Consumers invest in socially responsible brands

Brands that fail to prove they have a sense of authentic purpose run the risk of becoming irrelevant. You may feel this is a strong sentiment, but numerous surveys show this is the view of socially-conscious consumers and customers (existing or potential) that are becoming increasingly distrusting of corporate brands.

In 2015, Nielsen reported that 90% of consumers do not trust traditional advertising. Little has changed since then – other than the resolve of consumers determined to make a difference.

Fact: Consumers demand corporations to be actively engaged in the betterment of society. The conversation around corporate social responsibility (CSR) has evolved from a fringe discussion on social sites and has moved into the cross-hairs.

People want to see positive brand action, not advertising.

“91% of consumers would switch to brands associated with a cause.”

The lack of trust between corporate brands and consumers has been escalating for over a decade. The social and political unrest following the collapse of the housing market and the subsequent impact on the global economy was just the start.

Since then, a string of household brand names and figures in positions of power have been exposed of scandalous exploits.

The knock-on effect has seen consumer sentiments towards corporate brands falter. The general public, especially millennials, feel corporations are in a position to improve society. What they are witnessing is firms they used to trust taking advantage of customers.

As a consequence, there is no brand loyalty anymore. In 2015, Cone Communications published a comprehensive snapshot revealing “91% of consumers would switch to brands associated with a cause.”

The changing tide was reinforced the following year when Unilever released the results of a survey that revealed a third of consumers adopt brands that are committed to social responsibility.

The onus is on corporate brands to have a positive impact on society, and given social media fosters awareness of global issues, social responsibility is increasingly important.

Fact: people care about the welfare of others and are willing to spend their money with brands that share the same values.

Socially responsible brands

Although customers are quick to support and recommend brands that have a purpose, companies have to find a balance before stepping on to the political tight rope.

A survey conducted by Sprout Social revealed that 24% of the 1000 adults surveyed feel it is “very important” for brands to take a stand on social and political issues and 41% believe it is “somewhat important.”

Should companies risk being alienated for having an opinion which may not fit a political agenda?

It’s a question that is rightly open for debate.

The #GrabYourWallet campaign to protest against Donald Trump’s controversial comments is proof individuals and businesses are not afraid to stand against the political elite. The campaign, started in 2016, has now garnered support from more than 70 national (American) and international brands including Nordstrom, Jet.com and Gilt. But there are many more recognised brands that still stock Ivana Trump’s fashion label. Maybe sometimes it is not all 'guilty by association".

The bottom line is that success in business is about building an affinity with customers. And consumers have shown they are prepared to reward or punish brands that take action. A survey found that 87% of consumers say they make purchasing decisions based on brand values and 76% would boycott a company if it does not support issues they believe in.

Why purpose marketing is relevant

The most recent study published by Cone Communications reaffirms that brand values redefine marketing boundaries. CEO’s can be certain they are being judged on their commitment to social causes as much as the functionality and benefits of their business.

Purpose driven marketing is an effective means of bonding with an audience. A powerful way for brands to make a statement is to support a worthy cause. Brands that support charities win over the hearts of like-minded customers.

Supporting local and global issues people care about is equally powerful.

Starbucks has pledged support for gay marriage. Body Shop is persistently vocal about environmental issues and animal rights (although it is their entire premise). Whole Foods endorse sustainable agriculture. And my own employer, Maersk, consistently promote social values and how they are making changes that benefit communities and wider public affairs topics of conversation, for example with the recent partnership and call to action to encourage more females to connect with global markets (1 Million by 2020)

The key takeaway message of this article is therefore clear - meaningful brand action is critical. Purpose marketing underscores what a company stands for by proving what your business is willing to stand up for.

If consumers or customers (as it also applies to B2B organisations) are consistently pushing brands to escalate their CSR efforts, it’s in the best interests of companies to act. Fighting a good cause goes beyond doing the right thing by your audience. Brands have a ‘social responsibility’, for want of a better expression, to improve global issues and under-represented sects of society.

I want to leave you with this thought; everything you do in pursuit of profit can serve the global community and help improve a world that is falling apart at the seams.