The Rise of Ethical Branding

Ethical Branding

Twenty years ago, we didn’t hear much about sustainability from companies or their approach to social responsibility. But flash forward to today, and if you are a manufacturer that isn’t talking about these two topics, you’ve fallen behind. Sustainability and corporate responsibility have not only become unique selling points but are often interwoven into a brand’s story and messaging. Socially conscious customers are responding with their purchase power and loyalty, proving the importance of ethical branding in business. And brands are responding by aligning with their customers’ values, growing trust and sharing their actions for building a safer and healthier future.

Here are a few ways to do that:

Discover what is important. According to the Capgemini Research Institute, 79 percent of consumers are changing their purchase preferences based on social responsibility, inclusiveness or environmental impact. That makes it all the more important to discover what your customers and prospects hold most significant. Take the time to survey and talk with them. Then use what you learn to determine how you can align your mission to achieve meaningful environmental and social progress.

Make it a differentiator. Any efforts your company makes to reduce its environmental impact and act in a socially responsible way should be used as differentiators. I’ve worked with manufacturers that actively develop innovations that allow them to reuse natural resources or reduce, or even eliminate, waste in their facilities. Some of them even help customers operate more sustainably by visiting their facilities and advising them on the most efficient ways to use their products or how they can change their processes to be more productive. These are all powerful differentiators that set them apart from competitors and appeal to customers who seek out suppliers with environmentally responsible operations.

Give teams meaning and purpose. The most important thing you can do is give employees and sales teams meaning beyond their day-to-day jobs. Engaged, loyal teams recognize their value and see their role in driving the company’s mission forward and doing work that matters. Employees will be less likely to leave a company that actively cares for and protects the environment, people and communities, especially if they have opportunities to personally contribute in these areas. From company-wide recycling programs to special days throughout the year where teams can volunteer their time, environmentally and socially conscious activities create a positive, uplifting culture that attracts and retains talent.

Get it out there. Businesses may be inclined to keep their sustainability progress under wraps until they’re well on the way to achieving their goals. They may feel the company isn’t far enough along or that it’s lagging behind competitors. But sharing environmental and social goals early and often will let customers, employees, suppliers, the community and the industry know that you are working toward meaningful progress. Silence will only lead them to assume you’re doing nothing in these areas. Annual reports, websites and social media are just a few of the ways you can share progress on your sustainability and corporate responsibility goals.

Protect the people. For the best manufacturers, the safety of their people is an ongoing focus. These companies must share their safety story and make it part of their brand messaging. No customer wants to purchase products from a company that puts human lives at risk in their manufacturing process. They also don’t want to purchase from businesses that fail to protect human rights within their material sourcing or supply chains. Brands must explain how they’re keeping their employees safe and protecting the lives of those who contribute to their production and distribution processes.

Live up to your promises. Ethical brands live up to their promises. They avoid saying one thing and doing another. They are transparent and honest in their messaging and business practices. And when issues arise, they own up to their mistakes. When Netflix separated its DVD service from its streaming service, customers who wanted to keep both were faced with a steep price increase. The CEO issued a letter explaining the changes, and while the prices didn’t change, the company was more transparent about the what and why of this significant shift in their brand model.

Today, consumers have more choices than ever on the products and services they purchase. Increasingly, they are seeking out environmentally and socially conscious brands whose mission aligns with what’s most important to them. That’s why companies must communicate their values and position their sustainability and social efforts as differentiators to not only win the hearts and minds of their customers but also become leaders in their industries.

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About The Author

Barry LaBov, a two-time Ernst & Young Entrepreneur of the Year and inductee into the Entrepreneur of the Year Hall of Fame, is founder, president and CEO of LaBov & Beyond Marketing Communications and Training and is president of the board and a shareholder of Sycamore Hills Golf Club, both of Fort Wayne, Ind. LaBov & Beyond was founded in 1981 and has a client list that includes national and international brands in automotive, recreational vehicles, motorcycles, financial services, construction equipment, apparel and medical devices. LaBov has authored or co-authored more than a dozen business books, including The Umbrella Story series of business parables. LaBov has been published in national and international publications as well as appeared on CNBC and Fox Business channels. In addition to its Fort Wayne headquarters, LaBov & Beyond also has operations in Detroit, Phoenix and Indianapolis. His daily blog on business and leadership can be read at BarryLabov.Blogspot.com. For editorial consideration please contact editor@jetsetmag(dot)com.

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