There is, of course, a direct connection between consumers and reputation. Ultimately, a company’s reputation is decided and propagated by its customer base. So how does a business ensure that their customer base is endowing them with a “good” reputation?
More easily said than done, businesses are tasked with discovering, first, what’s important to their customers, and second, what actions they can take to align their values with those of their customers.
As Forrester’s report states, “Executives skeptical of the need to invest in GRC will cite lack of customer interest in corporate ethics.” Here are a few statistics we found that prove otherwise:
- 66% of consumers are willing to spend more on a product if it comes from a sustainable brand.
- 85% of consumers would switch brands to one associated with a cause.
- 87% of consumers would rather purchase a product with a social or environmental benefit.
- 81% of millennials expect their favorite companies to make public declarations of their corporate citizenship.
The bottom line is that customers are overwhelmingly concerned with the social, environmental, and overall ethical ramifications of a business’s actions. It’s the new and unique challenge of risk managers to discover risks that may impact a brand’s alignment with its customers’ ethics, and therefore its good reputation.