Entrepreneurs Focusing on Social and Environmental Issues Earn Consumers' Trust
Retail Tech Insights | Tuesday, October 11, 2022
More than half (53%) of CEE citizens prefer to buy products and services from socially committed brands, with as many as 48 per cent willing to pay a slightly higher price for them.
FREMONT, CA: To provide a favourable legal and fiscal environment, public administration must take steps, but while addressing social issues, businesses are the main driving force. Data gathered from residents of Bulgaria, Croatia, Estonia, Lithuania, Latvia, Romania, and Slovenia between March and April 2022 reveals that CEE citizens value socially conscious businesses, but they also demand transparency, honesty, and the connection of the company's social endeavours to its professional profile. Employees want to support the expansion of ethical businesses just as much as customers do. 36 per cent of job seekers place importance on the social activity of prospective employers. Employee volunteering is a growing trend, although just 20% of CEE citizens say their employers give them the chance to do so. At the same time, about 40% of those without this option say they are interested in having it. For pro bono service, a similar situation can be seen. Only 14 per cent of respondents claim that their companies offer pro bono assistance as a part of their commercial activities, but up to 46 per cent anticipate that this will change.
CEE populations respond that the financial industry should address issues with poverty, education, and economic growth when asked which UN Sustainable Development Goals (SDGs) should be addressed by specific industries. Retail chains and food corporations are anticipated to place a greater emphasis on preventing hunger and encouraging appropriate consumption. While the energy business and automobile sectors should concentrate on climate-related challenges, technology and IT businesses should promote innovation and economic growth. One of the most critical requirements in the area was identified as having access to knowledge and education. It comes out that only 11 per cent of people in Central and Eastern Europe are aware of what ESG (Environmental, Social, Governance) is. The majority of people need financial education, thus banks should encourage giving. The majority believe that social engagement should be taught from a young age.
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Europeans are becoming more socially active as a result of situations like the COVID-19 outbreak and the crisis in Ukraine. Up to 53 per cent of CEE citizens have contributed to the effort to aid Ukrainian refugees, mostly through monetary contributions and material donations. It is important to note that the expectations of more sophisticated nations have grown. Particularly from the nations of Western Europe (Germany, Switzerland, UK), and North America, a greater involvement is anticipated. Currently, irrespective of their age, gender, place of residence, or income, 48 per cent of CEE citizens give money to charity. While charitable potential in the seven countries studied is twice as large, annual donations in these countries reach close to one billion euros – his level of involvement is feasible, but to expand the social impact ecosystem in CEE nations, we must increase awareness, encourage more cooperation, identify and remove impediments, as well as tax and legal considerations.
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