DESPITE GLOBAL RECESSION, MORE PEOPLE VOTE WITH THEIR WALLETS

IN SUPPORT OF BRANDS THAT HAVE SOCIAL PURPOSE

Indians more conscious/demanding on social concerns than global average
on most counts, shows 2009 Global goodpurpose™ Study in 10 countries

– cause is a bigger factor than cost when making a purchase for 75% in India
– 78% willing to change consumption habits if it helps make the world a better place to live

New Delhi (Oct. 21, 2009) – Despite the impact of the global recession, more consumers across the
world – and even more in India compared to the global average – are placing increased demands on
companies, brands, and themselves to reset priorities and step up social commitment, according to new
rd
findings released today from the 3 annual goodpurpose™ Consumer Study.

On many counts, India consumers are more demanding of businesses and themselves. In fact, 74
percent of Indian consumers interviewed think brands and companies should spend less on advertising
and marketing and more on good causes (up 14 percentage points from 2008). Compare this with the
global average of 71%, up from 62% last year.

Globally, 66% of those interviewed (and 69% of those
interviewed in India) believe it is no longer enough for
corporations to simply give money away to a good cause; they
need to integrate good causes into their day-to-day business.
In the past year, 61% globally have bought a brand that
supports a good cause even if it was not the cheapest brand.
The figure for India is 75 percent.
In the US, 68% feel that it’s becoming more unacceptable not
to make noticeable efforts to show concern for the
environment and live a healthy lifestyle. In India, 75% feel that
it is becoming more unacceptable not to make a noticeable
effort to show concern for the environment, and 78% not to live
a healthy lifestyle.
In fact, the survey of 6,000 people in 10 countries revealed
that during this recession, 57 percent believe a company or
brand has earned their business because it has been doing its
part to support good causes. While more than half (56 percent)
believe the interests of both society and business should have
equal weight in business decisions, consumers are
increasingly recognizing and rewarding brands that contribute
to the greater good – with 63 percent looking to brands and
companies to make it easier for them to make a difference.
KEY 2009 GLOBAL AND INDIA DATA
HIGHLIGHTS
BIGGEST CHANGES SINCE 2008
• 64% would recommend a brand that
supports a good cause – up from 52%
last year globally; India figure 76% vs
65% last year
• 59% would help a brand promote its
products if there was a good cause
behind it – up from 53% last year; 75%
India vs 65% last year
• 71% think brands and companies spend
too much on advertising and marketing
and should put more into good causes –
up almost ten percentage points; 74%
India vs 60% in 2008
• 16% find contentment from shopping –
down from 25%; the India figure is 27%,
down from 37%
• 44% are aware of brands that actively
support good causes through their
products and services – up from 33%; in
India this is a whopping 77%, up from
24% in 2008

The study results suggest that brands will continue to benefit from identifying and contributing to a
positive social purpose that makes sense for their business not only because customers will become
more committed and energized purchasers, but more importantly because, as the research shows, 64
percent would recommend a brand that supports a good cause (up from 52 percent in 2008). Further,
two out of three (67 percent) say they would switch brands if another brand of similar quality supported a
good cause.
AS CONSUMER VALUES EVOLVE, SO DO BUSINESS OPPORTUNITIES

Results from the study, coupled with the realities of the prolonged recession, indicate new consumer
shifts have resulted in a startling trend away from traditional status markers like big houses and luxury
cars and toward identification with social purpose itself, supporting the need for companies to become
aligned with an authentic social purpose.

The goodpurpose study shows that today more than twice as many people (67 percent) would rather
drive a hybrid car than a luxury car (33 percent), and that considerably more (70 percent) people would
prefer to live in an eco-friendly house than merely a big house (30 percent). Sixty-eight percent of people
also now feel that it’s becoming more unacceptable not to make noticeable efforts to show concern for the
environment and live a healthy lifestyle, and 69 percent would rather have a brand that supports the
livelihood of local producers than a designer brand (31 percent).

“Consumers are now wearing, driving, eating, and living their social purpose as sustained engagement
with good causes becomes a new criterion for social status and good social behavior,” said Mitch
Markson, Edelman’s chief creative officer, president of its brand consulting group and founder of
goodpurpose. “This gives companies and brands that become associated with a positive and worthy
cause an opportunity to build long-term relationships with consumers that, in turn, allow consumers to feel
valuable within their communities and social sets.”

The need for companies to look beyond traditional marketing tactics and to social purpose to reach
consumers (during the current economic atmosphere and once the economy improves) is further fueled
by data revealing that 71 percent think brands and companies should spend less on advertising and
marketing and more on good causes (up almost 10 percentage points from 2008).

Businesses are increasingly taking notice. In fact, social purpose is now integrated into the business
purpose for many companies and brands, as new markets are created around it and it is used to protect
share and enhance loyalty and reputation within existing markets. Examples among the emerging set of
brands that have created a market around social purpose include Ben & Jerry’s, Brita, Innocent
Smoothies, TOMS Shoes, and Toyota Prius.

“People are demanding social purpose, and brands are recognizing it as an area where they can
differentiate themselves and in many parts of the world, not only meet governmental compliance
requirements, but also build brand equity,” said Markson. “This year’s study shows that if companies
respond intelligently to the sea change in consumer attitudes, brand loyalty among consumers – even
during seriously challenging economic times – will actually grow. Even better, consumers will want to
share their support for these brands with others.”

CONSUMER DEMAND PRESENTS BRANDS AN OPPORTUNITY TO DELIVER ON SOCIAL PURPOSE

While the global recession has created limitations, with 70 percent of consumers saying their ability to
give money to community causes has been limited, people are still giving of their time. Thirty-three
percent have given less financial support due to the current economic downturn (rising to 51 percent
among U.S. respondents), but 31 percent are more involved in good causes than a year ago – and 53
percent have given more time in support of good causes this year because they have not been able to
give as much money. In addition, 56 percent have tried to do more to support good causes in the past
year because charities and other nonprofit organizations have suffered in this economic environment –
underscoring both consumers’ desire to increase their social purpose activities, as well as the opportunity
for companies and brands to develop initiatives
that enlist consumers to help them work to effect
positive change. KEY 2009 GLOBAL (INDIA) DATA HIGHLIGHTS

AN AUTHENTIC SOCIAL PURPOSE IS KEY
While the study reveals that social purpose is
becoming increasingly crucial to a brand’s
success, it’s also true that a brand purpose must
be authentic and true to the core values of the
brand itself. To identify such a platform, brands
must look beyond traditional corporate social
responsibility programs in which they donate
money to a random good cause, no matter how
heartfelt. As the goodpurpose study notes, 66
percent of people say that it’s no longer enough for
corporations to merely give money away, but that
they must integrate good causes into their day-to-
day business. Thus, brands need to evolve their
own thinking, from corporate social responsibility
alone to mutual social responsibility based on a
purpose mutually shared between brand and
consumers that celebrates participation and
involvement and delivers a long-lasting, positive
mutual benefit – encouraging a melding of CSR
and brand marketing in which the brand itself
becomes a catalyst for social change.
• 56% (56% India) believe societal and corporate
interest should have equal weight in business
decisions
• 57% (84%) believe a company or brand has earned
their business because it has done its part to support
good causes
• 68% (70%) are fine with brands that support good
causes and make money too
• 67% prefer a hybrid car to a luxury car (33%)
• 70% prefer an eco-friendly house to a big house
(30%)
• 68% feel that it is becoming more unacceptable not to
make efforts to show concern for the environment and
live a healthy lifestyle. In india, 75% feel it is more
unacceptable not to make efforts to show concern for
the environment and live a healthy lifestyle (78%).
• 64% (76%) would recommend a brand that supports a
good cause
• 67% (73%) would switch brands if another brand of
similar quality supported a good cause
• 61% (75%) have bought a brand that supports a good
cause even if it wasn’t the cheapest brand
• 64% (76%) expect brands today to support a good
cause
• 63% (62%) are looking toward brands and companies
to make it easier for them to make a difference
• 59% (64%)have a better opinion of corporations that
integrate good causes into their business no matter

“Companies that respond to rising consumer

expectations that they and their brands help make
the world a better place will not only survive, but also thrive, in ways their competitors will not,” said
Markson. “People today are more passionately supportive than ever, yet more demanding and
unforgiving, as well.”

More information about the goodpurpose Consumer Study and consultancy, interviews with managers of
brands that are engaged in social purpose, and news about socially active brands are available at
www.goodpurposecommunity.com.

Continue the social purpose conversation on Facebook at www.facebook.com/goodpurpose and on

Twitter at www.twitter.com/LIVEgoodpurpose.
 India Key Data Highlights

DESPITE PROLONGED GLOBAL RECESSION, MORE PEOPLE VOTE WITH THEIR WALLETS IN SUPPORT OF
BRANDS THAT HAVE SOCIAL PURPOSE

– 75% have purchased a brand that supports a good cause even if it wasn’t the cheapest brand
– 78% willing to change consumption habits if it can help make the world a better place to live
– 84% believe a company or brand has earned their business because it has been doing its part to
support good causes (57% globally)
– 56% believe the interests of both society and business should have equal weight in business
decisions
– 62% looking to brands and companies to make it easier for them to make a difference
– 76% would recommend a brand that supports a good cause (up from 65 percent in 2008)
– Nearly three out of four (73 percent) say they would switch brands if another brand of similar
quality supported a good cause
– 76% expect brands today to support a good cause
– 77% are aware of brands that actively support good causes through their products and services –
up from 24%
– 70% are fine with brands that support good causes and make money too

AS CONSUMER VALUES EVOLVE, SO DO BUSINESS OPPORTUNITIES

– People now feel that it’s becoming more unacceptable not to make noticeable efforts to show
concern for the environment (75%) and live a healthy lifestyle (78%)
– 74 percent think brands and companies should spend less on advertising and marketing and
more on good causes (up 14 percentage points from 2008)

CONSUMER DEMAND PRESENTS BRANDS AN OPPORTUNITY TO DELIVER ON SOCIAL PURPOSE

– 79 percent of consumers say their ability to give money to community causes has been limited,
people are still giving of their time
– 30 percent are more involved in good causes than a year ago
– 82 percent have given more time in support of good causes this year because they have not been
able to give as much money (53% globally)
– 78 percent have tried to do more to support good causes in the past year because charities and
other nonprofit organizations have suffered in this economic environment (56% globally)

AN AUTHENTIC SOCIAL PURPOSE IS KEY

– 69 percent of people say that it’s no longer enough for corporations to merely give money away,
but that they must integrate good causes into their day-to-day business
– 75% would help a brand promote its products if there was a good cause behind it – up from 65%
last year
– 64% have a better opinion of corporations that integrate good causes into their business no
matter why they do so (59% globally, 51% in Germany, 58% in Italy, 65% in China and 52% in
Japan)
– 27% find contentment from shopping – down from 37%

###
About the goodpurpose™ Consumer Study

The 2009 goodpurpose™ survey was fielded among consumers ages 18-64 across ten countries from
July to August 2009. The research firm StrategyOne conducted an online survey in all countries except
India and China, where the survey was conducted face-to-face. The survey sampled 6026 adults in the
U.S., China, Canada, U.K., Germany, Italy, France, Brazil, Japan and India. The study was representative
of the country population.

About goodpurpose™

The goodpurpose™ cooperative is a consultancy from Edelman designed to mine the creative, socially
responsible and financially lucrative opportunities that can arise when brands and consumers join forces
around a social platform or meaningful cause. The consultancy features a cross-practice, cross-country
team of professionals with expertise ranging from brand marketing, health and technology to
entertainment, digital media, research, and corporate social responsibility. The goodpurpose offering
includes an interactive workshop and exploration, research and insight data, creative campaign
development and execution, and a forum for ongoing dialogue, information gathering and exchange at
www.goodpurposecommunity.com.

For additional information, please contact:

Edelman Mumbai
Medha Makhija / Deepika Nookala
+91 98203 18773 / +91 99878 66210
medha.makhija@edelman.com / deepika.nookala@edelman.com