In the summer we announced the launch of our inaugural Good Report, which is dedicated to shedding light on the challenges and opportunities facing ethical and sustainable businesses, as well as understanding consumer behaviour in the space.

For our first edition, we wanted to understand how the cost of living crisis is impacting ethical businesses and we’re delighted to say that after surveying over 50 businesses, much number crunching and a little bit of designing, the Good Report Part One is here! So grab a brew and let’s into what we found… 

The impact of the cost of living crisis

First up, the cost of living crisis is having a negative impact. 39% of businesses reported that their customers are cutting back on spending and 34% felt purchases were being considered more, leading to concerns about the growth and profitability of businesses.

But something that will come as no surprise for anyone who knows an ethical business owner, they remain resolute in their mission and belief. Despite the challenging backdrop, 71% are confident their business will survive the cost of living crisis. 

The power of community

Community is the heartbeat of ethical businesses, and the report emphasises the importance of strengthening these bonds. Many ethical businesses already exude a sense of belonging, yet they yearn for more connections and collaborations with like-minded enterprises. Building business networks and embarking on collaborative initiatives can fortify this sense of community, creating a collective force for positive change.

Communicating their mission

One critical element highlighted in the Good Report is the need for ethical businesses to effectively communicate their social, environmental, and ethical missions to their customers. Transparent and compelling storytelling plays a pivotal role in engaging customers and nurturing loyalty. Here at In Good Company, we wholeheartedly believe in supporting businesses in conveying their values and missions and it's why we’re hosting a special half-day event for purpose driven businesses on Wednesday 22 November to respond to this need. You can find out more about the event and book tickets here. 

Moreover, word of mouth and collaboration emerge as key drivers of customer acquisition for ethical businesses. We know that brands with a clear mission inspire greater loyalty among customers. 

If you had a magic wand...

We also asked businesses if they had a magic wand, then what would they want the government to do to support ethical businesses more. As you might expect we had a lot of responses! This ranged from tax breaks for ethical businesses, a more level playing field when it comes to grants and support, as well as policy changes that incentivise the shift to better business practices. 

You can find out more about the findings of the Good Report here and also get a copy of the full report. 

And stay tuned for Part Two coming soon which will dig into the so-called conscious consumers and explore the consumer perspective…. If you want to make sure you get your hands on it first, then sign up to our newsletter now.