Corporate Social Responsibility Monitor 2004 EXECUTIVE BRIEF
Introduction
This is an Executive Brief of the fifth annual Corporate Social Responsibility (CSR) Monitor, tracking public opinion around the world on the changing role of companies. The research is based on the results of telephone or face-to-face surveys taken between November 2003 and February 2004, of nationally representative samples of about 1,000 adults in each of 21 countries. These interviews with 23,607 people around the world make this one of the largest surveys on CSR.
The full 2004 CSR Monitor report is available on a subscription basis, which includes a customized in-person briefing.
The CSR Monitor is a syndicated annual survey of global public opinion, covering a variety of corporate responsibility issues. It provides global decision-makers with critical insights and comparative country metrics needed to better understand the trends shaping their international business and policy environment. The report is designed to help shape corporate strategies, policy positions, initiative development, and communications activities. The findings add to our collective understanding of the nature and extent of public expectations for companies.
GlobeScan also offers custom-designed quantitative and qualitative research with consumers and stakeholders, to deliver more specific insights to clients on a proprietary basis. In addition to our general research services, potential areas of custom research include reputation research, employee and stakeholder research, issues management, communications and message testing, and senior management briefings, among others.
For more information, contact:
Mr. Chris Coulter
Director, CSR Research Program
GlobeScan Inc.
65 St. Clair Avenue East, Suite 900
Toronto, Ontario, Canada M4T 2Y3 Tel: +1.416.969.3088
Fax: +1.416.920.3510
chris.coulter@globescan.com
www.GlobeScan.com
The 2004 Corporate Social Responsibility Monitor explores the views, attitudes, and behavior of consumers around current CSR issues. It provides companies with insights into the attitudinal context within which they operate in societies around the world, examines where companies are vulnerable on social responsibility, suggests CSR communication strategies, and explores the business case for good corporate citizenship. The topics in this year's survey include: trust in companies and other institutions, regulation of CSR, expectations of companies, communications around CSR, company ratings, ethical consumerism, socially responsible investing, and human resources.
As well as looking at the opinions and attitudes of specific stakeholders, including corporate employees, shareholders, and Strong Consumer Activists, there is an examination into the views of Opinion Leaders, using GlobeScan's proprietary Opinion Leader Typology. It is well established that Opinion Leaders often have more impact on the general public views than do formal leaders of a society. GlobeScan identifies informal Opinion Leaders among the survey respondents and compares their views with the general population, in order to anticipate likely changes in public views on CSR. Making up approximately 15 percent of the population in each country, Opinion Leaders are identified through responses to a series of questions, including strength-of-personality questions, self-reported measures of issues engagement, and questions aimed at identifying individuals who have formal leadership positions or regularly speak in public. Education and community involvement are also considered.
The following points highlight the main findings of the 2004 survey, which have implications for corporate strategic planning, risk management, communications, and internal education.
- Domestic companies have a competitive advantage over global companies when it comes to trust.
- Continued disenchantment with companies in Europe implies a challenging business environment for companies trying to express a commitment to CSR.
- Although people remain ambivalent about the need for CSR legislation, calls for government regulation have increased in several countries.
- People in most countries surveyed - less so in Asia and Africa - give a negative assessment of the CSR performance of large companies.
- Education and training can be seen as a key initiative area for companies.
- Companies must adapt their CSR policies and programs to target the specific needs and interests of the communities in which they operate.
- Knowledge of the CSR performance of specific companies continues to be limited.
- Demand for CSR remains strong among corporate employees, with majorities saying their company needs to focus more on being socially responsible.
- In wealthy countries, non-traditional, personal, and informal forms of communication should be used to relay CSR information.
- The consultation of CSR reports in wealthy countries is much more common than originally thought, and appears to have a positive impact on corporate reputation and sales.
- Shareholders are interested in learning more about the CSR performance of the companies in their portfolio.
- By assessing the frequency with which people reward or punish companies, the ethically active consumer market in developed countries has been identified at 12 to 30 percent.
- The higher engagement on CSR issues among Opinion Leaders suggests that
companies will likely feel increasing public pressure to become more socially
responsible.
Selected Findings
Trust in Institutions
To understand consumers' perceptions of companies and the current communications environment, GlobeScan again this year examined the level of trust people have in global and domestic companies in context with other non-corporate institutions. People around the world continue to have the greatest trust in non-governmental organizations (NGOs) to operate in the best interests of society. The United Nations also ranks highly, although more so in the economically developed countries of the North than in the nations of the South.
While national governments are generally seen as both the North and South, their standing is much lower in France, Germany and Italy, as well as in Nigeria and Uruguay, where majorities express their government. The decline in trust of German and Italian national governments since 2002 is quite striking and reflective of the increased dissatisfaction of these citizens with their political leaders.
| North | South | |
|---|---|---|
| NGOs | 68 | 63 |
| United Nations | 65 | 54 |
| National government* | 52 | 54 |
| Trade or Labor unions** | 50 | 48 |
| Domestic companies** | 49 | 57 |
| Press/media | 43 | 60 |
| Global companies | 38 | 46 |
Question not asked in Greece
*Not asked in China
**Not asked in Nigeria and South Africia
Global companies are among the least trusted institutions of the countries surveyed, particularly in Europe, Latin America and Eurasia. Indeed, majorities in 11 of the 20 countries surveyed express a distrust of multinationals. The business environment is more trusting in Canada and the United States, where global companies, while not as trusted as other institutions, are perceived by a slim majority to be acting in society's best interests. Trust in global companies has been increasing in these countries since 2001 (as well as in seven other countries), while decreasing in Germany, Italy, Nigeria, Brazil, and Chile.
Trust in domestic companies is not as low as for global companies, and has been increasing in many countries. Trust levels are high in developing countries, particularly in Asia and parts of Latin America, ranking third behind NGOs and the press and media. People in Europe are divided when it comes to trusting domestic companies. Trust levels are somewhat higher in North America. It appears that domestic companies have a competitive advantage over global companies when it comes to trust.
| Year | USA | Europe* |
|---|---|---|
| 2004 | 51 | 36 |
| 2002 | 45 | 41 |
| 2001 | 47 | 37 |
France was not included in 2002, Question not asked in Greece
As noted above, the press and media receive high levels of trust in developing countries. In contrast, Americans are highly distrusting of the motives of the press and media, and this institution is trusted even less than global companies. This will have important implications when using press and media to communicate any CSR initiatives.
The low level of trust in global companies, particularly in Europe, implies a challenging environment for effective corporate communications. Companies will need to approach messaging campaigns carefully until trust is regained, to ensure that CSR initiatives are not met with skepticism and dismissed. In North America and Asia, however, the current level of corporate trust suggests that conditions may be right for bolder CSR initiatives and communications.
CSR Performance of Companies
People in most countries surveyed give a negative assessment of the CSR performance of large companies. Majorities in only six of the 21 countries surveyed - Indonesia, India, Nigeria, China, South Africa, and Brazil - agree that large companies are doing a good job building a better society for all.
Regionally, attitudes are most positive in Asia and Africa, while criticism of the CSR performance of companies is greatest among those in wealthy countries, especially France, Italy, and Germany.
Although trust in companies has increased in several countries, including the United States, this has apparently not translated to improved CSR performance ratings of companies. This dissatisfaction with the performance of companies, combined with high expectations around CSR, suggests continued societal pressure, particularly in North America and Europe, for companies to be socially responsible. It appears to be more important than ever for companies to understand societal expectations, develop CSR initiatives that properly express their commitment to good corporate citizenship, and effectively communicate this commitment to the public.
| Countries | Agree | Disagree | DK/NA and "Depends/Neither |
|---|---|---|---|
| Asia | 73 | 22 | 5 |
| Africia | 63 | 31 | 6 |
| North America | 44 | 53 | 3 |
| Latin America | 36 | 50 | 12 |
| Eurasia | 32 | 58 | 10 |
| Europe | 32 | 60 | 9 |
CSR Reporting
In industrialized nations, the consultation of corporate social and environmental reports is much more common than originally thought, particularly in the United States, Germany, Australia, and Canada, where one in five say they have read such a report. Although CSR reports are generally intended for investors, stakeholders and people who are specifically looking for such information, it appears that an audience for CSR reports does exist among the general public. It is likely, however, that these reports will only be successfully received if they are tailored for the general public. If properly positioned, CSR reports may be viewed as a new corporate communications tool for companies, one that could be particularly effective in our "show me" world.
| Country | Number |
|---|---|
| Australia | 24 |
| Germany | 21 |
| USA | 19 |
| Canada | 17 |
| Great Britain | 14 |
| France | 10 |
| Spain | 7 |
| Italy | 7 |
| Greece | 3 |
Opinion Leaders, who are the most likely to be engaged in and speak out on corporate issues, are twice as likely as the general public to say they have looked at a report, which suggests that even more people will be reading these reports in the future. Awareness of CSR reports is also higher among other special audiences, such as shareholders, Strong Consumer Activists, and corporate employees. Indeed, majorities of shareholders in all North American and European countries, as well as in Australia, agree that CSR reporting is an important factor that they consider when making investment decisions. As such, it would also be wise to consider the general shareholder as a potential target audience for CSR reporting. Transparency in reporting on CSR performance will help build long-term, trusting relationships with shareholders, and could potentially increase the sale of shares among socially oriented buyers if reports are made readily available.
Among those who are aware of CSR reports, majorities in most countries say
that reading or hearing about a report improved their impression of the company
or led them to buy the company's products, or speak positively about the company
to others. Very few say that knowledge of a CSR report prompted them to invest
in the company. Thus, not only do these findings suggest that the general public
is a potential target audience, but the publication of a CSR report can also
impact corporate reputation and the bottom line, particularly if reports are
tailored for and made available to the general public. CSR reports may be an
influential way for companies to communicate their commitment to CSR, ultimately
leading to better reputation and increased market share.
Methodology
The following table gives a detailed description of the methodologies used in each of the 21 countries:
| Country | Sample Size (unweighted) | Field dates | Sample frame | Survey methodology | Type of sample |
|---|---|---|---|---|---|
| Argentina | 1003 | Nov. 27-30, 2003 | 18 years or older | Face to face | Nation-wide |
| Australia | 1010 | Feb.23-28, 2004 | 18 years or older | Telephone | Nation-wide |
| Brazil | 1000 | Nov.27-Dec. 15, 2003 | 18 years or older | Face to face | Urban1 |
| Canada | 1000 | Dec. 4-21, 2003 | 18 years or older | Telephone | Nation-wide |
| Chile | 1200 | Dec. 18-31, 2003 | 18 years or older | Face to face | Urban2 |
| China | 1800 | Dec. 20-30, 2003 | 18 years or older | Telephone | Urban3 |
| France | 1003 | Feb. 18-19, 2004 | 18 years or older | Face to face | Nation-wide |
| Germany | 1015 | Dec. 2003-Jan. 6, 2004 | 16 years or older | Telephone | Nation-wide |
| Great Britain | 800 | Dec. 8-15, 2003 | 18 years or older | Telephone | Nation-wide |
| Greece | 2500 | Nov. 13-Dec. 10, 2003 | 15 years or older | Face to face | Nation-wide |
| India | 1003 | Dec. 15, 2003-Jan. 3, 2004 | 15 years or older | Face to face | Urban4 |
| Indonesia | 1000 | Dec. 9-23, 2003 | 18 years or older | Face to face | Urban5 |
| Italy | 1005 | Jan. 13-20, 2004 | 18 years or older | Telephone | Nation-wide |
| Mexico | 1010 | Nov. 21-Dec. 3, 2003 | 18 years or older | Face to face | Nation-wide |
| Nigeria | 1000 | Dec. 8-22, 2003 | 18 years or older | Face to face | Nation-wide |
| Russia | 1058 | Dec. 4-18, 2003 | 18 years or older | Face to face | Nation-wide |
| South Africa | 1000 | Nov. 21-Dec. 5, 2003 | 16 years or older | Telephone | Urban6 |
| Spain | 1000 | Dec. 22, 2003-Jan. 5, 2004 | 15 years or older | Face to face | Nation-wide |
| Turkey | 1200 | Nov. 10-24, 2003 | 15 years or older | Face to face | Urban7 |
| Uruguay | 1000 | Dec. 10-20, 2003 | 18 years or older | Face to face | Nation-wide |
| USA | 1000 | Dec. 4-21, 2003 | 18 years or older | Telephone | Nation-wide |
- In Brazil the survey was conducted in Belém, Belo Horizonte, Curitiba, Fortaleza, Porto Alegre, Recife, Rio de Janeiro, Salvador, São Paulo, Brasília and Goiânia representing 34% of the total adult population. return to table
- In Chile the survey was conducted in 30 cities representing 70% of the total population. return to table
- In China the survey was conducted in Beijing, Shenyang, Shanghai, Hangzhou, Wuhan, Chengdu, Guangzhou, Zhengzhou, and Xi'an, representing 36% of the total population in Urban China. return to table
- In India the survey was conducted in Mumbai, Delhi, Calcutta, and Madras representing 20% of the total urban population. return to table
- In Indonesia the survey was conducted in Jakarta and Surabaya, representing 13% of the total urban population. return to table
- In South Africa the survey was conducted in Bloemfontein, Cape Town, Durban, Pietermaritzburg, East London, Port Elizabeth, Johannesburg, Pretoria, Vaal, Uitenhage/Despatch, East Rand, and West Rand / Soweto representing a total of 37.8% of the total adult population and 91.4 % of the Metropolitan population. return to table
- In Turkey the survey was conducted in Adana, Ankara,
Antalya, Bursa, Diyarbakir, Erzurum, Istanbul, Izmir, Konya, Samsun, and Zonguldak
representing 45% of the total population. return
to table
Research partners
GlobeScan Inc. would like to gratefully acknowledge the substantive contribution of each of our research partners in undertaking this international study. We are honored to be associated with this network of social research institutes.
| Country | Research Institute | Location |
|---|---|---|
| Argentina | TNS Gallup Argentina | Buenos Aires |
| Australia | Roy Morgan Research | Melbourne |
| Brazil | Indicator GfK. | Sao Paulo |
| Canada | ComQUEST Research | Montreal |
| Chile | MORI Chile | Santiago |
| China | Survey & Statistics Institute of BBI | Beijing |
| France | Taylor Nelson Sofres | Paris |
| Germany | Ri*QUESTA GmbH | Teningen |
| Great Britain | ICM Direct | London |
| Greece | Institute of Communication | Athens |
| India | ORG-MARG Research Limited | Mumbai |
| Indonesia | Deka Marketing Research | Jakarta |
| Italy | Eurisko SpA | Milan |
| Mexico | Mund Americas | Mexico City |
| Nigeria | Market Trends Research International, Nigeria Ltd. | Lagos |
| Russia | CESSI Institute for Comparative Social Research | Moscow |
| South Africa | Markinor (Pty) Ltd | Randburg |
| Spain | Quota Union S.A. (Grupo Sigma Dos) | Madrid |
| Turkey | Yontem Research & Consultancy | Istanbul |
| Uruguay | Equipos Mori | Montevideo |
| USA | ComQUEST Research | Montreal |
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For more information, please contact
Chris Coulter, Director, CSR Research.
email: chris.coulter@GlobeScan.com,
phone: +1-416-969-3088, fax: +1-416-920-3510,
Website: www.GlobeScan.com
