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One of the real concerns of sustainability advocates is that the stagnant global economy will put pressure on businesses to freeze, moderate, or even eliminate sustainability-oriented programs and messages.
At a time when corporate profits have cratered and nearly everyone's job seems at risk, the belief is that spending on sustainability will be lumped in with other examples of unnecessary corporate excess, like corporate jets and stadium luxury suites.
A review of recent studies and surveys suggest that, in fact, the opposite is true: Companies that aggressively pursue sustainability will put themselves in a position of unique strategic advantage. Ultimately, this can lead to more efficient business practices, an enhanced brand and improved fiscal performance.
"Sustainability and Branding: The Imperative of Continuity," a white paper recently released by ADC Partners, identifies a number of the underlying reasons for initiating or maintaining sustainability programs, and for aligning a brand accordingly:
- Green has entered the mainstream: Demographic and psychographic research reveal that people who shape purchasing decisions according to green sensibilities are no longer a niche audience.
- Brands perceived as ethical benefit: Several recent studies suggest that brands associated with "ethical behavior" and "social responsibility" produce a direct, related benefit to the bottom line.
- "Sustainable" brands may increase in value: Rapid consumer acceptance of green products and increased focus on corporate social responsibility has produced real world value for sustainable brands.
- Consumer and Business focused brands both benefit from sustainability: Business-to-business companies are finding that sustainability and related messaging are no longer restricted to (or beneficial to) consumer-focused brands.
- Sustainability-aligned brands can weather tough economic times. Research and sales data suggest that sustainable brands continue to perform well (and even outperform conventional products) despite the recent economic malaise.
It is inevitable that in the current economic climate, corporate decision makers (and marketing professionals in particular) will be under pressure to suppress sustainability-oriented programs and messages. Based on a review of current trends and research, such action would be akin to selling stocks at the bottom of a market cycle: a short-term reaction that eliminates the benefit tied to an inevitable turnaround.
Aligning a company and its brand to sustainability is no longer a niche activity. Rather, it has transformed into an integral part of a business case. Customers, stakeholders, business partners, employees, and others now expect that sustainability is part of a company and its brand. Backtracking on efforts to align with sustainability will ultimately prove more costly than continuing with planned activity.
David Almy is a principal of ADC Partners and teaches marketing at the University of San Francisco.
Image cc licensed by Flickr user fazen.
Amen
Green business is at an interesting place right now.
Sustainability is becoming both an expectation and a cause for mistrust. Customers expect us to do our part, but are also hypervigilant (as they should be) for any sign of greenwashing.
We need to focus on sustainability not just in terms of 'greening' our companies, but in terms of making changes that are themselves both sustainable and transparent.
Consumer trust is a difficult thing to win, and an easy thing to lose. But if we're honest and genuine in our efforts from the outset, we'll have nothing to worry about.
As I've said before, responsible business practice goes well beyond sales tactics.
Chris Pritchard
SIDD
Going the extra mile.
Companies like Apple, who have really great brand loyalty - stand to benefit from sustainability efforts because it will further reinforce the brand with their customers.
For instance, Apple could review their product packaging which was incredibly wasteful in the past. Apple could also look at the energy efficiency of their products. Apple should also offer end-use product recycling and "trade ins".
The above are examples where Apple could further bolster their brand loyalty with sustainability efforts and make an already great company even better.
I don't believe that customers will back a company's products or services just because they are sustainable. The company must have top notch products and services (like Apple) and then go the extra mile and prove to their customers that they are taking on sustainability measuring and improvement.