The first inklings that consumers truly desire a better world arose in the early
years of the environmental movement. Beginning in the 1960s and 1970s, environmentalism
was the launching point for a new consumer consciousness
that business practices were negligently destroying the Earth by poisoning and
polluting the air, water, and soil for profit's sake. In the United States, this consciousness
then morphed in the 1990s into a wider movement that became
known as corporate social responsibility (CSR), by which consumers sought to
hold companies responsible for a broad range of sound business practices.
It's worth noting that in Europe, environmentalism and CSR had already been part of the tacit contract between corporations and society, and many of those governments regulated corporate activities more highly to begin with. But the strength of the CSR movement in America and the increasing globalization of companies have made the consumer push for socially responsible companies into a global cause.
Consumers desiring a better world have already achieved some successes in this regard, helping to transform several industries from the ground up. In the car business, for example, consumers clamoring for a more environmentally responsible car got Toyota's attention--and the Prius and its Hybrid Synergy Drive engine were born. Consumers also helped reshape the grocery industry through their desire for organic and healthier foods, opening the door for companies like Whole Foods and Wild Oats, whose successes in turn forced traditional grocery chains to begin adding organic foods as well. Consumers acting in conjunction with advocacy organizations like Greenpeace have also leaned on companies like Nestlé and Cadbury to encourage them to source their supplies such as palm oil from vendors that don't deforest the land or threaten the species that live there.
While consumer power for a better world is still nascent, it's poised to skyrocket. Consumer pressure will greatly expand the breadth and depth of CSR, forcing companies to willfully change their practices. This consumer drive will become unstoppable for three reasons. First, following the Great Recession, many consumers are simply frustrated and angry at corporations. Millions of them have been personally affected by the relentless corporate drive for profit above all else, having lost their jobs. These are people who are now distrustful of corporations and intolerant of selfish behaviors that negatively affect their lives and their planet.
Second, many consumers, especially those of the Millennial generation, are no longer willing to tolerate corporations and brands that neglect purpose or prevaricate about their efforts to be responsible citizens. They will especially vilify companies caught "greenwashing" (exaggerating or lying about the ecofriendliness of their products), "cause-washing" (advertising their support for a cause, only to be revealed later as having donated little or no money), or "local-washing" (claiming their products are made from local produce or materials when, in fact, they are not).
Third, and perhaps most important, consumers are simply becoming more aware of the need for capitalism to evolve. They want to see companies adopt a more constructive rationale in the practice of their businesses, and they will have less tolerance for those that fail to place purpose at the core of their missions and strategies. Such consumers will increasingly seek to conduct their business transactions only with corporations and brands that practice purposeful capitalism with transparency, authenticity, and accountability throughout their entire supply and sales chains.
Today's consumers are eager to become loyal fans of companies that respect purposeful capitalism. They are not opposed to companies making a profit; indeed, they may even be investors in these companies--but at the core, they want more empathic, enlightened corporations that seek a balance between profit and purpose. The 2009 Edelman "Goodpurpose" survey of 6,000 consumers aged 18-64 across ten countries overwhelmingly confirmed this consumer sentiment. Here are some of the statistics that show the extent to which consumers want a better world and are willing to support those corporations that make an effort to deliver it:
From We First by Simon Mainwaring. Copyright © 2011 by the author and reprinted by permission of Palgrave Macmillan, a division of Macmillan Publishers Ltd.