issues lies increasingly with large companies. All in all, the study shows that the demonstration of greater corporate citizenship is important to European consumers.
In another 2000 study conducted in France, Germany and the United States, willingness to support responsible businesses was far greater among the French and the German consumers. However, American consumers were found to value corporate economic responsibilities…but not so much legal and ethical issues, which concerned their European counterparts.
So what does this mean? For one, it shows that CSR really hasn’t hit home in the United States like it has in Europe, therefore consumers don’t really see it as a priority. Economic issues (money is always the bottom line) plagues Americans much more than environmental, social and legal responsibility. But whose fault is this? European consumers care about CSR because European corporations and governments make it a priority; they hold themselves accountable for their customers, therefore, it’s part of the dialogue. Until Starbucks came around, I had never even considered a company to have social responsibilities beyond selling a quality product at a competitive price.
The trend is definitely catching on in the United States. And since companies like Starbucks and General Electric are doing their part in practicing sustainability and other ethical standards, shouldn’t there be a cry of outrage against pharmaceutical companies that continually fall short in practicing ethical standards? American consumers need to look to Europe’s example and abandon this problem with apathy. Figure out what’s important to you and your family and refuse to settle for anything less.
2 comments:
I hope more companies adopt social responsibility soon, good thing you work for a company who understands this (lulumellon, right?)
I hope more companies adopt social responsibility soon, good thing you work for a company who understands this (lulumellon, right?)
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