A recent study by the Conran Design Group has revealed that brands prioritizing consumer needs and societal contributions—referred to as ‘citizen brands’—are experiencing significantly higher growth rates compared to those that do not.
Over the last three years, these purpose-driven brands have reported 37% higher revenue growth, and their equity prices have surged by 93% over five years, in stark contrast to the 17% growth seen by less socially responsible companies.
The findings underscore an essential transformation in the business landscape: companies that successfully integrate profit with purpose are carving out a stronger market position and fostering deeper connections with consumers.
The study sheds light on the risks for businesses that fail to align with evolving consumer expectations. Thom Newton, Global CEO of Conran Design Group, emphasized that a growing disconnect between corporate commitments and actual consumer trust could damage long-term growth prospects. According to Newton, the most successful companies today are those that seamlessly blend commercial success with social responsibility.
As economic pressures, climate challenges, and social concerns increase, companies that do not take substantial action in areas like sustainability, inclusivity, and corporate responsibility risk losing both credibility and customers.
The research surveyed 7,000 consumers and 230 senior industry leaders, investors, and marketing executives across various global markets. The data uncovered key challenges businesses face in striking a balance between profitability and social impact.
More than two-thirds of consumers doubt brands' claims about sustainability and inclusivity.
Many consumers believe companies focus more on marketing social good rather than making tangible impacts.
While people appreciate companies with strong values, the research found that the majority prioritize affordability over ethics when making purchasing decisions.
This presents a dilemma for brands attempting to balance their social commitments with commercial success.
Despite the challenges, companies that successfully integrate purpose into their operations are reaping significant rewards. The study highlights several key benefits:
Stronger Public Perception: 58% of consumers hold favorable views of ‘citizen brands,’ compared to just 28% for companies that are less socially responsible.
Enhanced Employer Reputation: Nearly half of employees at purpose-driven brands report feeling proud of their workplace, whereas only 16% feel the same in less responsible companies.
Competitive Edge in the Marketplace: Brands that align with ethical and social values are more likely to attract loyal customers and long-term investors.
Tim Parker, Brand Strategy Director at Conran Design Group, described today’s business environment as an existential challenge for companies attempting to balance profitability and purpose. With rising inflation, climate concerns, and political instability shaping consumer behavior, the disconnect between what brands promise and what they actually deliver is fueling consumer fatigue and distrust.
Parker emphasized that brands looking to ensure sustainable growth must focus on six key principles:
Betterment – Contributing positively to society.
Originality – Offering unique and innovative solutions.
Reliability – Building trust through consistent quality.
Inclusivity – Representing diverse perspectives and audiences.
Environmentalism – Reducing ecological impact.
Contribution – Aligning business goals with broader societal progress.
These principles are essential for brands seeking to build meaningful relationships with consumers and strengthen their long-term market position.
The report presents a clear message for businesses worldwide: brands that prioritize social good not only gain financial success but also build deeper, long-lasting connections with consumers. As consumer expectations continue to evolve, companies that align with sustainability, ethical business practices, and corporate social responsibility will be the ones to thrive in the coming years.