Many agencies and practitioners already have attempted to predict what corporate responsibility and purpose look like for brands in 2021, but the time for pontification is over.
Now, we must be unapologetic in our expectation for companies to step in when governments fall short. This tenant of corporate responsibility was brought to the forefront with Twitter and Facebook announcing they’d banned former president Trump–permanently and indefinitely, respectively–from their platforms. This unexpected move (albeit possibly overdue) may change the relationship brands have with consumers and the role they should play in protecting people, communities and the environment.
Our society is grappling with the urgent need to dismantle systemic racism, a former president who incited violence and refuses to concede his election loss, and a rising and preventable COVID-19 death toll.
In such times, brands can, and must, serve as champions and allies as the new administration fights to rebuild trust in government, fight the pandemic and advance critical climate protections.
As today’s lead story reports, many large companies suspended donations to elected officials who opposed certifying the election results. This signals the urgency, but not the end, of corporate response to this domestic crisis.
Companies need to reevaluate brand purpose and ask tough questions about their role in society. For example, when collective bargaining is prohibited locally, how will brands advocate for workers? When overtime restrictions are lax, will companies insist on a standard for manufacturers–or rely on government? When misinformation spreads online, how will companies protect users?
Deferring to Regulation
For decades, companies deferred to regulation. Efforts to go beyond legal and regulatory compliance were voluntary.
One voluntary initiative, the Fair Labor Association (FLA), was formed with support from the Clinton White House in response to labor and human rights abuses in global supply chains. The organization chartered a code of conduct that global apparel and footwear companies adopted to support a baseline of fair labor standards long missing from the industry. It certainly never existed as part of a global framework.
Over time, the FLA expanded its work into other industries, including agriculture and electronics. Eventually, it helped Apple transform how it supported its supply chain workers, who were subjected to severe overtime, forced labor and other human rights abuses.
Ceres, another voluntary organization investors and environmentalists created following the Exxon-Valdez oil spill in 1989, crafted a set of principles to guide business conduct.
Through voluntary participation in the organization, investors and companies made significant individual progress in areas such as emissions reductions, while also advocating for strong state, federal and global climate policies including the Paris Climate Accord.
Few Companies Act
Three decades later, though, real advances in protections for workers and the environment tend to be limited to the voluntary actions of a small group of companies. They go beyond legal and regulatory requirements based either on their values or the promises they’ve made to consumers, investors or other stakeholders.
Regardless of myriad motivations driving their decisions, Twitter’s and Facebook’s actions signal a new wave of brand purpose is on the horizon–one that goes much deeper than surface-level CSR commitments or ambitions.
While there has been much progress in improving corporate behavior and driving responsible business, we must evaluate whether our expectations of brands are high enough and then challenge them to fill the gap when a government fails to appropriately protect its citizens, communities and the environment.
Here are three key expectations for corporate behavior that will support the rebuilding of public trust and compliment the new administration’s efforts to drive rapid social and environmental progress:
- Where Government Falls Short, Step In. Twitter’s and Facebook’s response to the former president’s dangerous behavior may have been too little, too late. Brands must embrace informing the public and filling the gap on social and environmental protections.
- Outline Strategies to Dismantle or Reduce Systemic Racism. Companies must outline, specifically, what they are doing to ensure BIPOC (Black, Indigenous and People of Color) representation at all levels, create inclusive work environments and address racism on a day-to-day basis to protect employees and stakeholders and advance racial justice.
- Support Washington’s Effort to Lead on Climate. As the new administration gets to work, brands should pick up the mantle and reduce their environmental impact while ardently supporting strong state, federal and global interventions to curb climate change.
Several leading business groups have issued statements of support and calls to action in response to the tragic events on Capitol Hill Jan. 6. These include influential organizations such as the Business Roundtable, the U.S. Chamber of Commerce and the National Alliance of Manufacturers.
Beyond statements of support, we must look at corporations as necessary rather than tangential allies of government and consumers in tackling pressing societal issues.
The new year is time to lead and recommit to leveraging the power of a global brand to support and advance social and environmental progress on a scale not seen before. Prior corporate social responsibility commitments should be revisited in partnership with stakeholders to ensure alignment and demonstrate clear, measurable impacts both in the short- and long-term.
A McKinsey study shows consumers chose value, quality and brand purpose as the top reasons for trying a new brand–which is critically important as consumer behavior continues to change during the pandemic and takes hold long after.
More than ever, consumers are watching closely to see what companies will do next, looking for real evidence and bold actions to indicate whether the brands they support share their values and will be an ally in building a brighter future.
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