CSR: AC Nielsen Finds Good Is Gold in China

Friday, December 8, 2006 5:23
Comments Off on CSR: AC Nielsen Finds Good Is Gold in China

For those who need 3rd party evidence that a comprehensive CSR program is good for a company, AC Nielsen’s Good as Gold (2005 PDF & 2006 PDF) reports are for you.

While almost everyone can agree that a strong community outreach program has an impact on the community, few have studied the effects of such a program internally to an organization, and even fewer have done so in China…. but AC Nielsen has done both.

Within the report are a number of quantitative and qualitative points that stand out:

1. A strong CSR strategy will improve customer loyalty:

  • More than 50% of people surveyed would choose a product and service from a company that supports a worthy cause if the price is the same

2. More than 40% of employees are unsure of their loyalty to a company

  • NEarly 65% of people surveyed said yes when asked “I would feel greater job satisfaction if I was more involved in a charitable activity through my work ”?
  • 53% of respondents said yes when asked ““I would speak more positively about the company I work for if they supported a charity”

One of the stats that was most surprising was that 77% of persons interviewed wanted to be a part of a company’s CSR program

In integrating their CSR program, AC identified the following as steps to be taken:

  • Perform research to understand the needs of internal and external stakeholders
  • Pick the right issue – a single issue – that is “important, timely, and leverages the company’s core competencies”
  • Establish concrete goals and report progress
  • Utilize the assets (soft and hard) of the company
  • Engage others

Corporate Social Responsibility is something that is beginning to gain a lot of attention in China. In the United States, companies have for years understood the value of CSR internally and externally. for some companies, it is the lure of good PR while others see CSR as part of their core values.

Either way, the fact is that in China many of these companies have only begun to build their programs, and as written in several posts here and is shown by the increased activity at AMCHAM’s CSR events, the interest in developing strong programs will only continue.

I would like to thank AC for allowing us to post these reports. They are the only ones who have completed such a study, and for companies looking to develop a CSR program in China, I highly suggest you read them.

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