In her recent research, Professor Dionne Nickerson dives deep into how consumers are more likely to engage with brands making genuine efforts to rectify past environmental or social harm. The study reveals that corrective and compensating actions by businesses, designed to address their specific harmful practices, can boost sales significantly.
Corrective actions – concrete operational changes made to offset past harm, and compensating actions – donations to offset damages, boosted sales by 1% and 3% respectively. On the flip side, CSR actions unrelated to a company’s core business or past practices led to a 3.5% drop in sales.
Nickerson’s research reveals the importance of sincerity and relevance in CSR initiatives. Consumers are increasingly aware of the societal impact of corporate operations, thus are more inclined towards companies that show genuine commitment to remedying their own harmful impacts.
Professor Dionne Nickerson’s work encourages businesses to strategize their CSR efforts wisely, focusing on actions relevant to their operational harm, and communicating their goals and accountability effectively. By doing so, they stand to benefit not just society and the environment, but also their own bottom line.