What is social consumerism?
We are witnessing an evolution in consumer expectations as consumers increasingly vote with their wallets. Millennials (those born between 1981 and 1996) and Generation Z (those born between 1997 and 2012) are now the biggest global generation, making up 65 percent of the world’s population.[1] As these generational cohorts enter their prime spending years, many companies have begun to focus their marketing efforts on this segment of the population.
Marketing to Values
What marketers have discovered is that Millennials and Gen Z engage with brands differently than older generations like Generation X (born between 1965 and 1980) and the baby boomers (born between 1946 and 1964). They’re more likely to steer clear of mass-market branded products in favor of smaller, eco-friendly brands. They are the most likely to make buying decisions on values and principles. For example, 62 percent of both Millennials and Gen Z are willing to spend more for sustainable products, compared with only 54 percent of Gen X and 39 percent of Baby Boomers.[2]
What implications does this have for marketing to these generations? Traditional marketing methods won’t cut it. The lesson that companies need to learn is that corporate social responsibility is more than just a buzzword for these generational cohorts. To make an impact, companies need to use their resources to prove to these younger generations that their business activities are making an impact. Authenticity and transparency are their keys to success.
An organization must consider all parties that it might impact, not just consumers. Stakeholders include investors, communities, governments, customers, employees, and suppliers. In the context of corporate social responsibility, this means that leaders of companies must create value for all of these groups while simultaneously producing a fair return for shareholders or owners.
When considering organizational and individual values, the marketer needs to ask (and answer honestly) the following questions:
- Does the organization’s mission reflect current activities that are focused on the triple bottom line?
- Does the organization’s vision statement lead to outcomes that contain elements of social good?
- Do the organization’s values reflect respect for one another, the community, and the environment?
- Are those values authentic, and do members of the organization live by them daily?
- Has the organization included goals and objectives that refer specifically to elements of social good?
These questions can help inform the organization’s activities as it works through the strategic planning process. Thoughtful analysis and design at this stage can build strong organizations that not only deliver profits but also produce positive social outcomes for all parties.