Are “Nicer” Companies More Profitable? Taking a Look at Corporate Citizenship
Consumers, particularly millennials, are increasingly considering whether a company is a good citizen when purchasing goods and services. More importantly, they will often pay more for brands that make corporate ethics a priority, whether that means transgender friendly employee policies or environmentally-conscious packaging.
As a result, business executives and compliance professionals are placing greater emphasis on corporate citizenship, transparency, and diversity. At Ethisphere Institute’s Global Ethics Summit, Ethisphere polled 120 executives regarding the impact of corporate ethics and behavior on profits and growth.
What did the survey say?
The survey revealed that more than 84 percent of respondents think consumers would be willing to pay more for goods or services from a business that is recognized as a good corporate citizen. More than half of those surveyed (53 percent) also indicated that good corporate citizenship is very important for consumers when selecting a financial services company. Below are a few other key findings:
Over half (53 percent) of those surveyed indicated that C-level executives primarily drive ethics-related change within their companies; followed by the board of directors (22 percent) and middle management (16 percent).
The majority of respondents (43 percent) said training programs and workshops have been the most effective way of promoting ethical behavior at their company. Only 8 percent of individuals explained that ‘incentive/reward’ based programs for ethical behavior were most effective.
When asked where their company has the most room to improve, the highest number of respondents (37 percent) selected employee recruitment, retention and reward. This was followed by sustainability initiatives (22 percent), financial transparency (18 percent) and counterparty product sourcing and supply chain management (13 percent).
Social media & corporate citizenship
As the survey highlights, Facebook, Twitter, and Instagram provide additional platforms for companies to tout their good deeds.
Social media has also made corporate ethics more important. In total, 94 percent of respondents believed that the real-time nature of social media impacts companies’ accountability, especially for their behaviors; in addition, 49 percent indicated that they consider this impact to be extreme.
As the survey highlights, Facebook, Twitter, and Instagram provide additional platforms for companies to tout their good deeds. Target’s recent announcement that it encourages transgender team members and customers to use the restroom or fitting room facility that corresponds with their gender identity spread virally and was welcome news to many shoppers.
At the same time, social media can also be used to shine a light on questionable corporate policies. For instance, when Sea World launched an #AskSeaworld Twitter chat in 2015, many of the questions revolved around Sea World’s alleged mistreatment of animals.
“Smart executives are truly recognizing that millennials, and consumers in general, are paying close attention to whether the companies they support are promoting best practices,” said Ethisphere CEO, Timothy Erblich. “The advent of social media has given companies an unprecedented platform to engage with customers and stakeholders. The C-suite can either choose to lead and be recognized for best practices or face scrutiny in real-time.”
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Corporate Citizenship: are “Nicer” Companies More Profitable?
Author: Daniel T. McKillop
Are “Nicer” Companies More Profitable? Taking a Look at Corporate Citizenship
Consumers, particularly millennials, are increasingly considering whether a company is a good citizen when purchasing goods and services. More importantly, they will often pay more for brands that make corporate ethics a priority, whether that means transgender friendly employee policies or environmentally-conscious packaging.
As a result, business executives and compliance professionals are placing greater emphasis on corporate citizenship, transparency, and diversity. At Ethisphere Institute’s Global Ethics Summit, Ethisphere polled 120 executives regarding the impact of corporate ethics and behavior on profits and growth.
What did the survey say?
The survey revealed that more than 84 percent of respondents think consumers would be willing to pay more for goods or services from a business that is recognized as a good corporate citizen. More than half of those surveyed (53 percent) also indicated that good corporate citizenship is very important for consumers when selecting a financial services company. Below are a few other key findings:
Over half (53 percent) of those surveyed indicated that C-level executives primarily drive ethics-related change within their companies; followed by the board of directors (22 percent) and middle management (16 percent).
The majority of respondents (43 percent) said training programs and workshops have been the most effective way of promoting ethical behavior at their company. Only 8 percent of individuals explained that ‘incentive/reward’ based programs for ethical behavior were most effective.
When asked where their company has the most room to improve, the highest number of respondents (37 percent) selected employee recruitment, retention and reward. This was followed by sustainability initiatives (22 percent), financial transparency (18 percent) and counterparty product sourcing and supply chain management (13 percent).
Social media & corporate citizenship
As the survey highlights, Facebook, Twitter, and Instagram provide additional platforms for companies to tout their good deeds.
Social media has also made corporate ethics more important. In total, 94 percent of respondents believed that the real-time nature of social media impacts companies’ accountability, especially for their behaviors; in addition, 49 percent indicated that they consider this impact to be extreme.
As the survey highlights, Facebook, Twitter, and Instagram provide additional platforms for companies to tout their good deeds. Target’s recent announcement that it encourages transgender team members and customers to use the restroom or fitting room facility that corresponds with their gender identity spread virally and was welcome news to many shoppers.
At the same time, social media can also be used to shine a light on questionable corporate policies. For instance, when Sea World launched an #AskSeaworld Twitter chat in 2015, many of the questions revolved around Sea World’s alleged mistreatment of animals.
“Smart executives are truly recognizing that millennials, and consumers in general, are paying close attention to whether the companies they support are promoting best practices,” said Ethisphere CEO, Timothy Erblich. “The advent of social media has given companies an unprecedented platform to engage with customers and stakeholders. The C-suite can either choose to lead and be recognized for best practices or face scrutiny in real-time.”
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
