Fetch Communications

As business owners, we have pondered our Why (thank you, Simon Sinek) and developed our Big Hairy Audacious Goal, (thank you, Jim Collins). Now businesses are increasingly called upon to focus on ethics and sustainability in their overall operations. As sustainability continues to evolve as a key concern to your customers, its principles should be reflected in your marketing. If you think this doesn’t apply to your business, read on.

SUSTAINABLE MARKETING

Sustainable marketing refers to the promotion of socially responsible products, services, and practices. Beyond eco-friendly brands, these principles apply to brands that are not rooted in sustainability and are relevant across a wide range of industries, as the goal of sustainable marketing is to promote a mission, not a product or service.

Sustainable marketing is not the same as “green marketing,” according to Crowdspring:

Green marketing is about promoting environmental awareness and protecting the environment. Sustainable marketing, on the other hand, covers a broader scope that includes, but is not limited to, the following concepts:

• Environmental awareness and education
• Transparency
• Recycling and waste reduction
• Mindful consumption
• Social activism
• Social responsibility
• Community empowerment
• Social equity
• Circular economy

Product sustainability is a priority for customers

Sustainable Marketing is not “just a trend.” Brands that showcase their sustainability practices increase brand loyalty, improve employee satisfaction, achieve compliance with regulations, and increase profits. If you’re not on the bandwagon yet, it’s time to scramble on. Consider the following:

Crowdspring’s recent consumer surveys reveal that people care about how businesses affect society and the environment, and the easiest way for them to help the environment is through their buying habits.

Almost 90% of consumers feel that businesses are responsible for their carbon footprint and should do more to reduce it. Over 80% of buyers believe companies should also take part in solving social problems. In a recent survey by IBM, 57% of respondents said they were willing to change their buying habits to reduce their environmental impact.

Here’s a prime example from my own recent experience: I went to the drugstore yesterday looking for a sunscreen and asked a 20-something-year-old woman staffing the cosmetics department for suggestions. Her first question to me was, “Do you prefer a clean brand?” Clearly, she considered this priority one.

Clean Brands

Clean brands promote transparency and ethical sourcing. They allow consumers to make informed choices about the products they use and support brands committed to sustainability. BodyBoom adds,

“In an age where people are being more mindful of toxins, natural ingredients, and the environment, the beauty industry is changing and shifting more towards clean beauty. More than just a passing trend, clean beauty represents a holistic approach to skincare and cosmetics, prioritizing purity, sustainability, and transparency.”

In addition to beauty and make-up products, sustainability is at the forefront across many industries, such as technology (CleanTech), food, clothing, manufacturing, etc. Many global brands are demonstrating their commitment to Environmental, Social, and Governance (ESG), and promoting their Corporate Social Responsibility (CSR) initiatives. These are terms that you definitely need to know in today’s marketing climate.

What is ESG?

Environmental, Social, and Governance is a framework that helps stakeholders understand how an organization is managing risks and opportunities related to environmental, social, and governance criteria (sometimes called ESG factors). ESG takes the holistic view that sustainability extends beyond just environmental issues. (Source: corporatefinanceinstitute.com)

What is CSR?

Corporate Social Responsibility (CSR) is a self-regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public.

By practicing corporate social responsibility, also called corporate citizenship, companies are aware of how they impact aspects of society, including economic, social, and environmental. Engaging in CSR means a company operates in ways that enhance society and the environment instead of contributing negatively to them. (Source: Investopedia)

Changing Consumer Behaviour

Hubspot research indicates that consumers DO care about sustainability (across all age demographics) and there is value in investing time and resources in sustainable practices and marketing to attract more customers. The site breaks down sustainable marketing strategies into 4 guiding principles:

1. Have a larger purpose.
2. Place value ahead of profit.
3. Be consumer oriented.
4. Reflect sustainability in every aspect of your brand.

Others, such as Crowdspring, have taken a deeper dive and have identified five (5) core principles of sustainable marketing:

(1) Consumer-focused marketing:
Your small business should approach its marketing strategy from a consumer’s perspective. That way, you can provide your customers and prospects with what they desire and need. Your strategy must do more than just market your products. It must also understand and account for how and why people use your products. Understanding what matters to your target customer and providing solutions can create long-lasting relationships with them instead of one-time transactions. Approach marketing strategy from a consumer’s perspective.

(2) Mission-driven marketing:
This principle guides businesses to define a broad mission that speaks to society and the greater good rather than just the product alone. Mission-driven businesses convey that they are interested in making a profit and giving back to the community.

(3) Customer value marketing:
The customer value marketing principle holds that companies should prioritize product and service improvement over other marketing facets like advertising and sales. Sustainable marketing aims to build long-term consumer engagement, loyalty, and relationships by continually improving the value consumers receive from the company. As the company creates value for the customer, the customer creates value for the company in return.

(4) Societal marketing
This principle involves businesses balancing customer expectations with company requirements, as well as that of the customer and society’s long-term interests. One example of this principle in use is when a small business is committed to reducing its carbon footprint from landfill gas emissions. It would make sense for the company to replace plastic bags with recyclable or biodegradable bags. Societal marketing helps establish a brand as a solution provider instead of a money-maker.

(5) Innovative marketing
Innovative marketing ensures that an organization never stops trying to develop better products, services, and marketing strategies. This could include developing novel techniques that can reduce production costs or inventing new technologies to improve a product or the lives of the people who use it.

GLOBAL BRANDS THAT SHOWCASE SUSTAINABILITY

There is much to be learned from companies that successfully promote a greener lifestyle through their brands. Here are just a few, published in Sustainability Magazine:

McCormick & Company Inc.
The United States’ McCormick & Company Inc. is a staple in almost every kitchen worldwide. From its McCormick spices and condiments to Billy Bee and EarthRight, McCormick stays on top of various ‘most sustainable’ lists as it adopts Science-Based Target initiatives (SBTi) as part of its climate commitments.

It published its recent 2021 Purpose-led Performance Progress Report, outlining its sustainability goals and the initiatives towards those goals, including its sustainable sourcing framework, Grown for Good.

Adidas AG
Currently keen on ending plastic waste in its entire process, Germany-based Adidas is known to be one of the early starters. In 2008, the company executed a program called ‘Green Company’ that was aimed at minimizing natural resources consumption, reducing waste and achieving carbon neutrality.

Through the program and SBTi, the company has reduced 55% carbon emissions, 48% water consumption, 50% waste diversion, as well as 80% paper consumption as of 2020. In addition, Adidas also implements environmental standards in its operations and successfully earned ISO certification in Environmental Management.

Unilever PLC
Unilever is a global FMCG brand that has multifaceted divisions within its structure. Based in the UK, the company has set a target of reaching net-zero emissions by 2039 and pledged to the 1.5°C climate change commitment.

To see these goals, Unilever endorses SBTi and set up a system that requires its suppliers to declare the carbon footprint on the goods and services listed on the invoice. The company plans to finance projects that involve water preservation, wildlife protection, carbon sequestration, landscape restoration and reforestation over the next decade. It also champions its Sustainable Living Plan program, which aims to improve the health and wellbeing of people whilst reducing its products’ carbon footprints.

Campbell Soup Co.
American beloved soup and snack brand Campbell Soup Co. is committed to building not only a more resilient food system, but also one that is more sustainable. It embraces the 1.5°C climate change goals as well as SBTi to achieve its commitments.

It redesigned its V8 bottles to reduce the use of plastic as part of its circular approach to its packaging and introduced sustainable agriculture to its sourcing system — cultivated approximately 108 hundred acres of sustainably-cultivated wheat now managed by growers in Idaho, Maryland, Ohio, and Pennsylvania.

Siemens AG
Siemens is a tech company that focuses on the field of healthcare, mobility and infrastructure. It is aiming to create more resource-efficient, more resilient, and smarter structures, transportation systems and healthcare services. Siemens is ranked as the most sustainable company in its industry by The Dow Jones Sustainability Index (DJSI) published in November 2021.

It is one of the world’s first large industrial corporations to commit to becoming climate-neutral by 2030. Since its announcement 6 years ago, the company have cut its CO2 emissions by more than half and relies on its own tech innovation to achieve the goal faster.

Kering SA
Kering is a French luxury fashion house that owns several major labels, namely Alexander McQueen, Gucci, Balenciaga, Kering, Saint Laurent, Bottega Veneta, Ulysse Nardin, and Pomellato. Kering was the only luxury corporation to make it to the top 10 sustainable companies’ list for 2022 by SG Analytics.

It also adopts SBTi and is the initiator of the Fashion Pact that aims to create a transnational coalition of companies in the fashion and textile industry to stop global warming, restore biodiversity and protect the oceans.

Patagonia
Not only does Patagonia use sustainable materials in its outerwear, but it also gives customers the option to repair their clothing, so people don’t have to buy new ones. It introduces the ways retailers can make the circular economy work in the industry.

Since Patagonia’s products are so durable, the company itself encourages customers to recycle old Patagonia gear and purchase items second hand. The American retailer company closely monitors its supply chain to make sure that it is safe for the environment, workers and consumers while following fair-trade practices.

It’s apparent that these companies are addressing their consumers’ environmental concerns head-on, exhibiting ethical and social responsibility while garnering their target audience’s approval and support.

ETHICAL MARKETING

Ethical marketing is a strategy where businesses commit to open, transparent, responsible, and fair practices and communicate these values to their target market.

Within that commitment to representing your brand in a way that aligns with your values and morals, it is implied that, as a business owner and marketer, you will behave ethically by not making misleading, inflated, or untrue claims throughout your operations, from production and delivery of goods and/or services, to employment practices, the value proposition of your product, and so on.

Masterclass defines ethical marketing as a technique that highlights a company’s values—honesty, transparency, responsibility, or adherence to fair trade principles—as a promotional strategy. These companies communicate their business ethics in marketing materials to reach target audiences with similar principles. While ethical marketing teams focus on advertising a product or service and making a profit, they aim to do so while upholding their ethical standards.

The site outlines a few key principles of marketing ethics, including:

1. Fairness: Establishing fairness as a decision-making principle means companies commit to fair prices, better wages, and sustainable development.
   
   
2. Honesty: A cornerstone of ethical behavior is honesty. Honest companies use marketing communications to provide factual and unexaggerated information about the functionality and impact of their products and services; they advertise without attempting to mislead.
   
   
3. Responsibility: Businesses may emphasize their responsibility in several ways, including their obligation to provide a reliable product or service, support social causes, give back to communities, treat their employees with respect, or protect the environment through sustainable practices.
   
   
4. Transparency: In business, transparency means being open to the public about your company’s operations, particularly the ethical way you treat employees and the sustainability and environmental impact of your products or services.

Examples cited include:

• A charitable giving campaign: Many ethical companies engage in significant charitable giving programs, donating money or goods to social causes and initiatives with a positive impact. An example of a charitable giving campaign is a one-to-one program built into the business model: The company donates one product to charity for every product they sell.

• Centering business decisions and impact on product pages: A common ethical marketing strategy is to advertise the company’s fair business practices on product pages. The site may give an inside look at the production process (like a factory or office space) or provide accurate numbers about the product’s minimal environmental impact. This aims to establish brand loyalty and make customers feel proud about supporting a company that works hard to be ethical.

• Socially responsible social media accounts: Many companies work to show their ethical practices by being responsible and outspoken online about social and ethical issues. This marketing decision emphasizes the company is an ethical brand with a sense of social responsibility that customers want to support.

In summary, underpinning all the principles of ethical and sustainable marketing is public outcry for fairness, environmental stewardship, and adherence to a moral code of conduct. It’s plain to see people are fed up with less-than-scrupulous tactics, as one X tweet plainly put it, “Ethical marketing, to me, means not belittling your competitors (name-shaming) to get customers; not lying to a potential customer about what your product can do; and not running ads on your competitors’ brand names.” The people have spoken.

If there is one thing I learned long ago as a writer, it’s to never underestimate the intelligence of your audience. Your customers and potential clients see through the lies and dirty tactics, and once you lose the respect of your audience, your customers, your suppliers, your network, and your employees, your business will suffer the consequences.

When it comes to sustainability and ethical marketing, the lesson to be learned here is as important in business as it is in life: Be authentic. Be honest. Have integrity, and lead with the heart.