Tech Companies Lead in Kindness Perception, Retail Follows

Tech Companies Lead in Kindness Perception, Retail Follows

A recent analysis has revealed that businesses known for their kindness tend to experience more robust growth.

This analysis, conducted by management consultancy Baringa, involved surveying 6,028 consumers across seven countries.

Participants were asked to identify companies they considered “kind” and “unkind,” and their financial data over the decade leading up to 2022 was subsequently compared.

The Kindness Advantage

The analysis yielded significant insights.

Companies perceived as kind were found to be 35% more likely to have doubled their earnings before interest, tax, and amortization (EBITDA) during the same decade.

In contrast, businesses considered unkind were 20% more likely to witness a decline in their EBITDA over the same period when compared to their kinder counterparts.

Consumer Influence

Interestingly, the survey also highlighted the power of consumer perception.

A staggering 61% of respondents from various countries, including the UK, US, Australia, Germany, Netherlands, Switzerland, and Singapore, stated that they had refused to purchase products or services from companies they deemed unkind within the past two years.

Perceptions by Industry

The report delved deeper into industry-specific perceptions.

It revealed that technology companies received the highest recognition for kindness, closely followed by the retail sector.

Conversely, respondents most frequently associated e-commerce, food and beverage, and fashion companies with unkindness.

The Role of ESG and Kindness

Baringa’s analysis underscores the significance of actions typically associated with kindness and a strong Environmental, Social, and Governance (ESG) performance.

These actions include fair treatment of staff and suppliers, as well as taking public stances on ethical issues.

Such companies, it appears, are more likely to thrive in the business landscape.

A Powerful Correlation

Anya Davis, a partner at Baringa, emphasized the relevance of kindness to business success.

She noted that kindness and business success are not mutually exclusive but rather mutually compatible.

Davis urged a shift in perspective, encouraging businesses to embrace ESG practices as pro-business rather than dismissing them as anti-business.

In conclusion, the analysis reveals that kindness in business not only benefits society but also contributes significantly to a company’s growth and success.