Porter Novelli's new Reputation Report: People push for real purpose over 'posturing and politics'
Porter Novelli released its fifth annual Purpose Priorities Report, exploring corporate reputation amid growing accountability demands. The report reveals that 84% of consumers expect companies to fulfill their promises regarding social and environmental issues. Key findings show that 36% of consumers are likely to buy from businesses advocating for sustainability, while 51% would reduce purchases from those who fail to keep commitments. The report highlights the importance of operational changes in Diversity and Inclusion, and cautions companies against engaging in politically sensitive issues.
- 84% of consumers expect companies to fulfill promises regarding social and environmental issues.
- 36% of consumers will increase purchases from companies advocating for environmental sustainability.
- 32% of consumers are likely to buy from businesses that change operations to improve diversity and inclusion.
- 51% of consumers will stop purchasing from companies that backtrack on social or environmental promises.
- 44% of consumers may reduce purchases from companies expressing opposing political views.
Porter Novelli's new reputational report reveals a new Era of Accountability in Action and how businesses can do better
NEW YORK, Oct. 6, 2022 /PRNewswire/ -- Porter Novelli, the strategic communications company built on purpose to do business better, has published its fifth annual research study of corporate reputation: The Purpose Priorities Report: How to respond in the new Era of Accountability. It includes a new Better Business Matrix to help companies navigate current cultural trends and meet the evolving demands of their audiences.
Since the onset of the COVID-19 pandemic, and in the wake of the 2020 social justice movement sparked in part by George Floyd's murder, companies have made many promises to support change. The increase in extreme weather events, caused by climate change, has also sparked more corporate environmental commitments. And now there is a need to show outcomes from all of this as people are looking to companies for leadership.
- Companies should demonstrate how they are following through on their promises to people, the planet, or society -
84%
The report also highlights how consumers are demanding genuine change, not just marketing campaigns.
- Companies should have a point of view on environmental sustainability -
78% - Companies should change the way they operate to address D&I -
72% - Companies should encourage consumers to support social or environmental issues -
65%
David Bentley, Global CEO of Porter Novelli, commented: "Good intentions aren't enough. Consumers are tired of talk: they don't want to see campaigns, they want to see action. Companies are realizing the benefits of doing business better as all audiences demand integrity and business growth will depend on navigating the complex landscape of audience expectations."
Addressing the climate crisis is now table stakes for organizations
After fires, floods, and droughts this year, the environment is front and center in consumer minds. While quality products and services are a prerequisite for a thriving business, audiences across all ages now expect industry to address sustainability as a core quality issue.
- More than a third (
36% ) of consumers will start or increase purchasing from companies that share a point of view on environmental sustainability that is aligned with their own, but… - Half (
51% ) of consumers report they will stop or reduce purchasing from companies that go back on promises they make to address social or environmental issues.
The demand for operational D&I
Social inequalities are now a new second business priority to address, with operational changes expected.
- One-third (
32% ) of consumers will start or increase purchasing from companies that change the way they operate to address diversity and inclusion. - Nearly the same amount (
29% ) of consumers will recommend companies that change the way they operate to address diversity and inclusion to friends, family, and acquaintances.
Conroy Boxhill, President of Porter Novelli U.S, commented: "Consumers are looking to businesses for active leadership. The research shows clearly there's now a sense of urgency around companies' DE&I efforts to the point that people are requesting they restructure operationally to drive this change."
Politics can be punishing
In the last couple of years, companies have chosen to wade into political issues like voting rights and Roe v. Wade, but consumers aren't convinced business and politics mix.
- Nearly half (
48% ) of Americans want companies to encourage consumers to take political actions like voting or writing to congress, but… - Fewer than two-in-five (
39% ) consumers believe companies, themselves, should comment on political topics in the news.
Companies should play politics with caution.
44% of consumers will actually stop or reduce purchasing from companies that publicly comment on a political topic with a view that is the opposite of their own.
Reputation leaders
As part of the report, the strategic communications company has developed a Better Business Matrix. This ranks the reputational leaders by industry, in eight key sectors, mapped to highlight the beneficial impact of Purpose on brand value. It also enables companies to self-diagnose their own reputation, based on the key criterion described in the report. Companies that performed the best within their industries include:
- Automotive - Toyota
- Communications - T-Mobile
- Financial Services - TIAA
- Food & Beverage - PepsiCo
- Tech - Intel
- Retail - REI
Sandy Skees, Purpose & Impact lead from Porter Novelli, added: "The landscape is shifting rapidly, and this report highlights the changing expectations around sustainability and DEI as examples of purpose in action. The Porter Novelli Better Business matrix is about ensuring companies know how to decode and deliver on environmental and social progress – as well as avoiding the pitfalls of political overreach."
The Purpose Priorities Report analyzed the reputation of 200 top companies listed in the Fortune 100, Fortune Best Companies to Work For, World's Most Ethical and the DiversityInc., among others.
"For the past 30 years, Porter Novelli has sought to understand the role of Purpose in company performance," says Andrea List, senior vice president of Data & Insights, the report's lead author. "In that time, the imperative to authentically address social and environmental issues has only grown stronger. This study continues to demonstrate that no corporate reputation can thrive without Purpose."
The Purpose Priorities Report presents the findings of an online survey designed and executed in August 2022 among an online sample of 7,000 American adults, ages 18+. The study was fielded by Dynata. Respondents were asked to rate up to six companies each, with each company rated by an average of 150 respondents.
Porter Novelli is the strategic communications company, built on purpose to do business better. Founded 50 years ago by pioneers Jack Porter and Bill Novelli, Porter Novelli is widely considered to be the founder of social marketing. Trailblazers of their time, both Jack and Bill believed that organizations could, and should, be driven by their values, not just by creating value; something intrinsic to how we do business better today. Fast forward 50 years and the world is highly complex. In a shifting landscape of new influences and audience power, Porter Novelli continues to build on this values-driven philosophy and work with ambitious clients to decode change, navigate culture and deepen authenticity to shape reputation and accelerate growth.
Omnicom Public Relations Group is a global collective of three of the top global public relations agencies worldwide and specialist agencies in areas including public affairs, marketing to women, global health strategy and corporate social responsibility. It encompasses more than 6,300 public relations professionals in more than 370 offices worldwide who provide their expertise to companies, government agencies, NGOs, and non-profits across a wide range of industries. Omnicom Public Relations Group delivers for clients through a relentless focus on talent, continuous pursuit of innovation and a culture steeped in collaboration. Omnicom Public Relations Group is part of the DAS Group of Companies, a division of Omnicom Group Inc. (NYSE: OMC) that includes more than 200 companies in a wide range of marketing disciplines including advertising, public relations, healthcare, customer relationship management, events, promotional marketing, branding and research.
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FAQ
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