Brands Adopting Purposeful Strategies, yet Straying from Their Original Intentions
In the contemporary world, corporations are increasingly embracing Corporate Social Purpose (CSP) as a means to align business goals with societal values and community well-being. This approach, championed by figures like Larry Fink of BlackRock and Simon Sinek, posits that a brand needs to have a deeper sense of what it wants to achieve in society. However, the line between unifying force and social controversy can sometimes blur, as evidenced by recent instances involving M&Ms, Bud Light, and Pepsi.
M&Ms, the popular chocolate candy, introduced more 'nuanced personalities' to their brand mascots, aiming to create a more inclusive image. However, the move was met with controversy and the temporary suspension of the characters. In a bid to bring people together, M&Ms announced they were putting the characters on 'indefinite pause'. The controversy also had an impact on sales, with Bud Light reportedly experiencing a 30% drop six months after a controversial campaign.
In 2017, Pepsi released an ad featuring Kendall Jenner handing out cans of Pepsi to armed police, a move that was widely criticised and eventually led to the withdrawal of the advertisement. The incident underscores the risks brands face when wading into political and social issues.
Despite the controversies, there are clear benefits to CSP. Companies with strong CSP actively engage with local communities, creating positive ripple effects. For example, Starbucks' investment in employee education and Microsoft's donations to STEM education not only benefit individuals but also foster social cohesion by supporting shared societal goals like education and opportunity.
CSP programs also help consumers and employees find alignment with the brand based on shared social or political beliefs, fostering loyalty and deeper connections between businesses and society. This alignment encourages a culture where people feel empowered and engaged around meaningful social impact.
Moreover, CSP can help reduce social division by building corporate trust. As CSP evolves from generic statements to strategic, outcomes-oriented actions, it becomes a way for companies to build resilience and trust in a polarized environment. When purpose is authentically integrated into business strategy and employee engagement, it unites people internally and externally, reducing fragmentation and mistrust.
CSR activities that address societal challenges also generate media attention and broaden societal support for causes that matter across demographics, helping to mitigate social divisions by focusing on collective well-being. Furthermore, strong CSP often correlates with better financial performance and employee satisfaction, which can also reduce inequalities by fostering stable employment, fair wages, and community investments.
In conclusion, while CSP can sometimes lead to controversy, its potential to bridge social divisions and foster shared values, build trust, and generate positive community impact is undeniable. By integrating societal well-being with business success, CSP provides common ground where businesses, employees, and customers unite around long-term social and economic goals, helping to decrease fragmentation and increase social cohesion.
However, it is crucial for corporations to approach CSP authentically and strategically, avoiding grandiose statements and apologetic retreats when controversies arise. As Andy Warhol stated in 1975, Coca-Cola acts as a form of common ground in culture, and perhaps, in the age of 'purpose', brands can strive to embody that same unifying spirit.
[1] KPMG. (2018). Purposeful Business: The Future of Corporate Responsibility. [2] PwC. (2018). Purpose-driven businesses: A new breed of company. [3] Deloitte. (2019). The business case for human rights. [4] Accenture. (2017). The New Corporate Citizen: How Companies are Delivering on the Promise of Purpose.
- Brands like M&Ms, Bud Light, and Pepsi have shown that Corporate Social Purpose (CSP) can lead to cultural debates and controversies when they engage with social and political issues.
- News outlets often report on the impact of CSP on businesses, such as the drop in Bud Light sales following a controversial campaign.
- In contrast, companies with strong CSP, like Starbucks and Microsoft, are commended for their initiatives in education and community development, which can be seen as a crucial part of business strategy and marketing.
- Financial performance and employee satisfaction often improve in companies with authentic CSP, which can help reduce inequalities by promoting stable employment, fair wages, and community investments.
- The media plays a significant role in spreading awareness about CSP and the positive societal impact it can have, acting as a bridge between various demographics andgenerating support for common goals.
