Sustainability and social responsibility: What customers and employees expect from brands

Have sustainability and CSR degenerated into empty words? Is sustainability marketing perceived as greenwashing? One brand species succeeds in clearly communicating its mission and its motives for its socio-ecological behavior - and consumers are willing to pay up to 17 % more for this: These are impact brands, such as Tony's Chocolonely, TOMS or Patagonia. BrandTrust's study examines their success factors and discovers potential opportunities in positioning and communication for established brands.

Brands have the power to change

Companies and brands are challenged and should be motivated, because 72 percent of respondents attribute to them the competence and also the possibilities to eliminate the causes of global grievances. 87 percent even expect brands to use their influence for this purpose.

Impact brands do just that: their profitable business model is focused on remedying a grievance in the world and aims to permanently change stakeholder behavior.

Sustainability" label alone is not enough (anymore)

71 percent consider it very important or important that brands do not harm the environment or people with their offerings. This figure shows that sustainability has become a minimum requirement. And: 62 percent even expect responsible action beyond products and services. At the same time, the study reveals that by no means all activities and statements get through to the buyer or potential employee or are not credible. "The way sustainability is used as an attraction driver in marketing needs to change. Without a credible link to the core values of the brand and specific proof of performance, sustainability remains colorful actionism or irritating figures, as in many a CSR or sustainability report," comments study author Sarah Böhmer of BrandTrust.

Consumers want to make a contribution

59 percent of those surveyed consider it important to act in a socially and ecologically responsible manner themselves. And 61 percent believe that every personal contribution, no matter how small, has a positive effect in the world.

Brands with a clear mission achieve a price premium

Brands that demonstrate a clear stance and have the purpose of solving a global challenge are held in higher esteem, which is also expressed by a greater willingness to pay a higher price. According to the study, an average 13.5 percent premium would be accepted for products from impact brands; millennials and Generation Z would even accept up to 16.8 percent.

"People want to hand over responsibility, they delegate it to brands and are willing to pay for it," explains study initiator and BrandTrust founder Klaus-Dieter Koch.

Sustainable and meaningful investment is attractive

And sustainability does not only play a role in consumption. Investors would accept up to 18 percent lower returns for a sustainable and meaningful form of investment. This attitude is shared by 60 percent of respondents with higher incomes of 4000 euros or more, or 8000 Swiss francs in Switzerland. Impact investing has entered the vocabulary of bankers and investors.

Live differentiation, leverage innovation potential

The abundance of Sustainable Development Goals (SDGs) makes it difficult to focus communication. For impact brands, the focus is on the desired effect, i.e. the elimination of a concrete grievance, not the product and service. "This reverse process unleashes completely new innovation potential - even for established brands," notes brand expert Klaus-Dieter Koch.

Opportunities for sustainability communication

The study also shows in which industries or product segments sustainability is relevant for purchasing decisions. In Austria, for example, food comes first, energy is top in all DACH countries, and pet food is ahead of baby food in Germany and Switzerland.

The study also provides information on positioning potential: There are topic areas that consumers see as being addressed by few companies, for example housing shortage, education in Germany, water supply in Switzerland, and commitment to the topic of marine pollution is also perceived as rather low, in contrast to climate protection.

It also highlights deficits in the provision of information. 68 percent of people who actively search for information on environmental and social compatibility, for example, say it is difficult to find these facts.

Doing good and still earning money: Why impact brands are attractive

The focus of the study is on impact brands such as TOMS (for every pair of shoes sold, one goes to needy children), Tony's Chocolonely (abolition of slavery in chocolate production), Patagonia (we are in the business to safe the world) or GLS Bank (living sustainability in financial matters and investments). They have a clear mission and do not just rely on appeals, but offer solutions. And yet they are not social entrepreneurs: doing good and making a profit are not mutually exclusive. The study shows that consumers have no problem with this.