Why Purpose-Led Brands Are the Future

The situation

Right now is a really crystallising time in the brand activism space.

In the past year, particularly since the summer of 2020 with the surging Black Lives Matter movement, we have seen a massive uptake in brand activism, globally.

Staying silent on racism, gender inequality, LGBTIQ+ discrimination and other injustices is no longer an option for brands — particularly those with a Gen Z and Millennial consumer base.

As an approach to social change, brand activism and private sector social impact is one of the most powerful and efficient ways to shift norms and disrupt the status quo.

Brands have enormous power to shape, change and challenge behaviour, attitudes and structures. This is financial power, structural power and — importantly — storytelling power.

And what better time than now for brands to engage in activism?

We are reckoning with a global climate emergency. Across many countries, political and civic freedoms are shrinking. Infringements on human rights are mounting. Gender gaps are yawning. Deep systemic racism is triggering world-wide uprisings for justice. Access to healthcare and mental health services isn’t equal for all. And burnout is spreading almost as fast as unemployment.

As if we needed more ingredients for this cauldron of structural inequalities, added to the mix is x1 deadly pandemic.

Yeah…we could have done without that.

But, the intense and alarming way in which COVID-19 exposed and exacerbated these injustices has fuelled promises to ‘build back better’ from almost every corner of the world.

Activists and grassroots organisations are at the forefront of tackling these issues. But, they can’t do it alone. Nor can governments, NGOs or non-profits. Leveraging the power and resources of brands in the right way has the potential to move our collective needle for the long-lasting change the world needs.

Opportunities are ripe for brands to take a stand on the urgent issues facing the communities in which they operate, as well as those they serve.

Brand activism is trending.

We are seeing that purpose-led businesses are growing three times faster than their competitors. And we know that purpose-led businesses are the future and many businesses are genuinely invested in creating meaningful impact.

The problem

The problem is that, too often, brand activism appears to be no more than opportunistic marketing, performative virtue signalling or — even worse — many people of colour, LGBTIQ+ folks, women and other marginalised identities feel that brands are exploiting their suffering for capitalist gain and good PR.

Sure, announcing donations, sharing solidarity statements or increasing diverse representation across their adverts are small steps in the right direction. But, is this really enough to move the needle towards social, political, economic and environmental justice and equality?

Brands stepping into the activism space are regularly criticised for making a quick (million) bucks off of such movements without meaningfully contributing to systemic change.

Posting a black tile for #BLM or slathering the rainbow flag across all their merch during Pride Month is often as deep as brands will go in order to stay relevant and boost their bottom line at opportune moments.

(I absolutely adore the visibility that corporate sponsorship of Pride Month brings to the LGBTIQ+ experience. But every June, I cringe in anticipation of all the big brands falling over themselves to win ‘woke’ points).

Donations are often just a drop in the ocean compared to the massive profits companies rake in.

There is also an argument that brand donations, while helpful, are simply transferring responsibility to external organisations, rather than looking in the mirror and making authentic changes within their power structures, cultures and business models.

Consumers and activists alike, well, they’re simply not tolerating it.

It’s no secret. Gen Z and Millennials are the most politically, socially and environmentally conscious consumer generations — with a whole lotta purchasing power. They are demanding authenticity, transparency and credibility from brands. And they are shaking the capitalist and institutional foundations that brands have blindly relied on.

Gen Z and Millennials see straight through the greenwashing, the pinkwashing, the rainbow-washing and the ‘woke’ pandering.

They are a force to be reckoned with. And reckon, brands must. The future of businesses will depend on it.

The solution

Brand activism and social impact is sensitive and introspective — but necessary — work. So, how can brands start to become purpose-led? Who can brands turn to for help?

Leading the way on this shift towards a more inclusive, regenerative and equitable global economy is a diverse community of experts in business, activism and sustainability.

Consultants like Plans With Purpose and Make Impact are dedicated to helping businesses and brands grow by becoming purpose-led and embedding sustainability at the core of their business model.

In my own work, I’ve helped big brands like Instagram, Facebook, and WhatsApp to engage meaningfully with youth activists and civil society organisations to shape the conversation on online harassment and gender-based violence. I’ve also helped Gen Z fashion brand Monki to create activist collabs on body positivity, sexual health and reproductive rights. And I’ve developed the brand activism and social impact strategies of award-winning startups who want to tackle issues like mental illness and chronic burnout.

Similarly, B Corp certified organisations like Semble are recognising the power connecting purpose-led businesses to under-funded grassroots groups who are leading social and environmental change in their communities.

Speaking of B Corp, achieving a B Corp Certification is becoming the gold standard for what successful business looks like, everywhere. Administered by the folks at B Lab, this certification comprises a rigorous assessment of a company’s impact on its workers, community, customers and environment.

Then you’ve got the industry rebels like Purpose Disruptors — a community of marketing and advertising specialists who are taking responsibility for their industry’s role in promoting attitudes, lifestyles and brands that contribute to climate change. Through their initiatives like #ChangeTheBrief, they are changing the industry from within and ensuring it is aligned with a net zero world by 2030.

With leaders like these at the helm, the private sector is reimagining itself as a force for good.

But, this shift won’t happen overnight. And, the potential for controversy, risk and backlash leaves many brand managers feeling the old adage ‘damned they do, damned if they don’t’ when it comes to brand activism.

So, how do brands get it right? Where is the sweet spot for them to add and gain value in the activism space? To find out, read my next blog on How Do Brands Get It Right? The Brand Activism Spectrum.

Contact me

Looking to step into the brand activism space? Want to up your game on meaningful social impact? Connect with me here on LinkedIn or ping me on sarah@purpose-led.co.uk.