Brands Practicing Ethical Branding to Meet Consumer Expectations

Authored by Dr. Avadhut Patwardhan - Assistant Professor - Marketing and International Business, K J Somaiya Institute of Management

Meeting consumer expectations has always been the priority of the marketers. Marketers strive to stay relevant and differentiable in the competitive world where the share of the pie is dynamically positioned. As a result, both the corporate and brand strategists deploy the resources to stand out from the brand crowd. Therefore, marketers utilize contemporary concepts like ethical branding to retain and attain new customers. 

• Ethical branding

The importance of ethical branding has been significantly recognized by the world’s famous brands. However, it was found that the virtue aspect is crucial in the case of ethical branding. It is noticed that ethical brands consider virtues like transparency and sustainability. Further, ethical brands deal with the philosophy of ‘Greater good for all”. In business language, it is popularly known as the ‘Triple Bottom Line’ (People, Planet and Profit). These aspects underline that a bit of transparency and sustainability is involved throughout the value chain. This indicates that ethical brands believe in incorporating the sustainability aspect while creating, communicating, and delivering value to the customers. One such organization is Ben and Jerry’s. 

• Meeting Customer expectations

As per the McKinsey report, the real Gen Z (people born in or after 1995) is now in their 30s. This age group (25 to 50) is always recognized as a key contributor to the bottom line. In the case of ethical brands, this generation is existing as well as future customers.

Therefore, understanding their true character and leveraging their characteristics becomes crucial for the marketers dealing with them. The report mentions that the characteristics of Gen Z are significantly different than the baby boomers, Gen X, and Gen Y. Gen Z believes and deals with mobility and multiple realities. They are true digital natives who actively participate in social networking. They are realistic and known as 'communaholics' who seek radically inclusive communications. They have undefined ID which means they don’t define themselves in only one way. They believe in more dialogue. They consume unique, unlimited, and ethical offerings. These characteristics are creating both challenges and opportunities for the marketers. 

As the gen z navigates well in digital and physical spaces the degree of accessibility is higher. However, it demands presence in phygital formats that require a huge commitment of resources. Further, these technology-obsessed customers deal in multiple realities that demand the use of technologies like Augmented and Virtual reality (AR and VR). Nike the company that received full marks in Consumer’s Climate Category deals with a VR known as Nikeland. 

The company like Chipotle has used social networking effectively. Dove promotes itself as an ethical and sustainable company. Dove has used the 'communaholic' aspect of the customers and designed the Dove ‘Real Beauty’ campaign. This campaign underlined the inclusivity and authenticity aspects of communication. 

Glossier skincare has utilized the preference for the ‘unique and ethical offering’ aspect of the gen z and created a cruelty-free offering. Glossier skincare is certified by Leaping Bunny which certifies the ethical practices of organizations. 

These aspects indicate that ethical branding is one of the upcoming strategies that would help organizations make a presence, marking progress and maintaining prosperity. Therefore, the next section of the article details some of the ethical branding practices deployed by famous ethical brands.   

• Effective use of ethical branding

As discussed in the previous sections, ethical branding deals with creating, communicating, and delivering value ethically. Therefore, it is crucial to understand such practices. The organizations have strategically placed themselves by underling and including ethical practices in brand communications. “We’re in business to save our home planet” is Patagonia’s latest mission statement which was revised last year. To live this mission statement Patagonia uses recycled materials. To leverage this philosophy Patagonia advocates the idea of ‘ecosystem conservation’ Such initiatives and actions fetch visibility to the brand. Ben and Jerry’s makes intentional efforts for black-owned and black-led supplies. This is an initiative that makes attempts towards eradication of racial discrimination. Such initiatives provide validations of ethical practices. The fair-trade certified ingredients also offer validation to Ben and Jerry’s ethical approach. For a brand like Patagonia, ethical branding is a virtue. Practices like environmental commitment, corporate activism, transparency, fair labour practices, and regenerative agriculture underline that Patagonia treats ethical branding as a serious business. 

In conclusion, the aforementioned aspects indicate that ethical branding is a trend that is becoming a necessity. Further, for brands that aim to meet evolving consumer expectations, it provides a relevant theoretical framework. In particular, customer expectations related to transparency, sustainability, and social responsibility are fulfilled and leveraged using ethical branding. As a result of these changes organizations like Patagonia, Ben & Jerry's, and Dove demonstrate and integrate ethical values into brand strategies. Ethical branding is paramount for creating, maintaining, and leveraging trust and relevance. Organizations can secure their place in an increasingly responsible market by aligning with the virtues of the triple bottom line and providing consumers with ethical choices alongside product quality and innovation.

DISCLAIMER: The views expressed are solely of the author and Adgully.com does not necessarily subscribe to it.