Table of Contents
Executive Summary
-
- Market overview
-
- Figure 1: Agreement about importance of brands following ethical business practices, October 2019
- What does it mean to follow “ethical business practices?”
-
- Figure 2: Attitudes toward corporate responsibility, October 2019
- Deep down inside people want to be good
- Brands need to educate consumers about sustainability
-
- Figure 3: Top ways brands can best demonstrate environmental friendliness, October 2019
- Parents
-
- Figure 4: Attitudes toward brand ethics, parents vs non-parents, October 2019
- Women
-
- Figure 5: Reasons to stop buying from a brand or company, by gender, October 2019
- Millennials and Generation Z
-
- Figure 6: Reasons to stop buying from a brand or company, by generation, October 2019
- What’s next
The Market – What You Need to Know
-
- Brand ethics are important to two thirds of US consumers
- Younger consumers and parents more likely to follow up
- Climate change can be political
- Companies that treat employees fairly can garner goodwill
Consumer Interest in Brand Ethics
-
- Most consumers want the brands they support to be ethical
-
- Figure 7: Agreement about importance of brands following ethical business practices, October 2019
- Parents are especially concerned about brand ethics
-
- Figure 8: Percentage who agree it’s important for brands to follow ethical business practices, October 2019
- Mixed feelings on the extent of corporations’ ethical responsibilities
-
- Figure 9: Agreement companies are responsible for guiding ethical choices, October 2019
- Younger generations more willing to research brands’ practices
-
- Figure 10: Agreement that it’s important to research companies’ business practices, October 2019
Corporate Considerations
-
- Corporations have the same rights and protections as people
- Growing wealth disparity in the US
- Shrinking middle class
-
- Figure 11: Pre-tax household income distribution, 1989 and 2016
- Increasing cost of living, but a stagnant minimum wage
- Shareholders vs stakeholders
- Business Roundtable
- B Corporations
- Quantifying social impact
- Debate about the responsibilities of brands vs government
- Paving for Pizza
- Busch Pop Up Schop
- Patagonia leads corporations to a new era of political endorsements
Consumer Perspectives
-
- Gig economy raises ethical concerns
-
- Figure 12: Ways brands can represent consumers’ values, March 2019
- Organized protests in New York draw attention to rideshare employees
- Spotlight: California’s AB5 legislation
- Environmental concerns can be polarizing
- Spotlight: The EPA and the National Environmental Policy Act
- Social stigma creates barrier to earth-friendly behaviors
- Start-ups have an advantage over bigger brands in the “ethical” space
- Younger generations see smaller companies as more ethical
-
- Figure 13: Agreement that small companies are more ethical, by generation, October 2019
- Spotlight: TeaSquares
- Americans are not super passionate about any particular cause
- Affordable healthcare could be a risky corporate cause
-
- Figure 14: Issues consumers feel strongly about, March 2019
Key Trends – What You Need to Know
-
- Most people try not to harm the Earth
- Sustainable solutions could give struggling brands a second chance
- Consumers increase scrutiny of those atop the corporate ladder
- CEOs could be ethical figureheads
- Taking or avoiding controversial stances could both backfire on brands
- Brands should consider proactive supply chain transparency
Mintel Trends
-
- Consumer Driver: Surroundings
-
- Figure 15: US consumers’ connection to Surroundings pillars, July 2019
- Sustainability
- Localism
- Equality
- Ethics
- Mintel Trend: Rethink Plastic
-
- Figure 16: Ways brands can best demonstrate environmental friendliness, October 2019
- Spotlight: Gerber’s recycling program
- Mintel Trend: Buydeology
- Values are tricky to define
-
- Figure 17: Consumers’ attitudes toward brand values, by generation, March 2019
- Spotlight: Uber’s values makeover
-
- Figure 18: Dara Khosrowshahi Twitter post, December 2019
What’s Working
-
- NBC’s The Good Place
-
- Figure 19: The Good Place – How Your Life Is Scored (Episode Highlight), September 2016
- CEOs can leverage their socially responsible halos
-
- Figure 20: Agreement that corporate execs’ words and actions reflect on their company, by generation, October 2019
- Mastercard’s CEO sets ethical example
- Ethical Certifications
- Fetzer Vineyards
-
- Figure 21: Celebrating 50 Years of Fetzer video, January 2018
- Etsy
What’s Struggling
-
- Inequity within the Walt Disney Company
- Boeing’s reputation suffers after tragedy and cover-ups
- Gillette’s #TheBestMenCanBe campaign
-
- Figure 22: We Believe: The Best Men Can Be | Gillette (Short Film), January 2019
- Hallmark generates controversy by trying to avoid controversy
-
- Figure 23: Zola | Easy Wedding Planning | TV Ad Spot, December 2019
What to Watch
-
- Sustainability innovations can help soda companies survive
- Coca-Cola
- PepsiCo
- Increased scrutiny of corporate owners, board members and executives
- Purdue Pharma and the Sackler family
- Equinox and SoulCycle
- Greater demand for supply chain information
- Smartphones aren’t safe from ethical breaches either
The Consumer – What You Need to Know
-
- Brands need to meet women’s ethical standards
- Corporations must strive to do no harm (to their customers)
- Most consumers support fair treatment of employees
- Concept of sustainability unclear beyond recycling
- Cleaning supplies and fast food face ethical challenges
Corporate Responsibility
-
- Most consumers feel corporations owe their customers respect
- Support for a living wage not universal
- Honesty does not top the list of responsibilities
- Environmental concerns also fall lower on the list
-
- Figure 24: Attitudes toward corporate responsibility, October 2019
- TURF analysis: Reaching consumers through corporate responsibility
-
- Figure 25: TURF Analysis – Corporate responsibility, October 2019
- Women feel more strongly about corporations’ responsibilities than men
-
- Figure 26: Attitudes toward corporate responsibility, by gender, October 2019
Demonstrating Social Responsibility
-
- Social responsibility means offering employees benefits
- Few consumers are eager for brands to take stances on social issues
-
- Figure 27: Ways brands can best demonstrate social responsibility, October 2019
- Women have more to gain from employee benefits
- Spotlight: Patagonia
-
- Figure 28: Ways brands can best demonstrate social responsibility, by gender, October 2019
- A controversial stance could alienate older consumers
-
- Figure 29: Ways brands can best demonstrate social responsibility, by generation, October 2019
Demonstrating Sustainable Practices
-
- Using recycled materials signals a commitment to the Earth
-
- Figure 30: Top ways brands can best demonstrate environmental friendliness, October 2019
- Spotlight: Every Bottle Back
- Women more likely to favor reduction of plastics and packaging
- Phrase “carbon neutral” resonates better with men
-
- Figure 31: Ways brands can best demonstrate environmental friendliness, by gender, October 2019
- Younger generations less hopeful for an improved environment
-
- Figure 32: Agreement that nothing can be done to save the environment, by generation, October 2019
- But, younger generations willing to pay more to protect the Earth
-
- Figure 33: Agreement that it’s worth paying more for environmentally friendly products, by generation, October 2019
Category Perceptions
-
- Correspondence Analysis
- Packaging waste not necessarily associated with harming the environment
- War on packaged food continues
- Few consumers see social media companies as detrimental to society
-
- Figure 34: Correspondence Analysis – Symmetrical map – Category perceptions, October 2019
-
- Figure 35: Issues causing concern, by type of category, October 2019
- Older generations are more wary of cleaning supplies
-
- Figure 36: Concerns about cleaning products, by generation, October 2019
- Fast food brands face challenges with younger generations
-
- Figure 37: Concerns about cleaning products, by type of category and generation, October 2019
Deal Breakers: Unethical Actions
-
- Selling products that harm people could drive away some consumers
- Spotlight: Walgreens’s tobacco policy
- Covering up a scandal is a deal breaker for half of all consumers
- Some consumers say they draw the line at harming animals or the Earth
- Only four in 10 would boycott brands that do not pay employees fairly
- Supporting a controversial cause not as likely to trigger boycotts
-
- Figure 38: Reasons to stop buying from a brand or company, October 2019
- Women are more likely than men to take their business elsewhere
-
- Figure 39: Reasons to stop buying from a brand or company, by gender, October 2019
- Millennials and Gen Z less turned off by corporate deception
-
- Figure 40: Reasons to stop buying from a brand or company, by generation, October 2019
Appendix – Data Sources and Terminology
-
- Data sources
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
- Defining generations
Appendix – The Consumer
-
- Correspondence Analysis: Methodology
-
- Figure 41: Category perceptions, October 2019
- TURF Analysis: Methodology
-
- Figure 42: TURF Analysis – Corporate responsibility, October 2019
Back to top