As Oscar Yuan, President and CEO at IPSOS, said recently about future trends in business: “it’s not about being right. It’s about being prepared.” Here’s why that inspired us:
In recent years brand leaders have pledged to become more “socially responsible.” Funds have been allocated, and positions have been created, with stakeholder value touted as paramount to success. But as we settle into a new normalcy, with Covid receding and the focus on George Floyd seeming to fade in the rearview mirror, brands are still grappling with how to drive social impact without alienating their divided consumer base. Some companies have chosen to stay out of the fray, which is very tempting given the risks and potential repercussions. In fact, of the 4.2 billion in grants allocated by companies to address racial equity, only $70 million has been spent, according to the Wall Street Journal—which is less than 2%.
But doing nothing is not an option: Keep in mind that 65% of employees are interested in switching jobs to find a company that matches their values. And according to a 2022 Harris Poll, 82% of consumers prefer brands that align with their values.
At ShedLight, we believe there is a way for your brand to contribute to society by objectively focusing on issues that the brand can connect to in an authentic way, listening to the voices of target consumers as citizens, and listening to employees—your most important brand ambassadors.
We believe that crafting high-impact social impact strategies while building brands is what marketers are already trained to do. So based on our research and conversations with business leaders and consumers, we have identified five strategies that may help:
1. Know your actual buyer and recognize that 40% of Americans struggle financially. This mainstream mega segment is larger than the Baby Boom, and many are not found in market research databases. This is not about selling cheap products to low-income people. It is about providing access to great value at an affordable price. Target stores have mastered this. It may also involve the creation of programs that directly improve the quality of life in local communities. CVS’s goal is to help their customers maintain optimal health. Their focus on the social determinants of health is an inspiring example of developing a program that authentically connects to their mission.
The starting point is recognizing that the “40%” are “us,” not “them.” Here’s a quick snapshot of women who have college educations, work hard, and still cannot achieve the mythical middle-class dream.
2. Use History to frame your brand’s story: In our hyperconnected tech-driven world, history helps us connect to each other and tap into our mutual humanity. And history can do three things for brands:
- It can be a great source of content. Google’s inspirational “Most Searched” spot on history-makers is a brilliant example.
- It can help you create a unique brand identity and forge deeper connections with your stakeholders.
- It can prevent costly mistakes that damage your reputation that can last forever on the internet. Remember the Prada key chain debacle?
Wendy Lewis, Founder of AllySHIFT and a thought leader in helping companies navigate the challenges of addressing social issues head-on, provides a great example of the galvanizing impact of history on the Major League Baseball brand.
3. Don’t focus solely on external consumers. Include employees’ voices as citizens and consumers because they don’t leave their values and concerns at the door. Moreover, what you say, stand for, and advocate becomes your brand. The Aspen Institute Business and Society Program put this into context for us. They are inspiring thought leaders with unparalleled resources. Here’s a short snapshot of our chat:
4. Get local! Now more than ever, the most significant impact on consumers’ daily lives happens in their communities and at the state level. Defining your civic role is vital, and big brands have local clout. Colgate Toothpaste is a global brand that has used corporate social responsibility for decades to improve oral health for children while building a great brand.
J. Walker Smith, Knowledge Lead and Futurist for Kantar Consulting, provides a succinct perspective on the local clout that brands can use to forge change.
5. Focus on conversations, not confrontation. According to a study conducted by Harvard’s John F. Kennedy School of Government, people overestimate the unpleasantness of talking with those who hold opposing viewpoints. It’s essential to create an environment where issues are discussed without fear. This takes organizational courage and expertise.
Loretta Ross, MacArthur Genius Grant Winner and Smith College Professor, literally wrote the book on Calling in the Call-out Culture. She offers an inspiring perspective on civility in our discussion with her. You can also check out her online class to go deeper.
Parting thoughts: It starts at the top.
We are experiencing the most significant amount of social change since the 1960s, and successfully navigating this unique moment in time is challenging and requires courageous leadership. With unified action, strategically led from the highest levels of corporations and implemented locally, a strong brand purpose can galvanize consumers, employees and even financial markets., These guideposts can help you move forward to better meet the needs of all of the people you serve.
