CEOs: Pressure to Make Impact

February 21, 2017 Oak Ridge Investments

Recent studies indicate that global consumers feel personally accountable for social and environmental issues – and they look to companies as partners in that endeavor.  Ninety percent of consumers expect companies to do more than make a profit1 and 39% of CEOs think their businesses should be doing more to measure environmental and social impact.2

Expectations for SRI/ESG involvement are highest among companies with more than $15 billion in revenue.  More than 75% of these large firms have reported that they experienced increased pressure to weigh in on social and environmental issues and that 86% of large companies expect that pressure to increase over the next three years.3

The sharp increase in SRI and ESG mandates across sectors is already being reflected in consumer studies.  A study by Cone Communications1 suggests that 72% of consumers believe their purchases make a moderate-to-significant positive impact on social or environmental issues.  Part of this may be attributed to an improvement and transparency in how companies talk about and represent their green products – confusion about language and messaging dropped from 71% in 2011 to 65% in 2015.

Global Consumers Willing to Make Personal Sacrifices to Address Social and Environmental Issues.  Cone Communications.  5/27/2015

19th Annual Global CEO Survey.  PWC.  January 2016.

 Public Affairs Council.  July 2016.

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