With great power comes great social responsibility
Rainbow-coloured vodka bottles, pride burgers, and gAyTMs.1 Just a few examples of the many rainbow adorned, LGBTQ-positive products promoted by businesses during June for Pride Month.
Apart from LGBTQ equality, awareness of other societal issues like sustainability and racism has been growing, accompanied by a growth in activism from companies and brands. Brands are increasingly aware of their responsibility to make positive contributions to society. Known as corporate social responsibility (CSR), more and more brands are attempting to tackle an assortment of societal issues. Whilst this support is generally welcomed, consumers are beginning to question whether the aim of CSR initiatives are to genuinely drive positive change, or just to act as a convenient way for companies to build their brand reputation.2
Scepticism in CSR Initiatives
Consumers are becoming more aware of societal issues and are trying to make a difference through their consumption choices. ACRS research has found almost a third (28%) of Australian shoppers would be willing to pay more for products from a brand sharing their values or purpose, while 14% would do so specifically for brands that engage in CSR initiatives they deem important. Consequently, it has become common for brands to respond with support for social causes, enticing purchases from socially minded consumers.
As a result, companies often respond with support for similar causes, in order to develop a better reputation and encourage more purchases. However, it is important for consumers to perceive CSR initiatives as genuine, and not a result of opportunism. Insincere CSR from brands are likely to be met with scepticism3 and harsh backlash, as seen in the case of the LA Pride festival overselling tickets leading to accusations from the LGBTQI community of organisers placing profits over cause.3 Scepticism from consumers is also higher when companies do not take initiative, but instead react to stakeholder pressures. Consumers want companies to genuinely care about the issues they are addressing, rather than superficially showing support because others are doing so.3
With 62% of young people holding the belief that companies have no ambition beyond generating profit, retailers need to do more than pledge their support and sell merchandise.4 Brands need to demonstrate genuine and ongoing commitment and effort in order to convince consumers that they are working to make a difference.