There’s no doubt that brands shape and transform culture and society, and as such, Americans look to them to demonstrate a responsibility to protect and advocate for people, for employees, for customers and for the broader public. For those social responsibility and marketing leaders who step across the “fine line” into a culturally or politically charged arena and choose to take a stand rather than stand back, actions can have positive social impact, adding both value for consumers' lives and business value.
When Nike made Colin Kaepernick the focus of its 30th anniversary “Just do it” campaign, the campaign sparked a national debate. In the campaign the former NFL player is depicted with the message: “Believe in something. Even if it means sacrificing everything.” While Nike's stock initially plummeted, it quickly rebounded, and soon after the campaign launched, it hit an all-time high. Bloomberg reported that Nike generated $43 million in media exposure from the campaign.
When the CEO of Patagonia expressed strong disagreement (outrage) at the Trump Administration’s denial of a recent climate change report, the Patagonia CEO took action. The company donated their entire savings from the corporate tax break – $10 million – to raising awareness for climate change and to organizations devoted to the issue. Then they called out the Trump Administration for their primary motivation.
When Lyft teamed up with "March for Our Lives," the student-led demonstration that works for legislation preventing gun violence, the company offered free rides across 50 cities to anyone attending the events. The rides were valued at $1.5 million, all given within one day, to support a political cause.
A Deloitte longitudinal study of purpose-focused companies found that they outperformed their S&P 500 peers by a factor of eight.
Recently Harvard Business Review discussed the concept of Corporate Social Justice. Lily Zheng, the author, defines it as a means of "reframing of Corporate Social Responsibility to bring focus to any initiative or program on the measurable, lived experiences of groups harmed and disadvantaged by society." According to Zheng, CSJ should be “regulated by the trust between a company and its employees, customers, shareholders, and the broader community it touches, with the goal of explicitly doing good by all of them.” She adds, the majority of CSR efforts, to date, have been through a secondary or vanity program lugged onto a company’s main business; however Corporate Social Justice requires deep integration into every aspect of the way a company functions from employee recruiting and engagement to supply chain and consumer marketing.
As new generations emerge to prominent influence, companies need to consider new methods and means for creating greater social impact. Today, it means a level of corporate activism (action) that most CSR efforts have not traditionally invested in. Yet if we've learned anything from Patagonia and Nike, when CSR goals are grounded in the company’s DNA and brand beliefs, when they're authentic, sustainable and actionable, the impact is exponentially greater. Predictions are that more and more employees and consumers will look to companies to play a bigger role in righting real wrongs, taking action, even while not always right for every one. Actions may alienate some consumers, but as Lyft and others demonstrated, value is to be gained by aligning with loyal consumers and attracting those who share brand beliefs, particularly Millennials.
By 2025, the Millennials, the generation that just surpassed baby boomers as the largest living adult generation, will comprise 75 percent of the global workforce. And they possess immense buying power; it’s estimated that Millennials will spend $1.4 trillion in 2020.
Millennials are the most diverse, environmentally aware and socially driven generation of our time. As employees and as consumers, this generation presents unique challenges and opportunities for American business. This generation will demand and drive much of corporate CSR efforts.
In fact, in a 2018 Deloitte study, the report pointed out that Millennials care deeply about issues such as gender and racial income inequality, hunger and the environment. Eighty-eight percent believe that their employers should play a vital role in alleviating these concerns, and 86 percent say the business success should be measured by more than profitability. Additionally, according to another research study, published by Cone Communications, 75 percent of Millennials would take a pay cut for a position within an organization that matches their values.
A Nielsen study confirmed that 67 percent of employees prefer to work for socially responsible companies who committed to positive social impact.
This shift is driven by the growing desire of socially aware consumers and employees who are ready and willing to align with companies that see social good as a necessity, not just a marketing strategy, and leverage their influence to create cultural change.
As Millennials grow and move into leadership roles, their focus on social impact will grow. They expect their employer to understand what they care about and to step forward to engage in meaningful change. They expect their beloved brands to take a stand on issues that matter to them. In both case, they will ask companies to come out from the shadows and step into the ring.
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