How Deep is Thy Commitment? Moral Merch

I’ve heard of green-washing, pink-washing, purpose-washing and woke-washing of late. These terms imply that companies are using their green “we’re saving the world” credentials and cause marketing initiatives to enhance their reputations or brands but that it is only skin deep.

As I’ve noted in my trends report, corporate purpose seems the most recent corporate strategy that companies are rallying around. Just in the past decade, the term has increased over 1000%. Of course, there is a great deal of cynicism surrounding many of these reputation-burnishing platforms that come and go on a regular basis but I do think that purpose-making has greater lasting power and relevance on how best to run a company today when all stakeholders are watching, technology outs fakery and recruitment of Millennials is job #1. If you can build purpose bone deep, infuse it into everything you say and do and you manage to deliver your purpose consistently (and with feeling), you might just end up earning a winning reputation. And be successful at the same time. Kantar’s Purpose 2020 study confirms that purpose-making delivers real impact:

·       Brands with a high sense of purpose have seen their brand valuation increase by 175% over past 12 years vs a median growth rate of 86% and a growth rate of 70% for brands with a low sense of purpose.

·       76% of marketing leaders believe their organization has a defined purpose, but only one in ten actually have a corporate purpose statement backed by a meaningful activation plan.

A new term — “moral merch” came my way while reading Vogue Business’s new sustainability newsletter. In the article, the author makes the point that fashion brands need to be deeply authentic when touting all they are doing to help the environment or when protesting against a governmental action such as immigration or climate change. The article mentioned criticism of Balenciaga and its Koala-themed Tshirts to raise money for Australian fire relief. The criticism leveled against the luxury retailer was that the US$495 Tshirts are just adding to the mountain of disposable merchandise that does harm to the environment. As the author writes, “Brands used to avoid political messaging for fear of offending clients with different views. The danger now is not being committed enough.”

I find it interesting that the new reputation yardstick for brands wading into the purpose-activation world is “how deep is your authenticity?” Face it, everyone is a judge today and with a filter like this, most are bound to fail. Hard to win in today’s glasshouse environment.