Ethical Advocates Can Build Significant Goodwill For Companies

There's nothing quite like word of mouth to boost a company's fortunes. Indeed, a recommendation can be a powerful tool in building a company's reputation and competitive edge, recent research by Ipsos Public Affairs shows.

Just over a quarter (26%) of Americans fall into a group Ipsos calls "Ethical Advocates". These are people who regularly advise friends, family, colleagues and others to patronize – or more often, not to patronize – a particular company.

On average, Ethical Advocates are more likely to know a fair amount about major corporate brands than the general population. In the case of one major retailer, nearly twice as many Ethical Advocates had discussed the company compared with the general population (59% vs. 34%). They are also critical. On average, they are nearly two-thirds (63%) more likely to be unfavourable toward companies. They are also more negative about company performance.

However, the reverse can also be true, “Certain people are more vocal and opinionated about companies than others,” according to Annabel Evans a Vice President with Ipsos Public Affairs and author of a study exploring the corporate reputation of 30 major US businesses from a variety of sectors. “They have strong beliefs – good and bad – about businesses.”

It's clear from our research that corporations need to pay attention to these Ethical Advocates," notes Evans. "They can be a company's greatest supporter or its harshest critic. They are informed, they can be very critical, and they do like to talk."

Based on its research, Ipsos has developed a Corporate Responsibility Roadmap with eight model behaviours that can help companies stand out and appeal to Ethical Advocates. These are:

• The company provides quality products and services at a reasonable price, i.e., it doesn't come across as making excessive profits at the expense of the consumer;
• The company provides universal access to its products and services, i.e., it doesn't discriminate against sections of society because of their wealth, age or geography. This is especially pertinent for financial service, telecommunications and pharmaceutical providers;
• The company treats its employees well (both at home and abroad);
• The company's activities are not detrimental to the environment;
• The company communicates clearly about its business, products and services so the consumer is able to make an informed choice. Companies with an overarching corporate brand, especially those in consumer goods, are expected to create awareness of their product portfolio;
• The company is smart and respectful in its sales, marketing and advertising, i.e., it doesn't adopt aggressive sales techniques, excessive mailings or irresponsible advertising that targets children;
• The company supports the local economy by sourcing US products and labor (especially so for the retail and automotive sectors);
• The company is committed to innovation (particularly if it is in technology or pharmaceuticals).

Online interviews were conducted as part of Ipsos' I-Rep program between July 27 and August 2, 2006 with a nationally representative sample of 2,024 adults aged 18 and over from Ipsos' U.S. internet panel. The research investigated the performance of 30 major companies from a variety of sectors on a range of reputation metrics.

The company is online at www.ipsos-na.com

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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