Users tend to prefer socially responsible companies.
<aside> ℹ️ When companies demonstrate social responsibility that is perceived as genuine by consumers, they are rewarded with increased respect, which in turn leads to greater profits. That’s the noble edge effect.
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Whenever we feel more inclined to give a store our business after hearing that it donates to charity or that its products are ethically sourced, that’s the noble edge effect talking. What’s particularly interesting about this effect is that its influence over us depends on the source from which we hear about the company’s social responsibility.
For example, if we see an advertisement on television that is promoting a major sale at a certain store and also happens to mention the fact that they donate a portion of their profits to charity, we tend to view it as a shallow marketing ploy. However, if we see an advertisement for a certain charity in which the store is thanked for its kind donations, we may interpret the store’s donation as a genuine act of generosity. In the latter situation, we may be influenced to shop at the store.
Not Mars. We’re in business to save our home planet.
Not Mars. We’re in business to save our home planet.
Patagonia’s Noble Edge [The outdoor clothing brand](https://en.wikipedia.org/wiki/Patagonia,_Inc.) is one of the best examples of a company using its Noble Edge to solve modern problems and at the same time successfully grow its business; currently employing 2000 people who help generate $600m in revenue (2013). It donates 10% of its profits to small-scale environmental projects.
Founder Yves Chouinard says that “the big ‘a-ha’ was that you could do something good for the environment that was also good for your business. That was a seminal lesson for me”.
More here on this game-changing business.
Why do we tend to favor brands that show care for societal issues?
