Consumers Expect Companies to Walk Their Talk

By Randi Morrison posted 06-01-2021 10:17 PM

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Harris Poll’s recent research was consistent with the seemingly current majority view among the American public, based on numerous surveys, that well-known brand companies should speak out on social issues, with 60% of survey respondents overall, and ~70% of Gen Zers and millenials, taking that position. Why is this? Most consumers apparently believe companies are well-positioned to do so, i.e., they have “more platforms and tools at their disposal to speak to and influence a large number of people.”

Not unlike other activities companies may consider, however, there are accompanying expectations that should be well-considered before joining the fray. Those that favor companies taking a stance expect companies to follow through in different and multiple ways, with respondents most commonly saying companies should donate money to causes they profess to support. Other follow-through actions, e.g., changes to hiring practices, product lines or operating structure, and discussing the issue on social media, are deemed by consumers to be less important or effective. Regardless of how the company elects to walk its talk, following through on the talk is deemed critical to developing and maintaining consumers’ trust. And once trust in a brand is lost, 63% of respondents say it can’t be re-earned.

Furthermore, not surprisingly, consumers (and retail investors – see our prior report here re: “CEO Activism”) are more likely to act favorably vis-à-vis a company if the stance the company takes on an issue is aligned with their personal views. Companies should consider the likelihood that there will be consumers on both sides of any given political or social issue as part of their decision-making process as to whether and how to speak out.

This post first appeared in the weekly Society Alert!

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