InfoGraphic

China gets charitable as it grows

(China Daily)
Updated: 2010-11-15 16:31

Steven Cao (left), founder and CEO of Pegasus Communications, one of Edelman's two public relations brands in China, and Richard Edelman, president and CEO of Edelman, attend the launch of the 2010 Edelman Goodpurpose Study. [Photo/China Daily]

PR survey reveals new trend toward philanthropy in emerging markets

BEIJING - A new world order has emerged. Citizens in emerging markets have overtaken the United States and Europe as those most engaged in good social causes, according to a study released by Edelman, a leading independent global public relations firm.

More and more consumers in emerging markets prefer to buy products from brands and companies that have a high participation in good causes.

Seventy percent of respondents in China will buy products from companies that support good causes, compared with 54 percent in major Western European economies, the study showed.

"Since China started reforms and opening up to the outside world and as the country develops economically and socially, philanthropy and social responsibility are again on the minds of the consumer," said Steven Cao, founder and chief executive officer of Pegasus Communications, one of Edelman's two public relations brands in China.

The number of Chinese respondents who would switch brands if a different product of similar quality supported a good cause is 73 percent. The figure is 78 percent for India, 62 percent for the US and 51 percent for the UK.

A fifth P for purpose has been added to the traditional four elements of marketing - product, price, promotion and place - said Mitch Markson, chief creative officer at Edelman and founder of Edelman GoodPurpose.

"Purpose allows brands to have a deeper level of engagement with their consumers," he added.

"It's an opportunity for brands to play that role between people who want to do something good and the charity that needs money," said Richard Edelman, president and chief executive officer of Edelman. "A brand that sells products can also be an intermediary helping," he added.

The 2010 GoodPurpose study was conducted among more than 7,000 consumers aged 18 to 64 across 13 countries, including Western ones and emerging markets such as China and India.

While consumers expect companies to show a commitment to good causes, they are also willing to punish those that don't, the study said.

Free trade deal lifts businesse Related readings:  Experts protest tobacco money for charity  Charity in China expected to boom as private foundations emerge

Forty-five percent of the respondents in China would punish a company that doesn't actively support a good cause by criticizing it to others.

"I believe the study findings will greatly encourage enterprises which put corporate social responsibility high on their agenda, and they will further improve their commitment to good social causes," said Ma Xinying, manager of Strategic Division Quality Department, China Ocean Shipping (Group) Company.

"I'm more inclined to buy products from brands which support good causes because it not only satisfies my consumption needs, but also offers me an indirect way of involving myself in good causes contributing to society," said 20-something Li Nan, who works in a bank.

Emerging markets have more social problems compared with developed countries. It's an important reason for citizens and government in them to pay more attention to charity and good social causes, Cao said.