Why Does CSR Attract Customers?

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Why Does CSR Attract Customers?
Anneke Zwart, Moderator
Hughes (2017) mentions several reasons why focusing on sustainability and tackling social issues will expand your customer base:
  1. RATIONAL VS. EMOTIONAL: Even if many people believe to base there decisions on rationality, most choices (by consumers) are led by emotions. Customers are searching for emotional connection and a feel-good experience with buying products. Therefore, organizations should invest in programs that tackle social or environmental sustainability issues to create customer affinity/loyalty.
  2. CAUSE-BASED SPENDING: Some people make purchasing decisions based on specific causes they value highly. For example, some people may be concerned about genetically modified food; they will buy products from organizations that support the concern and supply organic and biological products.
  3. HOT TOPICS/SOCIAL MEDIA TRENDS: Customers are also influenced highly by (social) media and the topics / news stories highlighted by them. The increased emphasis on sustainability has made consumers more aware of its importance. As a result of that, customers are increasingly attracted by organizations that integrate sustainability into their business model.
  4. ENTERTAINMENT TO INCREASE AWARENESS: Businesses use several ways to increase awareness on sustainability issues among customers. A particularly important form of educating customers about the importance of sustainability takes the form of entertainment. For example, short movies can be used to make people aware of the dangers surrounding climate change.
⇒ Can you think of other reasons behind the shift towards purchasing sustainable or socially responsible products/services?
Source: Hughes, B. (2017. “5 Reasons Why Sustainability and Social Issues Attract Customers” Entrepreneur, January 2017



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