SINGAPORE: A recent report by Zeno Group has revealed a significant gap between consumer expectations and corporate actions regarding engagement in social issues. The study highlights a growing demand among Singaporean consumers for businesses to play a more active role in addressing societal concerns, while corporate leaders express reservations about their ability to meet these expectations effectively.
The report, which surveyed over 7,000 consumers globally including 1,000 in Singapore, indicates that a substantial 85% of respondents believe companies and brands bear responsibility for addressing social issues. More specifically, 70% of Singaporeans feel that businesses should be more involved in these matters.
Furthermore, social issue engagement heavily influences consumer behavior. Almost 80% of respondents consider a company’s stance on social issues when deciding on purchases, recommending brands, choosing employers, and making investment decisions.
“The modern consumer increasingly demands that companies take a stand on social issues. They see corporate social engagement not just as a bonus but as a critical factor in their choices,” commented Swyn Evans, Managing Director of Zeno Group in Singapore.
Despite these consumer demands, corporate leaders remain cautious. The report highlights that 64% of the 212 surveyed C-suite executives believe their companies’ current level of social engagement is adequate. Additionally, 69% think consumer expectations are unrealistic regarding the extent to which companies can engage in social issues.
A notable point of contention is the nature of expected engagement. Only 13% of consumers are satisfied with companies merely meeting legal and regulatory responsibilities, while a scant 10% expect corporate activism to drive social and political change. However, 51% of consumers prefer that brands limit their support to social issues that are directly relevant to their business.
Corporate leaders cite several challenges in meeting these expectations. A significant 84% acknowledge the importance of engaging in social issues, but 81% note that increasing societal polarization makes it more difficult. Almost half of the executives foresee these challenges intensifying in the future.
Ms Evans said, “Many of the difficulties in corporate social engagement stem from the fact that 75% of senior leaders lack a formal process to measure stakeholder reactions to their actions on social issues. This absence of measurement tools leads to uncertainties and misalignment with consumer expectations.”
The findings from Zeno’s report highlight a growing disconnect between consumer expectations and corporate practices. As consumers increasingly incorporate social values into their purchasing and investment decisions, companies face mounting pressure to align their strategies with these values.
However, without effective mechanisms to measure and respond to stakeholder feedback, businesses may continue to struggle in meeting these evolving expectations.