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26 Jan. 2014 | Comments (0)
- How can companies integrate sustainability achievements and economic results?
- What organizational changes are needed to achieve “shared value”?
- What elements of sustainability are more likely to drive brand value?
- What is the relationship between real and perceived sustainability performance?
- How can companies effectively manage and measure reputation?
- Sustainability initiatives strengthen brand equity and corporate reputation. Surveys of senior managers and investment professionals in global firms have found that brand equity and corporate reputation are perceived as the most important areas where sustainability actions bring benefit and add value.
- Neglecting sustainability disclosure can be costly. According to Samsung, a one percent decrease in brand value of the company due to unfavorable evaluations from investment organizations and/or NGOs, caused by insufficient climate change response is equivalent to losing about US$ 200 million.
- Consumers care about reputation. More internet-connected consumers in emerging markets and elsewhere are progressively making the link between a company’s reputation and its product brands. In a survey of 1,375 consumers and 575 senior executives of companies with revenues of over $500 million in China, Brazil, the United States, and the United Kingdom, 78 percent of respondents indicated they do not buy a product if they do not like the parent company.
- Sustainability is vitally important for the “highly attentive” audience of investment professionals, purchasing managers, and graduating university students. 88 percent of respondents characterized as “highly attentive” state that corporations’ good corporate citizenship is either extremely or somewhat important in the decisions they make to invest in, partner with, or work for a company.
- There is a significant gap between sustainability perception and sustainability reality. Companies’ ability to deliver on sustainability is outstripping their ability to communicate their sustainability achievements effectively. Brandlogic research shows some companies have a relatively high sustainability perception score, despite below-mean real performance and a relatively modest commitment to sustainability factors. Meanwhile, other companies have a relatively high sustainability reality score, but a relatively low perception score despite major efforts to communicate sustainability commitments.
- Happy employees + good environmental policies = strong brands. There is a relatively strong correlation between a measure of brand strength and a measure of sustainability. The most important drivers of the correlation appear to be 1) how well a company treats its employees and 2) a company’s environmental policies.