77% - aflac...important responsibility for companies than making money for its shareholders. a...

2019 AFLAC CSR SURVEY

Consumers, Investors HoldCorporations’ Feet to the Fire

49% 77%73%

41%

27% 16

%

37%

Gen-X

25% 22%

Boomers

55%

More Americans (49%) believe it is very important for a company to “make the world a better place” than “make

money for its shareholders” (37%).

of American consumers say it’s important for companies to take a stand on social and political issues.

48%of investors report they have decided to not invest in a company because of its position on some issue.

38%of investors have actually sold shares.

of consumers of investors

54%of consumers also say they have stopped using the products of a company because of its public position on some issue.

Consumers: Motivated to purchase from companies committed to making the world better.

Investors: E�orts to help improve society and the environment contribute to return.

Younger (Millennial) investors put significantly more e�ort into researching a company’s role in improving society and environment before deciding to invest compared to:

While relatively fewer consumers (14%) cite social media as their most trustworthily source for information about companies, more than half frequently get news from these sites.

However, many Americans claim “zero tolerance” when it comes to infractions of ethical corporate codes:

72% of consumers are willing to “forgive” bad behavior, defined as actions such as knowingly selling defective products, tolerating sexual harassment and issuing fraudulent financial information.

The entire 2019 Aflac CSR Survey is available here: www.aflac.com/about-aflac/corporate-citizenship/default.aspxResearch findings are based on a survey fielded in the United States from May 3-8, 2019, by Teneo. 1,691 American adults age 18+ were surveyed online. Completed interviews were weighted by five variables: age, sex, geographic region, race and education to ensure reliable and accurate representation of the total U.S. population, 18 years of age and older. The margin of error for a random sample of 1,691 is +/-2.4%. A separate online survey of 503 investors was conducted May 3-13, 2019. Investors were defined as adults who own individual stocks (not held in a 401k or 403b) and have sole or shared responsibility for the decision in the stock purchase. Respondents in both studies were selected from among those who have volunteered to participate in online surveys. Aflac herein means American Family Life Assurance Company of Columbus and/or American Family Life Assurance Company of New York and/or Continental American Insurance Company and /or Continental American Life Insurance Company.

VS.

Purpose Over Profits Social/Business Impact

Take a Stand, but Watch Your Step

Forgiveness Awaits

Youth = ScrutinyAgainst Our Better Judgment

(60% often/sometimes)

Contact: Jon Sullivan | [email protected] | 706-763-4813Z190988A EXP 9/20

2019 Aflac CSR Survey Report

Results and Analysis

July 2019

Report prepared by: Z190988B

Table of Contents

2

Background and Objectives………………………………….. 3

Research Method……………………………………………... 4

Sample…………………………………………………………. 5

Expectations for Large Companies…………………………. 6

Taking a Stand………………………………………………… 24

Bad Corporate Behavior……………………………………… 30

Forgiveness……………………………………………………. 39

Information Sources………………………………………….. 50

Background and Objectives

• As a part of its ongoing commitment to Corporate Social Responsibility (CSR)

Aflac has been sponsoring research since 2015 aimed at understanding what it

means to be a socially responsible company.

• The 2019 CSR Survey was designed to meet the following objectives:

• Understand consumer and investor perceptions of corporate social

responsibility, including expectations for the role of large companies in

addressing social and environmental issues.

• Understand consumer and investor expectations for companies to take a

public stand on social and political issues and the potential impact on their

perceptions and behaviors.

• Understand the impact of bad behavior on the part of corporations and the

likelihood for forgiveness by consumers and investors.

• Understand the most trusted sources for consumers and investors to learn

about company’s efforts to address social and environmental issues.

3

Research Method

• A survey was conducted online May 3-8, 2019 among 1,691 American adults

age 18+. Completed interviews were weighted by five variables: age, sex,

geographic region, race and education to ensure reliable and accurate

representation of the total U.S. population, 18 years of age and older.

• A separate online survey of 503 investors was conducted May 3-13, 2019.

Investors were defined as adults who own individual stocks (not held in a 401k

or 403b) and have sole or shared responsibility for the decision in the stock

purchase.

• Respondents in both studies were selected from among those who have

volunteered to participate in online surveys, therefore no estimates of sampling

error can be calculated. Answers may not sum to 100% due to rounding.

4

Sample

5

Most frequently cited subgroups

Non-Investor Subgroup Sample Size

Males n=802

Females n=889

Millennials (21-38) n=584

Gen X (39-54) n=467

Baby Boomers (55-73) n=502

Investor Subgroup Sample Size

Males n=323

Females n=180

Millennials (21-38) n=184

Gen X (39-54) n=125

Baby Boomers (55-73) n=160

Expectations for Large Companies

Who Is Responsible For Making The World A Better

Place?

Consumers agree that making the world a better place is the responsibility of all Americans, as individuals.

• Health and tolerance are the top-of-mind issues Americans believe need to be addressed to make the world a better place.

• Individuals believe they bear the most responsibility for making the world a better place (48%), more so than governments (32%) or

large corporations (4%). Religious institutions (5%) or charitable organizations (4%) play a much smaller role by comparison.

However, that doesn’t mean consumers believe large companies have no role.

• A majority of consumers, 70%, agree that large companies have a special responsibility for helping to make the world a better place.

In fact, a surprising number of Americans believe companies should put people above profits.

• Americans believe that it is more important for a company to help make the world a better place (49%, very important) than to make

money for its shareholders (37%), and a similar proportion of investors agree (40% very important).

• Consumer expectations for addressing issues to make the world a better place are higher for companies in the healthcare industry –

such as health insurance (66%, very important) or pharmaceuticals (63%) – than for those in other industries such as banking (52%),

manufacturing (45%), social media (45%), or entertainment (42%).

7

C5 Thinking about our world today, what is the most important issue that needs to be addressed in order to

make the world a better place?

Health and tolerance top the list of issues Americans

believe need to be addressed in order to make the

world a better place.

8

11%

2%

2%

3%

3%

5%

5%

5%

5%

6%

6%

8%

8%

8%

9%

10%

0% 20% 40% 60% 80% 100%

Miscellaneous

Education

Guns/Gun Violence

Religion

Crime

Equality/Inequality

Poverty

National Security/Terrorism

Other Environment

Economy

War/Peace

Climate change/ global warming

Politics/Government

Immigration/Border Security

Health/Healthcare/Health insurance

Respect/Tolerance/Less Division

Includes: Security, International Relations, Children, Human Rights,

Drugs, Race relations, Freedom, Extremism, Technology

Consumers:

Most Important Issue to

Make the World a Better Place

None/DK/RR 4%

• Women are most likely to identify tolerance as the

most important issue to be addressed (12% vs 6%

of men).

• Men are most likely to identify climate change

(10% vs 7% of women).

C6 Which one of the following is MOST responsible for making the world a better place?

Individuals believe they bear the most responsibility for

making the world a better place, more so than

governments, religious institutions or companies.

9

Consumers’ View as Most Responsible for

Making the World a Better Place

5%

3%

4%

4%

5%

32%

48%

0% 20% 40% 60% 80% 100%

Other

Small businesses

Charitable Organizations

Large companies

Religious Institutions

Governments

Individuals/Citizens

• Millennials are significantly more likely than

Gen Xers or Boomers to say the primary

responsibility to make the world a better

place lies with large companies.

Millennials 6%

Gen Xers 2%

Boomers 1%

C7 How much do you agree or disagree with the statement: Large companies have a special responsibility for

helping to make the world a better place.

However, that does not mean companies have no role. A

majority of consumers agree that companies have a special

responsibility for helping make the world a better place.

10

Consumers Agree:

Large companies have a special

responsibility for helping to make the world

a better place.

• Seven in ten (70%) consumers agree that

large companies have a special

responsibility for helping to make the world

a better place.

• Men are significantly more likely than

women to strongly agree.

Men 33%

Women 26%

Strongly disagree,

3%

Somewhat disagree,

5%

Neither agree nor disagree,

22%

Somewhat agree, 40%

Strongly agree, 30%

C8 Thinking about the responsibilities that large companies have, how important is it for large companies to address the

following responsibilities? I29 Thinking about the responsibilities of companies you may consider investing in, how

important is it for companies whose stock you own or would consider owning to address the following responsibilities?

Consumers believe that making the world a better place is a more

important responsibility for companies than making money for its

shareholders. A similar proportion of investors agree that making

the world a better place is very important.

11

Consumers Investors

37%

49%

71%

78%

83%

38%

33%

20%

16%

11%

0% 20% 40% 60% 80% 100%

Make money for itsshareholders

Make the world a better place

Produce and sell high qualityproducts/services

Service their customers

Treat employees fairly

Very Important Somewhat Important

75%

82%

91%

94%

94%

40%

55%

77%

65%

67%

34%

32%

16%

28%

27%

0% 20% 40% 60% 80% 100%

Make the world a better place

Treat employees fairly

Make money for itsshareholders

Service their customers

Produce and sell high qualityproducts/services


74%

87%

93%

93%

94%

C11 How important is it for each of the following types of large companies to address issues to make the

world a better place?

Consumer expectations for addressing issues to make the

world a better place are higher for companies in the

healthcare industry, such as insurance or pharmaceuticals,

than for companies in other industries.

12

Consumer Ratings of Importance

for Types of Companies to

Help Make the World a Better Place

30%

34%

42%

45%

45%

52%

63%

66%

36%

32%

31%

29%

33%

30%

23%

20%

0% 20% 40% 60% 80% 100%

Online retailer

Fast food company

Film/television/entertainmentcompany

Social media company

Auto manufacturer

Bank/financial company

Pharmaceutical Company

Health insurance company

Very important Somewhat important

86%

86%

82%

78%

74%

73%

66%

66%

• Women are more likely than men

to expect more from the following

companies:

Health

Ins

Social

Media

Film /

TV

Fast

Food

Men 85% 71% 69% 62%

Women 89% 76% 75% 70%

What Should Large Companies Be Doing To Make The

World A Better Place?

Investors and consumers agree, making the world a better place starts with companies treating their employees fairly.

• Consumers believe making the world a better place starts with large companies treating their employees well in terms of providing fair

(79%, very important) and equitable (71%) wages.

• Investors agree that making the world a better place starts with large companies providing fair wages (49%) and equal pay for equal

work (44%).

However, large corporations need to put their money where their mouth is if they want consumers to believe they are serious

about making the world a better place.

• Only half (50% very/somewhat) of consumers would believe a company who announced that they wanted to help make the world a

better place.

• Consumers and investors are most likely to support companies who take direct action such as donating or developing products, or

making investments to address issues to make the world a better place.

13

C12 How important is it for a large company to address each of the following issues in order to make the world a better place? I34 When considering

whether or not to buy stock in a company, assuming a company’s stock performance meets your investment needs, how important is it to your

decision-making process for you to know that the company is addressing each of the following social and environmental issues?

Investors and consumers agree that making the world a better

place starts with large companies treating their employees well

by providing fair and equitable wages.

14

Consumers Investors

52%

59%

59%

60%

63%

69%

70%

71%

79%

23%

26%

22%

20%

19%

19%

17%

16%

13%

0% 20% 40% 60% 80% 100%

Addressing climate change

Providing job opportunities tounderserved populations

Preventing, treating and curingdiseases

Reducing violence

Ensuring all children have equalto access to education

Protecting the environment

Providing basic access to cleanwater

Ensuring women and menreceive equal pay for equal work

Providing fair wages to itsemployees


75%

80%

82%

87%

92%

32%

32%

30%

33%

36%

37%

38%

44%

49%

31%

33%

38%

31%

31%

35%

32%

30%

35%

0% 20% 40% 60% 80% 100%

Addressing climate change

Providing job opportunities tounderserved populations

Preventing, treating and curingdiseases

Reducing violence

Ensuring all children have equalto access to education

Protecting the environment

Providing basic access to cleanwater

Ensuring women and menreceive equal pay for equal work

Providing fair wages to itsemployees


87%

88%

81%

85%

63%

64%

67%

74%

84%

70%

72%

68%

65%

C9 If a large company announced that they wanted to help make the world a better place, how believable

would you find them?

However, only half of consumers would believe a company

who announced that they wanted to help make the world a

better place.

15

Consumer Believability:

If a large company announced that they

wanted to help make the world a better place,

how believable would you find them?

• Believable 50%

Not at all believable,

6%

Somewhat unbelievable,

14%

Neither believable

nor unbelievabl

e, 30%Somewhat believable,

40%

Very believable,

10%

24%

24%

26%

30%

32%

32%

34%

37%

39%

46%

27%

31%

33%

38%

38%

34%

28%

38%

39%

34%

0% 20% 40% 60% 80% 100%

Provides political support forgovernment to address an issue

Takes a public position in support oropposition of an issue

Uses their economic power

Raises awareness on an issue

Donates their products/services toaddress an issue

Donates money towards addressingan issue

Diversifies its Board of Directors toinclude more women and minorities

Invests in or partners withresponsible companies

Introduces new products or servicesthat help to address an issue

Discontinues products that may beharmful

Very likely Somewhat likely

32%

33%

38%

41%

44%

48%

50%

51%

52%

64%

28%

30%

31%

28%

33%

29%

32%

28%

29%

21%

0% 20% 40% 60% 80% 100%

Provides political support forgovernment to address an issue

Uses their economic power

Takes a public position in support ofan issue

Diversifies its Board of Directors toinclude more women and minorities

Invests in or partners withresponsible companies

Raises awareness on an issue

Introduces new products or servicesthat help to address an issue

Donates money towards addressingan issue

Donates their products/services toaddress an issue

Discontinues products that may beharmful


C13 How likely are you to support a company that shows they are committed to making the world a better place by taking each of the following actions? I35

How likely are you to consider investing in a company that shows they are committed to making the world a better place by taking each of the actions?

Consumers and investors are most likely to support companies

who take direct action such as donating products or making

investments to address issues to make the world a better place.

16

Consumers Investors

63%

77%

77%

81%

85%

79%

82%

69%

69%

51%

68%

70%

78%

80%

75%

66%

59%

55%

60%

62%

How Will Companies’ Efforts To Make The World A

Better Place Impact Consumer And Investor Behaviors?

Investors believe a company’s efforts to help improve society and the environment contribute positively to return on their

investment.

• Majority of investors agree (73%) that a company’s efforts to help improve society and the environment contribute positively to return on

stockholders’ investments.

• Investors view a company’s role in improving society and the environment (11%), innovativeness (12%) and employee/workplace

management (10%) as equally contributing to a company’s total value.

Companies’ efforts to help make the world a better place are likely to positively impact consumer behavior and investor

decisions.

• Three-quarters of consumers (77%) would be motivated to purchase a company’s products or services if the company shows they are

committed to making the world a better place.

• Investors will make the effort to research a company’s role in improving society and the environment before deciding whether or not to

invest (61%).

• A company’s announcement that they wanted to help make the world a better place would likely have a positive impact on investors’

purchase decisions (72%).

17

Millennial Investors Are Particularly Interested In

Companies’ Efforts.

Millennial’s investment decisions are more likely than GenXers or Boomers to be influenced by a company’s efforts to help

improve society and the environment.

• Millennial investors view a company’s role in improving society and the environment as making a greater contribution to a company’s

total value (14%) compared to Gen X (10%) or Boomers (7%).

• Millennial investors put significantly more effort into researching a company’s role in improving society and the environment before

deciding to invest (41%, significant effort) than Gen X (27%) or Boomers (16%).

• Millennial investors are more likely to say that a company’s announcement that they wanted to help make the world a better place

would have a significant positive impact on their decision to invest (46%) compared to Gen Xers (33%) or Boomers (16%).

18

I32 How much do you agree or disagree with the following statement: A company’s efforts to help improve

society and environment contribute positively to return on stockholders’ investments.

Majority of investors agree that a company’s efforts to help

improve society and the environment contribute positively

to stockholders’ return on investment.

19

Investors Agree:

A company’s efforts to help improve society

and environment contribute positively to

return on stockholders’ investments.

• Nearly three-quarters (73%) of investors

agree that a company’s efforts to help

improve society and the environment

contribute positively to return on

stockholders’ investments.

• Millennial investors are significantly more

likely to strongly agree than Gen X or

Boomers who invest.

Millennials 42%

Gen X 29%

Boomers 18%

Strongly disagree,

2%

Somewhat disagree,

6%

Neither agree nor disagree,

19%

Somewhat agree, 42%

Strongly agree, 31%

I31 When deciding which companies to invest in, one thing to consider is the company’s worth or total value, as this determines the

company’s stock price. Thinking about the following factors, what is the percent of the contribution one makes to a company’s total value?

Investors view a company’s role in improving society and the

environment, innovativeness and employee / workplace

management as equally contributing to a company’s total value.

20

Investors:

Average Contribution to

Company’s Total Value

• Millennial investors view a company’s

role in improving society and the

environment as making a greater

contribution to a company’s total value

compared to Gen X or Boomers.

Millennials 14%

Gen Xers 10%

Boomers 7%

Employee & workplace

management, 10%

Company's role in

improving society & the environment,

11%

Innovativeness, 12%

Quality of management,

14%

Quality of products &

services, 19%

Financial performance,

34%

C14 You said you would support a large company that shows they are committed to making the world a better place. Which of the

following are ways you would be willing to show your support? Base: C13= Very/somewhat likely to support a company

Three-quarters of consumers would be motivated to purchase

a company’s products or services if the company shows they

are committed to making the world a better place.

21

How Consumers Show Support for

Companies Who Help Make the World a

Better Place

1%

20%

21%

41%

58%

68%

77%

0% 20% 40% 60% 80% 100%

Other

Buy their stock

Reach out to the company to offeryour help

Express your support for thecompany on social media

Tell others about their efforts, inperson

Recommend the company toothers

Buy the company's product orservice

• Millennials are significantly less likely than

Gen Xers or Boomers to show their support

buy purchasing a company’s product or

services.

Millennials 70%

Gen Xers 79%

Boomers 83%

• Women are significantly more likely than

men to show their support via purchase.

Women 80%

Men 73%

I30 When researching companies you may choose to invest in, there are many factors that must be considered. How much

effort do you put into researching each of the following aspects about a company before you decide whether or not to invest?

Most investors, and Millennials in particular, make the effort

to research a company’s role in improving society and the

environment before deciding whether or not to invest.

22

Investors Put Effort Into Researching Companies

in These Areas Before Investing

28%

38%

41%

45%

55%

57%

33%

46%

41%

35%

35%

33%

0% 20% 40% 60% 80% 100%

Company's role in improving societyand the environment

News stories about the company

Customer satisfaction with thecompany's products/services

Management performance

Company financials (e.g. cash flow,market cap, profitability, assets, etc.)

Historical stock return to investors

Significant Effort Moderate Effort

90%

90%

80%

82%

84%

61%

• Millennial investors put significantly more

effort into researching a company’s role in

improving society and the environment

before deciding to invest than Gen X or

Boomers.

Millennials 41%

Gen Xers 27%

Boomers 16%

I33 If a large company announced that they wanted to help make the world a better place, how would that

affect your decision of whether or not to invest in their stock? Would you be…

A company’s announcement that they want to help make

the world a better place would also be likely to have a

positive impact on investors’ stock purchase decisions.

23

Investor likelihood to invest after company

announcement that they want to help make the

world a better place.

• Nearly three in four (72%) investors say that

a company’s announcement that they

wanted to help make the world a better

place would likely have a positive impact on

stock purchase decisions.

• Millennial investors are more likely to say

that such an announcement would have a

significant positive impact on their decision

to invest compared to Gen Xers or Boomers

Millennials 46%

Gen X 33%

Boomers 16%

Not at all likely, 2%

Somewhat less likely,

6%

No impact, 20%

Somewhat more likely,

41%

Significantly more likely,

31%

Taking a Stand

To Stand Or Not To Stand? That Is The Question For

Large Companies.

Consumers and investors alike believe companies should take a stand on social and political issues. However, the issue should

directly relate to the company’s industry and the company should be offering solutions.

• 55% of Americans say it is important for companies to take a stand on social and political issues, fewer (44%) believe companies are

obligated to do so.

• According to consumers, if a company is going to take a stand, the issue should directly relate to the company’s industry (51%) and the

company should be offering solutions (77%) instead of just lip service.

• 54% of investors agree that companies they invest in should take a stand on a social or political issue only if it directly relates to their

industry, products or services; and if they choose to take a stand, they should be offering solutions (67%).

By taking a stand, audiences believe companies may even be able to help bridge the divide on social and political issues.

• 53% of investors and 63% of Americans overall agree that large companies should work to find common ground among people who are

divided on social or political issues.

25

C15 There are many controversial social and political issues facing the world today. Some large companies choose to take a stand on these issues

while others do not. How much do you agree or disagree with each of the following statements? I37 Thinking about the companies that you may or may

not choose to invest in, please indicate how much you agree or disagree with each of the following statements?

Consumers and investors alike believe companies should take a

stand on social and political issues. However, the issue should

directly relate to the company’s industry and the company

should be offering solutions.

26

19%

24%

26%

38%

25%

27%

29%

39%

0% 20% 40% 60% 80% 100%

Large companies are obligatedto take a stand on social or

political issues, even if the issueis controversial in nature

Large companies should take astand on a social or political

issue only if it directly relates totheir industry, product, or

services

It is important for largecompanies to take public stands

on social and political issues

If companies are going to take astand on social or political

issues, they should be offeringa solution

Strongly agree Somewhat agree

77%

Consumers

17%

17%

23%

28%

20%

25%

31%

39%

0% 20% 40% 60% 80% 100%

Large companies I invest in areobligated to take a stand on

social or political issues, even ifthe issue is controversial in

nature

It is important for largecompanies I invest in to takepublic stands on social and

political issues

Large companies I invest inshould take a stand on a social or

political issue only if it directlyrelates to their industry, products,

or services

If companies I invest in are goingto take a stand on social or

political issues, they should beoffering a solution


Investors

55%

51%

44%

67%

54%

42%

37%

Companies can help bridge the divide on social and political

issues.

27

Large companies should work to

find common ground among people who are

divided on social or political issues

20%

30%

33%

32%

0% 20% 40% 60% 80% 100%

Investors

Consumers


62%

53%

• Boomers are least likely to agree, compared to

Millennials and Gen Xers.

Millennials 66%

Gen Xers 65%

Boomers 58%




Millennials 62%

Gen Xers 56%

Boomers 43%

Companies May See Benefits From Taking A Stand,

But There Are Also Risks.

While taking a stand can motivate consumers and investors to purchase, it can just as easily lead to lost sales and a lack of

stock investment.

• 42% of consumers have purchased a company’s product for the first time because of its position on an issue and an equal number

would be willing to do so, even if the company’s position did not agree with their own opinion. However, 54% have stopped using the

products of a company because of its public opinion on an issue.

• Companies’ positions on issues can also motivate investors to buy stock (41%), even if it does not agree with investors’ own social or

political views (45%).

• However companies also face the risk of alienating investors if they take a stand on a social or political issue, as 48% of investors have

decided not to invest in a company because of its position on an issue and 38% have sold their shares.

28

While taking a stand can motivate consumers and investors to

purchase, it can just as easily lead to lost sales and a lack of

stock investment.

29

18%

20%

29%

24%

22%

25%

0% 20% 40% 60% 80% 100%

I would be willing to purchase acompany's products or services

because of the company'sposition on a social or politicalissue even if it did not agree

with my own opinion

I have purchased a company'sproduct or services for the first

time because of its position on asocial or political issue

I have stopped using acompany's products or servicesafter learning of its position on a

social or political issue


54%

Consumers

19%

18%

19%

25%

19%

23%

26%

23%

0% 20% 40% 60% 80% 100%

I have sold my shares of acompany's stock after learning ofits position on a social or political

issue I did not agree with

I have invested in a company'sstock because of its position on a

social or political issue

I would be willing to invest in acompany because of the

company's position on a social orpolitical issue even if it did not

agree with my opinion

I have decided not to invest in acompany because of its position

on a social or political issue


Investors

42%

42%

48%

45%

41%

38%




Bad Corporate Behavior

What Will Consumers And Investors Tolerate From

Companies?

Only one or two instances of bad behavior may drive consumers and investors to act; however, investors may be willing to invest

in a company, despite bad or irresponsible behavior.

• Investors are more tolerant than consumers, with 59% who would accept two or more instances of bad behavior before selling company

stock, compared with 43% of consumers who would take negative action.

• Banks/financial companies and pharmaceutical companies face a significantly greater risk of losing customers due to bad behavior

compared to companies in other industries – over half of consumers would be very likely to stop using their products or services.

• Investors agree that they value moderate returns from a company that behaves appropriately (76%) over high returns from a company

that has a history of behaving badly (13%).

31

C18 How many instances of bad behavior by a large company are acceptable before you decide to stop purchasing the company’s products or services? I39

Assuming a company’s stock was continuing to meet your investment expectations, How many instances of bad behavior by a large company are acceptable

before you decide to sell your shares of that company’s stock?

Only one or two instances of bad behavior may be

acceptable before consumers and investors act;

however, investors are more tolerant than consumers.

32

9%

34%

40%

17%

0% 20% 40% 60% 80% 100%

3 or more

2

1

0

Instances of Bad Behavior Before

Consumers Stop Purchasing Products

16%

43%

34%

7%

0% 20% 40% 60% 80% 100%

3 or more

2

1

0

Instances of Bad Behavior Before

Investors Sell Company Stock

Zero Tolerance

C20 In general how likely are you to stop purchasing or consuming each of the following types of company’s products or

services if you are made aware of their irresponsible or bad behavior?

Banks/financial companies and pharmaceutical companies

face a significantly greater risk of losing customers due to

bad behavior compared to companies in other industries.

33

Likelihood of Consumers to Stop Using the Following

Types of Company’s Products / Services

35%

38%

40%

42%

45%

45%

50%

52%

28%

32%

29%

30%

28%

29%

24%

26%

0% 20% 40% 60% 80% 100%


Online retailer


Auto manufacturer


Fast food company

Pharmaceutical company



78%

74%

74%

73%

72%

69%

70%

63%

• While online retailers face relatively lower

risk of losing customers due to bad

behavior, women are significantly more

likely than men to stop using their service.

Women 41%

Men 34%

I40 Which one of the following describes a company that you are most likely to consider for investment?

Investors agree that they value moderate returns from a

company that behaves appropriately over high returns from a

company that has a history of behaving badly.

34

Type of Company Investors are Most

Likely to Consider for Investment

11%

13%

76%

0% 20% 40% 60% 80% 100%

A company that addressess socialissues in order to make the world abetter palce, whose stock typically

underperforms

A company that has a history ofirresponsible or bad behavior,

whose stock consistently yieldshigh returns

A company that conducts businessappropriately, whose stock yields

moderate returns

• Boomer investors are significantly more

likely to agree with this conservative

approach, compared to Millennial or GenX

investors.

Millennials 63%

Gen Xers 78%

Boomers 90%

What Company Actions Will Cause The Greatest Impact On

Consumer and Investor Behaviors?

Consumers and investors use their purchasing power to hold companies accountable for bad or irresponsible behavior, including

issues that may be beyond the company’s control.

• Consumers overall are least likely to tolerate a company who knowingly sells a defective product or service (65% would very likely stop

using the company’s products). They would tolerate accusations of sexual harassment (56% likely to stop using) over a company a data

breach of personal information (76%).

• Companies that are victim of product tampering after it is already on store shelves (62% likely to stop using) or cyberattacks (42%) may

experience customer boycotts of their products.

• Investors are least likely to tolerate a company who knowingly files fraudulent financial information (59% would be very likely to sell their

shares). However, investors would tolerate accusations of sexual harassment (23% would very likely sell their shares) before an

environmental disaster (43%).

A company’s history of socially responsible behavior is as important as product loyalty when it comes to consumer likelihood to

stop purchasing a company’s products after they behave badly.

• When a company behaves irresponsibly or badly, consumers are least likely to stop using the company’s products if the company is

perceived as having a history of being socially responsible – only 22% would be very likely to stop using their product or service.

• After hearing of company’s bad behavior, consumers who have enjoyed using a company’s product for several years (23%) are

significantly less likely to stop using a company’s product that than those who just began using the product (36%).

35

C17 Sometimes large companies behave badly or irresponsibly. How likely are you to stop using a large company’s products or

services if they are known to have done any of the following?

Consumers use their purchasing power to hold companies

accountable for bad or irresponsible behavior, including

for events that may be beyond the company’s control.

36

Consumer Likelihood to Stop Using a Company’s Products /

Services if They are Known to Have Done the Following

20%

32%

38%

41%

52%

53%

53%

55%

65%

22%

24%

28%

21%

24%

24%

25%

23%

17%

0% 20% 40% 60% 80% 100%

A company is a victim of a cyberattack

A company executive is accused of sexualharassment

A company pays female employees lessthan male employees for equal work

A company's product is contaminated afterit is already on store shelves

Allowed sensitive customer personalinformation to be made public

Knowingly files fraudulent financialinformation

A company is known to treat its workerspoorly

A company is responsible for creating anenvironmental disaster

Knowingly sells a defective product that isnot working properly


• Millennials are significantly more likely

to be motivated if a company exec is

accused of sexual harassment or if the

company is a victim of a cyber attack.

Harassment

Accusation

Cyber

Attack

Millennials 37% 25%

Gen Xers 28% 18%

Boomers 29% 18%

• In general, women are more likely

than men to be motivated to stop

using a company’s products or

services based on bad or

irresponsible behavior.

82%

78%

78%

77%

76%

62%

66%

56%

42%

I38 Sometimes we learn that companies we invested in behave badly or irresponsibly. Assuming a company’s stock that you

own was continuing to meet your investment expectations, how likely are you to sell your shares of a company’s stock if you

find out they are known to have done any of the following?

Investors are less likely than consumers to take action,

however companies knowingly engaging in bad behavior is

likely to result in investors selling their shares.

37

19%

23%

23%

27%

34%

38%

43%

49%

59%

23%

27%

30%

25%

32%

32%

30%

31%

23%

0% 20% 40% 60% 80% 100%

A company is a victim of a cyberattack

A company executive is accused of sexualharassment

A company's product is contaminated afterit is already on store shelves

A company pays female employees lessthan male employees for equal work

A company is known to treat its workerspoorly

Allowed sensitive customer personalinformation to be made public

A company is responsible for creating anenvironmental disaster

Knowingly sells a defective product that isnot working properly

Knowingly files fraudulent financialinformation


Likelihood for Investors to Sell Shares

if Company is Known to Have Done the Following

• Millennial investors are less tolerant

of sexual harassment accusations

than GenXers or Boomers.

82%

80%

73%

70%

66%

52%

53%

50%

42%

Millennials 32%

Gen Xers 20%

Boomers 16%

C19 How likely are you to stop purchasing a company’s products or services after they behave irresponsibly or badly, given

each of the following?

A company’s history of socially responsible behavior and

product loyalty reduce the likelihood that consumers will

stop purchasing a company’s product after they behave

badly.

38

Consumer Likelihood to Stop Using a Company’s

Products / Services Given These Factors

36%

28%

25%

23%

22%

30%

23%

28%

30%

26%

0% 20% 40% 60% 80% 100%

You just began using the company'sproducts/services

The company has a high-profile CEO

You use the company's products/serviceson a daily basis

You have enjoyed using the company'sproducts/services for several years

The company has a history of beingsocially responsible


48%

53%

53%

51%

66%

Forgiveness

Can Companies Be Forgiven For Their Bad Behavior?

Consumers and Investors are likely to forgive a one-time occurrence, but repeated bad behavior by a company means they will

take their business elsewhere.

• A majority of consumers (72%) and investors (70%) are willing to “forgive” a company’s bad behavior, however a significant proportion

cite “zero tolerance” for forgiving unethical cooperate behavior (25%, consumers; 22%, investors).

• Consumers show their forgiveness by purchasing a company’s product or services (68%) again.

40

C21 Which of the following best describes your willingness to forgive a large company who is known to have behaved irresponsibly or badly?

I41 Which of the following best describes your willingness to consider investing in a company who is known to have behave irresponsibly or badly?

A majority of consumers and investors are willing to

“forgive” a company’s bad behavior. However, a

significant proportion would not consider forgiveness.

41

3%

25%

24%

48%

0% 20% 40% 60% 80% 100%

What's to forgive? I don't payattention to how companies

behave

I have zero tolerance for badbehavior by large companies -

they should know better

Nobody's perfect, includinglarge companies. I am willingto let a few instances of bad

behavior slide

I can forgive, but a largecompany only gets onechance to make up for a

mistake

Consumer Willingness to Forgive

8%

22%

30%

40%

0% 20% 40% 60% 80% 100%

Investing is purely about thenumbers and I don't pay

attention to how companiesbehave

I have zero tolerance for badbehavior by large companies,

and would never considerinvesting in such a company

Nobody's perfect, includinglarge companies, I am willingto let a few instances of badbehavior slide if the price is

right

A company only gets onechance to make up for amistake if I am going to

consider investing in theirstock

Investor Willingness to Forgive

Willing to Forgive

72%

Willing to Forgive

70%

C22 Which of the following best describes how you would show that you forgive a large company who is known to have behaved

irresponsibly or badly?

Consumers show their forgiveness by purchasing a

company’s products or services again.

42

How Consumers Show Their Forgiveness

4%

17%

20%

30%

68%

0% 20% 40% 60% 80% 100%

Other

Express your support for thecompany on social media

Recommend them to others

Tell others about their efforts, inperson

Buy their product or service again• Women are significantly more likely than

men to buy a company’s products again;

Millennials are least likely to do so.

Buy

Product

Rec to

Others

Social

Media

Millennials 57% 27% 26%

Gen Xers 73% 19% 15%

Boomers 74% 14% 11%

Men 65%

Women 71%

• Millennials are significantly more likely to

show their support by telling others through

personal recommendations or social media

compared to Gen X or Boomers.

What Do Companies Need To Do In Order To Be

Forgiven?

Consumers and Investors expect a company to apologize and admit wrongdoing and before they can be forgiven.

• For both investors and consumers, it is most important for a company who behaves badly to admit they were wrong, apologize for their

actions and make changes to their business practices.

• However, consumers are significantly more likely to want the company to be held accountable for their actions by the legal system or

the government (57% consumers vs. 47% investors).

• A corporate apology may help win back customers (30%), but a personal approach is more effective – 54% of consumers say they are

most likely to forgive a company’s bad behavior if they reach out to their customers directly to apologize.

43

C244 How important is it for a large company that has behaved badly to do each of the following in order for you to consider forgiving them?

I42 How important is it for a large company that has behaved badly to do each of the following in order for you to consider investing in the company’s stock?

It is most important for a company that behaves badly to admit they were

wrong, apologize for their actions and make changes to their business

practices. Consumers are significantly more likely to want the company to

be held accountable for their actions by the legal system or the government.

44

Consumers Investors

29%

37%

57%

71%

74%

79%

29%

33%

26%

18%

16%

13%

0% 20% 40% 60% 80% 100%

Make a donation

Fire an executive

Be held accountable by court orgovernment action

Change their business practices

Apologize for their actions

Admit they were wrong


58%

83%

89%

90%

92%

22%

36%

47%

58%

59%

62%

25%

37%

31%

26%

27%

26%

0% 20% 40% 60% 80% 100%

Make a donation

Fire an executive

Be held accountable by court orgovernment action

Apologize for their actions

Change their business practices

Admit they were wrong


47%

78%

84%

86%

88%

70% 73%

C23 Are you MOST likely to forgive a large company for irresponsible or bad behavior if they…?

Personal apologies are more effective than broad, public

apologies for getting customers to forgive bad behavior.

45

Consumers are MOST Likely to Forgive

Companies When …

9%

6%

30%

54%

0% 20% 40% 60% 80% 100%

None of these-I'm not likely toforgive

Lay low, do not draw furtherattention to themselves

Publicly apologize on TV and/orsocial media

Reach out to customers directly toapologize

• Women are significantly more likely

than men to appreciate the personal

apology.

Men 51%

Women 57%

Millennials 10%

Gen Xers 6%

Boomers 3%

• Millennials are significantly more likely

to say a company should ‘lay low’

compared to Gen Xers or Boomers.

What Is Most Likely To Influence Consumers’ and

Investors’ Willingness to Forgive?

While companies operating in some industries are held to higher standards, product loyalty and a company’s history of social

responsibility have a greater impact on customers’ likelihood to forgive a company that behaved badly.

• Consumers more likely to forgive the stumble of an online retailer (55% very/somewhat likely to forgive) than a pharmaceutical

company (40%).

• Consumers are likely to forgive a company’s bad behavior if the company has shown a history of being socially responsible (64%

would be very/somewhat likely to forgive). The company’s CSR track record has a similar impact on investors’ likelihood to forgive a

company that behaved badly 65%).

• A company’s ability to outperform the market has the greatest impact on investors’ likelihood to invest in a company that behaved

badly (74%).

• Consumers who have used a company’s product for several years (63%) or use it on a daily basis (64%) are significantly more likely to

forgive than those who just began using a company’s products (39%).

• Over one-third of investors (35%) would be very likely to invest in a company after they behaved badly if that company’s stock has a

history of exceeding the market.

46

C26 In general, how likely are you to forgive each of the following types of large companies for irresponsible or bad behavior?

Consumers hold companies in some industries to a higher

standard – they are much more likely to forgive an online

retailer than a bank, health insurance company or

pharmaceutical company after bad behavior.

47

Consumers’ Likelihood to Forgive The Following

Types of Companies

14%

15%

15%

16%

15%

17%

17%

16%

26%

28%

28%

32%

34%

35%

35%

39%

0% 20% 40% 60% 80% 100%

Pharmaceutical company




Auto manufacturer

Fast food company


Online retailer


55%

52%

52%

49%

48%

43%

43%

40%

C27 And, how likely are you to forgive a company after they behave irresponsibly or badly given each of the following?

Product loyalty and a company’s history of social responsibility

have the greatest impact on consumers’ likelihood to forgive a

company that behaved badly.

48

Consumers’ Likelihood to Forgive a Company After

They Behave Irresponsibly Given the Following

13%

13%

22%

22%

26%

18%

26%

42%

41%

38%

0% 20% 40% 60% 80% 100%

The company has a high-profileCEO

You just began using thecompany's products/services

You use the company'sproducts/services on a daily

basis

You have enjoyed using thecompany's products/services for

several years

The company has a history ofbeing socially responsible


31%

64%

63%

64%

39%

• Product loyalty is significantly more likely to

have an impact on men than women and on

Millennials than Gen Xers or Boomers.

Millennials 28%

Gen Xers 22%

Boomers 18%

Men 25%

Women 20%

I43 And, how likely are you to invest in a company after they behave irresponsibly or badly given each of the following?

A company’s ability to outperform the market has the greatest

impact on investors’ likelihood to invest in a company that

behaved badly.

49

Likelihood to Invest in a Company After They

Behave Irresponsibly Given the Following

16%

19%

22%

24%

26%

35%

27%

21%

39%

44%

39%

39%

0% 20% 40% 60% 80% 100%

You just began using thecompany's products/services

The company has a high-profileCEO

You use the company'sproducts/services on a daily

basis

You have enjoyed using thecompany's products/services for

several years

The company has a history ofbeing socially responsible

The stock has a history ofexceeing market expectations


43%

61%

68%

65%

74%

40%

• A company’s history of social responsibility

has a similar impact on consumers’ and

investors’ likelihood to forgive a company that

behaved badly.

• Millennial investors are significantly more

likely to be swayed by a company’s history of

social responsibility, compared to GenXers or

Boomers.

Millennials 37%

Gen Xers 20%

Boomers 19%

Information Sources

What Information Sources Do Consumers And Investors

Trust And Use Most Often To Find Out About Companies?

Investors and consumers generally go to their most trusted source - T.V. news - most frequently for news and information about

companies.

• Boomers are significantly more likely to trust T.V. news sources (70%) than Gen X (54%) or Millennials (39%), while Millennials are

significantly more likely to trust social media (23%) than Gen X (13%) or Boomers (5%).

• While relatively fewer consumers (14%) cite social media as their most trustworthily source for information about companies, more than

half frequently get news from these sites (60% often/sometimes).

• Investors (40%) are significantly more likely than consumers (24%) to use newspapers most often to get information about companies.

• Investors are generally more trusting of digital news websites and newspapers than consumers, overall, for information regarding

companies.

51

C16 Which of the following sources do you trust most for getting information about companies’ efforts to make the world a better place?

T.V. news is the most trusted source for consumers to get

information about companies’ efforts to make the world a

better place.

52

Consumers’ Most Trusted Information

Sources About Companies’ Efforts

4%

8%

9%

10%

14%

16%

17%

23%

0% 20% 40% 60% 80% 100%

News on the radio

Newspapers (print or online)

Digital news websites or apps (such asVice, Huffington Post, Politico, BuzzFeed,Bleacher Report, Gawker, or Mashable)

Company websites

Social media sites (such as Facebook,Twitter, or Snapchat)

Cable television news (such as CNN, FoxNews cable channel, or MSNBC)

Local television news

National evening network television news(such as ABC World News, CBS Evening

News or NBC Nightly News)

Millennials 23%

Gen Xers 13%

Boomers 5%

• Millennials are significantly more likely to

trust social media than Gen X or Boomers.

T.V. News Sources

56%

• Boomers are significantly more likely to trust

T.V. news sources than Gen X or Millennials.

Millennials 39%

Gen Xers 54%

Boomers 70%

C45 Finally thinking about where you get your news and information about companies how often do you?

Consumers generally go to their most trusted source - T.V.

news - most frequently for news and information about

companies.

53

Sources Consumers Use for News and Information About Companies

16%

20%

24%

24%

30%

31%

37%

49%

41%

30%

34%

36%

30%

32%

31%

29%

28%

20%

22%

22%

18%

19%

17%

13%

15%

30%

20%

18%

22%

18%

15%

9%

0% 20% 40% 60% 80% 100%

Visit company websites

Get news from digital news websites or apps (such as Vice,Huffington Post, Politico, BuzzFeed, Bleacher Report, Gawker, or

Mashable)

Read any newspapers (print or online)

Listen to news on the radio

Get news from social media sites (such as Facebook, Twitter, orSnapchat)

Watch cable television news (such as CNN, Fox News cablechannel, or MSNBC)

Watch national evening network television news (such as ABCWorld News, CBS Evening News or NBC Nightly News)

Watch local television news

Often Sometimes Hardly ever Never

I36 Which of the following sources do you trust most for getting information about companies’ efforts to address social and environmental

issues?

Investors are most likely to trust company websites and T.V.

news to get information about companies’ efforts to address

social and environmental issues.

54

Investors’ Most Trusted Information

Sources About Companies’ Efforts

4%

10%

13%

15%

8%

13%

18%

20%

0% 20% 40% 60% 80% 100%

News on the radio

Social media sites (such as Facebook,Twitter, or Snapchat)

Newspapers (print or online)

Digital news websites or apps (such as Vice,Huffington Post, Politico, BuzzFeed,

Bleacher Report, Gawker, or Mashable)

Local television news

National evening network television news(such as ABC World News, CBS Evening

News or NBC Nightly News)

Cable television news (such as CNN, FoxNews cable channel, or MSNBC)

Company websites

• By comparison, consumers are

significantly more likely to trust T.V. news

sources (56%) and less likely to trust

company websites (10%) than investors.

T.V. News Sources

39%

I46 Finally, thinking about where you get your news and information about companies you may choose to invest in, how often do you…?

Investors generally go to their most trusted source - T.V. news -

most frequently for news and information about companies they

invest in, and are significantly more likely than consumers to use

newspapers.

55

Sources Investors Use for News and Information About Companies

26%

27%

28%

29%

40%

42%

46%

48%

28%

34%

47%

38%

32%

30%

27%

31%

21%

23%

18%

20%

15%

17%

17%

15%

25%

16%

7%

13%

12%

11%

10%

6%

0% 20% 40% 60% 80% 100%

Get news from social media sites (such as Facebook, Twitter, orSnapchat)

Get news from digital news websites or apps (such as Vice,Huffington Post, Politico, BuzzFeed, Bleacher Report, Gawker, or

Mashable)

Visit company websites

Listen to news on the radio

Read any newspapers (print or online)

Watch national evening network television news (such as ABCWorld News, CBS Evening News or NBC Nightly News)

Watch cable television news (such as CNN, Fox News cablechannel, or MSNBC)

Watch local television news

Often Sometimes Hardly ever Never

77% - aflac...important responsibility for companies than making money for its shareholders. a...

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