New research from UniSA’s has shown that a good
reputation as a clean, fair business that is a "good neighbour" will do more to
raise profits than many other factors.
The new study jointly conducted by UniSA’s Hawke Institute and the Heart
Foundation surveyed of 2200 Australian households and found that an individual’s
intention to deal with a corporation is strongly influenced by that corporation’s
reputation as a good or bad corporate citizen.
Director of the Hawke Institute, Professor
Alison Mackinnon said companies would do well to realise that no matter how high the
profits, if a corporation or business has a reputation for treating workers unfairly,
environmental carelessness or poor involvement in the life of the community, people would
be turned off.
"The research findings send a clear message to business and industry that says
policies and practices that are socially responsible actually offer a business a
competitive advantage," Professor Mackinnon said.
"In the information age people are much more aware of business practices both good
and bad.
If a company earns a reputation as a polluter or exploiter of cheap labor, people are
likely to hear about it and will stop patronising the company.
"Increasingly the public is demanding that corporations treat their workers well
and behave as responsible members of the wider community. And the choices that members of
the public make about where to invest or spend their money should be a powerful incentive
for businesses to examine their corporate citizenship practices."
The research report, Corporate citizenship and reputational value: the marketing of
corporate citizenship, is available at www.hawkecentre.unisa.edu.au/institute/news.htm.
Professor Mackinnon said research across Australia into the issues was showing that
today’s consumers were deeply concerned by a company’s commitment to the
community in the long term.
"In an environment where the old fashioned notions of community and trust have
been eroded or exposed, people are looking for the genuine article, both personally and at
a corporate level."
Professor Mackinnon said research conducted by David Birch, the Director of the
Corporate Citizenship Research Unit at Deakin University, found that, while most
businesses considered corporate citizenship issues to be important, most only undertook
short-term and relatively inexpensive activities.
Birch will be in Adelaide this week presenting the results from a national survey of
leading Australian businesses on their corporate citizenship practices. Birch says his
research results indicated that corporate citizenship was not part of the core culture of
Australian business.
Birch will discuss the implications of his research for businesses, government and the
community in a free public lecture - Corporate citizenship as a business
basic: meeting the challenges in Australia presented by the Hawke Institute on
Thursday June 7 at 5:30 pm in the Atrium, Yungondi building, at UniSA’s City West
campus, 70 North Terrace, Adelaide.
Media contact: Alison Mackinnon, Director, UniSA’s Hawke Institute (08) 8302
4370 or for assistance, Michèle Nardelli (08) 8302 0966, 041 8823673
