The Balancing Act of Brand Responsibility in Advertising

Brand and social responsibility is big business. It’s highlighted in the news daily, top of the agenda for management, and also starting to take center stage within brand advertising campaigns.

The big question is, should companies be using CSR policies to boost brand perceptions and should brand responsibility be a vehicle for profit or does that completely undermine what brand responsibility stands for?

UK’s own Department of Business and Innovation concluded that “Businesses increasingly see that responsible business is not only good for society but can deliver bottom-line business benefits in terms of: staff recruitment and retention; managing risk in supply chains; driving innovation and productivity; and opening up new markets.”

So on the face of it, doing good for society also does good for business. With consumer demand and awareness around brand responsibility rapidly increasing by the day, the pressure is on for brands to highlight this within their ad campaign. But it’s a balancing act that marketers and creatives will need to get right.

The Millennial Coming of Age Is Fuelling Consumer Demand 

The pandemic has been a key driver in consumers reevaluating their own values and behaviors. Our research highlights that across all demographics, we are taking our own small steps in everyday life to become more aware and responsible; from cutting back meat consumption to walking more and shopping locally. These factors combined with the millennial consumer now coming of age economically, coupled with technology, is driving new expectations of brands and business.

The Nielsen Global Survey of Corporate Social Responsibility found that more than 60% of people surveyed are willing to pay more for products and services provided by companies that are committed to positive social and environmental impact.

Consumers are demanding more from companies and the brands they buy from with brand loyalty being questioned. *Our Brand Responsibility survey revealed 60% of people agree that they will be dropping brands that don’t align with their core values.

Audiences Want to See Authentic and Consistent Creative 

If brands want to continue to develop and thrive, they absolutely should be letting their audience know what they stand for, but only if what they are communicating within advertising is authentic and consistent.

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One strategy being used is Carroll’s Pyramid –  where companies conjoin corporate social responsibility with their brand strategy. Companies can therefore prove to their customers that their values aren’t just about profit but can also inspire customer loyalty. Consumers are increasingly aware they have a conscious choice that enables them to have a beneficial impact on local communities or the environment.

Research shows that companies practicing CSR can deliver increases to brand value and loyalty, if they are made public. However, a word of caution as findings suggest that CSR initiatives that genuinely aim to reduce a brand’s negative externalities (“corrective” and “compensating”) lift sales, whereas CSR actions focused on philanthropy (“cultivating goodwill”) can hurt sales. The results suggest that consumers are more inclined to reward firms that directly reduce the negative by-products of their own business practices than to be impressed by public goodwill gestures.

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All of the above backs up *our own survey results where 64% of consumers said they are put off by brands if they feel they are jumping on a trend and over half of the respondents agreed that they want to see brand consistency. Using brand responsibility shouldn’t be seen as a one-off stunt, it’s an ongoing story and process that consumers want to be part of.

One Size Does Not Fit All When it comes Brand Responsibility

Our research shows that there are key demographic expectations and ideals depending on age, gender and location. For example, Millenials and women are demanding change and care the most about societal issues while Gen X is significantly the most likely to buy local.

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If brands want to successfully combine CSR within advertising they first have to understand these differences. It’s more important than ever that the ad industry focuses on consumer insight and measurement. Brands should closely monitor consumer behavior to understand CSR expectations and audience values if they want to stay ahead of the competition and ensure creatives are resonating.

Any brand communications involving brand responsibility should be a true reflection of their brand and customers. With technology advancing, marketers and agencies now have the option to utilize consumer insight pre, during and post campaigns. The skill of measurement and then the nimbleness to adapt and change based on consumer feedback will ensure a wobble-free journey when utilizing brand responsibility in advertising.

Companies and brands won’t be able to get away from the fact that they will be questioned by some for using CSR policies within their advertising, as their responsibility efforts are not solely coming from a place of altruism. It doesn’t have to either, and some will inevitably miss the mark. What is apparent is due to consumer demand, audiences want to be made aware of what brands are doing to give back, deliver on social and environmental commitments, and are choosing to be part of that journey.

[To share your insights with us, please write to sghosh@martechseries.com]