In a year of increasing economic turbulence and uncertainty, some good news has emerged about the relationship between global consumers and big business: Between 70 and 80 percent of global consumers understand and embrace the idea that successful companies and organizations, despite their broader social and community obligations, need to focus on their core goal of maintaining profitability.

But, despite understanding the profit imperative, comparable proportions of global consumers also believe that profitability can only be achieved by doing things in a responsible way, according to a new, six-nation consumer survey. In all six countries studied, consumers ranked profitability and doing things “right” as the top two values that make companies successful.

In a year of increasing economic turbulence and uncertainty, some good news has emerged about the relationship between global consumers and big business: Between 70 and 80 percent of global consumers understand and embrace the idea that successful companies and organizations, despite their broader social and community obligations, need to focus on their core goal of maintaining profitability.

But, despite understanding the profit imperative, comparable proportions of global consumers also believe that profitability can only be achieved by doing things in a responsible way, according to a new, six-nation consumer survey. In all six countries studied, consumers ranked profitability and doing things “right” as the top two values that make companies successful.

When asked how likely it is that an organization or company can be financially successful by putting a company’s profitability first, 83 percent of US consumers said it was very or somewhat likely, followed by 80 percent in China, 79 percent in the UK, 78 percent in France, 77 percent in Italy and 73 percent in Sweden. Doing things the “right way” received similar high marks.

While there is a large degree of agreement among consumers in each country about the two values that lead to success, there are variations tied to unique national characteristics. While six in 10 in the US, China, the UK and Sweden believe that a company can be profitable by having a purpose beyond making money, this sentiment is shared by only half in Italy and France. As another example, consumers in China, the UK, Italy and France agree that putting a company’s profitability first is the value that most clearly leads to success, followed by doing things that can be done in a responsible way. The reverse is true in the US and Sweden, which both rank making responsible choices above profitability.

“Talking to executives about values and mission statements is relatively common, but asking consumers about their perspectives on what values companies should have is relatively rare,” said Mark Hass, CEO of MS&L Worldwide. “It’s reassuring to know that consumers globally respect the profit imperative, as long as it’s handled in a responsible way.”

Consumers realize that businesses often have to make difficult choices, particularly when economic times are tough. But the study makes clear what consumers require of companies, especially during difficult periods: To be successful, companies must be driven by a strong set of values, and these values must be communicated consistently and transparently.

Corporate transparency
But can companies really be successful by being completely open and honest with the public about their business practices? The majority of global consumers say “yes.” When asked how likely it is that an organization or company can be financially successful by being completely open and honest with the public about their business practices, consumers in the US (72 percent) and Sweden (71 percent) said it was very or somewhat likely, followed by Italy (65 percent), China (63 percent), France (55 percent) and the UK (51 percent).

These results indicate that, particularly in certain countries, consumers recognize that transparency may sometimes present challenges because of competitive issues, the political landscape, or the innate desire to minimize potentially negative news.

The US and Sweden, for example, have nearly identical proportions of consumers who value corporate transparency, but likely for different reasons. In Sweden, the high score may reflect the prevailing social consensus in the country, where the public feels more entitled to oversee the behavior of businesses. In the US, the strong demand for transparency may be a reaction against the recent negative experience with American companies like Enron and, more recently, legendary financial firms, whose lack of transparency about their business dealings ultimately contributed to their demise and the blame for the current global economic crisis.

The results of the study also demonstrate that consumers around the world believe that companies should have values, just as people do. This belief is not restricted to the idealistic young or seniors who have retired from the competitive realities of business. Nor is it a luxury expected by consumers in the most developed economies or those with broad government-subsidized social safety nets. It spans the globe, genders and generations. In China, for example, 77 percent of consumers say it is very or somewhat believable that companies and organizations can have values just the way people do, followed by the US (72 percent), France (68 percent), the UK (61 percent), Sweden (55 percent) and Italy (45 percent).

“This study shows that the correlation between transparent communication and corporate success is very strong and very clear,” said Hass. “Consumers are realistic in saying to companies that they understand the need to focus on profits, and also that they understand companies can’t always be completely open about business practices. But the more a company can demonstrate that it operates by a consistent set of core values, and the more it can show how those values reflect a responsible approach to business, the more successful it will be.”

Additional key findings
Consumers globally say they can tell a lot about a company’s values by observing how the company handles a crisis or problem. In fact, how companies and executives handle a crisis is the number one indicator of values in the US (84 percent), the UK (66 percent), Sweden (81 percent) and France (64 percent) – but not China (48 percent) or Italy (60 percent). First-hand experience with a company’s products is ranked first in China (57 percent), and ties for first in Italy (62 percent), along with interacting with a company’s employees.

The Internet is key for communicating values: About half of consumers in all six countries surveyed cite the Internet as a key means for companies to communicate their values with consumers. In the US, 59 percent of consumers said they could tell a lot about a company’s real values by searching blogs, message boards and other sources of information on the Internet, followed by Sweden (52 percent), China (51 percent), France (47 percent), Italy (46 percent) and the UK (45 percent). 

U.S. perspective
Americans say that being first to market is not necessarily a characteristic of a leading company: The American public believes that leading companies focus on quality (82 percent) rather than price (18 percent), and than an emphasis on making existing products better (78 percent) trumps being first to market (22 percent). Also, exactly half of US consumers believe that leading companies support causes even when struggling, while the other 50 percent believe leading companies support causes only when they are secure.

Leading companies are ethical, innovative and financially successful, Americans say: A large majority of Americans believes “a lot” or “some” that, today, the phrase “leading company” typically refers to companies that are the most innovative when it comes to new ideas, products or services (84 percent), the most financially successful (78 percent) or have the largest market share (71 percent). But they also agree that this phrase refers to the most ethical companies that treat employees well and are careful about their impact on society and the environment (76 percent).

The MS&L Global Values study, developed by MS&L Worldwide, was conducted this year by GfK Roper Public Affairs and included 6,000 telephone interviews with consumers in the US, the UK, France, Italy, Sweden and China.