The Millennium Poll on Corporate Social Responsibility

Global Public Opinion on the Changing Role of Companies

The Millennium Poll on Corporate Social Responsibility is confidential and is provided for the sole benefit and use of subscribers. Clients have agreed to respect and maintain the confidential nature of the report and will not release its contents to any third party, to the public or to the media. Nor will this report be reproduced in whole or in part, without the express written consent of:

Environics International Ltd. 33 Bloor St. East, Suite 900 Toronto, Canada M4W 3H1 This report of findings from the Millennium Poll on Corporate Social Responsibility is based on a

survey conducted between March and August 1999 of 25,247 citizens worldwide. The study would

not have been possible without the commitment and dedicated efforts of our research partners in

each participating country (please see list of participating research institutes on page 51).

There are three roughly equal-sized groups of countries based on their gross domestic product (GDP) per capita (estimated by “purchasing power parity”). The seven countries with high GDP per capita (US$28,600 – $19,600) include the United States, Canada, Australia, Japan, Germany, Great Britain and Italy (in decreasing order). The seven countries with medium GDP per capita (US$15,300 – $9,000) include Spain, Malaysia, Argentina, Mexico, Uruguay, Introduction Poland and Venezuela. The nine countries in the study with low GDP per capita (US$6,100 – $1,380) include The Millennium Poll on Corporate Social Responsibility Turkey, South Africa, Russia, the Dominican Republic, is a survey of global public opinion on the role of Indonesia, Kazakhstan, China, India and Nigeria. companies in society. All figures in the charts and tables in this report are Economic globalism, political transition and expressed in percentages. Total percentages may not technological transformation are making rapid and add to 100 because of rounding. In the case of stacked fundamental changes in society. Business has emerged bar charts, white space typically represents the portion as the principal engine of growth and development in of respondents who either answered “don’t know” or the new world order. This is changing the perceived “other.” More detailed tabular results for each roles and responsibilities of the state, civil society and question are available to our subscribers on a request companies. In this context, society’s expectations of basis. Not all questions were fielded in all countries. corporate behavior are evolving quickly. Environics International intends to track these and This report is based on the results of face-to-face or related trends on an annual basis through its Global telephone surveys with representative samples of about Issues Monitor survey of 20+ countries beginning in 1,000 citizens in each of 23 countries on six September 2000. continents at varying stages of development. Research was carried out by respected social research institutes For more information, contact: in each country between March and August 1999. Mr. Doug Miller, President The countries studied in this report have been grouped Environics International Ltd. both regionally and by per capita purchasing power to 33 Bloor St. East, Suite 900 aid in understanding global patterns. The seven Toronto, Canada M4W 3H1 regional groupings are Africa including Nigeria and tel: +1.416.920.9010 South Africa; Asia including China, India, Indonesia, fax: +1.416.920.3510 Japan and Malaysia; Eastern Europe / Central Asia [email protected] including Kazakhstan, Poland and Russia; Latin Or visit: America including Argentina, the Dominican http://www.environics.net/eil Republic, Mexico, Uruguay and Venezuela; the Mediterranean including Italy, Spain and Turkey; Environics International appreciates the support of our North America / Oceania including Australia, Canada sponsors, PriceWaterhouseCoopers, BP Amoco and and the United States; and Northern Europe including Bell Canada, and the cooperation of The Prince of Wales Germany and Great Britain. Business Leaders Forum and The Conference Board.

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Table of Contents

EXECUTIVE REPORT 2

DETAILED REPORT 6

Most Important National Goal 8

Most Important Sources of Leadership 10

Attitudes Toward Privatization 12

Factors in Forming Impressions of Companies 14

Societal Role of Large Companies 16

Responsibilities of Large Companies 18 19 Protecting Employee Health and Safety 19 Treating all Employees Fairly 20 Avoiding Bribery and Corruption 21 Protecting the Environment 21 Avoiding Child Labor 22 Operating Profitably and Paying Taxes 22 Providing Long-Term Employment 23 Applying Universal Standards 24 Responding to Public Concerns 24 Helping Solve Social Problems 25 Supporting Charities

Rating Companies on Corporate Social Responsibility 26

Discussion of Corporate Behavior 30

Most Socially Responsible Companies 32

Rewarded Socially Responsible Companies 34

Punished Companies for Not Being Socially Responsible 36

REGIONAL ANALYSIS 38 Regional Analysis 43 Per Capita Purchasing Power

DEMOGRAPHIC ANALYSIS 44

OPINION LEADER TYPOLOGY 48

METHODOLOGY 50

RESEARCH PARTNERS 51

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Highlights Interviews with over 25,000 average citizens across 23 countries on six continents reveal that:

▼ Executive Citizens in 13 of 23 countries think their country should focus more on social and environmental goals than on economic goals in the first decade of the new Report millennium. ▼ Introduction In forming impressions of companies, people around Economic globalism, political transition and the world focus on corporate citizenship ahead of technological transformation are making rapid and either brand reputation or financial factors. fundamental changes in society. Business has emerged as the principal engine of growth and development in ▼ the new world order. This is changing the perceived Two in three citizens want companies to go beyond roles and responsibilities of the state, civil society and their historical role of making a profit, paying taxes, companies. In this context, society’s expectations of employing people and obeying all laws; they want corporate behavior are evolving quickly. companies to contribute to broader societal goals as well. Business leaders are working to understand society’s fast rising expectations of the role of companies in ▼ areas previously seen as responsibilities of the state. Actively contributing to charities and community Since much of what has come to be called corporate projects does not nearly satisfy people’s expectations social responsibility has to do with public attitudes of corporate social responsibility—there are ten areas and perceptions, Environics International Ltd. of social accountability rated higher by citizens in launched the Millennium Poll on Corporate Social countries on all continents. Responsibility to provide companies with a reliable global measure of society’s expectations of them. ▼ Fully half the population in countries surveyed are With the collaboration of The Prince of Wales Business paying attention to the social behavior of companies. Leaders Forum in London and The Conference Board in New York, and with the support of our corporate ▼ sponsors and subscribers, Environics developed and Over one in five consumers report either rewarding or coordinated a survey on these topics involving punishing companies in the past year based on their representative samples of about 1,000 citizens in each perceived social performance, and almost as many of 23 countries on six continents—a total of just over again have considered doing so. 25,000 interviews worldwide, conducted between March and August 1999. Each national poll, fielded by ▼ a respected local research institute, is accurate to Opinion leader analysis indicates that public pressure within ± 3 percent, 19 times out of 20. on companies to play broader roles in society will likely increase significantly over the next few years. Environics International intends to track these and related trends on an annual basis through its Global Issues Monitor survey of 20+ countries beginning in September 2000.

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 © Environics International Ltd. Toronto Executive Report

Key Findings Role of Large Companies in Society

The findings from the Millennium Poll underline the Make profit, Between the Help build better importance of major companies having an active pay taxes two positions society for all corporate function to address how they can contribute to the social and environmental, as well as the economic Australia 84345 agenda of the countries in which they operate. Canada 11 45 43 United States 11 53 35 ➤ The Millennium Poll asked people to describe in their own words how they form impressions of individual Great Britain 17 42 39 companies, allowing two mentions each. One in three Spain 22 41 29 mention attributes related to business fundamentals Uruguay 22 26 38 (e.g., financial factors, company size, business strategy 25 26 35 or management) and four in ten mention things like Mexico brand quality, image or reputation. But, fully one in Poland 28 32 31 two mention factors related to a company’s broader Russia 28 23 23 responsibilities—labor practices, business ethics, Malaysia 28 37 30 responsibility to society at large, or environmental impacts. This top-of-mind finding, remarkably Argentina 29 34 33 consistent across all regions of the world, underscores Italy 30 31 36 the importance of meeting the broader social Japan 32 18 33 expectations of consumers in order to safeguard corporate reputations. Germany 33 31 34 Indonesia 34 29 35 Factors Most Influencing Public South Africa 35 23 34 India 36 17 46 Impressions of Individual Companies Venezuela 37 25 35 Percent of Global Sample / Unprompted Turkey 37 16 30 Nigeria 42 32 24 Social responsibilities 49 China 44 22 31 Brand quality / reputation 40 Dominican Rep. 45 16 34 Business fundamentals 32 Kazakhstan 48 23 18

➤ In most corporate boardrooms, a company’s role in society would likely be defined as “making a profit, ➤ What areas most define companies’ responsibilities paying taxes, employing people and obeying all to society? The poll asked to what extent laws.” The Millennium Poll asked people to choose companies should be held responsible for eleven between this definition and the following: “to exceed specific aspects, from making a profit to helping all laws, set a higher ethical standard, and help build solve social problems. While results vary by a better society for all.” They were also given the country, overall findings make it clear that option of choosing “somewhere between these consumers most hold companies accountable for views.” Majorities of citizens in all but three of the protecting the health and safety of their employees, countries surveyed think companies should go treating their employees equally, never participating beyond the minimum definition of their role in in bribery or corruption, protecting the society. This is particularly strong in North America environment, and never using child labor. To and Australia, and weakest in Russia, Turkey and citizens across the world, all these come before Kazakhstan. The strength of public opinion wanting making a profit and paying a fair share of taxes. companies to go well beyond the traditional business Applying the same high standards wherever they role both explains the mounting social pressures that operate in the world is also seen as a significant businesses feel and underlines the importance of responsibility of companies operating abroad, companies understanding how best to respond. while contributing to charities is ranked lowest.

➤ Poll results reveal that significant numbers of ➤ In order to anticipate likely changes in public views people in all countries surveyed are paying on company responsibilities, Environics identified attention to the issue of corporate responsibility. “informal opinion leaders” from among survey Fully one in five citizens worldwide report talking respondents and compared their views with those “many times” in the past year with friends or of the general population. These “opinion leaders” family about companies’ behavior. Another one in make up 20 percent of the global sample, being three say they have discussed this “a few times” in those that serve in leadership roles in organizations, the past year. With fully half of consumers talking regularly speak in public and influence others’ about corporate behavior, there is no place for opinions. A comparison of the views and behavior companies to hide on this issue. of opinion leaders with those of the general population reveals that opinion leaders are twice as ➤ Another major finding of Environics International’s likely to be talking about corporate behavior and Millennium Poll is that 40 percent of citizens significantly more likely to have punished a socially worldwide have at least thought about punishing a irresponsible company in the past year. These specific company over the past year they viewed as findings suggest that companies will come under not behaving responsibly. While results vary even greater public pressure in coming years to significantly by continent, globally over one in five deliver on their broader social responsibilities, as report actually avoiding a company’s products or the stronger views of opinion leaders become speaking against the company to others. A similar broadly shared. number report having at least considered doing so. This finding reinforces what a number of companies have already found out the hard way— that both corporate reputation and sales are at risk when customers have negative perceptions of a company’s behavior.

Regional Differences in Activism on Corporate Social Responsibility Have Punished a Company Seen as Not Socially Responsible in the Past Year

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Total population 23 17 40

North America / Oceania 51 16 67

Northern Europe 39 14 53

Mediterranean 24 16 40

Asia 14 24 38

Africa 19 18 37

Latin America 19 12 31

Eastern Europe / Central Asia 15 16 31

Have actually done Have considered doing

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 © Environics International Ltd. Toronto Executive Report

All this suggests that corporate social responsibility Corporate Responsibility is fast becoming a global expectation that requires a comprehensive corporate response. Companies most in the 21st Century experienced with corporate social responsibility find The strength and breadth of the findings from this that the only effective response is to go beyond largest-ever global survey of public expectations of treating it as an “add-on” and to make it a core corporations suggests that major companies in the business value and strategy that is integrated into all 21st century will be expected to do all of the aspects of the company from research and following: development, through sourcing raw materials and producing its products, to the use and disposal of its ➤ Demonstrate their commitment to society’s values products. and their contribution to society’s social, environmental and economic goals through actions. The strength of the Millennium Poll findings plus the early experiences of leading companies suggest that, ➤ Fully insulate society from the negative impacts of in the coming decade, corporate social responsibility is company operations and its products and services. likely to become a new pillar of performance and accountability of successful companies. ➤ Share the benefits of company activities with key stakeholders as well as with shareholders.

➤ Demonstrate that the company can make more money by doing the right thing, in some cases by reinventing its business strategy. This “doing well by doing good” will reassure stakeholders that the new behavior will outlast mere good intentions.

Corporate Social Responsibility: A Rising Agenda Opinion Leaders (20%) vs. Total Global Sample

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Have talked “many times” about 37 corporate behavior in past year 20

Role of companies: 38 to help build better society 33

Have punished a company seen as 39 not socially responsible in past year 23

Opinion leaders

Total population

Detailed Report Citizens in 13 of 23 countries surveyed think that their country

should focus more on social and environmental goals than on

economic goals in the next decade.

Addressing poverty and homelessness is of significant Most concern to people in Canada, Australia and Great Britain, where about two in ten people select it as the most important goal. Only 2 percent of the Japanese Important people surveyed suggest this goal. National Between 20 and 35 percent of people in Japan, Australia, China and India consider environmental protection and conservation of natural resources to be Goal the most important goal for the next decade. Concern over this issue is lowest in Russia and South Africa, People were asked to select from a list of five goals the where only 3 percent feel it should be the key goal. one that should be the most important for their country over the next ten years. In 13 countries the proportion Concern about health care has been at the top of the of citizens choosing goals involving crime and conflict, public agenda in the United States and Canada for poverty, health care and the environment is greater than several years. Only about 3 percent of people in those choosing economic goals. Citizens in ten countries Indonesia, South Africa and Uruguay believe that consider economic progress and employment growth to health care should be the most important goal. be more important than the combination of social and environmental goals. While economic progress is more important in countries with low and medium per capita purchasing Across the world, one-half of the people think that power, environmental protection is more important in addressing social and environmental issues should be countries with high GDP per capita. the most important goals for their country. About one in seven specifically mention reducing crime, conflict Most Important National Goals

and violence. About one in ten each choose reducing Social and Economic and poverty and homelessness, protecting the environment environmental employment North America / and improving health care and curing diseases. Over Oceania four in ten people think that economic progress and Australia 75 6 job growth are the most important goals. Canada 67 27 United States 74 13 Latin America Economic progress and job growth is the single most Argentina 44 54 important goal in 21 of 23 countries surveyed. It is Dominican Republic 50 36 especially important in countries with low and Mexico 54 38 Uruguay 33 59 medium per capita purchasing power, such as Venezuela 32 36 Indonesia, Russia, Turkey, Uruguay, Argentina, Spain Northern Europe and Nigeria, where a majority feel this way. Germany 48 37 Conversely, in Australia, fewer than one in ten believe Great Britain 68 28 this to be the most important goal. Americans rank Mediterranean Italy 55 42 economic growth lowest among the five goals. Spain 46 52 Turkey 38 59 Reduction of crime, conflict and violence is the second Eastern Europe / most important goal globally. Significant proportions of Central Asia people are concerned about crime and violence in South Kazakhstan 46 50 Poland 50 48 Africa, Great Britain, Mexico, Poland and the United Russia 28 62 States. In fact, crime reduction, which was a major Asia issue in the recent South African election is considered China 48 49 to be the most important national goal by 35 percent India 54 44 of South Africans, the highest of all countries. Fewer Indonesia 28 72 Japan 51 41 than one in ten people in Japan, Russia, Canada, Malaysia 50 44 China and Uruguay feel crime reduction should be the Africa most important goal. Nigeria 48 51 South Africa 49 43

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Most Important National Goals for the Next Decade Social / Environmental Versus Economic / Employment Goals

Social and Environmental Goals Economic and Employment Goals

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Australia 19 18 25 14 6

United States 21 15 14 24 13

Great Britain 25 17 11 15 28

Canada 920182027

Italy 19 11 10 15 42

India 13 12 21 8 44

Mexico 24 15 11 4 38

Japan 7 2 34 8 41

Dominican Rep. 12 16 6 16 36

Malaysia 10 11 15 14 44

Poland 22 13 7 8 48

South Africa 35 8 3 3 43

Nigeria 16 14 7 11 51

Germany 17 8 15 8 37

China 9 7 24 8 49

Kazakhstan 12 16 8 10 50

Spain 19 12 8 7 52

Argentina 18 13 6 7 54

Turkey 13 10 10 5 59

Uruguay 91473 59

Venezuela 91067 36

Indonesia 11 9 5 3 72

Russia 81037 62

Reduce crime Reduce poverty Clean up the environment Improve health care Economic progress and and violence and homelessness and conserve resources and cure diseases increase employment

1 As we are about to enter a new century and a new 1 Make economic progress and increase employment. millennium, which of the following do you think should 2 Reduce crime, conflict and violence. be the most important goal for our country over the 3 Clean up the environment and conserve natural resources. next ten years? Should it be… 4 Reduce poverty and homelessness. 5 Improve health care and cure diseases.

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Majorities of people in 19 of the 23 countries surveyed see their governments providing the most

important leadership for achieving their national goals. In North America the combination of non-

governmental organizations (NGOs) and faith-based organizations (FBOs) is considered more important

than governments. People in Germany see key leadership coming from companies and from governments.

Companies are more likely to be seen as the most Most important source of leadership by people in Germany, Japan, Canada, Italy, Spain and the United States, Important where a minimum of 15 percent feel this way. Four in ten Americans look to leadership from the Sources of NGO / FBO communities. One in three Canadians are of a similar opinion as are one in four Australians, far more than in other countries. In fact, the people in Leadership North America and Northern Europe are more likely than those elsewhere to see important leadership People were asked which of various groups will coming from a mix of governments, NGOs and provide the most important leadership for achieving companies. People in other regions tend to depend on the most important goals for their country. one source of leadership, namely, government.

In 19 of the 23 countries surveyed, majorities of the In Germany 16 percent of those surveyed mention population think that governments will provide the most international bodies like the United Nations. important leadership in the achievement of their national Interestingly, 12 percent of Americans think religious goals. Interestingly, Americans, and to a lesser extent groups will play the greatest leadership role. Canadians, think that the combination of non- governmental organizations (NGOs) and faith-based Those focused on economic progress are most likely to organizations (FBOs) will play the greatest leadership look to governments and companies for leadership. role. Germans see strong leadership roles for both Those who think cleaning up the environment is the governments and companies. most important national goal are much less likely to look to governments for leadership, and much more Across the world, almost two-thirds of the people look likely to look to non-governmental organizations and to governments to provide the most important leadership international bodies like the United Nations. in the achievement of key national goals. About one in ten mention a combination of NGOs and FBOs and the Government leadership is much more important in same proportion mention companies. Only about one countries with low and medium per capita purchasing in twenty people mention international bodies like the power. Higher GDP per capita countries are more United Nations. inclined to say companies and NGOs / FBOs will play the most important role; however, even in these Government is overwhelmingly viewed as the source of countries, except for the United States, a plurality most important leadership everywhere except in North think government will be the key leader. America / Oceania and Northern Europe. Government leadership is considered most important by three-quarters or more of the people in China, Uruguay, Nigeria, the Dominican Republic, Kazakhstan and Argentina.

Source of Most Important Leadership for Achieving National Goal Total Sample of 25,247 Across All 23 Countries

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Governments 64

NGOs / FBOs 12

Companies 11

International bodies 6 (e.g., U.N.) NGOs = non-governmental organizations; FBOs = faith-based organizations

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Most Important Source of Leadership

Governments International Bodies, Companies, NGOs / FBOs

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China 90 422

Uruguay 80 1 10 3

Nigeria 78 7 86

Kazakhstan 76 6 85

Dominican Rep. 76 3 68

Argentina 75 6 77

Malaysia 73 7 56

Russia 73 1 92

Indonesia 71 1 720

Spain 70 4 16 6

India 68 3 10 16

South Africa 67 3 12 9

Poland 67 5 911

Turkey 65 3 10 12

Venezuela 63 7 11 6

Mexico 57 5 17 11

Great Britain 56 9 11 18

Italy 52 10 16 14

Japan 51 5 18 11

Australia 47 9 527

Germany 35 16 29 11

Canada 35 8 17 34

United States 29 8 15 42

International bodies Governments Companies NGOs / FBOs (e.g., U.N.)

2 Thinking of the goal to [read goal picked in question 1], 1 Governments. which of the following groups do you think will provide 2 Companies. the most important leadership for achieving this goal in 3 Non-governmental organizations. our country? Will it be . . . 4 Religious groups. 5 International bodies like the United Nations.

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Majorities of people in 15 of the 23 countries surveyed think

that the trend toward privatization is a positive development.

People in Latin America and Eastern Europe / Central Asia are less likely to view privatization positively. In fact, in Kazakhstan and Mexico, majorities see the Attitudes trend as a negative development. Men are more likely than women to view privatization Toward positively. This view is also more prevalent among younger people, those with higher education and income levels and those who live in communities with Privatization 100,000 inhabitants or more. People living in the same household with someone who works for a large People were asked if they felt that the trend toward company are also more inclined to favor privatization. the privatization of services, such as telephone, water and energy, from government to the private sector was a positive or negative development.

Majorities in 15 of the 23 countries surveyed, as well as a plurality in one other country, think that the trend toward privatization is a positive development. Majorities in two countries and pluralities in five others view privatization negatively.

People in Asian countries, such as China, India, Japan, Malaysia and Indonesia, are much more likely than others to view privatization as a positive development. In fact, more than seven in ten Asians support the trend. Approval is also quite high in Venezuela, the United States, Italy, South Africa, Germany and Canada, where proportions in favor equal or exceed six in ten people. The positive view of privatization is understandable given the extent to which it has already been accomplished successfully in a number of countries.

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Privatization of Essential Services: The Public View

“Positive” “Negative”

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Venezuela 79 20

China 78 15

India 78 20

Japan 74 8

Malaysia 69 19

United States 68 30

Indonesia 68 22

Italy 67 24

South Africa 64 24

Germany 61 33

Canada 60 36

Turkey 55 27

Poland 51 31

Nigeria 51 41

Dominican Rep. 50 42

Spain 48 34

Australia 45 47

Great Britain 45 45

Argentina 41 49

Mexico 35 50

Russia 33 43

Kazakhstan 31 61

Uruguay 31 48

3 As you may know, there is an increasing amount of 1 Very positive. privatization occurring in the world. Services like 2 Somewhat positive. telephone, water and energy that used to be 3 Somewhat negative. government-run are now owned and operated by for- 4 Very negative. profit companies. Do you think the current trend toward privatization is…

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 The constellation of factors making up corporate social responsibility are more influential

than either brand reputation or financial facts when people form impressions of companies.

Brand quality and reputation is mentioned the most in Factors in China. Except for Japan, brand factors are also important in other Asian countries, such as India, Malaysia and Indonesia. In addition, more than four Forming in ten people in Nigeria, the United States, Argentina, Great Britain, Turkey and Kazakhstan volunteer brand Impressions reputation as being important. Within the social responsibility envelope, labor of Companies practices and business ethics is the most important factor, mentioned by one-third or more in Uruguay, People were asked to describe in their own words Indonesia, Nigeria, the United States, Poland and what things are most important to them in forming an Great Britain. One third of Indonesians view a impression of a particular company. Up to two company’s environmental performance as an mentions per respondent were recorded. important factor, while about one-quarter of the people in Japan and Turkey are of the same opinion. The survey finds that while brand image or reputation The extent to which a company demonstrates its is the single largest determinant, it is the collection of responsibility to the broader society is viewed as labor practices, business ethics, environmental practices important by one-quarter or more of the people in and other elements of corporate social responsibility Asian countries, such as Indonesia, China and Japan, that most affect people’s perceptions of companies. as well as in Uruguay.

Across the world, a plurality of four in ten people say Within the envelope of business fundamentals, brand image or reputation is the most important financial factors (including company size, number of factor in forming an impression of a company. Just jobs and economic contribution) are more likely to under three in ten mention the company’s labor be viewed as important in Eastern European and practices and business ethics. About two in ten each Central Asian countries, such as Poland and mention financial factors and the company’s Kazakhstan, as well as in Malaysia, Uruguay, responsibility to society in general. About one in ten Germany, Turkey and Italy. The business strategy each mention corporate strategy and environmental and management of a company is seen as particularly impacts. Another one in ten did not respond. important in Malaysia.

When these results are combined into three broad Brand reputation is a much more important factor in categories, the largest percentage of respondents in countries with low per capita purchasing power. It is 12 countries mention one of the elements of social also more important to younger people, those with responsibility (including labor practices, business middle to high levels of education, and those living in ethics, environmental practices, etc.) as most large cities. Those who frequently discuss the ethical influencing their impression of individual companies, and social behavior of companies are more likely than while brand reputation comes first in five countries, others to consider the labor practices and business and business fundamentals in three countries. ethics of a company as important factors.

Factors Most Influencing Public Impressions of Individual Companies Percent of Global Sample / Unprompted / Two Mentions

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Social responsibilities (labor practices / 49 business ethics / environment impacts)

Brand quality / image / reputation 40

Business fundamentals (financial factors / 32 size / strategy / management)

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Factors in Forming Impressions of Companies Percent of Respondents / Unprompted / Two Mentions

Social responsibilities Business fundamentals Brand quality / image

Indonesia 83 29 43

Uruguay 66 45 34

Spain 64 27 37

Turkey 62 42 44

Nigeria 56 38 53

China 56 37 66

Canada 53 22 38

Japan 53 33 19

Poland 53 38 34

United States 49 18 53

Argentina 47 21 46

South Africa 42 24 39

Mexico 40 26 29

Germany 39 43 19

Kazakhstan 38 33 43

Great Britain 38 26 44

Malaysia 36 57 49

Dominican Rep. 33 27 31

Italy 32 38 25

India 32 19 54

4 First, I would like you to think about how you form impressions of particular companies. In your own words, what are the things that matter most to you in forming either a favorable or unfavorable impression of a particular company? Anything else?

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Majorities of people in all but two of the countries surveyed want companies to

go beyond their traditional role of making a profit and providing employment to

one that includes a number of broader social roles.

People in countries with low per capita purchasing Societal power are almost twice as likely as those in high GDP per capita countries to believe that companies should Role of retain their traditional role. The view that companies should go well beyond what Large is required by law and actively help to build a better society for all is highest in India, where almost one- half feel this way. In other Asian countries, about one- Companies third of the people hold this view, as do over four in ten people in Australia and Canada. A majority of The Millennium Poll asked people what they thought Americans believe that large companies should operate the role of large companies should be in society— between the two positions, and a further one-third giving them three choices. The first role was defined as want them to take on the role of full social “making a profit, paying taxes and providing responsibility. employment in ways that obey all laws.” The second role was “to do all this in ways that set higher ethical Men and people of both genders who live in very large standards, going beyond what is required by law, and metropolitan areas are more likely than others to actively helping build a better society for all.” endorse the traditional role of large companies. Respondents were also allowed to select a position between these two roles. The view that companies should help to build a better society is higher among those with high levels of Majorities in all but two of the countries surveyed education. It is also higher among those who want companies to go beyond the traditional frequently discuss the social behavior of companies definition of the role of companies, that is, to take on and those who think that their country’s most the “socially responsible” definition or an intermediate important goal should be reducing crime, cleaning up role between the two. A plurality in one of the others— the environment or reducing poverty. Turkey—also feel this way. In Kazakhstan, a slight plurality think large companies should focus on making a profit and providing employment.

About one-third of the people across the world think that large companies should focus on their traditional role. A similar proportion believe that large companies should go beyond what is required by law, and actively help to build a better society. Another 30 percent think that companies should operate somewhere between these two positions.

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Role of Large Companies in Society

Make profit, pay taxes, provide Operate somewhere between Set higher ethical standards and jobs and obey all laws the two positions help build better society for all

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Australia 84345

Canada 11 45 43

United States 11 53 35

Great Britain 17 42 39

Spain 22 41 29

Uruguay 22 26 38

Mexico 25 26 35

Poland 28 32 31

Russia 28 23 23

Malaysia 28 37 30

Argentina 29 34 33

Italy 30 31 36

Japan 32 18 33

Germany 33 31 34

Indonesia 34 29 35

South Africa 35 23 34

India 36 17 46

Venezuela 37 25 35

Turkey 37 16 30

Nigeria 42 32 24

China 44 22 31

Dominican Rep. 45 16 34

Kazakhstan 48 23 18

5 People have different views on the role of large 1 Focus on making a profit, paying taxes and providing companies in society. In your view, should large employment in ways that obey all laws. companies… 2 Do all this in ways that set higher ethical standards, going beyond what is required by law, and actively helping build a better society for all. 3 Operate somewhere between these two points of view.

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Protecting worker health and safety, treating all employees fairly and

ensuring no involvement in bribery or corruption are seen as areas in

which large companies have to accept the greatest level of responsibility.

of workers, treating all employees and job applicants fairly and not participating in bribery or corruption.

About seven in ten people expect corporations to be Responsibilities completely responsible for ensuring that their products and operations do not harm the environment and that of Large their operations and suppliers do not use child labor. A similar proportion expect large companies to Companies operate profitably and pay their fair share of taxes. About six in ten people think that companies should be Respondents were read a list of 11 areas that some held completely accountable for providing secure, long- people say should be part of the responsibilities of term jobs to their employees and for applying the same large companies. They were asked to rate the extent to high standards everywhere they operate in the world. which companies should be held responsible— completely, partially or not at all. About four in ten hold companies completely responsible for listening and responding to public Responses reveal that, in general, people in countries with concerns, helping solve social problems, and medium per capita purchasing power are more likely than supporting charities and community projects. those in low and high GDP per capita countries to have high expectations of companies in all areas. Japan stands People in Spain and Italy are more inclined than average to out as the only industrialized country that has lower than think that companies should be held completely responsible average expectations in all of the areas discussed. in all of these areas, while those in Latin America, Eastern Europe and Central Asia feel that way about most areas. About three-quarters of people across all the countries Residents of North America and Northern Europe also surveyed think that large companies should be held have high expectations but they do not extend to solving completely responsible for protecting the health and safety social problems and supporting charities.

Corporate Responsibilities Global Sample: “Held completely responsible for”

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Worker health and safety 79

Treating employees fairly 77

No bribery or corruption 75

Not harming environment 73

No child labor 72

Make profit, pay taxes 68

Provide secure jobs 64

Universal standards 60

Responding to concerns 45

Solving social problems 40

Support for charities 38

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Responsibilities of Large Companies

Women, older people of both genders, those who do Worker Health and Safety not work for the private sector and those who Worker health & safety frequently discuss the social behavior of companies “Held completely responsible for” have high expectations of companies in most areas. Argentina 95 Public opinion about each area is discussed in more Kazakhstan 92 detail below. Italy 92

Spain 91

Protecting Employee Health Venezuela 89 and Safety Great Britain 87

Eight in ten people in the countries surveyed think United States 85 large companies should be held completely responsible for protecting the health and safety of their workers. Dominican Rep. 85 Canada 83 Eight in ten people think companies should be held completely responsible for protecting the health and Poland 78 safety of their workers. High expectations are Germany 78 understandable because employers and unions, especially in industrialized countries, agreed on many South Africa 76 health and safety issues a number of years ago. India 76

The proportions of people saying that companies should Malaysia 75 be held completely responsible are higher in Eastern Uruguay 75 Europe / Central Asia, the Mediterranean and North America, especially in Kazakhstan, Italy, Spain, the Mexico 72 United States and Canada. High proportions feel this way in Argentina, Venezuela, Great Britain and the China 71 Dominican Republic. People in Asia and Africa, espe- Turkey 70 cially in Nigeria, Indonesia and Japan, are least likely to believe that corporations should be held completely Japan 68 responsible for worker health and safety, but even in Indonesia 66 these countries, six in ten or more agree with this view. Nigeria 60 Treating All Employees Fairly More than three-quarters of the people across the countries surveyed say companies should be held completely responsible for treating all employees and job applicants fairly.

Across the countries surveyed, more than three- quarters of the people say that companies should be held completely responsible for treating all employees and job applicants fairly, regardless of gender, race, religion or sexual orientation.

The proportion who say that companies should be held completely responsible in this area is higher in countries in the Mediterranean and Latin America, such as Argentina, Venezuela, Spain, Italy and the

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Responsibilities of Large Companies

no br bery & corrupt on Fair Treatment for Employeesfair treatment o No Bribery or Corruption “Held completely responsible for” “Held completely responsible for”

Argentina 95 Argentina 95 Spain 92 Spain 90 Venezuela 88 Great Britain 89 Great Britain 86 Venezuela 89 Italy 85 Kazakhstan 87 Kazakhstan 83 Italy 87 Germany 82 United States 86 Canada 82 Dominican Rep. 84 Dominican Rep. 81 Poland 81 United States 81 Canada 80 Poland 80 South Africa 79 Uruguay 76 India 76 India 74 Germany 75 Mexico 72 Malaysia 73 South Africa 71 Uruguay 72 Malaysia 70 Mexico 71 China 65 Turkey 69 Turkey 63 China 69 Japan 63 Nigeria 64 Nigeria 57 Indonesia 59 Indonesia 46 Japan 52

Dominican Republic, where about nine in ten people Three-quarters of respondents say companies should agree with this position. Similar levels of agreement be held completely responsible for ensuring that they are also found in Great Britain, Kazakhstan and the do not participate in bribery or corruption. People in United States. The proportion agreeing with this view countries with medium and high per capita purchasing is lowest in Asia and Africa, particularly in Japan, power are much more likely to expect a high degree of Indonesia and Nigeria. However, even in these corporate responsibility. countries more than one-half agree. Over eight in ten people in Argentina, Spain, Venezuela, Great Britain, Italy, Kazakhstan, Canada, Germany, the Dominican Republic and the United Avoiding Bribery and States believe that companies should be held completely responsible for avoiding bribery and Corruption corruption. On the other hand, people in Asia and Three-quarters of the people across the countries Africa are much less likely to hold companies surveyed think that companies should be held accountable. Fewer than five in ten people in Indonesia completely responsible for ensuring that they do not agree that corporate responsibility for bribery and participate in bribery or corruption. corruption should fall completely on companies.

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Responsibilities of Large Companies

Proportions of people believing in strict corporate Protecting the Environment responsibility are lower in Indonesia, Nigeria, Turkey, Japan, More than seven in ten people think that companies Uruguay and China, but they still represent majorities. should be held completely responsible for ensuring that their products and operations do not harm the environment. Avoiding Child Labor More than seven in ten people in the countries More than seven in ten citizens in the countries surveyed surveyed say companies should be held completely think that companies should be held completely respon- responsible for ensuring that their products and sible for ensuring that their operations and suppliers operations do not harm the environment. do not use child labor.

Nine in ten people in Argentina, Italy, Venezuela, the More than seven in ten people think that companies Dominican Republic, Kazakhstan and Spain believe that should be held completely responsible for ensuring companies should be held completely responsible for that their operations and suppliers do not use child environmental performance. Interestingly, the proportions labor. This view is more prevalent in countries with holding this view in wealthier countries, such as the United medium and high per capita purchasing power. States, Germany, Canada and Great Britain are slightly lower, perhaps reflecting the view that environmental responsibility In Spain, Argentina, Italy, Great Britain, Kazakhstan extends beyond the corporate sector to other parts of society. and Germany, more than eight in ten people think that

Not Harming Environment No Child Labor Child Labour “Held completely responsible for” “Held completely responsible for”

Argentina 92 Spain 93

Italy 89 Argentina 91

Venezuela 87 Italy 90

Dominican Rep. 86 Great Britain 88

Kazakhstan 85 Kazakhstan 84

Spain 85 Germany 83

Canada 78 Canada 80

Great Britain 77 United States 78

Mexico 76 Uruguay 77

Germany 75 China 76

India 74 Poland 76

United States 74 India 74

Poland 73 Venezuela 69

Malaysia 71 Mexico 69

South Africa 67 Turkey 67

China 65 Dominican Rep. 64

Uruguay 64 South Africa 62

Japan 63 Malaysia 58

Turkey 62 Japan 54

Nigeria 61 Nigeria 42

Indonesia 52 Indonesia 37

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Responsibilities of Large Companies companies should be held completely responsible for Make Profit, Pay Taxes avoiding the use of child labor. The proportion make profit, pay taxes holding the same view is also higher than average in “Held completely responsible for” Canada, the United States and Uruguay. Conversely, fewer than four in ten people in Indonesia and only Argentina 94 six in ten in Malaysia believe in complete corporate Venezuela 87 responsibility for child labor. Moreover, in Japan, the economic engine of Asia and headquarters of many of Italy 82 its multinational companies, only half of the people Poland 80 hold companies completely responsible on this issue. The gap in expectations between Asia and much of the Spain 79 rest of the world on child labor will likely continue to Dominican Rep. 78 be an issue between large companies and the public. Kazakhstan 74 People aged 45 and older are more inclined to believe in India 73 complete corporate responsibility for avoiding child labor. Also, those with higher incomes, those living in cities up Canada 70 to one million inhabitants and those not working for the 70 private sector are slightly more likely to think this way. Uruguay United States 69 Operating Profitably and Turkey 68 China 67

Paying Taxes Mexico 66

More than two-thirds of people worldwide believe Great Britain 63 that companies should be held completely responsible for operating profitably and paying their fair share of Germany 62 taxes. South Africa 60

Across the countries surveyed, more than two-thirds Japan 59 of citizens say companies should be held completely Malaysia 54 responsible for operating profitably and paying their fair share of taxes. This view is higher in countries Nigeria 47 with medium per capita purchasing power. Indonesia 41 At least eight in ten people in Argentina, Venezuela, Italy and Poland think that companies should be held completely responsible for operating profitably and paying their fair share of taxes. Other countries with Providing Long-Term high proportions of people holding this view include Spain, the Dominican Republic, Kazakhstan and India. Employment One reason for such high levels of accountability may Nearly two-thirds of people in the countries surveyed be that people in these countries are relying on the think that companies should be held completely corporate sector for much needed wealth creation. responsible for providing secure, long-term jobs to their employees. Consistent with responses regarding other areas of responsibility, the proportions of people believing in Just under two-thirds of citizens think companies complete corporate responsibility for operating prof- should be held completely responsible for providing itably and paying taxes are much lower in Asia and secure, long-term jobs to their employees. People in Africa, especially Indonesia and Nigeria (less than a countries with medium per capita purchasing power majority), but also in Malaysia, Japan and South Africa. are more likely to have high expectations in this area. Older people and those with higher incomes are more likely to think that companies should be held completely The proportion of people who think that companies responsible for earning profits and paying taxes. should be held completely accountable for long-term

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Responsibilities of Large Companies

Provide Secure Jobs Jobs Applying Universal “Held completely responsible for” Standards Argentina 91 Six in ten people think that companies should be held Spain 86 completely responsible for applying the same high standards everywhere they operate in the world. Dominican Rep. 83

Kazakhstan 83 Six in ten citizens in the countries surveyed think that companies should be held completely responsible for Venezuela 82 applying the same high standards everywhere they operate. Uruguay 75

India 71 The proportion who say companies should be held completely responsible for applying the same high Mexico 70 standards globally is higher in Latin America, the Turkey 68 Mediterranean and Eastern Europe / Central Asia. At least seven in ten people in Argentina, Venezuela, Italy, Italy 68 Spain, Kazakhstan and the Dominican Republic agree Poland 66 applying standards universally Malaysia 64 Applying Universal Standards

South Africa 64 “Held completely responsible for”

Germany 60 Argentina 87

Indonesia 54 Venezuela 84

Great Britain 53 Italy 80

Nigeria 51 Spain 76

United States 51 Great Britain 75

Japan 45 Kazakhstan 73

Canada 42 Dominican Rep. 72

China 36 United States 70

Poland 68 employment is higher in Latin American countries, such Uruguay 68 as Argentina, Venezuela and the Dominican Republic, Canada 64 where more than eight in ten feel this way. Similar proportions are also found in Spain and Kazakhstan. India 61

Turkey 60 People in North America and Asia are less likely to hold corporations totally responsible for long-term employ- Mexico 60 ment. Only four or five in ten people in China, Canada, South Africa 59 Japan, the United States and Indonesia feel this way. Nigeria and Great Britain have correspondingly low Nigeria 51 proportions. Years of corporate restructuring in North 47 America and more recently elsewhere have probably Malaysia caused people to lower their expectations in this area. Germany 43

Those who never discuss corporate ethics are more China 38 likely to want companies held completely responsible Indonesia 33 for providing long-term employment. Japan 23

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Responsibilities of Large Companies with this view. Similar proportions in Great Britain Responding to Public Concerns and the United States also agree. “Held completely responsible for” Interestingly, only two in ten people in Japan and four in ten in Germany, both headquarters to many Venezuela 74 multinationals, think that large companies should have Argentina 65 to apply the same high standards globally. Fewer than five in ten people in Indonesia, China and Malaysia Dominican Rep. 62 insist on high global standards. Kazakhstan 57

Turkey 57

Responding to Public Spain 57 Concerns Uruguay 54 Except for in Latin America and the Mediterranean, Mexico 53 fewer than one-half of the people surveyed say that Malaysia 52 companies should be held completely responsible for listening and responding openly to public views and India 50 concerns. Italy 49

Fewer than one-half of the citizens in the countries Canada 46 surveyed think that companies should be held United States 45 completely responsible for listening and responding openly to public views and concerns. Great Britain 42

South Africa 40 At least six in ten people in Venezuela, Argentina and the Dominican Republic believe in complete corporate Nigeria 35 responsibility for open public consultation. However, 34 in Asian countries, such as Indonesia, Japan and Germany China, a maximum of three in ten people hold this China 30 view. People in Poland, Germany and Nigeria are also less likely to think that corporations should be held Poland 28 completely accountable for consulting with the public. Japan 25

Indonesia 21 Helping Solve Social and Mediterranean countries, such as Venezuela, the Problems Dominican Republic, Uruguay, Turkey, Spain and Four in ten citizens think that companies should be Argentina, where at least five in ten people are of this held completely responsible for helping solve social opinion. Similar proportions in Malaysia and India problems like crime, poverty and lack of education. also believe in total corporate responsibility in this area. Conversely, only about two in ten in China, In the countries surveyed, four in ten people say large Japan, Canada, Great Britain and the United States companies should be held completely responsible for agree with this position. helping solve social problems like crime, poverty and lack of education. This view is much more prevalent People with low and medium levels of education and in countries with medium rather than high per capita those with lower incomes are more likely to say that purchasing power. companies should be held completely responsible for helping solve social problems. The proportion of people who say that companies should be held completely responsible for helping solve social problems is higher in Latin American

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Responsibilities of Large Companies

Solving Social Problems Support for Charitiessupport charities “Held completelysolving responsible social problems for” “Held completely responsible for”

Venezuela 71 Venezuela 69

Dominican Rep. 62 Dominican Rep. 68

Malaysia 58 Argentina 56

Uruguay 56 Spain 54

Turkey 53 Uruguay 52

India 53 Malaysia 52

Spain 52 Turkey 51

Argentina 51 Mexico 48

Kazakhstan 47 India 46

Italy 45 Kazakhstan 39

Mexico 44 Nigeria 35

South Africa 40 South Africa 35

Germany 36 Italy 35

Poland 33 Poland 29

Indonesia 30 Canada 28

Nigeria 29 Germany 26

United States 23 United States 25

Great Britain 22 Indonesia 23

Canada 21 Great Britain 20

Japan 20 China 17

China 18 Japan 14

and Uruguay hold this view. Similar proportions of Supporting Charities people in Spain, Malaysia and Turkey feel that Just under four in ten citizens think that companies companies should be responsible for supporting charities. should be held completely responsible for supporting charities and community projects. Asians feel much differently, with fewer than two in ten in Japan and China, and only slightly more in Indonesia, Slightly fewer than four in ten people say that holding large companies completely responsible for companies should be held completely responsible for supporting charities. Interestingly, in spite of the supporting charities and community projects. This publicity surrounding corporate benevolence, fewer than view is much more prevalent in countries with three in ten Northern Europeans and North Americans medium rather than high GDP per capita. believe that corporations should be totally responsible for supporting charities and community projects. People in Latin America are much more likely than others to think that companies should be held completely Residents of very large cities and those with low and responsible for supporting charities and community medium levels of education and income are more likely projects. Seven in ten residents in Venezuela and the to believe that companies should be completely respon- Dominican Republic and at least five in ten in Argentina sible for supporting charities and community projects.

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 A majority of people think that their large national companies are doing a

good or excellent job on corporate social responsibility. Slightly fewer

have the same view of large American, Japanese and European companies. Rating Companies on Corporate Social Responsibility People were asked to assess the performance of large companies in fulfilling their responsibilities to society. Companies included those headquartered in the country being surveyed and those with headquarters in the United States, Europe and Japan.

Nearly six in ten people think that their large national (or home-nation) companies are doing a good or excellent job in fulfilling their social responsibilities. One-half of respondents give the same rating to American and Japanese companies, while slightly fewer than one-half give this rating to European companies.

Demographically, younger people, those with medium or high levels of education and those who work for large for-profit companies are more inclined than others to rate all of these companies more positively. Men are more likely than women to rate foreign companies more positively.

Fulfilling Corporate Responsibilities to Society Relative Rating of Large Companies of Different National Origin

0 204060

Home-nation companies 74855

Japanese companies 12 38 50

American companies 10 40 50

European companies 83947

Doing an “excellent” job Doing a “good” job

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Rating Companies

National Companies Home-Nation Companies Ratings for national companies are highest in Africa and Doing an “Excellent” or “Good” Job North America, where seven in ten people say they are doing a good or excellent job fulfilling their responsibil- Venezuela 14 63 77 ities to society. Eight in ten Venezuelans and seven in Nigeria 12 62 74 ten people in Nigeria, the United States, Canada and Indonesia rate their large national companies positively. United States 66369

People in Germany, Canada, the United States, South Indonesia 66268 Africa and Great Britain are more likely than others to Canada 95968 rate their own large companies more positively than those headquartered elsewhere. Mexico 12 55 67 Malaysia 13 54 67 Conversely, fewer than four in ten people in Kazakhstan, Argentina, Poland and Japan give their South Africa 16 51 67 large companies good or excellent ratings. Moreover, India 85967 people in Kazakhstan, Turkey and Argentina are more likely to rate their large home-based companies lower Great Britain 65965 than those based in other countries. Germany 75461

Turkey 16 42 58

China 65056

Dominican Rep. 54853

Spain 54550

Uruguay 34649

Italy 3 44 47

Japan 2 35 37

Poland 13536

Argentina 13334

Kazakhstan 22 22

Excellent Good

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Rating Companies

American Companies Japanese Companies People in Africa and North America, especially Americans, Strongest ratings come from Asian and African are more likely to approve of U.S. companies. In fact, respondents, such as those in Indonesia, Malaysia and seven in ten Americans rate their large corporations as Nigeria, where about six in ten offer positive marks. good or excellent. Similar proportions of Nigerians and Japanese companies receive higher ratings than large Indonesians award the same ratings to U.S. companies. national companies from people in Indonesia, Kazakhstan and Turkey. On the other hand, large U.S. companies are rated harshly by people in Eastern Europe and Central Asia. Only four in ten people in Spain and Germany believe Only one-third of the people in Japan give U.S. that Japanese companies do a good or excellent job on companies positive ratings, but they judge their own social responsibility. This is similar to what the national companies equally harshly. Japanese themselves think.

American Companies Japanese Companies Doing an “Excellent” or “Good” Job Doing an “Excellent” or “Good” Job

Venezuela 29 52 81 Venezuela 37 42 79

Nigeria 26 46 72 Indonesia 22 57 79

United States 66369 Nigeria 23 48 71

Indonesia 21 47 68 Malaysia 19 49 68

Turkey 17 47 64 Turkey 28 39 67

Mexico 14 46 60 Great Britain 15 48 63

South Africa 16 41 57 India 19 41 60

Malaysia 10 45 55 Mexico 19 38 57

India 15 40 55 United States 64652

Great Britain 74653 Canada 74350

Dominican Rep. 12 40 52 South Africa 13 34 47

Canada 44751 Italy 13 33 46

Italy 10 38 48 Dominican Rep. 11 33 44

China 93948 China 9 34 43

Uruguay 73542 Uruguay 8 34 42

Germany 43539 Argentina 12 28 40

Argentina 63137 Japan 2 35 37

Japan 43135 Spain 73037

Poland 23335 Germany 4 33 37

Spain 43135 Kazakhstan 6 25 31

Kazakhstan 32932 Poland 3 28 31

Excellent Good Excellent Good

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Rating Companies

European Companies Highest ratings for European companies come from people in Venezuela, Nigeria and Indonesia, where about seven in ten people give them excellent or good scores. Other countries more likely to approve are Turkey, Italy, Great Britain and Malaysia.

People in Italy, Kazakhstan and Turkey feel that European companies are superior to their large national firms. Germans are more likely to rate their national companies higher than other European companies.

European Companies Doing an “Excellent” or “Good” Job

Venezuela 28 48 76

Nigeria 21 52 73

Indonesia 17 51 68

Turkey 19 43 62

Italy 64955

Great Britain 4 51 55

Malaysia 94453

United States 3 47 50

South Africa 10 37 47

Mexico 11 36 47

India 11 35 46

Canada 44246

China 83543

Uruguay 63642

Germany 2 39 41

Spain 2 37 39

Poland 2 36 38

Argentina 73037

Dominican Rep. 63137

Japan 4 24 28

Kazakhstan 22527

Excellent Good

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 One in two citizens say that they have discussed the ethical or social behavior of companies

with their family or friends during the past year. One in five have done this frequently.

Discussion of Corporate Behavior People were asked how frequently they have discussed the ethical or social behavior of companies with friends or family in the past year.

Across the countries surveyed, one in two people report that they have discussed the social behavior of companies at least a few times, not including the one in seven who say they have on one occasion in the past year. Moreover, one in five have done this frequently. More than one-quarter of the respondents report having never discussed this subject in the past year.

At least three in ten people in Argentina, Canada, Germany and Venezuela have discussed corporate social behavior many times in the past year. More than two in ten in the United States, Nigeria and Italy have done the same. At the other end of the spectrum are Mexico, Uruguay, Indonesia, Turkey and Japan, where only about one in ten have discussed the issue frequently.

People in countries with high per capita purchasing power are more inclined than those in countries with low and medium per capita purchasing power to discuss corporate ethics frequently.

Discussion of corporate ethics is more likely among men than women, and among those with high levels of education and income. It is also more likely among those who work for large for-profit companies.

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Have Discussed Ethical or Social Behavior of Companies

0 20406080

Argentina 35 32 67

Canada 33 41 74

Germany 31 47 78

Venezuela 30 41 71

Nigeria 26 41 67

Dominican Rep. 24 35 59

Italy 24 40 64

United States 24 41 65

China 22 36 58

Spain 21 28 49

Poland 20 32 52

Kazakhstan 19 32 51

South Africa 19 34 53

India 19 32 51

Great Britain 17 30 47

Malaysia 16 39 55

Japan 13 17 30

Turkey 10 27 37

Indonesia 10 31 41

Uruguay 82937

Mexico 73239

Many times A few times

8 Over the past year, how frequently, if at all, have you discussed the ethical or social behavior of companies with your friends or family members? 1 Many times. 2 A few times. 3 At least once. 4 Not at all.

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 One in two citizens across the world are able to name specific companies that they

perceive as being more socially responsible than others. Six of the ten most frequently

mentioned companies are American. All of the top ten are prominent in consumer markets.

Coca Cola Most Coca Cola is mentioned by more than three in ten people in Nigeria and South Africa and by about two in ten in China, Venezuela and Uruguay. Interestingly, Socially only 1 percent of Americans mention Coca Cola. Similarly low proportions in Japan and Northern Responsible Europe name Coca Cola. McDonald’s Companies McDonald's is more likely to be mentioned in Turkey, China and Malaysia, where one in ten residents do so. When asked to name a large company that comes to The company is also well regarded by people in South mind as fulfilling its responsibilities to society better Africa, Indonesia and Uruguay. than others, one in two people across the world are able to do so. Four in ten people are unable to name a Other Companies specific company and a further one in ten do not think Sony is named by 14 percent of Indonesians, and less that any one company is doing a better job than others. frequently by people in Turkey, Kazakhstan and Malaysia. Toyota is mentioned by 15 percent of Coca Cola is the only company that is mentioned by Indonesians, and less frequently by people in Turkey more than one in ten people globally. The next most and Nigeria. Over one-third of South African frequently mentioned company, McDonald's, is named respondents mention Nike. Procter & Gamble is most by 4 percent, still an impressive proportion for a top- often named by Kazakhstani and Chinese respondents, of-mind response. Sony, Toyota, Nike and Procter & 16 percent and 12 percent respectively. Gamble are each mentioned by 3 percent of respondents. Unilever, IBM, Volkswagen AG and Shell are Unilever is mentioned by 14 percent of Indonesians. each mentioned by 2 percent of the respondents, while IBM is well regarded by people in South Africa, BP Amoco, Reebok and The Body Shop each receive Turkey and the United States. Volkswagen, the only mention by 1 percent of those surveyed. About three car manufacturer named, is mentioned frequently by in ten name some other company. Germans and Mexicans. Shell is most frequently named by Nigerians and Malaysians, while rival BP Of the top ten most mentioned companies, six are Amoco is mentioned by South Africans. American, two are Japanese and two are European. All of the ten companies sell products that have high Interestingly, more than one in two people in Japan, visibility in consumer markets. the Dominican Republic, Poland, Uruguay and Italy cannot name a specific company that they see as being Nine in ten Africans are able to name a specific socially responsible. company, most notably Coca Cola and Nike. Residents in Latin America, the Mediterranean and Younger people, rural dwellers and those with lower Eastern Europe / Central Asia are less inclined to incomes are more likely than others to name Coca name a specific company. Cola.

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Companies Seen as Most Socially Responsible Open-Ended Responses Across All Countries (n=25,000, All Mentions)

0 10

Coca Cola 10

McDonald’s 4

Sony 3

Toyota 3

Nike 3

Procter & Gamble 3

Unilever 2

IBM 2

Volkswagen 2

Shell 2

BP Amoco 1

Reebok 1

The Body Shop 1

Percent Naming a Specific Company By Age By Region

56 54 51 71 46 62 42 60 58 36 51 51

15-24 25-34 35-44 45-54 55-64 65+ Africa North AmericaNorthern / AsiaEurope MediterraneanLatin AmericaEastern Europe / Oceania Central Asia

9 Please name a specific large company that comes to mind as fulfilling its responsibilities to society better than others. Can you name another?

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 One-quarter of citizens surveyed have rewarded a socially responsible

company by either buying its products or speaking positively about the

company to others in the past year. Rewarded Socially Responsible Companies People were asked if, over the past year, they have considered rewarding a socially responsible company either by buying its products or speaking positively about the company to others.

One in four citizens, primarily in high GDP per capita countries, say that they have actually taken one of these actions. Another two in ten say that they have considered taking such actions, while one-half state that they have not considered taking any action.

Fully one in two Canadians and Americans have actually rewarded a socially responsible company in the past year. More than three in ten people in Germany and Great Britain and over four in ten in Nigeria have done the same.

In many low GDP per capita countries, such as Turkey, Kazakhstan and Indonesia, only about one in ten have rewarded socially responsible companies. Among high GDP per capita countries, Japan is the only one where fewer than one in ten have taken such action.

People with higher levels of education and income are more inclined to reward a responsible company. So are those who live in smaller communities and who work for large, private sector companies.

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Rewarding Companies Seen as Socially Responsible

0 20406080

Total population 24 18 42

Canada 50 18 68

United States 46 21 67

Nigeria 45 18 63

Germany 37 19 56

Great Britain 31 11 42

Venezuela 28 17 45

Dominican Rep. 27 11 38

Malaysia 27 36 63

South Africa 25 18 43

Italy 25 13 38

China 23 24 47

Spain 22 8 30

Argentina 22 8 30

Poland 18 11 29

Mexico 17 21 38

India 16 19 35

Indonesia 12 41 53

Uruguay 11 13 24

Kazakhstan 10 18 28

Japan 91120

Turkey 82129

Have done Have considered doing

10 Over the past year, have you considered rewarding a socially responsible company by either buying its products or speaking positively about the company to others? Would you say you have… 1 Not considered doing this. 2 Considered this, but didn’t actually do it. 3 You have actually done this in the past year.

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 One-quarter of the people surveyed have punished a company

that they consider not socially responsible by either refusing

to buy its products or speaking critically of the company.

People in Asia, Eastern Europe and Central Asia are Punished among the least likely to have punished companies. One in ten or fewer in Indonesia, Japan, India and Kazakhstan have taken such actions. Low levels of Companies for action are also likely in Uruguay, Turkey and South Africa. Interestingly, although the proportion of Not Being Socially people in Asia who have actually taken action is very low, nearly one-quarter of the people in the region considered doing so, indicating a strong degree of Responsible latent activism. People were asked if, over the past year, they have The demographic analysis of responses to this considered punishing a company they see as not being question is very similar to that on rewarding socially responsible by either refusing to buy its responsible companies. Largely, it is the same people products or speaking critically about the company to either rewarding or punishing companies depending others. on perceptions of their social responsibility.

One in four citizens, especially those in high GDP per capita countries, say they have actually taken one of these actions and a further two in ten say they have considered doing so. More than one-half of the people state that they have not considered any action. These findings are similar to those in the question regarding rewarding responsible companies. In other words, people are as likely to reward a responsible company as they are to punish an irresponsible company.

People in North America and Oceania are much more likely than others to punish companies that they judge as not being socially responsible. One-half of the people in Australia, Canada and the United States actually punished such companies in the past year. More than three in ten Germans, Britons and Italians did the same.

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Punished Companies Seen as Not Socially Responsible

0 20406080

Total population 23 17 40

Australia 52 20 72

Canada 52 17 69

United States 49 15 64

Germany 43 17 60

Italy 34 13 47

Great Britain 34 11 45

Venezuela 29 13 42

Argentina 28 10 38

Spain 27 9 36

China 24 24 48

Nigeria 24 24 48

Dominican Rep. 23 8 31

Malaysia 21 34 55

Poland 21 9 30

Mexico 18 17 35

South Africa 14 13 27

Turkey 11 26 37

India 10 15 25

Kazakhstan 82331

Japan 7916

Uruguay 71219

Indonesia 63844

Have done Have considered doing

11 In the past year, have you considered punishing a company you see as not socially responsible by either refusing to buy its products or speaking critically about the company to others? Would you say you have… 1 Not considered doing this. 2 Considered this, but didn’t actually do it. 3 You have actually done this in the past year.

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 This section discusses important findings for each region. In particular, the

section focuses on the extent to which regional public opinion is significantly

different from global findings. Important intra-regional differences are also noted.

than others. More than one-third of South Africans name Nike, while Nigerians are more likely to name Unilever and Shell.

Africans, especially Nigerians, are more likely to have rewarded a socially responsible company by either Regional buying its products or speaking positively about the company to others. But they are among the least likely to have punished a company for poor social Analysis performance. Africa Nearly one-half of Africans think that making Asia economic progress should be the most important goal Half of Asians think that making economic progress for the next decade. One-quarter of Africans, the should be the most important national goal for the highest of any region, believe that reducing crime, next decade. With the exception of those in Indonesia, conflict and violence should be the top goal. At least Asians are more likely than others to believe that seven in ten Africans think that governments will cleaning up the environment should be the most provide the most important leadership for achieving important goal, but only one in five feel this way. national goals. Two-thirds of South Africans think While Asians overwhelmingly look to governments for privatization is a positive trend, but four in ten leadership, they are the most likely to think that the Nigerians view it negatively. trend toward privatization is positive.

Almost one-half of Africans, among the highest Except for the Japanese, Asians are among the most proportions anywhere, mention brand quality or likely to mention brand quality or reputation as reputation as being most influential in forming an influencing them the most in forming an impression of impression of a particular company. One-third of a particular company. At the same time, Asians are Africans mention labor practices and business ethics as more likely than others to mention corporate most important in this regard. responsibility to the broader society as an important factor in forming an impression. Residents of this Four in ten Africans, more people than in any other region, especially the Chinese, are among the most region, believe that companies should focus on making likely to think that companies should focus on a profit, paying taxes and providing employment, financial performance, rather than help to build a rather than taking on broader social responsibilities. better society. Over four in ten Indians believe Africans, especially Nigerians, are less likely than companies should focus on helping to build a better others to think that companies should be held society. completely responsible for performance in any of the areas of social responsibility surveyed. Asians, especially the Japanese, are less likely than others to think companies should be held completely Africans are more likely than others to have positive responsible for performance in any of the areas of views of national and foreign multinationals with social responsibility surveyed. regard to social responsibilities. Seven in ten Nigerians give excellent or good ratings to all of these types of People in India, Indonesia and Malaysia are more companies, much higher than ratings given by South likely than others to have positive views of their Africans. More than one-quarter of Nigerians say that national companies’ performance on social they have discussed the social behavior of companies responsibility issues; however, the Japanese are among many times over the past year. the least positive about their own companies.

Four in ten residents of Nigeria and South Africa, far Asians, especially Indonesians and Japanese, are less more than for any other region, mention Coca Cola as likely than others to have discussed corporate social a company fulfilling its social responsibilities better behavior.

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Regional Analysis

Named by one-quarter of Chinese, Coca Cola is Eastern Europeans and Central Asians are more likely mentioned most in this region as a particularly socially than others to mention financial factors as being most responsible company. Nearly three in ten Indonesians important in forming their impression of a particular name Unilever. Asians are more likely than others to company. Accordingly, people here are among the mention Unilever, Toyota, Sony and McDonald’s. most likely to think that companies should focus on Interestingly, eight in ten people in Japan are unable to financial performance, rather than social issues. name a specific company that is doing a superior job on social responsibility. Notwithstanding the focus on financial performance, Eastern Europeans and Central Asians are more likely Asians are among the least likely to have either than others to have high expectations of companies in rewarded or punished a company for its performance in all of the areas of responsibility, except for crime areas of social responsibility. Only about one in ten in reduction, charitable giving and consulting with the Japan, Indonesia and India report taking either action. public.

Highly critical of national companies, four in ten people in this region say they are doing a very poor or Eastern Europe / Central poor job in fulfilling their responsibilities to society. This view of their large national companies may partly Asia account for their disapproval of privatization. Given the severe economic dislocations in recent years, it is understandable that Eastern Europeans and Central Eastern Europeans and Central Asians, in particular Asians are among the most likely to think that making Poles, are less likely than others to be able to name a economic progress should be the most important goal socially responsible company. Fewer than two in ten for their country. For important leadership, more than residents have either rewarded or punished a company seven in ten Eastern Europeans and Central Asians for its social performance. look to governments. Residents of this region, especially in Kazakhstan, are among the most critical of the trend toward privatization.

Source of Most Important Leadership for Reaching National Goal By Region

Governments Companies NGOs and FBOs

0 20406080100

Total population 64 11 12

North America / Oceania 37 12 34

Northern Europe 46 20 15

Mediterranean 62 14 10

Asia 70 9 12

Latin America 72 10 7

Eastern Europe / Central Asia 72 9 6

Africa 73 10 7

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Regional Analysis

trend toward privatization, people in this region have Latin America views similar to their Northern European neighbors. Nearly one in two Latin Americans think economic progress and employment growth should be the most Citizens of the Mediterranean are among the most important national goals for the next decade. likely to use economic factors in forming their Mexicans are more likely than others to think that impression of a particular company and less inclined their country should address crime, conflict and than others to mention brand quality or reputation in violence. Latin Americans are among the most likely this regard. to look to governments for important leadership, with more than seven in ten feeling this way. People in the People in this region are less likely than Northern region are among the most critical of the trend toward Europeans to think that companies should go beyond privatization. making a profit, but they are more likely to think so than people in Eastern Europe and Central Asia. Latin Americans focus less than others on brand quality or reputation and more on social Citizens of the Mediterranean are more likely than responsibilities when forming an impression of a others to have high expectations of companies in all particular company. Residents of Uruguay are much areas of social responsibility surveyed. Compared with more likely to be swayed by a company’s labor people in Northern Europe, those in the practices and business ethics. Mediterranean are more likely to hold companies completely responsible for providing long-term Slightly more than one-third of Latin Americans think employment, operating profitably and paying taxes, that companies should actively help to build a better solving social problems, supporting charities, society rather than focus solely on financial consulting with the public and applying high performance. standards globally.

Latin Americans are much more likely to think that In general, people in this region rate the social companies should be held completely responsible for performance of their large national companies supporting charities, providing long-term employment, equivalent to foreign corporations. However, consulting with the public and applying high global Spaniards are more inclined to view national standards. Nine in ten residents of Argentina think companies more favorably than foreign firms. that companies should be held completely responsible for avoiding the use of child labor. Turks are much less likely than others to spend time discussing corporate social behavior. Citizens of the Residents of Argentina are less likely than others to Mediterranean are among the least likely to be able to give positive ratings to any large companies—foreign name specific socially responsible companies. or national—in the area of social responsibility, and Compared with other regions, people in the are the most critical of their own national companies. Mediterranean, especially Turks, are less inclined to reward companies for good social performance. Argentineans are much more likely than others to report having discussed corporate social behavior In summary, there appear to be significant differences frequently. Among the least likely to be able to name in public opinion between people in Turkey and those a socially responsible company, Latin Americans, and in Spain and Italy. Not surprisingly, public opinion in especially Uruguayans, are less likely to say that they the two latter countries seems more closely aligned have either rewarded or punished a company for its with opinion in Northern Europe. social performance. North America / Oceania Mediterranean Rather than economic progress, residents of North Citizens of the Mediterranean are among the most America and Oceania are most likely to think improving likely to think that economic progress should be the health care and curing diseases should be the most most important goal over the next decade, with five in important national goal for the next decade. Reducing ten feeling this way. More than six in ten people in poverty and homelessness is important to Canadians, Spain and Turkey believe that governments will while crime reduction is significant to Americans. provide the most important leadership in achieving Australians are much more likely than others to see key national goals. With nearly six in ten favoring the environmental cleanup as a key national goal.

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Regional Analysis

Residents of North America and Oceania are also the companies. North Americans are the most likely to say most inclined to think non-governmental organiza- they have frequently discussed a company’s ethics. tions will provide the most important leadership in North Americans are more likely than others to be attaining these goals. This region is unique in seeing a able to name a socially responsible company; however, balanced sourcing of leadership from governments, unlike in other regions, no one company is mentioned NGOs / FBOs and business. Except for Australians, by a significant proportion of respondents. The most people in this region are more likely than most others frequently mentioned company, IBM, is named by to think that the current trend toward privatization is only 5 percent of the people. a positive development. People in this region are most likely to say they have North Americans are among the most likely to rewarded and punished companies based on their consider both a company’s brand reputation and a social performance. In fact, five in ten people in this company’s ethics as the most important factors in region have taken each of these actions in the past year. forming an impression of the company. People here are much less likely than others to regard economic attributes as the most important. Northern Europe Residents of North America and Oceania are the most Northern Europeans are less likely than others to likely to feel that companies should go beyond profit think that economic progress should be the most making and help to build a better society. North important goal for their country. Less likely than Americans are more likely than others to hold companies others to think that governments will provide the most completely accountable for worker health and safety, important leadership, Northern Europeans, in corruption, child labor, using high global standards and particular Germans, are more inclined to look to treating employees fairly. Conversely, they are less likely business. People here are also more likely than many to hold companies responsible for providing long-term others to believe that NGOs and international bodies jobs, solving social problems and supporting charities. will be important sources of leadership.

North Americans are more likely than others to think Germans are much more positive than the British that their national companies are doing a good job about the trend toward privatization, but Northern fulfilling their social responsibilities. Americans are Europeans, in general, are no more likely than others much more inclined than Canadians to approve of U.S. to express a positive view on this issue.

Regional Differences in Attentiveness to Corporate Social Responsibility Have Discussed With Family / Friends Over the Past Year

0 20406080

Total population 20 34 54

North America / Oceania 28 41 69

Northern Europe 24 38 62

Africa 22 38 60

Eastern Europe / Central Asia 20 32 52

Latin America 19 32 51

Mediterranean 18 31 49

Asia 16 31 47

Many times A few times

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Regional Analysis

Northern Europeans are less likely to mention brand being socially responsible, especially American companies. quality or reputation as the most important factors in This is consistent with Europeans’ relatively unfavorable forming an impression about a particular company. views on the social performance of large foreign companies. Germans are more inclined to emphasize economic factors, labor practices and business ethics. Northern Europeans are more likely than others to say that they have both rewarded and punished companies More likely than many others to feel that companies based on their social performance. should go beyond profit making, over one-third of Northern Europeans endorse companies taking an intermediate position between their traditional role and that of full social responsibility.

Northern Europeans are more likely than others to feel that companies should be held completely responsible for avoiding child labor and corruption and treating employees fairly. The British are also more inclined to think that companies should be responsible for applying the same high standards globally. On the other hand, Northern Europeans are less likely to think that companies should be responsible in a number of areas, especially supporting charities and solving social problems.

Northern Europeans, in particular Germans, are more likely than others to rate national companies positively in terms of fulfilling their responsibilities to society. Germans are more likely than others to have frequently discussed the ethical or social behavior of companies. Northern Europeans are far less likely than others to mention the companies named by those in other regions as

Regional Differences in Activism on Corporate Social Responsibility Have Punished a Company Seen as Not Socially Responsible in the Past Year

0 20406080

Total population 23 17 40

North America / Oceania 51 16 67

Northern Europe 39 14 53

Mediterranean 24 16 40

Asia 14 24 38

Africa 19 18 37

Latin America 19 12 31

Eastern Europe / Central Asia 15 16 31

Have actually done Have considered doing

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Regional Analysis

Interestingly, those living in medium GDP per capita countries are more likely than others to think companies should be held completely responsible in virtually all of the areas surveyed. Those in high GDP per capita countries are also more likely to hold companies completely responsible, but in fewer areas, namely, child labor, worker health and safety, the environment, corruption and the fair treatment of employees.

People in countries with medium per capita purchasing power are less likely to believe that their Per Capita national companies are doing a good job on social performance. Residents of countries with low per capita purchasing power are more inclined than others Purchasing Power to feel that large American, European and Japanese This section looks at general trends in terms of how companies are doing a good job on social public opinion varies according to the degree of responsibility. Citizens of countries with high per purchasing power per capita (i.e., low GDP per capita, capita purchasing power are more likely to report medium GDP per capita and high GDP per capita) in having discussed corporate ethics with friends or each country. In many instances, the most significant family members many times in the past year. differences can be explained not so much by geographical region, as by per capita purchasing Those living in countries with low per capita power. (Please see “Introduction” section for specific purchasing power are much more likely to be able to countries included in each grouping.) name responsible companies. In doing so, they are more likely than others to name Coca Cola, Nike, People living in countries with low and medium per Procter & Gamble and Unilever. People in countries capita purchasing power are the most inclined to think with high per capita purchasing power are more likely that making economic progress should be the most to have both rewarded and punished companies based important goal for their country over the next decade. on their social performance. On the other hand, those living in countries with high per capita purchasing power are more likely to think that cleaning up the environment and improving health care should be the most important goals.

Residents of countries with low and medium per capita purchasing power are much more likely to think governments will provide the most important leadership for achieving these goals, whereas those in countries with high per capita purchasing power are more inclined to look to companies and non- governmental organizations. Citizens in countries with high per capita purchasing power are more likely to think the current trend toward privatization is positive; those in low GDP per capita countries are more critical.

People living in countries with low per capita purchasing power are much more likely to feel that companies should focus on making a profit rather than addressing broader social issues. In forming an impression about a particular company, however, people living in countries with low and medium per capita purchasing power are more likely to be influenced by how responsible the company is to society in general.

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 In this section, Environics analyzes public opinion according to a number of demographic

factors. The analysis compares responses given by people from different points along the

spectrum for each factor; for example, the analysis compares the opinions of those with

low levels of education to those with medium and high levels of education.

are more likely to look to companies and non- governmental organizations and religious groups. They are also more likely to think that the current trend toward privatization is a positive development.

People with higher education are more likely to Demographic mention brand reputation as the most important factor in forming an impression of a company. They are also more likely to believe that companies should Analysis go beyond their traditional role and either actively help build a better society or operate somewhere in Education between the two roles. In general, education levels are a good indicator of Those with less education are more likely to think that public opinion regarding the role that companies should companies should be held completely responsible for play in society. Those with higher levels of education providing long-term jobs, helping solve social in general are more positive toward companies. They problems and supporting charities. are also more likely to discuss the social behavior of companies and to act on their impressions. Those with higher education are more positive toward both national and foreign companies with regards to fulfill- People with higher levels of education are more likely ing their social responsibilities. Those with higher education to think that making economic progress and cleaning are more likely to say that they have discussed the ethical up the environment should be the most important behavior of companies frequently over the past year. goals for their country over the next decade. Those with less education are more inclined to think that People with higher education are not only more likely improving health care and curing diseases should be to name a particularly responsible company, they are the most important goal. also more likely to name a broader variety of companies. Those with higher education are more Less inclined to think governments will provide the likely to have rewarded or punished companies for most important leadership, those with more education their performance in fulfilling social responsibilities.

Public Opinion by Education Level

Group That Will Provide Most Important Leadership

High education 60 Government 66 Low education 15 NGOs / FBOs 10

14 Companies 10

Attitude Toward Trend to Privatization

65 “Very” and “somewhat” positive 45

Role of Large Companies in Society

38 Build a better society for all 32

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Demographic Analysis

Income Age Those with higher incomes are more likely to think Less likely to think that making economic progress cleaning up the environment should be the most should be the most important goal for their country, important goal for their country. While those with those aged 65 and older are more inclined to focus on higher incomes are more likely to think that privatiza- improving health care. Younger people are more likely tion is a positive development, lower income earners to favor the trend toward privatization. They are also tend to view it negatively. Higher income earners are more likely to say that brand quality or reputation is more likely to think that companies should be held most important when they form an impression of a completely responsible for not using child labor, company. ensuring no bribery or corruption and treating all employees fairly. Lower income earners tend to empha- Older people are more likely than others to think that size solving social problems and supporting charities. companies should be held completely responsible for performance on a variety of social aspects. When rating companies on their performance in addressing social responsibilities, higher income When rating companies on their social performance, earners are more likely to favor large European younger people are more positive than others toward companies. When asked to name socially responsible both national and foreign companies. More likely to be companies, they are less likely to name front-runner able to name socially responsible companies, younger Coca Cola and more likely to name a broader variety people are more inclined to mention Coca Cola. of companies. More inclined than others to discuss corporate ethics, those with higher incomes are also more likely to both reward and punish companies based on their social performance.

Gender Men are more likely than women to think that economic progress should be the most important goal for their country. They are also more inclined to believe that privatization is a positive development. More likely to consider financial factors in forming an impression of a company, men are also more inclined to think companies should focus on making a profit rather than on helping to build a better society.

Women are more likely to think companies should be held completely responsible for a number of issues, namely, providing long-term jobs, helping solve social problems, ensuring no harm to the environment, supporting charities, consulting with the public and treating all employees fairly.

When rating companies on social performance, men are more likely than women to be critical of large national companies. Men are more likely to say that they have frequently discussed the social behavior of companies over the past year.

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Demographic Analysis

Community Size Household Includes Environics frequently observes significant differences between the views of people living in major urban Employee of Large centers and those living in smaller communities and rural areas. Because only urban areas were sampled in Company five of the countries included in the Millennium Poll, In general, Environics finds that those who live in a readers should keep in mind that findings in these household that includes an employee of a large countries may be different from what would be company tend to be more positive toward companies. observed with nationally representative samples. They are also more likely to discuss the ethical and (Please see the Methodology section of this report for social behavior of companies and to actually reward sample details for each country.) and punish companies accordingly. Those who live in a household where no one works for the private sector Those living in large urban centers are more likely to are more inclined to have higher expectations of think that making economic progress should be the companies. most important goal for their country, while those in rural areas are more inclined to focus on reducing People in a household that includes an employee of a crime and violence. Residents of large urban centers large company are more likely than others to think are more likely to look to governments for leadership. that the current trend toward privatization is a The trend toward privatization is more likely to be positive development. Those who live in a household seen as a negative development by those in smaller where no one works for the private sector are more communities. inclined to think that companies should be held completely responsible for nearly all of the social People in large cities are more likely than average to aspects mentioned in the survey. think that companies should focus on financial performance. However, they are also more likely to When asked to rate companies on their social think that companies should be held completely performance, those who live with an employee of a responsible for helping to solve social problems and large company are more likely than others to give supporting charities. When rating companies on positive ratings to both national and foreign fulfilling their social responsibilities, those living in companies. large cities are more critical of national companies, but more positive toward Japanese companies. People living with an employee of a large company are more likely to report having discussed corporate social More likely to be able to name a socially responsible behavior on many occasions. They are also more company, rural dwellers are more inclined to mention inclined to be able to name especially responsible Coca Cola and Nike. Those living in very large urban companies and to say that they have rewarded centers are less likely to say that they have either rewarded responsible companies and punished those that are not or punished a company based on its social performance. responsible.

Corporate Social Responsibility: Importance of Internal Audiences Households of Employees of Large Companies (18%) vs. Total Population

0 20 40

Have talked “many times” about 26 corporate behavior in past year 20

Role of companies: 32 to make a profit 30

Role of companies: 34 to help build better society 33

Have punished a company seen as 29 not socially responsible in past year 23

Employees

Total Population

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Demographic Analysis

Discussed Ethical and Social Behavior of Companies The survey finds that those who frequently discuss the ethical or social behavior of companies are not only more likely to be critical of companies, but they are also more likely to report having acted on their impressions of them.

Rather than look to governments, those who frequently discuss corporate social behavior are slightly more likely to think that non-governmental organizations will provide the most important leadership in achieving national goals. They are also more likely to consider labor practices and business ethics the most important factors in forming an impression of a company. Those who discuss corporate ethics are more likely to take the view that companies should go beyond their traditional role and actively help to build a better society.

Those who discuss corporate ethics are more likely to think that companies should be held completely responsible for environmental performance. However, they are ambivalent about a number of other areas of social responsibility. When rating companies on social performance, they are more critical than others of both national and foreign companies. People who discuss corporate social behavior are more likely to say that they have both rewarded and punished companies based on their social performance.

Men overall and both men and women with high levels of education and income pay most attention to the social behavior of companies.

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 In order to anticipate likely future changes in public views on the role of companies and their social responsibilities, Environics applied its opinion leader typology to identify opinion leaders from among Opinion respondents to the Millennium Poll and compared Leader their views with those of the general population. A comparison of the views and behaviors of opinion leaders with those of the general population reveals that Typology opinion leaders are twice as likely to be talking frequently about corporate behavior and significantly more likely While the views of the general population are critical, to have punished a socially irresponsible company in the especially when dealing with political and consumer past year. These findings suggest that companies will issues, it is also instructive to understand the come under even greater public pressure in coming sometimes differing views of those individuals within years to deliver on their broader social responsibilities. the general population who tend to influence the opinions of others. It is well established that these “informal opinion leaders” often have more impact on general public views than do the formal leaders of a society. Therefore, monitoring the views of these informal opinion leaders helps to predict coming majority views of the general population.

Environics has developed a proprietary opinion leader typology, based on an analysis of responses to a bank of questions fielded to all respondents of our global surveys. The series of questions draws from Environics’ Environics’ Opinion Leader past research as well as social research literature and includes strength-of-personality questions, self- Typology reported measures of issues engagement, as well as questions aimed at identifying individuals who have formal leadership positions or speak in public. Non-participants Responses are analyzed using factor and cluster 27 Opinion leaders analysis techniques to yield four typologies of people based on their engagement with public policy issues 20 and their influence on the views of others.

Informed debaters The segment identified as “Opinion Leaders” make up Listeners 32 20 percent of the global population. This represents 21 people who serve in leadership roles in organizations, regularly speak in public and influence others’ opinion.

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Opinion Leader Typology

A detailed comparison of the views of opinion leaders ➤ When asked to rate companies on fulfilling their with those of all respondents yields the following responsibilities to society, opinion leaders are more insights: likely than others to give high ratings to both national and foreign companies. ➤ Opinion leaders are less inclined to look to governments for leadership. They are somewhat ➤ Nearly four in ten opinion leaders have frequently more likely to mention both companies and NGOs discussed corporate social behavior with friends as important sources of leadership, perhaps and family, compared with only two in ten in the foreshadowing a future shift in public expectations total population. They are also more likely to be toward the latter groups. able to name responsible companies.

➤ Opinion leaders are more inclined to believe that ➤ Opinion leaders are more likely to say they have privatization is a positive development. This view is both rewarded and punished companies according consistent with their belief that government will be to their social performance. In fact, four in ten say a decreasing source of leadership. they have rewarded or punished a company through purchase decisions or in discussion. Only ➤ Nearly four in ten opinion leaders believe that about two in ten of the total population report companies should go well beyond their traditional having done so. economic role and actively help to build a better society—compared with three in ten of the total These findings indicate that companies will likely feel population. However, opinion leaders are less likely increasing pressure to become more socially than others to think that companies should be held responsible and will be increasingly rewarded or completely responsible in two areas, namely, solving punished by consumers depending on how they social problems and providing long-term jobs. respond to these changing expectations.

Corporate Social Responsibility: A Rising Agenda Opinion Leaders (20%) vs. Total Global Sample

02040

Have talked “many times” about 37 corporate behavior in past year 20

Role of companies: 38 to help build better society 33

Have punished a company seen as 39 not socially responsible in past year 23

Opinion leaders

Total population

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 The findings of the 1999 Millennium Poll survey are based on the results of face-to-face or

telephone interviews with representative samples of about 1,000 citizens in each of 23 countries

on all six continents. The total global sample is 25,247.

Methodology

The following table gives a more detailed description of the methodologies used in each of the 23 countries.

Country Sample Size Field Dates Sample Frame Survey (Unweighted) Methodology Type of Sample Argentina 1,001 Apr 1 - 20, 1999 18 years and older Face-to-face Urban1 Australia 1,000 Jul 31 - Aug 16, 1999 18 years and older Telephone Nation-wide Canada 1,512 Mar 31 - Apr 17, 1999 18 years and older Telephone Nation-wide China 1,817 Apr 9 - 16, 1999 18 years and older Face-to-face Urban2 Dominican Republic 501 Apr 29 - 30, 1999 18 years and older Face-to-face Nation-wide Germany 1,000 Apr 16 - May 17, 1999 15 years and older Telephone Nation-wide Great Britain 919 May 7 - 10, 1999 15 years and older Face-to-face Nation-wide India 1,000 Apr 1 - 20, 1999 15 years and older Face-to-face Urban3 Indonesia 1,007 Apr 11 - 27, 1999 15 years and older Face-to-face Urban4 Italy 1,019 May 19 - 26, 1999 18 years and older Telephone Nation-wide Japan 1,379 Apr 9 - 12, 1999 20 years and older Face-to-face Nation-wide Kazakhstan 1,031 Mar 1 - 20, 1999 18 years and older Face-to-face Nation-wide Malaysia 1,036 Apr 16 - 18, 1999 18 years and older Telephone Nation-wide Mexico 1,277 Apr 20 - 30, 1999 18 years and older Face-to-face Nation-wide Nigeria 1,100 Apr 19 - 24, 1999 15 years and older Face-to-face Nation-wide Poland 994 Apr 16 - 19, 1999 15 years and older Face-to-face Nation-wide Russia 1,054 Mar 20 - 29, 1999 18 years and older Face-to-face Nation-wide Spain 1,000 Apr 15 - 30, 1999 15 years and older Face-to-face Nation-wide South Africa 2,000 May 10 - June 10, 1999 16 years and older Face-to-face Urban5 Turkey 1,200 Apr 2 - 19, 1999 15 years and older Face-to-face Nation-wide United States 1,000 Jul 7 - 18, 1999 18 years and older Telephone Nation-wide Uruguay 900 May 11 - 25, 1999 18 years and older Face-to-face Nation-wide Venezuela 500 Aug 23 - 27, 1999 18 years and older Face-to-face Nation-wide

1 In Argentina the survey was conducted in Capital Federal, Gran Buenos Aires, Cordoba, Rosario, Mendoza and Mar del Plata, representing 44% of the total population. 2 In China, the survey was conducted in Beijing, Shanghai, Guangzhou, Zhengzhou, Wuhan, Hangzhou, Shenyang, Chengdu and Shenzhen, representing 25% of the population. 3 In India, the survey was conducted in Bombay, Delhi, Calcutta and Madras, representing 22% of the total population. 4 In Indonesia, the survey was conducted in Jakarta and Surabaya, representing 6% of the total population. 5 In South Africa, the survey was conducted in Gauteng, Durban, Pietermaritzburg, Bloemfontein, Port Elizabeth, East London and Cape Town, representing 37% of the total population.

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999 Environics International Ltd. would like to gratefully acknowledge the substantive

contribution of each of our research partners in undertaking this international study.

We are honored to be associated with this network of respected social research institutes. Research Partners

The following table provides the names of the research institutes that conducted the fieldwork in their country for the 1999 Millennium Poll survey.

Country Research Institute Location Argentina MORI Argentina Buenos Aires Australia Market Attitude Research Services Pty. Ltd. Sydney Canada Environics Research Group Ltd. Toronto China Survey & Statistics Institute Beijing Dominican Republic Sigma Dos Dominican Republic Santo Domingo Germany RI*QUESTA GmbH Buerstadt Great Britain Market & Opinion Research International Ltd. (MORI) London India ORG-MARG Bombay Indonesia Frank Small and Assoc. Jakarta Italy EURISKO Group Milan Japan Central Research Services, Inc. Tokyo Kazakhstan Agency BRIF Almaty Malaysia Taylor Nelson Sofres Malaysia Kuala Lumpur Mexico MORI Mexico Mexico City Nigeria Market Trends, Nigeria Ltd. Lagos Poland Demoskop Warsaw Russia CESSI Moscow Spain Quota Union Madrid South Africa Markinor Johannesburg Turkey YONTEM Research & Consultancy Istanbul United States NFO Research, Inc. Greenwich Uruguay Equipos/MORI Montevideo Venezuela Sigma Dos Venezuela Caracas

THE MILLENNIUM POLL ON CORPORATE SOCIAL RESPONSIBILITY 1999