70% of Singaporeans say businesses fall short in supporting social issues

Companies better start caring about social causes as 84% of Singaporeans say they would buy the company's products if they do so.

Singaporeans say businesses fall short when it comes to supporting social issues and causes, according to the 2012 Edelman goodpurpose Study – the first study of its kind in Singapore to measure consumer attitudes around social purpose.

While 9 in 10 Singaporeans believe it is important for companies to address societal issues, only 3 in 10 think businesses are performing well in this area. In particular, the top three causes that Singaporeans are most concerned about involve protecting the environment, improvement in the quality of healthcare and equal access to education.

“Along with the continued rise of affluence in Singapore comes an increasing level of social consciousness and a resulting demand from consumers for brands and corporations to take the lead on societal issues,” said Bob Grove, Managing Director, Edelman Southeast Asia. “Aligned with findings from our Edelman 2012 Trust Barometer unveiled earlier this year, it is clear that societal attributes now play an important role in helping businesses and brands build future trust and success. It is no longer just about operational factors.”

Social Purpose: Driving Purchasing Behaviour and Brand Advocacy

While Singaporeans say businesses are not doing enough to address societal issues, companies who do meet these expectations could see positive business outcomes through purchase behavior and brand advocacy.

84% of Singaporeans say that they would buy the products and services of a company that actively supports a good cause. If quality and price were the same, Singaporeans say social purpose or 54% would be the most important factor in their purchasing decision – even more so than design or innovation at 34%. 

In the same vein, almost 9 in 10 say they would be more likely to give their business to a company that
supports good causes and has fair prices than a company who competes based on attractive pricing and
discounts.

Beyond direct purchase, 83% of Singaporeans say they would go on to recommend the company‟s products and services and share positive opinions and experiences about the company.

“Singapore consumers today are increasingly inclined towards purchasing products and services from brands that support good causes and are ethically responsible,” Mr Grove said. “This offers a real business opportunity for consumer brands. Beyond merely exercising one‟s license to operate, leading brands of the future must move beyond operational imperatives and social add-on‟s to establish the license to lead.

Role of Government in Leading Social Purpose

While Singaporeans demand that businesses play an active role in supporting good causes, 6 in 10 still strongly believe that governments must play the lead role in addressing societal issues. This is also in line with global and regional statistics of 54% and 64% respectively.

Preferences for ‘Societally-Friendly’ Items

If costs were not a factor, Singaporeans would be inclined to purchase 'societally-friendly' items. If prices were not an issue, 84% of survey respondents say they would prefer to live in an environmentally-friendly home than a large home and 79% would rather drive a hybrid car than a luxury car.

In fact, 75% of Singaporeans already say they buy a brand that supports a good cause at least yearly.