83 per cent of Indian consumers will abandon Hypocritical Businesses, shows new research by BSI
Jan 31, 2023
New Delhi [India], January 31 (ANI/BusinessWire India): Polling of Indian consumers and business leaders reveals that 83 per cent of consumers consider a company's purpose when making a purchasing decision and that 83 per cent will abandon a product or business acting inconsistently with its purpose - a sign that consumers have lost patience with organizations that do not follow the principles of purpose driven organizations.
For younger age groups, 77 per cent of 18- to 24-year-olds are actively considering purpose in buying decisions and 78 per cent of that group say they will abandon products or businesses acting inconsistently with their purpose.
BSI has now published PAS 808: Purpose-Driven Organizations: Worldviews, Principles and Behaviours. This is the world's first standard offering guidance to organizations globally on what corporate purpose is, what the principles and behaviors of a successful purpose-driven organization are, and how organizations can align their decision-making with their stated purpose. It has been designed to help them restore, rebuild, and embed public trust that they genuinely are purpose-led and committed to do the right thing.
The survey also found that 92 per cent of all consumers are willing to spend more with an organization that keeps to its stated purpose.
Yet the poll of Indian business leaders shows only 49 per cent agree that a lack of purpose is detrimental to business, indicating a disconnect between how organizations and consumers view the importance of purpose.
Most, but not all, organizations have a stated, written purpose beyond profit - 86 per cent according to the survey. And 95 per cent consider the purpose of other organizations they use or work with. Nevertheless, 73 per cent do not frame or measure the delivery of their purpose through an independent third party.
The data shows that almost 90 per cent of business leaders would feel more confident in delivering on their purpose if there was a standardized method. Consumers share this sentiment, with 34 per cent saying it would be "fairly helpful" and nearly 59 per cent saying it would be "very helpful" if there was a standard that helped assess whether brands were keeping to their purpose.
The new standard published by BSI is a practical guide to help organizations develop their own strategies and approaches to enact and embed purpose in their policies, processes, practices, products, services, and value networks. The guide establishes common terms and definitions related to purpose, and outlines the worldviews, principles and associated behaviors and activities of a purpose-driven organization.
Anne Hayes, Director of Sectors, BSI said: "The research demonstrates that urgent action is needed to align organizations with a sustainable future. There is a growing consensus that purpose-driven organizations may hold the key and that there could be a clear dividend to business purpose."
"We live in an age where organizations that lose the trust of their customers also stand to lose their business. PAS 808 represents a watershed moment in helping them meet the pressing challenge of aligning their purpose with their actions. We are proud to have convened a range of stakeholders to demystify what a good purpose-driven organization looks like and provide a framework for accountability."
The standard is freely available to download
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Notes to Editors:
Polling of 2000 Indian consumers was conducted for BSI by OnePoll between the 28th of June 2022 and the 7th of July 2022.
Polling of 350 Indian business leaders was conducted for BSI by OnePoll between the 28th of June 2022 and the 7th of July 2022.
Steering Group
The standard, PAS 808: Purpose-driven organizations - Worldviews, principles and behaviours for delivering sustainability - Guide, has been developed by a steering group of representatives from the following organizations: Anglian Water; B Lab UK; Blueprint for Better Business; Business in the Community; Cambridge Institute for Sustainability Leadership; Chartered Management Institute; Department for Digital, Culture, Media and Sport (UK); Future-Fit Foundation; JLL; John Lewis Partnership; KPMG; ReGenerate; The Wildlife Trusts; and WBCSD.
This story is provided by BusinessWire India. ANI will not be responsible in any way for the content of this article. (ANI/BusinessWire India)
