Purpose-driven marketing – looking back at 2023 and what to do about ESG in 2024

Purpose-driven marketing took a beating in?2023. It’s a nice idea in theory. You, as a business, take a social cause, align it with your core values, and incorporate said cause into your marketing.

In practice though, it’s hard to get it right with weary, perhaps even cynical consumers. This year, even Unilever, arguably the?face of purpose marketing, pulled back on its efforts. Its new CEO has made clear that Unilever will not force fit purpose across its portfolio.

Understandable I’d say. It may make sense for an oil firm to market its efforts in shifting towards renewable energy. Less so for a body spray company vowing to put its resources toward ending global financial fraud.

From the consumer’s perspective, I think a healthy level of scepticism has emerged in recent years. There’s simply too much virtue signalling going on. It seems like every company out there is allegedly bettering the world in some way – outside of the products and services they provide.

This raises suspicions though. If all these companies are, on the whole, doing good for the world, then why is the world still in the state it’s in?

It all whiffs of performative activism, virtue signalling, and greenwashing. Big companies need to be especially careful with this. The bigger the perceived hypocrisy, the higher the chances of the backlash hitting the bottom line.

Take Unilever, once more. Despite promises to tone down its social justice and political efforts, investors remain unconvinced, and its?share price has suffered as a result.

Gillette faced a huge backlash and boycott over its well-meaning, yet poorly received “The Best Men Can Be” campaign. Even the?Spice Girls?aren’t safe. A few years ago, Spice Girls T-shirts were produced and sold to raise money for Comic Relief’s gender justice campaign.

The problem, as it turned out, was that the T-shirts were made in a factory in Bangladesh, mostly by women, working up to 16 hours a day for around 35p an hour. The Spice Girls were, understandably “deeply shocked and appalled” by this, and promised to refund customers on request.

Consumers aren’t stupid. They want to see?actions that match the words. So, does this mean marketers should abandon any wholesome plans they have for 2024? Will our audiences believe, let alone respond to any purpose marketing we put out there?

Getting it right

Well, despite everything, I still think there’s space for it. We just need to do it right. The world is complicated and messy, and so?ESG?efforts have rarely been more important.

Many people aren’t happy handing over money for goods and services without a second thought. They want to know if the companies they’re buying from are a force for good in the world, or are making things worse.

Consumers are willing to put their money where their mouths are here too. A recent study from?McKinsey and NielsenIQ?found that between 2018 and 2022, products making ESG-related claims achieved disproportionate sales growth in the US, when compared to products that didn’t.

This trend was seen across various consumer goods and demographics – incorporating people from various incomes, life stages, ages, races, and geographies.

We’re seeing similar results globally too. Understanding of exactly what constitutes sustainable goods and services is rising, according to?Deloitte. Meanwhile, across the world, consumers are willing to pay up to 5% more for sustainable goods.

So, what does this all mean for marketers? I think we need to embrace a simple philosophy in 2024. Do your purpose-driven marketing, just do it legitimately.

We need to remember, we’re not just companies offering products. Our efforts have wide-reaching impacts.

We leave carbon footprints, use resources, affect families, and shift capital around the system. It would be ignorant to pretend all of this has nothing to do with us once a transaction is complete.

It all boils down to backing up your claims with action. Take a cause that MFS is passionate about – diversity and equality in the workplace.

We don’t make empty platitudes about wanting more women in finance. We actively hire and promote this talent wherever possible. We’re rightfully proud of how the majority of our senior management are women.

But even that’s not enough for us. We put our women forward for awards and industry recognition,?celebrating their achievements along the way.

We?sing their praises as much as possible, and make sure they?have their say in the trade press.

We also actively promote and contribute towards the education of our sector, and give to charity to name but a few other things.

For those who mean it, there’s plenty of opportunity out there for firms that embrace ESG and purpose-driven marketing in 2024. Just make sure your customers believe you.