Havas Media's Meaningful Brands study consulted 50,000 people in 14 countries to measure the perceived impact of brands on health, fitness, happiness and social relationships.
Asked what percentage of brands have a positive impact, the 2,700 people surveyed in the UK gave an average answer of just 5%.
Lord Watson said: "In the past traditional marketing has focused on selling 'products' to 'consumers' through stories and promises. However, if people in the UK feel that only 5% of brands noticeably improve their quality of life, the way we look at marketing has to change.
"Essentially Meaningful Brands is a wake-up call for us all and the start of a much needed step change for our industry. We now need to understand how to deliver and communicate the specific product values that benefit us both as citizens and individuals."
Respondents were also asked to rank specific brands in order of their impact, in order to create a Meaningful Brand Index score.
Marks & Spencer topped the index, scoring highly thanks to its Plan A initiative, which promotes ethical and sustainable trading, but also through its positive engagement with customers, through schemes like the Oxfam Clothing Exchange.
O2 was the highest-placed telecoms company on the list.
Bill Eyres, head of sustainability at O2 UK & Telefonica Europe, said: "This demonstrates that brands that make a real difference to customers and their communities will be rewarded with stronger brand loyalty.
"O2 have focused on engaging consumers in sustainability through our 'Think Big for People and Planet' programme.
"We provide customers simple ways to make a big difference, such as eco-rating which enables customers to see the sustainability rating for a new phone.
"We have also backed over 1,000 young people’s projects, making a meaningful contribution to communities and giving young people the training to progress."
The top 10 most meaningful brands in the UK:
- Marks & Spencer
- Sainsbury's
- Unilever
- Tesco
- Walmart (Asda)
- Mars
- Danone
- O2
- Starbucks
- Wrigley
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