How brands can take a stand without alienating customers
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By Dorothy Pomerantz | Fitch Ink Managing Editor
Increasingly, customers, investors and employees are looking to brands to take a stand. We saw this recently with United Airlines’ decision to stop offering NRA discounts in the wake of the Parkland shooting. More recently, United, America and Frontier airlines all asked that the government not use their planes to fly immigrant children to detention centers after they were separated from their parents at the border. A desire to take a moral stand was a big part of the reason ABC canceled the Roseanne show after Roseanne Barr’s racist tweets even though the show was making the network gobs of money.
As corporations increasingly step into the role of our country’s moral compass, many companies are struggling with this new level of responsibility. No one wants to risk angering or alienating any one group which is why, in the past, most corporations have avoided any messaging that would have felt in any way controversial. America’s biggest companies, such as Walmart, Apple and Amazon have succeeded by appealing to people across the political and moral spectrum. Why take risks?
Well today, neutrality is no longer an option. According to a recent survey from Sprout Social, two-thirds of respondents said they want brands to take a stand on social and political issues. In a separate study (Edelman’s Trust Barometer), 64% of those polled said they want CEOs to take the lead on policy issues instead of waiting on the government.
And Millennials, who are set to inherit $30 trillion, are demanding that companies show true social responsibility if they hope to earn this generation’s loyalty. In one survey 90% of Millennials said they would switch brands to one associated with a cause.
So how can you take a stand without risking alienating large groups of people?
Start Small: You don’t have to make a grand gesture. Consider what kind of cause your company could stand for and go with that. Maybe you support veterans and speak out on their issues or maybe you already have gender pay equality in your workforce. There are likely real commitments you could be talking about right now.
Be Authentic: Don’t take a stand just for the sake of it. In the case of United, a pilot’s daughter was one of the 17 people killed in the Parkland shooting. By rejecting the NRA, United was standing up for its employees in a very personal way. Only take a stand if doing so truly speaks to your company’s values.
Learn From The Best: Today companies like Warby Parker, Tom’s and Patagonia have social responsibility baked into their core branding. Because their social commitments have been an important part of each company from the beginning, they have attracted customers and investors who believe in their missions. These companies have a lot to teach anyone looking to do better on corporate responsibility.
Don’t Just Pay Lip Service: Millennials are the first digital natives and they can smell bullshit from a mile away. Don’t think you can buy them off with a flashy Instagram feed or a corporate responsibility report with lots of shiny charts and graphs. You have to live your values in every part of your company and share those stories with your various audiences. Don’t make them go looking for ways that you live up to your word — show them on a consistent basis.
There’s no question that when you take a stand, you are taking a risk. But it’s a risk worth taking. According to the Sprout Social survey: “Consumers’ most common emotional reactions to brands taking a stand … were positive, with intrigued, impressed and engaged emerging as the top three consumer reactions.” In other words, take a stand that is authentic and true to your values and your customers (and other stakeholders) will not only stay with you, they’ll also cheer.
