Business executives are catching up with consumers in expressing concern about global warming and other environmental issues, two global surveys indicate.1 In a sea change over the past 12 months, executives now regard the environment as the sociopolitical issue that will attract the most attention, by far, from the public and politicians over the next five years.
Taking action on global warming and other environmental issues seems critical for narrowing a general trust gap between consumers and corporations. Yet this kind of activism will not be a panacea for companies hoping to address the growing societal expectation that business should contribute more to the broader public good.
Consumers also want healthier and safer products, retirement and health care benefits for employees, and much else besides, though their expectations vary by industry and geography. What’s more, they say clearly that the performance of an industry or a company on a wide range of societal issues affects not only its reputation but also their willingness to buy its products. Each corporation faces a wide range of risks specific to the industries, regions, and countries in which it operates. But our surveys also reveal that companies have significant opportunities to differentiate themselves...