nike oompa

PROJECT:
SUPERBRAND
10 TRUTHS RESHAPING
THE CORPORATE WORLD
Table of Contents
3
ABOUT THE STUDY
5
TRUTH 1: Your Oompa Loompas Are Going Viral
13
TRUTH 2: Your Company Is Your Brand
18
TRUTH 3: Your Values Are Invaluable
23
TRUTH 4: Mindless Consumption Is So Last Century
27
TRUTH 5: Heroes Wanted
35
TRUTH 6: Acting “Local” Pays Big Dividends
38
TRUTH 7: Together Is Better
42
TRUTH 8: The “Greater Good” Starts Within Company Walls
45
TRUTH 9: You’ve Got to Know Your Audience
48
TRUTH 10: A Strong Leader Is a Strong Asset
52
CLOSING THOUGHTS
2 / 54
ABOUT THE STUDY
In March 2015, Havas Worldwide
partnered with Market Probe
International to survey 10,131
people aged 18+ in 28 markets:
The survey sample
was made up of 20%
leading-edge PROSUMERS
Australia, Belgium, Brazil, Canada, China,
Colombia, the Czech Republic, Estonia,
France, Germany, India, Ireland, Italy,
Japan, Latvia, Lithuania, Malaysia, Mexico,
the Netherlands, Poland, Portugal,
Saudi Arabia, Singapore, South Africa,
Spain, the United Arab Emirates, the
United Kingdom, and the United States.
and 80%
MAINSTREAM
consumers.
MILLENNIALS
GEN XERS
BOOMERS
ages 18–34
ages 35–54
ages 55+
Prosumer and mainstream respondents
are segmented into the above generations.
Who are Prosumers?
Prosumers are today’s leading influencers and market drivers—and have been a focus of
Havas Worldwide studies for more than a decade. Beyond their own economic impact,
Prosumers are important because they influence the brand choices and consumption
behaviors of others. What Prosumers are doing today, mainstream consumers are likely to
be doing 6 to 18 months from now. Learn more at mag.havasww.com/prosumer-report/
In some cases, GLOBAL TOTALS
are used to illustrate overall
trends.
Note: Some figures do not add up
to 100 percent due to rounding.
Havas Worldwide has been monitoring the
movement toward corporate social responsibility
since 2007, when we conducted our Future of the
Corporate Brand study in three markets: France,
the United Kingdom, and the United States. In the
years since, we’ve seen terms such as transparency,
sustainability, and purpose beyond profit enter the
common parlance and become a focus of business
leaders across the globe, as more companies
have come to recognize the link between
“doing good” and “doing well.”
With our latest Prosumer study, we are
seeking to understand how this movement
has evolved over the past eight years.
WHAT DO CONSUMERS NOW
EXPECT OF THEIR BRAND
PARTNERS, AND HOW CRITICAL
ARE THESE EXPECTATIONS TO
THEIR PURCHASE DECISIONS?
HOW ARE COMPANIES
RESPONDING TO INTENSIFIED
PRESSURES TO WORK TOWARD
THE COMMON GOOD?
WHAT ARE THE PRIMARY
ISSUES PEOPLE WOULD LIKE
BUSINESSES TO ADDRESS?
We answered these questions and more—and
uncovered 10 overarching truths that dictate
how the modern corporation must operate to
have a shot at reaching “superbrand” status.
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TRUTH
1
YOUR OOMPA
LOOMPAS ARE
GOING VIRAL
YOUR OOMPA LOOMPAS ARE GOING VIRAL
In the Roald Dahl classic Charlie and the Chocolate Factory, no
one outside the forbidding gates of the world-famous Willy Wonka
Candy Company had any idea of what went on inside. They happily
munched on their Wonka’s Whipple-Scrumptious Fudgemallow
Delights, Scarlet Scorchdroppers, Whizdoodles, and Glumptious
Globgobblers without giving a moment’s thought to the company’s
labor practices, the sourcing of its chocolate and other ingredients,
or the impact of those bellowing smokestacks on the surrounding
air quality. In the real world of today, such a lack of scrutiny would
be unimaginable. Whether a company is public or privately held,
people expect broad access and accountability. Churning out the
most exquisite confections will offer scant protection against a
public intent on answers. This is especially the case in developed
markets, but pressures are also intensifying in centers of cheap
labor in Asia and elsewhere. Suffice it to say that a labor pool made
up of short-statured men with orange skin and green hair, hailing
from Loompaland, would not go undetected. (Nor would their
messages concerning greed and gluttony be off the mark.)
When did business become…everybody’s business? It was a
gradual process, tied in part to increased government regulation
and the rise of NGOs, but public interest in the inner workings
of corporations was certainly beginning to take hold in the latter
decades of the last century. By the time of our 2007 Prosumer
study, more than 6 in 10 respondents in the three countries
surveyed (France, United Kingdom, United States) agreed that they
were seeing more press coverage of business in the mainstream
media. And almost as many indicated that they knew more about
the companies that made the products and services they bought
than they used to.
6 / 54
The results of our 2015 survey show that most of our new batch of
respondents—including 7 in 10 leading-edge Prosumers—make it a
point to find out about the companies that provide the products
and services they buy. And nearly 6 in 10 are paying more attention
these days to the environmental and/or social impact of their
purchases. In contrast, only around 1 in 4 claim not to care about the
businesses behind the brands they buy, and fewer than 1 in 3 say the
impact a brand has on society as a whole doesn’t matter to them.
I am paying more attention than in the past to the
environmental and/or social impact of the products I buy
73%
PROSUMER
MAINSTREAM
MILLENNIALS
GEN XERS
BOOMERS
(% agreeing strongly/somewhat)
56%
57%
60%
59%
I make it a point these days to know more
about the companies that make the products
and services I use
I don’t care if a brand has a negative impact
on society; I’m just looking for the best prices
and most reliable products
70%
28%
51%
31%
34%
55%
28%
54%
27%
51%
I don’t care who makes the things I buy
22%
27%
31%
23%
19%
PROSUMER
MAINSTREAM
MILLENNIALS
GEN XERS
BOOMERS
(% agreeing strongly/somewhat)
8 / 54
TRANSPARENCY
IS NOT OPTIONAL
UNDER THE NEW RULES OF BUSINESS, COMPANIES
ARE EXPECTED TO OPERATE OUT IN THE OPEN.
It is very/somewhat important for a company to be transparent
PROSUMER
MAINSTREAM
MILLENNIALS
GEN XERS
BOOMERS
88%
78%
76%
82%
86%
Businesses must continue to do all they can to protect legitimate
trade secrets, of course—a task that’s especially difficult in the
digital era—but on issues related to ingredient sourcing, the welfare
of workers, product safety, and the like, a very different set of
rules applies. And when the public, the media, or regulators do
find something amiss, it may not be just the organization directly at
fault that pays. In today’s highly globalized business environment,
a factory collapse in Bangladesh had repercussions for the entire
textile industry. A series of strikes and suicides at China’s Foxconn
factories forced Apple to change its entire iPhone production line,
running the risk of cutting off some buyers. Duplicity on the part of
Volkswagen cast a shadow on other automakers—particularly those
with diesel models—and even on German industry as a whole.
Far more than in the past, the consuming public feels it has a right
to hold companies accountable for their bad behaviors. And so
transparency has become an imperative for those businesses
that seek to earn consumer trust and loyalty. In fact, when we
gave our respondents a list of 16 core values and asked them to
indicate which five were most important for a brand to possess,
“honesty/transparency” nearly tied with “reliability/durability” for
second place, behind only “quality.” In some markets, insistence
on corporate transparency is even stronger. For instance,
an astounding 100 percent of Prosumers in Brazil agreed it’s
important for a company to be transparent, a reaction likely tied
to the Petrobras corruption scandal, which rocked both the
Rousseff administration and Brazil’s national economy.
10 / 54
Looking at the following core values, please indicate which
FIVE you think are most important for brands to embody.
69%
Quality
57%
Reliability/
durability
31%
Originality
Honesty/
transparency
19%
Simplicity
11%
Warmth
(global sample)
56%
Innovation
19%
Socially active
9%
Fun
41%
Authenticity
17%
Vision
5%
Playfulness
33%
Fairness
14%
Passion
3%
Politically
active
32%
Generosity
4%
None
of these
13%
“IT’S REACHED THE POINT AT WHICH COMPANIES ARE
ACTUALLY COMPETING ON TRANSPARENCY—EAGER TO
SHOW CONSUMERS THAT THEY HAVE NOTHING TO HIDE
AND EVERYTHING TO BOAST ABOUT.”
It’s also never been easier to find out about a company’s
operations. Organizations such as SkyTruth and Air & Space
Evidence are using satellite and aerial imagery to uncover
everything from illegal dumping to the topographical impact of
natural gas drilling. And consumers now have access to all sorts of
guides and apps that allow them to quickly see how the products
they’re considering rate in terms of safety, sustainability, health,
and other measures. Not sure whether that pair of khakis lives
up to your ethical standards? If you live in Australia, you can use
the Shop Ethical! app to check out the environmental and social
records of the companies behind more than 4,000 products.
In France, Greenpeace’s Le Guetteur app will tell you whether
a particular agricultural brand uses GMOs or pesticides. And
wherever in the world you live, you can consult the GoodGuide
app to “shop your values”—tapping into the health, environmental,
and social performance ratings of more than 250,000 food,
personal care, and household products. That means that as you
walk through your local supermarket or discount store, you can
compare brands of toothpaste, light bulbs, and frozen pizza to find
out which products you’d feel best about having in your home.
It’s reached the point at which companies are actually competing
on transparency—eager to show consumers that they have nothing
to hide and everything to boast about. In 2013, Chipotle became
the first fast-food chain to tag GMOs in its offerings and has now
banned them entirely. In Brazil, Coca-Cola countered rumors
of dead rats in its bottles by launching Fábrica da Felicidade
(“Happiness Factory”) tours to allow interested parties to see
how the drinks are bottled. Everlane, a direct-to-consumer
fashion brand based in San Francisco, offers information about
all its suppliers on its website, even including videos and stories
to give customers a better understanding of how and where
the goods were made.
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TRUTH
2
YOUR
COMPANY
IS YOUR
BRAND
YOUR COMPANY IS YOUR BRAND
There was a time when a company could act as if its individual
brands were somehow separate from its corporate organization.
People would happily eat a bowl of Cheerios or cleanse their faces
with Noxzema without giving a thought to who produced them.
Now a growing—and oftentimes vocal—segment actively seeks out
information on the “who” behind the things they buy. They make
a note of it when one brand buys another. And whether it’s
Amazon buying Zappos, Unilever buying Ben & Jerry’s, or some
other acquisition, they consider how that change of ownership
might influence the brands they favor.
People pay more attention to corporate brands today because
so many of them are operating on a massive scale. Let’s not forget
that more than a third of the world’s largest economies are now
corporations, not countries. And with that size and power comes an
expectation of responsibility. It used to be heresy to suggest that
companies “owed” anything to anyone but their shareholders. Just
half a century ago, leading economist Milton Friedman rejected talk
of corporate social responsibility outright, saying that businesses
had one responsibility only: to increase profits. That’s a point of
view that no longer carries much weight. Nearly three-quarters
of our global sample—including 84 percent of Prosumers—agreed
that corporations have a responsibility that extends beyond the
generation of profits. And a growing number of business leaders
agree. On the topic of climate change, Richard Branson, founder
of the Virgin Group, noted:
“I spend a lot of my time saying to
business leaders,‘We are citizens of the
world. We cannot just leave things to
the social sector and to the politicians
to speak up…We have as much clout as
they, if not more than some of them, and
we have the responsibility to speak out.
And it makes good business sense.’”
Branson is right about social responsibility making good business
sense: In early 2015, the authors of the Project ROI study found
that a high-level corporate reputation for responsibility and
sustainability can account for as much as 11 percent of
a company’s value.
14 / 54
Companies have a
responsibility to
do more than just
generate profit
Companies have an
ethical obligation to
operate in a way that
does not harm the
environment
TOTAL
TOTAL
73%
TOTAL
75%
53%
84%
85%
71%
73%
70%
53%
77%
81%
53%
83%
PROSUMER
MAINSTREAM
66%
50%
70%
73%
(% agreeing strongly/somewhat)
I avoid buying from
companies that have
a negative social or
environmental impact
MILLENNIALS
51%
GEN XERS
BOOMERS
So, what exactly is it that the modern corporation is expected to
do? We presented our respondents with a list of 10 behaviors and
asked how important it is for a company to do each. It’s incredibly
telling that every single behavior was considered important by at
least 7 in 10 people surveyed. Sure, it’s essential for a company
to offer high-quality goods, but that’s just a start. Most people
also think it’s important for companies to take on a variety of
responsibilities that Friedman and his ilk would have considered
hugely inappropriate, including fighting injustice and improving
local communities.
How important is it for a company to do each of these things?
Offer high-quality
goods and/or services
Improve the lives
of its employees
86%
P: 95 M: 85
84%
Improve the communities
in which it operates
P: 92 M: 80
81%
Express a vision
of a better world
P: 86 M: 72
74%
P: 84 M: 72
80%
P: 88 M: 78
(% choosing very or somewhat important)
74%
Fight injustice
P: 91 M: 79
Be transparent
77%
P: 85 M: 75
81%
Uphold strong values
P: 88 M: 76
Offer low prices
P: 93 M: 83
Invest in innovation
78%
P=Prosumer, M=Mainstream
Drive social change
71%
P: 84 M: 68
16 / 54
“...IT’S EASIER THAN EVER TO
DETERMINE WHO HAS BEEN
NAUGHTY OR NICE.”
For those interested in the behavior of a brand’s corporate parent,
it’s easier than ever to determine who has been naughty or nice.
Oxfam’s Behind the Brands scorecard assesses the agricultural
sourcing policies of the world’s 10 largest food and beverage
companies. So you can find out, for example, how the company
behind your favorite cookie brand treats its supply-chain producers
and the land on which its ingredients are grown. Or if you’re more
interested in political influence, you can use the BuyPartisan
smartphone app to scan an item at the grocery store and see
the political donations made by the CEO, board of directors,
the company’s PACs, and even its employees.
When companies fall short of the new consumer’s expectations,
they pay the price. Half of mainstream consumers and two-thirds
of Prosumers avoid buying from companies deemed to have a
negative social or environmental impact.
TRUTH
3
YOUR
VALUES ARE
INVALUABLE
18 / 54
YOUR VALUES ARE INVALUABLE
So, as long as a business doesn’t break any rules, consumers will
support it…right? Not so fast. It’s not enough to adhere to the
letter of the law; big businesses are also expected to espouse—and
operate according to—a clearly communicated set of values. And
consumers are making purchase decisions based on those values.
A majority of mainstream consumers and more than 3 in 4 Prosumers
surveyed say they prefer to buy from companies that share their
personal values. And around the same percentages say they’re
more likely to buy from a company that is doing good things for the
world. These numbers are even higher in many emerging markets,
including Brazil, China, and India.
How important is it for a company to uphold strong values?
58%
33%
42%
very important
PROSUMER
38%
somewhat
important
MAINSTREAM
8%
1%
19%
neither important
nor unimportant
2%
somewhat
or very
unimportant
How important is it for
a company to express a
vision of a better world?
PROSUMER
MAINSTREAM
very important
50% 34%
somewhat important
37%
38%
neither important nor unimportant
11%24%
somewhat or very unimportant
2%4%
20 / 54
A clear set of values helps
companies attract and retain
the best employees
A clear set of values plays
an important role in a
company’s success
A clear set of values helps a
company be more profitable
84%
80%
84%
68%
68%
63%
70%
69%
66%
70%
70%
65%
74%
I am more likely to buy from
a company that is doing
good things for the world
I prefer to buy from companies
that share my personal values
79%
61%
63%
65%
65%
68%
74%
77%
56%
60%
60%
57%
PROSUMER
MAINSTREAM
MILLENNIALS
GEN XERS
BOOMERS
(% agreeing strongly/somewhat)
Most of us can name companies off the
top of our head that communicate strong
values in one or more areas. Patagonia +
sustainability, The Body Shop + Fair Trade,
or IKEA + affordable design, for instance.
And then there are the growing number
of companies built on a Buy One, Give
One model—from TOMS Shoes and Proof
Eyewear to Canada’s Mealshare—ensuring
that every purchase benefits a person in
need. When consumers buy from purposedriven companies, they feel good about
their purchases, because they feel that
in some small way they’re helping to
make a positive difference.
Whereas corporate values too often
used to be meaningless words intended
to pretty up one’s mission statement,
now they’re a point of differentiation
and a builder of loyalty.
“Consumers want brands that stand
for something—Ben & Jerry’s and Dove
are examples. What we find is [that these
brands] grow twice as fast as those who
don’t have sustainability at the heart...
That’s where the juice is, the pockets
of growth...Consumers want brands
to be more responsible.”
—JAN ZIJDERVELD, PRESIDENT, EUROPE UNILEVER
22 / 54
TRUTH
4
MINDLESS
CONSUMPTION
IS SO LAST
CENTURY
MINDLESS CONSUMPTION IS SO LAST CENTURY
Changes in business are taking place in tandem with shifts in how
we consume. In developed markets especially, people are deriving
less pleasure from the mindless consumption that started filling
up our pantries, closets, and garages in the postwar boom of the
1950s. (For findings from our initial exploration of this movement,
download the New Consumer in the Era of Mindful Spending
white paper.) People still want bargains, of course, but they’re
defining that differently. Instead of throwing their money away on
masses of low-cost, disposable goods, many consumers are seeking
to find a more substantive value in well-crafted, sustainably created
items that will endure.
Around the world, even in emerging markets, mindful frugality is
becoming more aspirational than excess. Our 2014 global study
found that whereas just 49 percent of the sample admire people
who can afford to buy whatever they want, 68 percent admire
those who make an effort to reduce their consumption. Threequarters of the Prosumers surveyed and two-thirds of mainstream
consumers believe that overconsumption is putting our society
and the planet at risk. And more than half the sample agreed
that they could happily live without most of the items they own.
WHERE’S THE VALUE IN
OWNING MORE IF IT MAKES
YOU LESS HAPPY, LESS
SATISFIED, LESS PROUD?
What this trend means for manufacturers and retailers is that,
while people still want low prices, it’s even more essential
that products and services offer some sort of enduring value.
Accumulating more “stuff” simply isn’t offering the satisfaction it
once did. The rise of the sharing economy, the maker movement,
and the push to repair items rather than replace them are all
evidence of this more thoughtful mindset.
24 / 54
It is very/somewhat important
that a company offer high-quality
goods and/or services
95%
85%
PROSUMER
MAINSTREAM
It is very/somewhat important
that a company offer low prices
85%
75%
“ THE NOTION THAT MANUFACTURERS ARE
RESPONSIBLE FOR THE COMPLETE LIFECYCLES OF
THE PRODUCTS THEY MAKE IS GAINING GROUND—
INCLUDING AMONG THE COMPANIES THEMSELVES.”
Brands are responding to this emerging attitude in all sorts
of ways, including offering products that can be upgraded,
repurposed, or repaired. In the UK, parents who hate the
waste of having to buy multiple car seats and boosters as
their children grow can invest instead in the Kiddy Comfort
Pro car seat, which adjusts to fit the needs of children from
around 9 months to 12 years old. Want to upgrade your pots
and pans but feel guilty about throwing out the old? When
you buy certain sets of Calphalon cookware, you can box
up your old set (any brand) and ship it to the company for
free. Calphalon will then send the discards on to a recycling
center and even mail you a couple of recycled-cotton
shopping bags for your efforts.
The notion that manufacturers are responsible for the
complete lifecycles of the products they make is also gaining
ground—including among the companies themselves. MAC
Cosmetics offers a free lipstick for every six empty cosmetics
containers (compacts, tubes) returned. And Sweden’s Nudie
Jeans is turning old pants into rugs.
The products are the same, but the consumer gains the
added satisfaction of knowing that his or her purchase
won’t end up in a landfill and may even end up doing
some good.
26 / 54
TRUTH
5
HEROES
WANTED
HEROES WANTED
Our global surveys have consistently shown that people are
hungry for sociopolitical change. At the same time, they’re
disillusioned with politicians and governments, no longer believing
them capable of solving the world’s most pressing problems. The
prevailing view is that the greatest agents of change will be “the
people”—through both their social activism and their consumption
choices. But people can’t do it alone. There’s a growing sense
that major change will require the active cooperation of big
business, given that far more power is concentrated within the
largest companies than ever before in history. The consensus is
that businesses not only should play a larger role in solving social
problems, but actually bear as much responsibility as governments
for driving social change—and may even be better suited to
the task. The good news for brands: A significant majority of
respondents are convinced that those companies that do drive
positive change will be more profitable as a result.
The biggest
companies should
be taxed more to
help repair the
environment
The biggest
companies should
be taxed more to
help reduce poverty
and the inequality
of wealth
71%
59%
59%
61%
64%
PROSUMER
MAINSTREAM
MILLENNIALS
GEN XERS
BOOMERS
68%
58%
57%
60%
62%
(% agreeing strongly/somewhat)
28 / 54
Which of the following do you believe
will be the greatest agent of change?
PROSUMER
MAINSTREAM
MILLENNIALS
GEN XERS
37%
19%
30%
21%
33%
The people, empowered
by social media
30%
28%
20%
Government/
politicians
23%
29%
23%
20%
27%
28%
21%
21%
29%
What we
consume
BOOMERS
20%
Corporations
and companies
21%
20%
Businesses bear as much
responsibility as governments
for driving positive social change
79%
PROSUMER
MAINSTREAM
MILLENNIALS
GEN XERS
BOOMERS
The most successful companies
in the future will be those
that drive social change
65%
64%
68%
72%
I would like my favorite brands/
companies to play a bigger role
in solving social problems
78%
60%
78%
59%
63%
62%
62%
62%
59%
60%
(% agreeing strongly/somewhat)
30 / 54
I believe companies have a more
important role than governments
today in creating a better future
How important is it
for a company to
drive social change?
MILLENNIALS
63%
very
important
47%
30%
somewhat
important
GEN XERS
38%
38%
60%
neither
important nor
unimportant
BOOMERS
55%
(% agreeing strongly/somewhat)
somewhat
or very
unimportant
13%
27%
3%
5%
PROSUMER
MAINSTREAM
How important is it for a
company to fight injustice?
51%
PROSUMER
38%
MAINSTREAM
very important
PROSUMER
33%
somewhat important
13%
MAINSTREAM
4%
24%
neither important
nor unimportant
34%
4%
somewhat
or very unimportant
32 / 54
This is a crucial moment for corporate brands. When we asked
the respondents to our 2012 global survey who or what would
be the greatest agent of the change they seek—the people,
what we consume, government/politicians, or corporations and
companies—16 percent chose “corporations and companies,”
compared with the 24 percent who chose “government/politicians.”
That eight-point gap has now virtually disappeared, with 20 percent
of the 2015 sample pinning their hopes on corporations and
21 percent pinning them on government. In some parts of the
world, reliance on government is even lower. For example, in India
39 percent of the sample look to businesses as the biggest change
agents, compared with 18 percent who cited government. Other
countries with particularly high hopes for business—and low hopes
for government—include Germany (26 percent voted for business;
13 percent, for government), Japan (29 percent vs. 14 percent,
respectively), and Italy (20 percent vs. 12 percent).
There also has been a slight drop-off in people’s confidence that
social media has empowered them to effect change. In 2012, in the
aftermath of the so-called “Arab Spring,” 35 percent of our sample
believed that “people, empowered by social media” would be the
greatest agent of change. That dropped four points in 2015, to
31 percent. The drop was even bigger among Prosumers, from
43 percent in 2012 to 37 percent in 2015. The percentage of people
who feel they personally have a responsibility to change the world
has also fallen slightly, from 70 percent in 2012 to 66 percent this year.
I have a responsibility
to make the world
a better place
PROSUMER
83%
MAINSTREAM
67%
2012
PROSUMER
80%
MAINSTREAM
63%
2015
(% agreeing
strongly/
somewhat)
“THERE IS A TREMENDOUS
OPPORTUNITY FOR BUSINESSES
TO ASSUME THE MANTLE
OF ‘SUPERBRAND.’”
What this means is that people are feeling somewhat less confident
in their own power and that of government to fix the world’s
problems, but they are feeling more confident in the ability of
big business to do so. There is a tremendous opportunity for
businesses to assume the mantle of “superbrand” and offer smart
solutions to pressing issues. Consider the current refugee crisis
in Europe. Whereas governments, by and large, have failed to act
quickly and decisively, companies are responding through both
corporate and employee structures. Deutsche Post DHL Group
not only committed to €1 million in aid for refugees, but will
provide housing and as many as 1,000 internships to refugees
arriving in Germany. Some 10,000 employee volunteers will
provide local support. Uber partnered with Save the Children
on UberGIVING, a one-day initiative during which its drivers
collected donations of clothing and toys in 20 European countries
for free. And Daimler has begun to offer German-language courses
and practical training to refugees, so they can ultimately be placed
with other employers.
34 / 54
TRUTH
6
ACTING “LOCAL”
PAYS BIG
DIVIDENDS
ACTING “LOCAL” PAYS BIG DIVIDENDS
Solving global problems is important, but meaningful connections
also must take place at the local level. A majority of our
respondents—including nearly three-quarters of Prosumers—are
looking for their favorite brands to play a bigger role in their
local communities.
I would like my favorite brands/
companies to play a bigger role
in my local community
72%
55%
(% agreeing strongly/somewhat)
PROSUMER
MAINSTREAM
How important is it for a company
to improve the communities in
which it operates?
very
important
52%
36%
somewhat
important
neither
important nor
unimportant
35%
40%
10%
21%
somewhat
or very
unimportant
3%
3%
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“IF YOU FIX THE CITIES,
YOU FIX THE WORLD.”
Traditionally, successful companies have supported the
communities in which they operate through donations to local
charities, support for the arts, and the like. Now businesses
are beginning to take that a step further by actively working to
revitalize communities on their own. When Zappos relocated
its headquarters to Las Vegas, CEO Tony Hsieh set his sights
on restoring life to the depressed downtown. He acquired and
renovated dozens of properties, lured tech startups and small
businesses, and created community gathering spots. Having invested
$350 million of his own money into the Downtown Project, Hsieh
theorizes, “If you fix the cities, you fix the world.” Similarly, Quicken
Loans founder and chairman Dan Gilbert has spent more than
a billion dollars purchasing and fixing up properties in downtown
Detroit—and has persuaded other companies to move into the
area as well. To ensure his workforce is personally invested in the
city’s revitalization, he even instituted a policy whereby employees
who purchase a home within the city limits and live there for
at least five years receive a payment of $20,000. According to
Detroit mayor Mike Duggan, Gilbert has “dramatically sped up
the redevelopment of downtown.”
CVS Health has taken a different, highly personal approach to
helping the communities in which it operates. A little more than
a year ago, the company stopped selling tobacco products, which
it deemed incompatible with its mission to preserve and improve
people’s health. While the move took a hit on the retailer’s bottom
line, it is already beginning to pay off in the lives of some of its
customers. CVS reports that in areas in which it has a market
share of 15 percent or greater, sales of cigarettes have fallen
1 percent. “One percent may not sound like much,” said the
company’s chief medical officer, Dr. Troyen Brennan, “but it’s a
very substantial amount when you consider the mortality and
morbidity associated with tobacco.”
TRUTH
7
TOGETHER
IS BETTER
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TOGETHER IS BETTER
The world’s citizens aren’t looking for
businesses to act as quasi-governments.
On the contrary, around two-thirds
of our global sample actually fear the
power big corporations already wield.
What they want to see are all the world’s
players—governments, corporations,
NGOs, citizens—working together to
tackle problems that no single entity
can solve alone. Prosumers and baby
boomers especially are keen on such
collaborations, with at least 8 in 10 in each
group wanting to see corporations working
with governments, governments working
with NGOs and nonprofits, and businesses
working with consumers to make the
world a better place.
It scares me that some big corporations
have more power than actual countries
73%
PROSUMER
MAINSTREAM
MILLENNIALS
GEN XERS
BOOMERS
(% agreeing strongly/somewhat)
63%
62%
64%
71%
Corporations and governments
should work together to make
the world a better place
Governments and NGOs/
nonprofits should work together
to make the world a better place
88%
86%
73%
87%
72%
71%
72%
71%
77%
PROSUMER
71%
75%
82%
(% agreeing strongly/somewhat)
Corporations and consumers
should work together to make
the world a better place
76%
80%
MAINSTREAM
MILLENNIALS
80%
GEN XERS
BOOMERS
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“IT’S TIME FOR BUSINESSES
TO STAND TOGETHER
[TO CREATE] THE FUTURE
THAT WE ALL WANT.”
We can see the potential of such collaborations in the emerging
concept of “nation branding”—a concerted effort to make a
particular country attractive to outside investors, tourists, and its
own citizens. Spain’s long-term branding project, “Marca España”
(Brand Spain), is one such example. Under the oversight of a
high commissioner, the initiative involves numerous government
agencies, news organizations, nonprofits, and companies
in industries ranging from food and beverages to fashion,
communication, and technology. Together, these private
and public entities are working to promote the principles
and strengths of Spain both within and beyond its borders.
And we’ve seen a huge proliferation of businesses working
with governmental agencies and NGOs in support of important
causes—including Apple partnering with the World Wildlife Fund
to improve forestry practices in China, and Procter & Gamble
teaming with UNICEF to provide tetanus shots to children in
developing countries. Increasingly, governments are calling directly
on businesses for help, as Indian Prime Minister Narendra Modi
did when he asked the nation’s corporations to step up and share
in the responsibility for a “Clean India.” Among those answering
the call were Tata Consultancy Services, the country’s biggest
technology services company, and Bharti Enterprises, parent
of India’s largest wireless provider. Each company spent 1 billion
rupees (approximately $16.5 million) to provide toilet facilities
to schoolgirls and to people in rural areas.
We’re also seeing more partnerships between and among
companies with like-minded social or environmental goals.
We Mean Business has brought together thousands of businesses
and investors in an effort to transition to a low-carbon economy.
Its corporate advisory board is made up of leading global brands
such as Unilever, IKEA, and Nike. In the words of advisory board
member Steve Howard, chief sustainability officer at IKEA,
“It’s time for businesses to stand together [to create] the
future that we all want.”
TRUTH
8
THE “GREATER
GOOD” STARTS
WITHIN COMPANY
WALLS
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THE “GREATER GOOD” STARTS WITHIN COMPANY WALLS
People aren’t just looking to see what corporate brands are doing
in the “outside” world. They (women particularly) also want to
know how companies are treating their own people, including
employees and suppliers. When we asked respondents how
important it is for a company’s CEO to do certain things, paying
workers a fair wage and providing a pleasant work environment
received higher scores than earning profits or even being
environmentally conscious. Three-quarters of our sample—including
87 percent of Prosumers—agree that companies should be legally
obligated to provide a healthy work-life balance for their workers.
And many are willing to vote with their wallets against those
businesses deemed to have subpar labor practices. Years after
a series of employee suicides, French telecom giant Orange is
still struggling to resuscitate its image.
How important is it for a company’s CEO to do each of the following?
84% 89%
83% 88%
81%
Pay workers
a fair wage
Provide a pleasant
work environment
Earn a profit
for the company
MALE
FEMALE
(% choosing very or somewhat important)
83%
78%
84%
Ensure the company
is operating in the
most environmentally
sustainable way possible
61%
68%
Employ a racially diverse
workforce
Companies should be obligated
to provide a healthy work-life
balance for employees
PROSUMER
87%
MAINSTREAM
73%
MILLENNIALS
73%
GEN XERS
76%
BOOMERS
81%
(% agreeing strongly/somewhat)
Thanks in part to progressive employment practices in Silicon
Valley and other tech hubs, a growing number of companies are
using workplace benefits and culture as a way to both recruit top
talent and bolster their reputations among investors and the public.
Havas Worldwide and Havas Creative Group CEO Andrew Benett
explored this phenomenon in his book The Talent Mandate:
Why Smart Companies Put People First.
Though it’s far from a trend, some employers are beginning to
address the hot-button issue of pay equity. Whole Foods caps
its executive pay at 19 times the average salary of its employees.
And Namaste Solar, an energy company based in Boulder,
Colorado, caps the ratio of its highest salary to its lowest at
3:1. While Swiss voters soundly rejected a referendum that would
have capped executive pay in that country at 12 times that of the
lowest-paid worker, the conversation around pay equity continues.
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TRUTH
9
YOU’VE GOT TO
KNOW YOUR
AUDIENCE
YOU’VE GOT TO KNOW YOUR AUDIENCE
As businesses consider how to strengthen their corporate brands,
it’s important that they take into account the geographic markets
in which they operate. We asked our global sample which of four
areas they most want to see companies support: sustainability/the
environment, poverty/income inequality, education, or culture/the
arts. Overall, environmental sustainability was the cause deemed
most pressing, followed by poverty and income inequality. Only 6
percent of Prosumers and 12 percent of the mainstream said they
neither want nor expect companies to be involved in good works.
I most value companies that are doing good work in the following area
Sustainability/the
environment
Poverty/income
inequality
Education
Culture/the arts
I neither want nor
expect companies
to “do good”
TOTAL
TOTAL
TOTAL
TOTAL
TOTAL
34%
30%
20%
5%
11%
P: 37 MS: 33
M: 31 X: 34 B: 39
P: 33 MS: 30
M: 29 X: 31 B: 30
P: 19 MS: 21
M: 23 X: 19 B: 16
P: 5 MS: 5
M: 7 X: 4 B: 3
P=Prosumer, MS=Mainstream, M=Millennials, X=Gen Xers, B=Boomers
P: 6 MS: 12
M: 10 X: 11 B: 13
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There were some important distinctions among the 28 countries surveyed, however.
In China, where the pollution can be so
severe that government officials oftentimes
advise the elderly and very young to remain
indoors, two-thirds of those surveyed
chose sustainability as the area on which
they most want companies to focus.
In India, where 58 percent of children
don’t complete primary school and only
10 percent go on to college, education
was deemed the number-one priority
for corporate good works.
Clearly, all of these issues—and many others—need to be
addressed, but businesses stand to gain the most in terms of
influence, brand loyalty, and reputation when they are seen as
working hard to address the public’s most pressing concerns
in whatever part of the world they’re operating.
Providing ways for the public to get involved in those solutions
offers even more value to a brand’s reputation. Though it’s only
available in a few areas in the US now, Google plans to expand
Project Sunroof, an online tool that uses Google Earth images to
help homeowners determine whether rooftop solar panels are a
And in Ireland, where the proportion of
people living in consistent poverty has
doubled since the 2008 economic crash,
anti-poverty measures were the top
choice of respondents.
financially viable choice and, if so, what size to install. Chinese
automaker BYD is introducing battery-powered buses that can
go a full day without recharging—giving commuters a more
environmentally friendly way to get to and from work.
In Mexico, cement company Cemex has worked to combat
the severe housing shortage through a program that encourages
groups of families and individuals to pool their resources
to enable each, over time, to add a room onto their homes.
Each of these initiatives amplifies its power by giving
consumers a way to be a part of the solution they seek.
TRUTH
10
A STRONG
LEADER IS A
STRONG ASSET
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A STRONG LEADER IS A STRONG ASSET
When we asked our respondents who or what defines a brand’s
core values, only 29 percent cited the CEO, well below the
company’s employees (38 percent) and slightly below brand
champions/loyal customers (32 percent) and advertising
agencies/marketers (31 percent). While that may well be the case for
the average company, it doesn’t mean having a behind-the-scenes
CEO is in the business’s best interest.
Who/what defines a brand’s core values (what it is and what it stands for)?
38%
32%
31%
29%
Employees
Brand champions (the most
vocal customers/users)
Advertising agencies/
marketers
The CEO
P: 46 M: 36
P: 41 M: 31
P: 38 M: 30
P: 36 M: 28
26%
20%
17%
13%
Social media
Traditional media
Retailers
None of these
P: 36 M: 25
P: 24 M: 19
P: 21 M: 17
P: 6 M: 15
P=Prosumer, M=Mainstream
“IT’S NO LONGER ENOUGH FOR
CORPORATE CHIEFTAINS SIMPLY TO
DELIVER PROFITS AND DRIVE GROWTH.”
Think about the companies that have had a strong impact on the
public over the past decade or more, and you’ll find that they more
often than not are headed by a charismatic leader—or at least by
someone who spends a good deal of time in the media spotlight.
Steve Jobs and Mark Zuckerberg have even become the subjects
of Hollywood films.
What’s important about such CEOs is not their celebrity status
so much as the extent to which people believe they have a
clear vision, stand behind a strong set of values, and are leading
their companies in the right direction. It’s no longer enough for
corporate chieftains simply to deliver profits and drive growth.
Eighty-four percent of our global sample deem it important
that a CEO serve as a role model within the company, and more
than three-quarters think he or she must also serve as a role
model outside the company. In other words, some of the new
responsibilities being placed on companies are also being
put onto their chief executives.
50 / 54
How important is it for a company’s CEO to do each of the following?
Serve as a role model inside
the company (for employees)
Serve as a role model outside the
company (for the general public)
94%
87%
78%
83%
76%
68%
82%
76%
68%
85%
78%
90%
PROSUMER
Be “the face” of the
company in the media
MAINSTREAM
82%
MILLENNIALS
It’s all but certain that we’ll be seeing more and more CEOs
using their businesses and media spotlights to drive change and
positively impact their companies’ fortunes. In Brazil, a country
struggling with corruption, aerospace company Embraer enjoys
a good reputation in part because of CEO Maurício Novis Botelho.
Under his leadership, the company has established the Embraer
Institute for Education and Research—an organization that
supports education and has even built one of the country’s top
GEN XERS
BOOMERS
69%
73%
(% choosing very or somewhat important)
high schools. A second one is planned. In China, the founder of
Alibaba Group, Ma Yun (or Jack Ma), is known for more than
transforming the way people buy things online. Yun is a role model
and celebrity in Asia and beyond, having been deemed one of the
most influential people in the world by Time magazine and one
of Asia’s “Heroes of Philanthropy” by Forbes Asia. The billions
of dollars he’s funneled into his philanthropic trust are endowing
causes related to healthcare, education, and the environment.
CLOSING THOUGHTS: A PURPOSE
BEYOND PROFITS IS GOOD FOR BUSINESS
Doing something good for society used to be a business “add-on.”
Many of the largest companies operated under a sense of noblesse
oblige that motivated them to fund the arts, support charities
catering to the poor, and maybe even preserve some parkland
so their favorite birds would have a healthy habitat. It’s different
today. Contributing to the common good is now widely regarded
as a core tenet of businesses that have reached a certain size
and level of success.
It would be wrong to think of this new mindset as some sort of
corporate “tax.” On the contrary, those businesses that are making
a name for themselves as social activists and change leaders are
finding that these activities actually contribute to their coffers,
either directly or through the benefits of reputation. Operating
more sustainably can bring immediate—and substantial—savings.
A 2014 report by Ceres, David Gardiner & Associates, Calvert
Investments, and the World Wildlife Fund found, for instance, that
Fortune 100 companies collectively saved $1.1 billion by taking part
in renewable energy programs.
For consumer-facing companies, there’s also growing evidence
that people are making purchase decisions based on a brand’s
perceived ethics and actions. A study from Cone Communications
found that 90 percent of Americans are more likely to trust and
stay loyal to companies that actively try to make a difference.
And a Nielsen survey revealed that two-thirds of consumers
say they will pay more for products and services that come
from companies that are committed to making a positive
social and environmental impact.
Corporate brands with a strong social purpose further benefit
from an improved ability to attract civic-minded workers. The Cone
Communications Millennial CSR Study found that companies with
a purpose beyond profit are particularly well positioned to attract
the newest generation of workers. According to the research,
76 percent of US millennials consider a company’s social and
environmental commitments in deciding whether to work there.
And 62 percent would willingly take a pay cut in order to work
for a socially responsible company. Similarly, the Project ROI
52 / 54
study found that a strong reputation for responsibility can reduce
staff turnover by 50 percent. That’s a valuable edge at a time when
organizations are scrambling to compete for the very best talent.
What this all adds up to is that larger companies can no longer
thrive by simply selling the goods they produce or the services
they provide. If they’re smart, they’ll expend nearly as much
effort communicating the essential truths of the company
behind their brands, including its values, its commitments,
and the larger purpose that unites its workforce.
For, as writer Henry David Thoreau put it,
“Goodness is the only
investment that never fails.”
Done right, a carefully chosen and clearly communicated
corporate purpose will elevate the fortunes of both
the business and its individual brands.
FIND OUT MORE ABOUT PROSUMER REPORTS
http://mag.havasww.com/prosumer-report/
Or contact Matt Weiss, global chief
marketing officer, Havas Worldwide,
Follow us on Twitter @prosumer_report.
at [email protected].
Prosumer Reports is a series of thought leadership publications by Havas Worldwide—part of a global initiative to share information and
insights, including our own proprietary research, across the Havas Worldwide network of agencies and client companies. Havas Worldwide
is a leading integrated marketing communications agency and was the first to be named Global Agency of the Year by both Advertising
Age and Campaign in the same year. The Havas Worldwide network is made up of 11,000 employees in 316 offices in 120 cities and 75
countries, and provides advertising, marketing, corporate communications, and digital and social media solutions to some of the largest
global brands. Headquartered in New York, Havas Worldwide is the largest unit of the Havas group, a world leader in communications
(Euronext Paris SA: HAV.PA).
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