Ethical consumerism in the UK is now worth £5.7 billion a year, according to findings from the first-ever survey of the market as a whole. The joint research project between The Cooperative Bank and the non-profit New Economics Foundation shows an increase of almost a fifth in ethical spending between 1999 and 2000. A further £7.8 billion is accounted for in ethical financial services, such as investment and banking, bringing the total size of the ethical market to £13.4 billion – a higher number than previously estimated. Published on November 18, the inaugural Ethical Purchasing Index is based on the total spending by UK consumers in seven major retail areas, ranging from food and fuel to household items and transport. Contact Paul Lawler, Cooperative Bank, on 0161 829 5397 (http://www.co-operativebank.co.uk)
Marketing directors favour CRM
Nearly nine out of ten (89%) marketing directors believe that businesses should be involved in addressing the social issues of the day, an increase of almost ten percent from three years ago. Three in five (59%) say they have carried out some kind of marketing campaign that links their brand to a charitable cause over the last year, according to figures released on November 1. Based on a Business in the Community survey of 400 executives, the findings also suggest this trend will continue to grow, with over two-thirds (69%) believing that the importance of such marketing strategies will increase over the next two to three years. Contact Sue Adkins, BITC, on 020 7566 8696 (http://www.crm.org.uk)
MORI poll of consumers
BITC’s findings are bolstered by a MORI poll released on November 16 which shows that nine in ten consumers now regard a company’s reputation for corporate responsibility as important, compared with eight in ten a year ago. The survey of over 2000 adults also reveals that half the British public believes it is more important for the private sector to act responsibly in difficult economic times than in more favourable conditions. Corporate community involvement is also rising up the agenda in the US, where about four-fifths (85%) of those surveyed by US marketing company, Cone, following the September 11 events, believe it is now “more important than ever” for companies to support their communities. The survey, released on November 11, builds on similar research in March, and shows an increase from two-thirds to threequarters of people who think it is important for companies to support worthy causes. Contact Jenny Dawkins, MORI, on 020 7347 3800 (http://www.mori.com); Ann Chan, Cone, on 00 1 617 272 8403 (http://www.coneinc.com)
Tesco backs mobiles scheme
Tesco estimates it could help raise up to £2.5 million for charity through a new initiative launched on November 19 to recycle mobile phones. A donation of £5 to charity, or £2.50 to charity and £2.50 in Tesco Clubcard points will be made every time a Tesco customer hands in an old mobile phone for recycling. Three charities will benefit: Alzheimer’s, NCH and the Cystic Fibrosis Trust. Some phones will be re-used in developing countries, with the remainder recycled. Over four million mobile phones are sold in the UK every year, whilst only one in twenty is presently recycled. Contact Fiona Mason, Tesco, on 01992 632 222 (http://www.tesco.com)
Children in Need
BT aims to raise £1 million for the BBC Children in Need appeal by donating £1 for each time someone called BT Answer 1571 between November 3-30. HSBC set itself the target of raising £250,000 for the charity event by offering to donate 1p every time a customer withdrew money from one of the bank’s cash machines between October 22-25. Among the many other companies backing the event, Eurostar pledged £1 for every online booking and Fuji gave £1 from sales of single-use cameras. Contact David Mortimer, BBC, on 08700 100 222 (http://www.bbc.co.uk)
news in brief
Retailers of tea and coffee, stakeholder pensions, digital cameras and laundry detergents are the subject of an ethical evaluation by Ethical Consumer magazine, which charts their performance against a set of criteria ranging from animal rights to irresponsible marketing in a 40-page supplement to its October/November edition. Included in the survey are GlaxoSmithKline, Nestlé, Novartis, Unilever, and all the major UK pension providers. Contact Hannah Berry, Ethical Consumer, on 0161 226 2929 (http://www.ethicalconsumer.org)
The online company, Ihavemoved.com, is teaming up with the homeless charity, Shelter, in a cause-related marketing campaign that aims to raise £100,000. From early November, the dotcom service is pledging £1 to Shelter every time someone changes his or her postal address details through the site. Contact Francesca Llosa, Ihavemoved.com, on 020 7799 8408 (http://www.ihavemoved.com/shelter)
Marks & Spencer announced on October 31 that profits from its Christmas charity cards (£366,000 in 2000) will go to six charities, all active in the company’s focus themes of health, safety and education. Contact Michelle Paerse, M&S, on 020 7268 8323 (http://www.marksandspencer.co.uk)
Editorial Comment
We’ve highlighted before the Mandy Rice-Davies problem with these surveys about cause-related marketing – well, they would say that, wouldn’t they. After all, you’ve got to be a pretty tough nut to answer the pollster ‘no, even at the same price, I prefer the product that destroys the planet.’
Thankfully the evidence reported above gets beyond that. First, the fact that more people are responding in the affirmative indicates growing expectations; even if the reality is still overstated, the trend is clear. Second, the hard data on actual purchasing helps put a number on that reality; again, it confirms the trend is moving up.
Until recently, CRM fell into two main categories: the ’10p to charity’ promotion and niche products such as Ben & Jerry’s ice cream or Body Shop cosmetics – discretionary purchases appealing to the affluent middle classes. Now it’s starting to reach the mainstream. For example, Tesco said in November that sales of organic products will exceed £1 billion by 2006, five per cent of its food total and up from around £150 million today. But let’s not get carried away quite yet. The Co-operative Bank’s estimated £5.7 billion in purchasing amounts to a market share of only 1.5% across the seven product categories. And compare its estimated £7.8 billion in ethical financial services with research published in November by Britain’s citizens advice bureaux: £8.5 billion is being overpaid each year by some of the poorest consumers through unnecessary consumer credit and inappropriate debt consolidation. Which is the more socially responsible bank – the one offering ethical investments or the one with robust procedures to prevent misselling of its basic products?
COMMENTS