The Challenge of the Responsible Consumer
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| 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.
© 2004 Weber Shandwick