Both Consumers and Investors Expect Companies to Give to Charity, Survey Shows

Forty nine percent of American consumers believe it is more important for a company to make the world a better place than to make money for its shareholders, according to a new report.

However, many are skeptical of businesses that say they want to make the world a better place, with only half saying such statements are either somewhat believable or very believable.

The findings, from a corporate social-responsibility report commissioned by the insurance company Aflac, provide insights for companies looking to burnish their reputations among consumers and investors who are increasingly holding businesses to higher standards.

Eighty-one percent of consumers said they were either very likely or somewhat likely to support companies that contribute products or services, while 79 percent said they were very or somewhat likely to support companies that donate money.

The survey also examined attitudes among investors, defined as individuals who own stocks outside of 401(k) plans. Investors were almost as interested in a company’s charitable activities as consumers were, with 70 percent saying they would be somewhat or very likely to support a company that donates products and services and 66 percent saying they would be somewhat or very likely to support a company that gives cash.

Fifty-eight percent of consumers and 47 percent of investors said it was very or somewhat important for a company caught in a scandal to make a donation to a cause related to its wrongdoing. However, another option for businesses to address scandal ranked higher: Ninety-two percent of consumers and 88 percent of investors said it was somewhat or very important for companies to come clean about their wrongdoing.

Michael Theis writes about data and accountability for the Chronicle, conducting surveys and reporting on fundraising, giving, salaries, taxes, and more. He recently surveyed pay packages at charities and found wide disparities in base salaries and bonuses among nonprofit causes. Email Michael or follow him on Twitter.