The Challenge of the Responsible Consumer

Consumer power should not be underestimated

Consumers are more active than ever in voicing their concerns and demands. For companies around the world, this growing consumer consciousness is having a huge impact on communications.

Communications professionals play a vital role in identifying real evolutions in consumer opinion, and advising companies on the stance they should take on each issue. Public relations practitioners need to be able to identify the real and potentially damaging issues as early as possible, and assist their clients to put structures into place to deal with problems as and when they arise, rather than being taken by surprise.

Consumers can change their standpoint on a regular basis, but they can also remain true to a cause over a long period of time. The power and longevity of a movement driven by responsible consumers should not be underestimated, as many leading companies have found to their loss.

But are consumers genuinely concerned about companies operating in a socially responsible manner? And if so, are they actually basing their buying decisions on these opinions? I believe that post-Enron, it is less a case of corporate social responsibility or corporate environmental responsibility, as simple ‘corporate responsibility’, encompassing codes of ethics. As long as a company is behaving, then they have nothing to worry about.

There is not necessarily a need for every company to be operating on the deepest ethical, and socially and environmentally responsible foundation, but every company does need to show awareness of acting in a responsible manner and taking their role as a corporation seriously – they need to show that they are doing their best for consumers in a commercial environment. Consumers know companies aren’t perfect and that they exist to make money, but a good corporate reputation is perhaps the most vital, and fragile, asset a company has.

Take for instance the anti-globalisation movement. As Weber Shandwick found in our report Anti-American sentiments and their long-term impact on international corporations, the souring of attitudes toward America is a long-term and complex trend. There is a widespread suspicion about globalisation and the corporations and brands most closely identified with it, most of which are American. This has gained a distinct political dimension in recent years, one that crosses generations and has led to growing consumer activism and a general deterioration in brand loyalty and brand value.

Products and companies can be severely damaged by not paying attention to trends in political attitudes, as well as to issues such as the genetically modified (GM) foods debate, sensitivities to environmental policy, associations with unpopular regimes, labour practices, and so on. Our survey showed that one third of all American and English consumers, and one fifth of French consumers, have boycotted a product to make a political statement.

CSR is now high on the boardroom agenda, as shown by the number of indexes which have been launched to rank standards of environmental sustainability, upholding and supporting universal human rights, and developing positive relationships with stakeholders.

When companies want to enhance or protect their reputation, they need to consider every aspect of their enterprise. An ill-judged ad campaign, a cavalier attitude to local customs and manners or heavy-handed imposition of labour practices or dealings with local partners could lead to an unexpected backlash, taking various forms that can be harmful to a company. Companies should demonstrate that they are listening to their customers, who by and large feel unheard.

But what are the issues that stick? Is anti-globalisation a real threat to corporations? Should companies react to every issue that emerges? Communications professionals should be able to spot genuine trends that are likely to have a long-term impact on a massive industry sector, all the way from product development through marketing to the bottom line.

The trick is spotting these issues well enough in advance so that the appropriate responses can be considered. The winners may be those who are able to translate research findings into action. The last thing companies need in these days of consumer consciousness is to look complacent or as if they are not in touch with real consumer and political agendas.

It’s true that companies need to be selective and know when it is appropriate for them to show they are listening and acting on consumer trends and wishes, and when they should be setting the agenda themselves. The key is for corporates to take a combined approach: both proactive and reactive – and to operate from clear key principles.

They need to be able to reach out and listen to consumers, but also to promote positive change themselves. Companies still need to be flexible to respond to genuine shifts in consumer consciousness, however: in a genuine crisis, no company involved can afford to ignore it by being stubborn and stuck on an immoveable path.

The real effect of responsible consumers is that we need to truly engage with all stakeholders. We need to get inside the heads of consumers and know what they are thinking. It’s about companies saying: talk to us, tell us your concerns and issues and we will see how we can help you, within the boundaries of running a commercially viable organisation. Communications is at the heart of that delicate balance between protests and profits.

The highly publicised scandals at Enron and other corporations did for the private sector what Watergate did for the public sector thirty years ago. They triggered sweeping and systemic changes. Today corporate communications professionals are on the front lines of reputation management, crisis response, litigation support and a range of other issues that were barely on the table a decade ago.

What used to be the checklist for corporate communications professionals rarely to be seen with the most senior executives, are today major issues in the boardroom.

Rolf Olsen, president, European practices and client development, Weber Shandwick.

For a copy of the report Anti-American sentiments and their long-term impact on international corporations, please contact Emma Bowen-Davies at ebowen-davies@webershandwick.com.

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