AlabamaGroceryJan2017Final

How companies treat their employees is the factor most likely considered by consumers in their determination of how ethical a company is. This is likely because most people have been employed at some point and can empathize with fellow workers. Employee treatment outranks factors such as being environmentally friendly, treatment of animals, and stances taken on controversial issues – which often receive wide media coverage. When it comes to employee treatment, consumers likely consider fairness of wages, benefits, and even policies around time off and holiday hours. For example, some retailers have faced pressure from consumers, watchdog groups, and striking employees due to company policies. In some instances, even when companies make improvements, some consumers feel it is too little, too late. Here the lesson to be learned is that companies need to be proactive in getting the story out about their efforts, rather than reactive.

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Among millennials, older millennials appear to be more influenced by ethics, likely because they are more likely to have children (parents tend to be more impacted by ethics) and because they have higher incomes. Along those same lines, respondents from higher income households are more likely to be influenced by a company’s ethical track record. Those aged 18-34 who live in $75,000-plus households are among the most influenced by ethics (86 percent are sometimes influenced). Retailers and brands targeting high-income or young, affluent millennials should consider how their ethical track record will be perceived with their audience. Mintel’s research suggests that the primary driver for purchasing from ethical companies is the “feel good factor” associated with the purchase. Consumers want brands to act ethically on their behalf and they reward these brands with loyalty.

C onsumers are expecting a higher level of engagement with retailers and brands than ever before.

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To schedule an appointment, contact: Heather Dougherty

Commercial Solutions Group | FoodWaste Specialists M216-200-9439 | Heather.Dougherty@emerson.com

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