BRAND ACTIVISM

BRAND ACTIVISM

WHAT’S THE ROLE OF BUSINESSES IN CREATING A BETTER AND MORE SUSTAINABLE TOMORROW?

The role of business in our society is significant. For that reason, there is an increasing requirement for companies to take active stands on raising and solving the pressing societal and global issues of today. Organisations have an opportunity and RESPONSIBILITY to use their leverage and connections to drive positive change. The full potential of corporate activism is yet to realise, which means the front row seats are up for grabs.  

The world has changed. And so has the idea of companies being mainly responsible for creating value for shareholders. Citizens and stakeholders are increasingly holding businesses responsible for taking care of the environment, the people and the planet. The bigger the business, the greater the responsibility.

The ethical transformation of today is a fundamental reformation of the business environment - and it affects practically every industry. The rise of social media, as well as the increasing demand for corporate social responsibility and transparency, have provoked the discussion of the role of corporations and businesses in society. Keeping a low profile is no longer an option as companies are expected to contribute to making a change for the better, for all of us. In the future, the most successful companies are the ones who dare to step up today and lead the way for others to follow.

People are looking for leadership as we’re witnessing various societal challenges, global crises and political polarisation. Companies can have a positive impact with influential representatives, who are able to create trust and credibility. Brand activism is often linked to a strong leader - someone to identify and agree with. As the public is losing its trust in the governments to solve the pressing societal and environmental issues we’re facing, organisations have an opportunity to speak up and use their platforms to drive change. The social issues under public debate are often divisive, and taking a position on an issue isn’t without risks. What’s essential is having the courage and the guts to stand for something you believe is right. If you’re not, no one will stand with you.

What is brand activism?

Brand activism, also referred to as corporate activism, means taking a stance on social, environmental and global issues and participating in the public discussion on societal matters as well as contributing to solving some of the most pressing global challenges we as humanity are facing today. Brand activism can be understood as active citizenship taken on by businesses. Brands can become activists by initiating important public discussions and raising social and environmental awareness, as well as taking concrete actions. The trick is authenticity and a genuine will to change things for the better - even and especially when campaigning for something valuable doesn’t revolve around the business.

Brand activism is not to be confused with traditional corporate social responsibility. While CSR can be understood as taking responsibility for the environmental and social impacts of the operations of a business, brand activism can have an impact on society at large and build communities based on shared values and beliefs. Activism is a tool to make change happen.

What motivates organisations to activist behaviour are value and purpose based leaders as well as market forces, such as conscious consumers who demand responsibility and sustainability. However, the aim of brand activism should not be financial profit - but activism can, and often times does, have a positive halo effect on business. The important thing to remember is that brand activism can create a movement that includes people you have no customer relationships with.

The world we live in today is largely determined by businesses and corporations. That’s why companies are held responsible for contributing to making a better tomorrow. Best case scenario, brand activism can create communities and help individuals and organisations to come together for a common goal: making the world a better place.

Here’s an example of brand activism from Procter and Gamble, who launched this controversial ad taking a stand on racism and prejudice. Given the nature of the topic, it is no surprise that the ad received a lot of criticism alongside the positive feedback. However, P&G count the campaign as a success, since the aim was to spur conversation and raise awareness. And they did win an Emmy for it.  

Is brand activism also good for business?

Purely profit-seeking business is decreasingly justifiable. The way people spend money is an ethical statement, and consumers want to express individual values as well as societal and political opinions by identifying with brands that share the same ideologies. Corporate activism is strongly value-based and stems from an authentic desire to contribute to, for example, environmental protection or promoting social equality. However, for many organisations, financial incentives are a strong motive to engage in more sustainable operations and invest in the future.

Daring to take a stand on important issues can lead to a better employer brand and financial success, but this is not the end goal of brand activism - rather a positive side effect. Still, responsibility and sustainability need to be seen as essential values for the people within a company wanting to engage in brand activism. Flimsy brand activism will only hurt the company, as it is likely to be perceived as pretentious.

Here’s the good news: sincere brand activism is considered to have a positive effect on business, since:

People want to work for a bigger purpose

Especially young professionals choose their employers based on personal values. There’s a high demand for good workers, and the best want to work for ethical and responsible companies. According to the Trendwatching Trend Report 2019, 80 % of millennials consider making the world a better place more important than professional success. Young people want to work for organisations who enable them to engage in issues they feel passionate about: taking part in tackling the current societal and environmental challenges. Also, they want to identify with the company values. Along the same lines, Cone Communications Millennial Employee Engagement Study suggests, that three out of four millennials would choose a lower pay in a responsible company over a bigger salary in another. Also, 64 % of millennials would decline a job offer in a company without a meaningful CSR vision. Therefore, brand activism attracts young talent and leads to committed employees.

Customers expect responsibility and reliability

A rapidly growing number of people want to consume ethically and support brands that stand for more than profitability. The global Edelman Earned Brand report shows that nearly three out of four consumers would choose, change or avoid a brand based on how it commits itself in social issues and ills. These consumers are the so-called demography of belief-driven buyers. Out of these buyers, 67 % have chosen a specific brand for the first time based on the brand’s public statement on a social issue. Similarly, 65 % of these people would not purchase from a brand who’d stay quiet on a matter that would require taking a public stance. These trends are global and clearly booming.

Activism builds thought leadership and brand image

Brand activism can lead to a better reputation and a status as a thought leader. Thought leadership, however, needs to be found on company values and a strategy that enables stakeholders to commit to and identify with. The ethical and responsible values need to be internalised within the company and its representatives first, and then brought to the public sphere. Perseverance and consistency are key when executing meaningful brand activism.

When a brand contributes to the public debate, its opinion bears no meaning if the company doesn’t live as it preaches. First, values need to be incorporated in the daily operations of the company and all business aspects. That way, value-based communication is ensured to be authentic and reliable. When your business has established a clear purpose, strategy and set of values, it is natural to take part in the societal discussion and publicly stand for what you believe in.

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