Australian consumers are more likely to believe a brand is “doing good” based on how it treats people and its financial integrity – ahead of the environment and societal good, says a study by Leo Burnett.
The Leo Burnett 2022 Good Study revealed that 47% of Australians believe the economic situation will be worse off next year with a global downturn.
Mirroring this, 30% of Australians believe the financial situation of their household will be worse off.
Leo Burnett Australia’s chief strategy officer Catherine King says: “Brand good can mean different things to different cohorts, however the good that resonates most across all demographics, geographies and political leanings are financially related and reflect a collective concern around equity and inequality, cost of living and the economy.
“Although the majority of corporate ESG initiatives focus on environmental or societal causes, the Good Study has uncovered a strong case for brands to focus on doing financial good in the world, expanding our notions of ‘good’ and demonstrating a want for greater transparency and accountability when it comes to business practices and brand acts.”
The top three acts of financial good that resonate with Australian consumers are: paying employees and suppliers fairly; having a zero tolerance for corruption; and paying the appropriate taxes.
The key findings revealed that 82% of Australians believe a brand is good if it treats people fairly and respectfully, whilst 78% judge the goodness of a brand according to its financial integrity.
In terms of driving commerical returns, 88% of the country say that a brand doing good would encourage them to purchase that brand. 70% of consumers would pay more for a brand doing good compared to another brand of equal quality that doesn’t do so – positioning brand good as a positive differentiator.
Overall, consumers expect more from brands, 88% of Australian's believe it’s important for brands to do some form of good in the world. Reflecting this, the majority of Australians (84%) claim to be “good consumers".
Thus there are key actions brands can implement financially, socially and envrionmentally.
In terms of finance, brands are encouraged to, pay employees and suppliers fairly, have a zero-tolerance approach to corruption and pay appropriate taxes in Australia.
For brands to resonate with consumers when it comes to people causes, demonstrating values around giving someone a “fair go” is still a strong motivator: Ensuring that there is resounding fairness and equity for all, working to lift people’s mental and physical health and enabling diversity, equity and inclusion are imporatn factors, the study revelaed.
Three ways that brands can do societal good, include: Providing education and learning facilities for all, supporting causes that work to end poverty and Investing in the local community.
Envrionmentally, when it comes to such a big and complex issue, smaller actionable and achievable initiatives by brands resonating the most with consumers, are currently re-using, repairing and recycling, reducing the use of plastics to clean oceans and waterways.
King said: “Doing good is an act of positive populism that can bridge geographic, demographic and even political divides. Brand acts of good can influence the customer journey when it comes to creating demand, preference and NPS. From its inception, Leo Burnett has always believed that ‘what helps people, helps business’, and the Good Study shows this has never been more relevant to consumers today."
https://www.leoburnett.com.au/doinggood
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