Attitudes toward Brand Ethics - US - January 2020

OVERVIEW
What you need to know
Definitions
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