Brand Purpose

I’ve seen brands take on a social purpose in two ways. One is to go back to the founding of the brand and understand its reason for existing. Brands often forget their original purpose in the chase for growth. Marketers focus on functionality and new features. But that does not mean the original purpose is irrelevant.

The coronavirus crisis is a devastating and deadly social problem. But, unfortunately, it’s far from the only social problem that the world in 2020 faces. Climate change, income inequality, population growth, resource usage, automation – the list is endless. Who should solve these social problems? We typically look to governments – or perhaps NGOs and foundations established by wealthy philanthropists. All play an important role. But perhaps the most important role can be played by an unlikely source – corporations.

“Brand that I can trust” has been an attribute that brands have measured for a long time. Looking back, a decade ago, it was hardly a differentiator. Strangely, all mass competing brands would score high so we never spent too much on it. Why? I believe, back then, it meant something different – it meant reputation of the brand and acceptable product quality. In other words, is it a safe purchase or not? However, this attribute has taken a new meaning in today’s day & age especially with Gen Z starting to enter the workforce.

Corporate purpose is the buzzword of the day. Last August, the US Business Roundtable radically redefined its statement of the “purpose of a corporation” to include stakeholders, rather than just shareholders. Larry Fink, who leads the world’s largest asset management firm BlackRock, wrote in a 2018 letter to corporate CEOs: “Without a sense of purpose, no company, either public or private, can achieve its full potential.”

The Coronavirus crisis has seen some incredible corporate responses. Google has pledged $800 million in ads and loans to help businesses and crisis response efforts. Unilever is donating €100 million of food and sanitizer, and guaranteeing the jobs of all of its 155,000 workers – including contractors as well as employees.