"The Future of Branding Is Activism"

These days we read and hear more and more about the strategic importance of organisational Purpose. On this subject, Christian Sarkar has provided an excellent playbook rooted in philosophical grounds on how to take the discussion forward towards real action i.e. what and how should brands deliver on the Purpose. The idea of Brand Activism, as it is called, resonates very well for reputation building and in the larger context of stakeholder capitalism as well.

In the classic ‘The Concept of the Corporation’, Peter Drucker stated: (the corporation) ".?.?.?is in trouble because it is seen increasingly by more and more people as deeply at odds with basic needs and basic values of society and community" and "an industrial society based on the corporation can only function if the corporation contributes to social stability and to the achievement of the social aims independent of the good will or the social consciousness of individual corporation managements."

Today the world is facing an ‘ecosystem of wicked problems ’ states Sarkar; similar to what is also sometimes referred to as the VUCA world – institutions and enterprises are battling a trust deficit and there is a growing feeling of pessimism about the future owing to several socio-economic issues. Due to these rising complexities, coupled with the rapidly changing consumer preferences that has resulted in weak brand loyalties, organisations have to rethink and redefine what does their brand stands for and how does the organisation plans to act upon the Purpose it has defined for itself. To use a different terminology, can one also ask what is the organisation’s ‘strategy beyond core markets’ or what is the ‘non-market strategy’ to earn back trust, reputation, customers and community – making a real difference.

A similar point is made by Dr. Raghuram Rajan in ‘The Third Pillar’ where he has argued that the community has been neglected for far too long and it (community) has to be put back into the larger equation to achieve equitable and balanced growth for all. As discussed by WEF founder, Klaus Schwab in his ‘Stakeholder Capitalism’, “…the interests of all stakeholders in the economy and society have to be taken on board” and “the stakeholder concept is ready for a comeback, albeit in an updated, more comprehensive form.” ?

Enter Sarkar’s Brand Activism:

Brand Activism, simply explained, is the leadership’s role about saying that your company will work for a common good/ cause/ purpose and also deploy resources to address those urgent problems your stakeholders face. Today, stakeholders expect business leaders and their favourite brands to have informed conversations and policy debates on societal issues. Businesses are expected to be agents of change and the CXOs are expected to lead this change whereas brands should regularly communicate directly to their publics using the wide array of media platforms available today.

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. Brand Activism is different because it is driven by a fundamental concern for the biggest and most urgent problems facing society. Brand Activism is emerging as a values-driven agenda for companies that care about the future of society and the planet’s health. The underlying force for progress is a drive or movement towards justice and fairness for all. Brand Activism can be further divided into subtopics like Social Activism, which will include societal and community issues, Workplace Activism, which is about governance, labour and union relations, supply chains, Environmental Activism that deals with conservation, ecocide, pollution, Economic Activism that will cover wage & tax policies, inequalities, etc.

Sarkar quotes from David Aaker’s ‘Building Strong Brands’ which introduces four brand identity perspectives: Brand as product, Brand as organisation, Brand as person, Brand as symbol. Now, it’s time to add a fifth dimension to brand identity – Brand as Activist, Sarkar adds and further details out what a business needs to see and understand if it intends to continue to strive in the society.

The Six Ps of Brand Activism:

1. Purpose—Your Core Values
2. Policy—Tangible Change
3. People—Of the Movement
4. Power—Resources
5. Publishing—Storytelling
6. Pop Culture—Relevancy

Brand Activism is one of the most important intangibles for organisations and it has increasingly becoming a meaningful differentiator. Today, companies derive far more value from intangible assets (IP, brand, goodwill, etc.) than from physical assets and reputable companies consistently outperform their peers in the long run. Corporate reputation is directly correlated to how and what stakeholders feel about the company, its brands and its leadership. Increasingly, stakeholders care about who you are and what you do, and not just what you sell.

‘The Future of Branding Is Activism’

#brandactivism