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Mintel: companies need to communicate CSR credentials

Mintel’s new report “The Ethical Consumer” claims it is no longer enough for a company to go quietly about its business, selling things people want and making a profit. Today big companies are called upon to be good citizens and they are keen to show that they are, in a variety of ways. Annual company […]

Mintel’s new report “The Ethical Consumer” claims it is no longer enough for a company to go quietly about its business, selling things people want and making a profit. Today big companies are called upon to be good citizens and they are keen to show that they are, in a variety of ways.

Annual company reports often talk proudly not just in terms of profit, but in how they are providing a service to the community, Mintel notes, working to improve the state of the environment, as well as how they are committed to waste and pollution reduction. Whilst cynics might argue that such efforts amount to nothing but window dressing, there are, says the company, numerous examples of businesses contributing to the public good, albeit whilst making healthy profits.

Mintel data shows that the vast majority of consumers expect companies to act in an ethical way. On the flip side, behaving unethically could cost companies dearly in terms of their reputation, consumer trust and loyalty, and ultimately their bottom line.

“For today’s consumers there is a sense that companies are inherently immoral, unless they can demonstrate that’s not the case,” said Jack Duckett, Consumer Lifestyles Analyst. “The most effective way of asserting CSR (Corporate Social Responsibility) credentials is not via annual company reports, but via product packaging and television, which will have the most direct impact on people’s purchasing decisions.”