Products and services that are offered from socially responsible companies may be able to charge more, according to a report by Nielsen.
The report, “Doing Well by Doing Good,” found that most consumers are willing to pay more money for good and services that are sustainable.
Consumers from 60 countries were surveyed for this report. Input was given by 30,000 people from around the world.
Globally, 55% of consumers said they would spend more money to support companies with a positive commitment to social and environmental change. The global average has increased by 10% since 2011.
Forty-two percent of North Americans were willing to spend more, a 7% increase from 2011. The Asia-Pacific region was the most willing to pay more for socially responsibility at 64%. Latin America was close behind at 63%, and they had the highest increase from 2011 (13%).
Europe was the least willing to pay extra at 40%, an increase of 8% from 2011.
Fifty-two percent of people said that they have purchased something from a socially responsible company in the last six months and that they check product labels to see if sustainable practices were used.
Buying from socially responsible companies isn’t the only way that people show their commitment to sustainability.
Forty-nine percent of people make time or financial donations to social or environmental initiatives and 67% of respondents want to work for socially responsible businesses.
Getting better access to clean water was the number one concern, with 59% of global respondents expressing extreme worry. Sixty-seven percent would pay extra to improve access to clean water and 66% actively volunteer in this area.
Other areas of concern included sanitation access (53%), extreme hunger and poverty (53%), non-communicable diseases (51%), environmental sustainability (50%) and child mortality (50%).
“As companies drive to create greater shared value, linking their business strategy to societal outcomes, they have to put consumers at the center and understand their expectations,” said Nielsen’s global leader of public development and sustainability, Amy Fenton. “You can develop clear and actionable sustainability strategies for your brand that will generate loyalty and improve performance.”
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