Charity or Sustainability Branding?

In the shallow world that we live in today, nobody really wants to do any good unless it makes them look good too. We as humans function to fulfil our needs, need for food, for love, for recognition and acceptance. The motivation behind doing good for anyone is deeply rooted in the desire to fulfil our own social needs of getting accepted by the rest of the members of the society that we are a part of. Thou shall not boast about thyself as a commandment does not hold much significance anymore and rightly so! Why should after all one not let people know of the good that one is working for? If you are putting in the bucks and hours you might as well be known for it, don't you think? Don't we all hold people who do good for us in high regard, do we not respect them more, would we not stay loyal to people who we know for a fact are good, would we not choose them over someone else if given a choice to be with in the first place? This behaviour after all also derives its existence from the human need of being associated with someone everyone looks up to, grants them the referent power of sorts!

Come to think of it, this very human behaviour applies to corporations and organisations pretty much the same way and to the brands they own. As per Corporate social responsibility provision included in the Companies Act, any company in India that makes a profit of over five crore is required to spend 2% of its average profit (of immediately preceding 3 years) on CSR activities. Even before this inclusion, many responsible corporate giants invested huge chunks of their profits in the betterment and upliftment of the society by constructing schools, local infrastructure, some even went as far as constructing an entire township for betterment of their employees and local residents. While many firms engage in CSR for altruistic reasons, the competitive business environment requires that resource allocation be done based on company's own business needs. The question that now arises is how can the businesses take advantage of such investments and leverage their CSR activities to increase their brand equity. This is where the concept of sustainability branding comes in. Sustainability Branding is the process of creating a brand that gives your customers additional value in terms of environment and social benefits. Sustainability isn't just about the environment. Social, economic and environment are the three interconnected pillars of sustainability and brands need to be aware about all three. The known fact is that the more positive the perceptions and feelings are towards a brand, the higher will be the likelihood of identification and loyalty amongst consumers. People want to associate themselves with a brand that is socially and environmentally responsible not only because it gives them the satisfaction of doing good but because it makes them look good too. Telling people you are a responsible member of the society and you are willing to contribute for its betterment or preservation is now a "cool" thing to do. In a world of online social networking everyone is after all looking for hash tags to use, statuses to share and stories to tell! Which is why it is important that companies should not just communicate their CSR activities to its consumers but also give them a chance to join you in the cause they believe in too.

Many organisations have taken advantage of their CSR activities to communicate the ideologies and personality that their brands are made of. P&G made use of its CSR activities and released multi channel campaign to extensively promote its CSR rather than the product to communicate to its target audience the additional value in terms of the benefit that their purchase would give to the society. However, while formulating the CSR strategy for a company it is imperative that the ideologies and beliefs that are communicated are not just meant for a one-off campaign.The management should be able to walk the talk as well. These strategies should be incorporated in the very DNA of the brand, and inculcated in the entire value chain instead of just the end product.

In. 2013, BBMG (a brand consultancy firm) and GlobeScan (market research firm) released a report of their research that was conducted across twenty one countries and coined the term "Aspirationals"who define themselves by their love for shopping, desire for responsible consumption and their trust in brands to act in the best interests of the society. In India the population strength of such "Aspirationals" was found to be fifty eight percent. With a more educated and sensible consumer base, it is easier to connect and form profitable loyalties by supporting a cause that might be close to your target audience. A strategic step towards making conscious decision about the company's CSR can lead to a powerful shift in the idea of CSR from an obligation to a profitable desire and a means to achieve a much more stronger and greater brand value.