Successful companies know that their future depends on their responsiveness to customer demands and expectations. As values in society change, so do consumer expectations, and increasingly consumers want to spend their money with companies whose products and services fill their needs while having a positive impact on society.
An increasing amount of information is now available, and more CEOs understand how they and their company can benefit from studying trends in consumer spending and behavior. CEOs are increasingly viewing their role as not only a responsibility to their companies continued growth and prosperity, but also an obligation to enhance their organization’s public persona through Corporate Social Responsibility (CSR). Research shows that 60% of CEOs say that consumer spending and behavior increasingly have an impact on their decisions and 64% state that CSR is core to their business.
A significant factor behind this trend is the growing effect that the Millennial generation is having on the marketplace. Millennials account for nearly $1 trillion of current spending in the United States, and that number will continue to grow. Corporations that expect continued growth and increased revenues will benefit from understanding the wants and needs of this generation, which constitutes their future market.
Studies show that 73% of millennials are willing to pay more for products offered by sustainable brands. Globally, 91% of millennials would switch to labels associated with a cause and would make personal sacrifices, including paying premium prices to make an impact on a social issue or making less income to work for a company which is socially responsible.
Companies are discovering that consumers increasingly want to associate and support organizations that are socially responsible. CEOs who align themselves and their business with these values will benefit from the increased positive perception of the company by the public.