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Shamma: Study shows 50% of consumers pursue products serving sustainability, social purposes
Hamed M. Shamma, Professor of Marketing BP Endowed Chair School of Business, highlighted that a recent study showed that more than 50% of consumers globally are willing to pay more for products or services that are making conscious efforts towards sustainability and creating social impacts.
He made the remarks during the 14th CSR & Sustainable Development Forum, currently held in the Red Sea resort city Sharm El Sheikh.
Shamma said consumer choices are more and more influenced by evidence of positive impact of the company, the product, or the service.
He added that employees increasingly want to work for companies that positively impact the world, expounding that alignment between company and employee values increases employee engagement, leading to improved profitability through higher productivity and cost reductions from lower turnover.
Shamma pointed out that efforts to improve the healthiness and/or environmental and social footprint of products can be an engine of innovation, spurring increased revenue from new products and new markets.
He highlighted the importance of operational efficiency, expounding that decreasing the impacts of energy usage, waste, and water pollution, for instance, directly translate to cost savings.
Shamma added that transparency on exposures to social and environmental risks is an operational necessity and soon a regulatory requirement in Europe. Failure to effectively address environmental and social risks can create serious financial and operational performance challenges.
Social impact efforts can have important mitigation effects, resulting in avoided costs or lost revenues and higher valuations, he further expounded.
He highlighted that corporate social impact efforts are positively related to market valuation and cost of capital.
He concluded that “In today’s interconnected world, measuring the impact of social initiatives has become crucial for organizations and individuals alike. Tracking and analyzing various social impact metrics is essential to understanding these efforts’ effectiveness truly.”
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