Public Believes CSR More Important Than Ever In Tough Economy

It has generally been believed that as an economy suffers, the general public would prefer companies put their money into their employees, rather than philanthropic causes. A new white paper from the Global Monitor finds that the opposite is actually true.

When money gets tight and the economy tanks, people worry about their revenue streams. Unemployment rises, and they worry about losing their jobs and paying the bills. This mentality has long been thought of as a primary reason why businesses and organizations believed that corporate social responsibility took a backseat during tough economic times. However, "Risk & Responsibility: Marketing CSR in a Time of Economic Turmoil," turns that idea on its ear.

The white paper has shown that consumers want more CSR during these tough times and companies should not use the economy as an excuse for cutting back on CSR. The companies that continue or even step up their CSR ventures during a bad economy tend to be more successful than those that cut back.

Consumers are prioritizing their finances and not necessarily pinching their pennies. They decide what is worth buying, and companies that give more and practice CSR are more likely to be at the top end of the priority list than those that don't.

In areas where low price is almost uniform, a consumer will examine the company brand and determine which one means the most to them. Low prices will always be dominant in a tough economy, but when several companies produce products in a similar price range, the victor is the one that does the most for the consumer and the community.

The study surveyed 27,000 people in 20 countries about global consumer trends and new growth platforms. In essence, CSR is good business, regardless of the economic situation. When people see a company helping the unfortunate, they are more likely to see it as a worthwhile brand.

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