Economy is top priority for business leaders but CSR gains ground

Global consumer goods companies continue to fight the effects of the financial crisis but refuse to put social and environmental responsibilities on the back burner.

That’s the key finding of the latest Top of Mind Survey from The Consumer Goods Forum, which reveals the priorities of 345 key decision-makers in retail and consumer goods companies across 46 countries.

The survey, conducted twice a year, found while the economic environment and consumer spending patterns remain the number one focus for over half of respondents, corporate responsibility has moved up the overall rankings from third to second place in 2010.

The ‘competitive landscape’ has also moved up the rankings this year. According to The Consumer Goods Forum, its third place position indicates an increased urgency among retail and consumer goods companies to compete and win in a landscape where frugality and restraint dominate.

Food and product safety is another high priority for the industry in 2010, reflecting the importance placed on consumer confidence in this area, it says.

Retail/supplier relations, covering issues including trade costs, pricing and collaboration, retains its fifth place position in the overall rankings.

However, there is a difference in the importance placed on this area by retailers and manufacturers. Retailers rank it eighth in the list of priorities for the coming year while manufacturers rank it second.

This reflects the fact pricing remains of the utmost importance to the industry players to remain competitive and to be able to continue to offer recession-friendly prices to the shopper. Reviewing the survey results, The Consumer Goods Forum's managing director Jean-Marc Saubade, said: “These findings demonstrate that, faced with a discount mindset that may prevail beyond the recession, the consumer goods industry has recognised this prime opportunity to inspire consumers again.

“Consumers now expect high quality at low prices, and the drive to meet their needs is fostering tremendous innovation from brands and in retail formats. Meanwhile, it is encouraging to see corporate responsibility has not only withstood the pressures of the economic crisis, but has even risen up the rankings this year - proof that its influence on the corporate agenda is here to stay.”