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Brand activism

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Brand activism is the type of activism in which business plays a leading role in the processes of social change. Applying brand activism, businesses show concern not for the profits but for the communities they serve, and the world we live in, which allows them to build sustainable and long-term relationships with the customers and prospects. Kotler and Sarkar defined the phenomenon as an attempt by firms to solve the global problems its future customers and employees care about. Brand activism is expressed through the vision, goals, communication, and behavior of the businesses and brands towards the communities they serve.[1] According to Kotler and Sarkar, brand activism is when companies act, not just talk, as they quoted Unilever CEO Paul Polman: "The brand has to walk the talk".[2]

History

Brand activism was identified and developed as a marketing and business management concept by Philip Kotler and Christian Sarkar in 2018. Brand activism evolves from cause-related marketing and CSR, and socially responsible business practices. The complete list of six major areas for corporate social-responsibility activities is presented in the book In Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause (2005), by Nancy Lee and Philip Kotler [3] The main Brand activism novation is that it is a society-driven concept, unlike CSR and ESG politics which are marketing-driven and corporate-driven.

Brand activism is a society-driven concept, which evolves from cause-related marketing and CSR, and socially responsible business practices.

Brand Activism Concept

The expectations of businesses to form conversations and policy debates on jobs, economy, regulations, corruption, global warming, discrimination, education, healthcare, and immigration issues are conditioned by society's lack of trust in governments and NGOs. The Edelman Trust Barometer reveals that people fear about the future and don't trust in social institutions.[4] The political, economic, environmental and socio-cultural preconditions for the Brand activism phenomenon, the principles on which the brand activism is based, together with brand activism frameworks and strategies are developed in the book Brand Activism: From Purpose to Action by Christian Sarkar and Philip Kotler[5] According to the authors "Brand Activism consists of business efforts to promote, impede, or direct social, political, economic, and/or environmental reform or stasis with the desire to promote or impede improvements in society."[6]

Marketing application of Brand Activism

From a marketing history perspective, the brands have been marketed on their performance characteristics. Each brand represents specific product attributes and characteristics, that differentiate it from competitors and position it in a distinctive place in the customer mind. Marketing refers to this strategy as positioning. Accordingly the authors, positioning is no longer enough to build a competitive brand strategy. Millennials and Generation Z are sensitive to global environmental, political, economic and social problems and expect brands to show concern for the communities they serve.[7]

Brand activism furthers company social policies as a new level of competitive advantage that goes beyond the product-price offering and the brand's emotional benefits.[8] Brand activism as a marketing practice relies on the notion that to the customer purchasing a product is more than just a transaction, it is an extension of their views, beliefs, and lifestyles.[9] Based on surveys, it matters to consumers that the brands they buy from give back to society. Part of the marketing policy of companies like Nike, Puma, Starbucks, Facebook, REI, and Microsoft is ​​to take a stand against social injustices.[10]

An example of brand activism is Nike’s position as an activist for racial equality. In 2018, they sparked a strong public reaction with a commercial featuring American football player Colin Kaepernick, who began kneeling during the US national anthem in NFL games to protest police shootings at unarmed black men - a gesture that drew the ire of President Donald Trump.[11] [12] As a result of taking the activist position, Nike receives widespread public support, and Nike's stock rose 7.2 percent and the company reported a 10 percent increase in revenue.[13]

Overlapping and differentiating with other activism types

Brand activism is a part of the large branch of economic activism, together with CSR and consumer activism, which involves using the economic power of government, consumers, and businesses for social and economic change.[14] While Consumer activism focuses on consumption and how goods or services are produced and delivered, Brand activism aims to put marketing and business management in service of the community and solving global problems. Consumer activism seeks to change the way in which goods or services are produced in order to make the production process safer, more ethical, and more environmentally friendly. Brand activism seeks to change society's problems, such as economic injustice, education, healthcare, and immigration issues.

Brand activist organisations

The Body Shop fight for its ethical values and beliefs and with its natural beauty products shaped ethical consumerism.[15] Its founder and CEO, Anita Roddick, not only wants to make skincare products but also fight for animal rights, civil rights, fair trade, and environmental protection.

Global Sports Brand PUMA stated their stand for social equality with #REFORM, a platform that gives activists from the worlds of sports, music and entertainment support in championing causes and encourages conversations around universal equality and criminal justice reform.[16]

Patagonia outdoor clothing and gear company placed the environment at the heart of its business. They encourage the community to reduce, reuse, and recycle[17] the resources with communication as Don't Buy This Jacket campaign[18] and initiatives such as Wear Worn[19] and Zero Waste Program[20][21]

Recreational Equipment Inc (REI) outdoor clothing and gear, as a cooperative company is based on cooperative activism and a common love for nature.[22]

After Colin Kaepernick's campaign, Nike has become a company with a proven track record of social and political activism.[23][24]

Pernod Ricard bases its entire business model and operations around four pillars with eight key commitments: Nurturing Terroir (biodiversity & regenerative agriculture), Valuing People (equality and future leadership & shared knowledge and learning), Circular Making (packaging and waste & water balance and carbon-footprint), Responsible Hosting (alcohol misuse & responsible party)[25].These company principles as part of the 2030 Sustainability & Responsibility roadmap are aligned with the United Nation’s Sustainable Development Goals (SDGs).[26]

References

  1. ^ BRAND ACTIVISM: FROM PURPOSE TO ACTION by Christian Sarkar & Philip Kotler Copyright © October 2018 Christian Sarkar and Philip Kotler ISBN: 0-9905767-9-5 ISBN-13: 978-0-9905767-9-2
  2. ^ https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/mckinsey-conversations-with-global-leaders-paul-polman-of-unilever
  3. ^ In Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause (2005), Nancy Lee and Philip Kotler
  4. ^ https://www.edelman.com/trustbarometer
  5. ^ BRAND ACTIVISM: FROM PURPOSE TO ACTION by Christian Sarkar & Philip Kotler Copyright © October 2018 Christian Sarkar and Philip Kotler ISBN: 0-9905767-9-5 ISBN-13: 978-0-9905767-9-2
  6. ^ http://www.activistbrands.com/what-is-brand-activism/
  7. ^ https://sloanreview.mit.edu/article/why-making-money-is-not-enough/
  8. ^ https://www.entrepreneur.com/article/328699
  9. ^ https://www.adweek.com/agencies/brand-activism-is-driving-more-meaningful-connections/
  10. ^ https://www.interbrand.com/best-brands/interbrand-breakthrough-brands/2017/articles/brand-activism-built-on-purpose/
  11. ^ https://www.hbs.edu/faculty/Pages/item.aspx?num=55349
  12. ^ https://www.theguardian.com/sport/2019/sep/16/nikes-dream-crazy-advert-starring-colin-kaepernick-wins-emmy
  13. ^ https://abcnews.go.com/Business/nike-sales-booming-kaepernick-ad-invalidating-critics/story?id=59957137
  14. ^ Lin, Tom C. W., Incorporating Social Activism (December 1, 2018). 98 Boston University Law Review 1535 (2018)
  15. ^ https://en.wikipedia.org/wiki/Ethical_consumerism
  16. ^ https://about.puma.com/en/newsroom/corporate-news/2018/2018-10-06-puma-launches-reform
  17. ^ https://www.greenbiz.com/news/2010/11/17/patagonia-adds-reduce-repair-reuse-clothing-recycling
  18. ^ https://www.marketingweek.com/case-study-patagonias-dont-buy-this-jacket-campaign/
  19. ^ https://www.treehugger.com/sustainable-fashion/patagonia-launches-worn-wear-online-store-used-gear.html
  20. ^ https://zerowasteeurope.eu/2012/11/a-zero-waste-program-by-patagonia-the-common-threads-initiative/
  21. ^ https://www.powder.com/stories/patagonia-worn-wear/
  22. ^ https://www.rei.com/stewardship
  23. ^ https://www.forbes.com/sites/afdhelaziz/2018/09/04/the-power-of-purpose-nike-and-colin-kaepernick/#7f0f21e96f33
  24. ^ https://www.marketingjournal.org/stand-for-something-brand-activism-at-nike-christian-sarkar-and-philip-kotler/
  25. ^ https://www.pernod-ricard.com/en/our-commitments/our-model-our-4-commitments/
  26. ^ https://www.undp.org/content/undp/en/home/sustainable-development-goals.html