US Corporate Social Responsibility in Retail Market Report 2022

Overview

• What you need to know
• This Report looks at the following areas
• Definition
• Market context

Executive Summary

• Top takeaways
• Market overview
• • Figure 1: Outlook on corporate social responsibility, 2022-27
• Opportunities and challenges
• Inflation may shift the focus to affordability
• Consumers are well-intentioned about sustainability, but only “somewhat” committed to it
• Consumers want to play a role, so enable them to do so
• Consumers will believe when they see measurable change
• Be agile enough to make adjustments and know when to speak up
• Key consumer insights

Conscious Consumers by the Numbers

• Consumers’ attention levels are split
• • Figure 2: Attention level to CSR initiatives, 2022
• A brand’s actions can be just as important as its products
• • Figure 3: Influence on purchase decisions, 2022
• Millennials, multicultural adults among the most conscious consumers
• • Figure 4: Attention level to CSR initiatives and their Influence on purchase decisions, by key demographics, 2022
• What consumers want from brands

Market Factors

• Many opportunities to make an impact
  • Figure 5: Current consumer concerns, 2022
• • Figure 6: Consumer Price Index change from previous year, 2020-22
  • Figure 7: US gasoline and diesel retail prices, 2007-22
• • Figure 8: Attitudes toward brand responsibility, 2021
• Pandemic influences reassessment of priorities
• US pledges to reduce greenhouse gas emissions while state governments enact policies to reduce wasteful use of plastics

Competitive Strategies and Market Opportunities

• Promote, advocate and educate
  • Figure 9: Responsible party for various causes, 2021
• • Figure 10: US women’s and men’s national soccer teams to be paid the same, 2022
• Rethink the packaging and product materials
  • Figure 11: Target launches Target Zero, 2022
• Provide progress reports
  • Figure 12: Lifetime Fitness video provides progress on previously set goals, 2022
• • Figure 13: American Airlines details progress toward net-zero emissions, 2022
• Show consumers what impact their purchases have
  • Figure 14: Allbirds launches its lowest carbon emissions shoe yet with Adidas, 2022
• • Figure 15: TheRealReal promotes the positive impact of resale on the environment, 2022
• Join forces with others
  • Figure 16: The Mission Brand Alliance encourages consumers to purchase with purpose, 2022
• Zone in on diversity and inclusivity
• Partnering with others to share best practices
  • Figure 17: Sephora initiates Mitigate Racial Bias in Retail Charter, 2022
• Reevaluating brand stakeholders, from suppliers to influencers
  • Figure 18: Sephora promotes minority-owned brands, 2022
• Tying into awareness holidays
  • Figure 19: Awareness holidays that brands should support, 2021
• • Figure 20: Air & Anchor celebrates World Autism Awareness Day, 2022
• Highlight places where affordability can be tied in with CSR efforts
• Feed the planet in more ways than one
• • Figure 21: Sam’s Club rebrands Member’s Mark, 2022
• • Figure 22: Albertsons creates Recipe for Change ESG framework, 2022

The Consumer – Fast Facts

Important Issues for Brands to Support

• Three-way tie for top issues consumers want brands to address
• What this means
  • Figure 23: Important issues for brands to support, 2022
• Breaking down environmental and social issues
  • Figure 24: Most concerning environmental issues, 2021
• • Figure 25: Most concerning social issues, 2021
• Gen Z wants brands to address health and wellness-related issues, more so than others
  • Figure 26: Important issues for brands to support, by generation and parental status, 2022
• Black consumers far more likely than others to say DEI is important to address
  • Figure 27: Important issues for brands to support, by race and by Hispanic origin, 2022

Information Sources

• Consumers are influenced by a variety of sources
• What this means
  • Figure 28: Information sources, 2022
• Gen Z and Millennials more likely to get their information from online sources
  • Figure 29: Information sources, by generation, 2022

Preferred Methods of Involvement

• Monetary support is preferred, but not the only way consumers will get involved
• What this means
  • Figure 30: Preferred methods of involvement – nets, by household income, 2022
• Consumers are willing to show their support for brands, especially if it doesn’t involve much effort
  • Figure 31: Preferred methods of involvement, 2022
• • Figure 32: Allbirds supports Earth Day with call for donations, 2022
  • Figure 33: Sam’s Club supports Feeding America food banks, 2022
• Women will advocate for brands in many ways
  • Figure 34: Select preferred methods of involvement, by gender, 2022
• Gen Z and Millennials will go the extra step for causes they believe in
  • Figure 35: Preferred methods of involvement, by generation, 2022
• Black consumers will open their wallets for the right reason
  • Figure 36: Select preferred methods of involvement, by race and Hispanic origin, 2022
• • Figure 37: Macy’s supports Black History Month, 2022
• Consumers more likely to get involved with brands that are made locally or in the USA
• • Figure 38: Top five environmental claims that resonate with consumers when shopping, 2022

Attitudes toward Sustainability

• Most consumers are “somewhat” in the know on sustainability and think it’s “somewhat” important
• What this means
  • Figure 39: Sustainability knowledge, 2021
  • Figure 40: Importance of sustainability, 2022
• Sustainability is a top concern for at least four in 10 shoppers for electronics, household goods and food
  • Figure 41: Importance of sustainability, by category, 2022
• • Figure 42: Willingness to pay more for sustainability, by key demographics, 2022
• • Figure 43: Chipotle touts proof points from its sustainability report, 2021
• Level of expectation regarding sustainability’s scope will evolve
  • Figure 44: Attitudes toward brands and sustainability, 2022
  • Figure 45: United Nations Sustainable Development Goals
• • Figure 46: Motivating reasons to buy eco-friendly products
• Consumers speak out on sustainability
• They understand the concept of sustainability, but perhaps not the various facets of it
• Recycling, reducing use of plastics are common household activities
• Open to learning from brands, within limits

Attitudes toward Corporate Social Responsibility

• Consumers want brands to speak up about their CSR plans
• What this means
  • Figure 47: Attitudes toward communicating CSR efforts and company values, 2022
• • Figure 48: Attitudes toward communicating CSR efforts and company values, by generation, 2022
• Consumers will align with, but also avoid, companies whose CSR efforts match or differ from their own
  • Figure 49: Advocacy versus boycotting, by generation, 2022
• • Figure 50: Flowers for Dreams stands up for Women’s Health Protection Act, 2022
• CSR can be a recruitment tool and a revenue generator
  • Figure 51: General attitudes toward corporate social responsibility, 2022
• • Figure 52: Attitude toward worth of socially responsible companies, by age and household income, 2022
• No room for marketing hype
  • Figure 53: Skepticism toward social responsibility efforts, by key demos, 2022
• Multicultural consumers are tuned in and taking action
• What this means
  • Figure 54: Attitudes toward corporate social responsibility efforts, by race and Hispanic origin, 2022

Reasons for Apathy

• Price and convenience still win out
• What this means
  • Figure 55: Reasons for apathy, 2022
• Older men are the most skeptical
  • Figure 56: Skepticism regarding CSR, by gender and age, 2022

Appendix – Data Sources and Abbreviations

• Data sources
• Consumer survey data
• Consumer qualitative research
• Abbreviations and terms
• Abbreviations
• Terms