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December 19, 2011
Ruder Finn Asia and Tsinghua University today jointly launched the 2011 CSR Index report for the FMCG and Automobile industries, a consumer-oriented CSR evaluation based on a survey of a large sample of consumers across China. According to the latest result, which is published annually under the Ruder Finn Tsinghua CSR Porgramme, consumer perceptions, attitudes and behaviours are directly related to an enterprise's business performance and the result from the survey on consumer perspectives has the potential to encourage more enterprises to actively participate in CSR initiatives.
In 2011, instead of solely focusing on topics directly related to their special interests, consumers began to express their views on issues in relation to business operations and social development such as energy security, environment protection, employee rights and interests and supply chain management through a range of channels. In addition, the rise of social media has broken the boundary, not only between individuals and organizations, but also between B to B and B to C business models. More consumers now directly communicate with enterprises through social networks and their likes and dislikes are having more direct influence on the reputation and performance of enterprises. The views and attitudes of consumers has meant responsible enterprises are receiving an unprecedentedly wide range of praise while irresponsible enterprises have received more criticism, and at times even legal sanctions. Consumers supervise and promote the specialization process of corporate social responsibility and have become the most important stakeholders for enterprises.
This is the third year that the CSR index research has been carried out and this year's results have been adjusted according to the new trends and hot topics of corporate concerns. The nine evaluation criteria in the previous index have been changed to five more targeted indicators including environmental issues, products and services, public welfare, management integrity and business ethics, and employee rights and interests. The survey received a total of 6,225 valid questionnaires from 31 provinces, autonomous regions and municipalities. According to the results of the report, Audi and FAW topped the list in the automobile industry while Coca-Cola and Procter & Gamble led the FMCG's list.
Compared with the previous two years, there has been a significant rise in consumer focus on corporate social responsibility. In the FMCG sector, the ‘very concerned' and ‘concerned' respondents totalled 84.3% of those surveyed, well above last year's 54.7%. Consumer buying behaviour has also been increasingly affected by the impact of an enterprise's CSR performance; 79.0% of the respondents said they would "give priority to purchase products from companies with outstanding CSR performance", and 69.6% said they would "recommend others to purchase products of a company with a good CSR performance". The survey also showed that most consumers learn about CSR information through the Internet, 38.6% through network news, 15.1% through online communities/forums, 13.7% through micro blogs and 8.7% through social networks.
Paul Yang, General Manager of Ruder Finn Beijing, said, "With the rapid development of social media, the communication between enterprises and consumers has become a more immediate, transparent and perceptual relationship. The old one-way transmission of CSR information, namely that delivered by enterprises and received by consumers, has also changed to today's interactive and cross-border communication involving both parties, and marking the entry of the CSR 3.0 era. In this year's Report, we found an increasing number of consumers becoming involved as a result of CSR information they found on the Internet. This will help enterprises develop more effective communication strategies, create and maintain a good public image, and manage and enhance their relationship with customers. "
Professor Fan Hong, Academic Director of Tsinghua Public Relations and Strategic Communication Institute, and Executive Director of Tsinghua-Ruder Finn CSR Program, said, "From the CSR index report on the two industries, we can see that public awareness of CSR is gradually developing to a mature stage, but there is still considerable room for improvement. With wide publicity and further guidance, consumers are likely to switch their role to that of a promoter, constructor and supervisor of corporate social responsibility. The launch of the CSR index will encourage enterprises to take their social responsibility more seriously, promote the overall practice and development of corporate social responsibility in China's enterprises and help to construct a more standardized and sustainable market mechanism, achieving a win-win situation among consumers, enterprises and society. Enterprises should attach great importance to consumer feedback, enhance their social image and reputation management and obtain broader recognition and trust from consumers through the implementation of a CSR strategy in order to further enhance their brand competitiveness. "
Mr Paul Yang and Professor Fan Hong officiated at the press conference held in Beijing to release the Report. Jia Feng, Deputy Director of the Center for Environmental Education & Communications of the Chinese Ministry of Environment, Wu Gaohan, former Deputy Secretary-General of China Consumer Association, and He Lun, Editor-in-Chief of the International Business Daily Auto Weekly, were also present at the press conference and gave in-depth reviews of the report.
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The Tsinghua-Ruder Finn CSR Program was established in 2008 between the prestigious Tsinghua University and Ruder Finn to build an effective communication platform involving the government, NGOs and business sectors. One of the benchmarks for the program is the annual publication of the CSR Index, co-authored by Tsinghua University and Ruder Finn
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