Building the Business Case for Social Responsibility

Latest CSR and ESG Statistics You Should Know

Dive into each section to learn more about CSR Statistics around return on investment, consumer, investor, employee, and executive beliefs. This data is meant to help companies of all sizes see the benefits of investing in CSR and ESG.

5 CSR Statistics About the Return on Investment

1. CSR programs have shown to increase market value by up to 4 – 6 %
2. CSR programs have shown to increase revenue by up to 20%
3. Every 1$ in corporate philanthropy contributions can generate $6 in increased sales revenue
4. CSR has shown to reduce staff turnover by 50%
5. CSR programs can increase employee productivity by 13%

– Project ROI CSR Report

These statistics show that companies can see a return on investment from their CSR programs from increased employed productivity, reduced costs or increase in revenue. This is great data to show an executive that wants to understand the effect that CSR can have on the bottom line. Checkout this blog “Building the Business Case for a CSR Budget” to see an example of how to estimate savings in employee turnover + a formula to do this calculation with your company’s numbers.

5 CSR Statistics About Consumer Beliefs

1. 46% of all consumers and 51% of millennial consumers say they pay close attention to a company’s efforts to be socially responsible when deciding to buy something – Markenstein Survey
2. 40% of consumers identify as Purpose-Driven Consumers, meaning they seek products and services that align to their values – IBM Report
3. 76% of consumers say yes to “I will discontinue my relationship with companies that treat the environment, employees or the community in they operate poorly.” – PwC ESG Series
4. 79% of Americans say they feel a deeper personal connection to companies with values similar to their own – 2019 Porter Novelli/ Cone Purpose biometrics study
5. When a company leads with purpose, 83% of consumers agreed they would be more loyal to that company. – 2019 Porter Novelli/ Cone Purpose biometrics study

This is another great group of statistics to show an executive what an investment in corporate purpose can do to the bottom line. Consider calculating the new customer lifetime value (CLV) from an increase in retention rate or decrease in churn rate if your customers remain loyal because they align with your company’s values.

This is a simple formula for measuring CLV and a good place to start. Harvard Business Review has a handy CLV calculator tool that includes a few more elements, like the average discount rate, and can show the present value of profit per customer!

If you haven’t already, check out this blog “New Era for Corporate Philanthropy”. You’ll find an infographic with more stats on the relationship between consumers and companies that lead with purpose, as well as an interview with the co-founder of CHANGE on engaging consumers with your corporate philanthropy. Additionally, the Journal of Marketing just released a study on the Impact of Corporate Social Responsibility on Brand Sales showing the positive or negative effect of CSR measures (depending on the sincerity of the CSR action) on consumers behavior towards actual purchase decisions.

9 CSR and ESG Statistics about Consumer, Investor and Employee Beliefs

We have armed you with so many good stats that show how CSR can contribute to the bottom line. Are you wondering, do my investors or shareholders care about CSR or ESG? Well, the answer is YES. ESG and CSR intersect through the governance structure and a company’s efforts under the “Social Pillar”. These statistics focus on the growing importance of sustainable business practices. Whether you’re a high growth startup seeking investment funding or a publicly traded company, this data should resonate with you on the importance of corporate purpose.

1. The number of sustainable funds rose 30% from 2019 to 2020 and has increased almost 4x over the past 10 years – Morningstar Sustainable Funds Landscape
2. 85% of individual investors are interested in sustainable investing, up 10% from 2017 – Morgan Stanley for Sustainable Investing
3. Sustainable funds on average outperformed conventional funds in 2020. – Morningstar Sustainable Funds Landscape
4. ESG funds captured $51.1 billion of net new money from investors in 2020, a record and more than double from the prior year (2019 was around $21 billion). – Morningstar
5. 86% of individual investors believe that a company’s ESG practices can potentially lead to higher profitability or may be better long-term investments – Morgan Stanley for Sustainable Investing
6. As of 2019, 90% of the S&P 500 publish a yearly sustainability report – G&A Institute: Flash report 2020 Fortune 500
7. 57% of consumers are willing the change their shopping habits to reduce their environmental impact. – IBM Report
8. 83% of consumers think companies should be actively shaping ESG best practices – PwC ESG Series
9. 80% of employees are more likely to work for a company that takes a stand on Environmental issue – PwC ESG Series

New to ESG? Check out this free download, Exploring Environmental Social Governance

5 CSR statistics about Employee Beliefs and Employee Engagement

1. 85% of millennials believe making a positive difference in the world is more important than professional recognition – What Millennials Want from Work
2. 60% of employees will take a pay cut to work for a purpose driven company – Porter Novelli, Purpose Tracker: Employee Perspective on Responsible Leadership During Crisis
3. 66% of employees wish their company would prioritize DE&I more – Porter Novelli, Purpose Tracker: Employee Perspective on Responsible Leadership During Crisis
4. Highly engaged businesses realize a 41% reduction in absenteeism, 24% less turnover and a 17% increase in productivity – Gallup State of the Workplace Report
5. Disengaged employees costs US companies up to $550 billion a year – DNA of Engagement Report Conference Board 

Consider partnering with your HR or recruiting team to help build the business case for a CSR program. These statistics showcase how employees feel about working for a purpose driven company and showcase the benefits of highly engaged employees. Checkout this infographic on Purpose Driven Work for even more data, including how CSR can increase employee engagement.