A new study by the Conran Design Group has found that brands prioritising consumer needs and societal contributions—dubbed ‘citizen brands’—outperform their competitors significantly. Over the past three years, these brands have seen 37% higher revenue growth, while their equity prices have risen by 93% over five years, compared to just 17% for less socially responsible companies. The findings highlight a critical shift in the business landscape: companies that successfully connect profit with purpose are securing a stronger market position.
This research underscores the risks for businesses that fail to align with evolving consumer expectations. Thom Newton, Global CEO of Conran Design Group, stressed that the widening disconnect between corporate promises and consumer trust could damage long-term growth. According to him, the most successful brands today are those that effectively merge commercial success with social impact. As economic pressures and global challenges mount, companies that do not take meaningful action to address sustainability, inclusivity, and corporate responsibility may find themselves losing both credibility and customers.
The study surveyed 7,000 consumers and 230 senior industry leaders, investors, and marketing executives across multiple global markets. It revealed that a significant number of companies are struggling to balance commercial growth with social responsibility. While many business leaders recognise the importance of integrating environmental and social concerns into their strategies, a large portion of consumers remain unconvinced by corporate efforts. More than two-thirds of consumers expressed skepticism about brands’ claims regarding sustainability and inclusivity, with many feeling that companies focus more on messaging than on real-world impact. At the same time, a majority of consumers admitted that, when forced to choose, they prioritise affordability over ethical considerations, further complicating the challenge for brands attempting to balance these priorities.
Despite these challenges, the research found that companies that successfully integrate purpose into their operations enjoy significant advantages. Beyond financial growth, these brands are also perceived more favourably by the public. The study revealed that 58% of consumers hold positive views of top citizen brands, compared to just 28% for less responsible businesses. Additionally, these companies are seen as more desirable employers, with nearly half of their employees expressing pride in their workplace, a stark contrast to the 16% seen in less socially responsible firms.
Tim Parker, Brand Strategy Director at Conran Design Group, described the current business environment as an existential challenge for companies attempting to balance profit and purpose. As inflation, climate concerns, and political uncertainty reshape consumer behavior, the gap between what brands promise and what they deliver is leading to growing fatigue and distrust. He emphasized that brands looking to secure long-term success must rethink their approach and focus on six key drivers: Betterment, Originality, Reliability, Inclusivity, Environmentalism, and Contribution. These principles, he argued, are crucial in creating meaningful connections with consumers and society at large.
The study ultimately presents a clear message: connection is now the currency for sustainable growth.