The Hour of the Brand Why

Much has been made in recent years of brand purpose. Though frequently bandied about, the concept of brand purpose can be a bit squishy and is often misunderstood. It is not about brands posing as (or, for that matter, actually becoming) commercial do-gooders. It is not primarily about philanthropy or social mission. It has to do with values. Values beyond mere utility. Values that people care about at a much deeper level. Purpose is not about giving lip-service to such values but actually embodying them. These values can be altruistic in nature but don’t have to be. For example, a perfectly valid brand purpose might be to prove that craftsmanship still matters. Brand purpose answers the question, “What, besides profit, does your brand stand for, and why should anyone give a damn?” If brand essence is the fundamental what of a brand, brand purpose is the fundamental why. That’s the way we like to think of it. Purpose is the big brand why. 

That was before all hell broke loose. Nothing concentrates the mind like a pandemic. Today, brand purpose is more relevant than ever. The crisis we are living in shines a bright light on what really matters—and, by contrast, on superficiality. It separates wannabes and light-weights from heroes and saints. It filters out the fizz and strips away the inauthentic. So if your brand stands for something that truly matters, this is your hour. Pandemic is no time for bluster. Whether you are the leader of a nation or the head of a brand, this is the hour to say and do things that are important. 

Heightened Expectations

Many studies have shown that people have surprisingly high expectations of brands. Today, those expectations are even higher. The folks at Edelman completed a study at the end of March looking at the role brands are expected to play during the coronavirus crisis. They talked to 12,000 consumers in 12 countries. What they found was that people around the world expect brands to be competent and constructive actors in the midst of this crisis. They overwhelmingly expect brands to do everything possible to protect the well-being and financial security of employees and suppliers. They expect them to retool production lines in order to produce goods that help consumers meet pandemic-related challenges. They expect them to partner with government to respond to the crisis. In fact, over half of those interviewed believe brands are responding more quickly and more effectively than governments. Some 62% say their countries wouldn't make it through the crisis without the active help of brands. That’s an incredible testament to the trust people place in the power of brands. 

But it’s not just an exercise in largesse. The decisions brands are taking now can be—and arguably should be—driven by enlightened self-interest. Those which act now for the benefit of employees, consumers and society at large will further strengthen the already-strong bonds that exist between brands and their various stakeholders. McKinsey partners Sneader and Singhal liken the post-crisis future to the post-World War II era. Subsequent generations admiringly asked veterans, “What did you do during the War?” So it will be with brands. Those that can point to a proud record will reap enduring reputational and financial rewards.

The Four Choices

Writing in AdAge, Thomas Kostler says the corona crisis presents brands with four choices: say nothing, say something, do something, or help others do something. Brands which opt to say nothing do so at that their own peril. Running pre-corona ads at a time when people are dying and economies are collapsing has a high risk of coming off as tone-deaf. Most brands recognize this. According to the LA Times, 92% of marketers have changed their messages. 

A brilliant case in point is Dove. Dove is a brand with a clear sense of purpose. For years its Real Beauty campaign has championed the self-esteem of women and girls by challenging narrow, exclusive notions of feminine beauty. A worthy, important purpose to be sure. But executives felt its business-as-usual messaging seemed out of step with the moment as coronavirus emerged as a pandemic. This feeling led to the creation of a new iteration of the campaign, Courage Is Beautiful, showing the harried, weary faces of courageous healthcare works on the frontlines of the crisis. The images are startling, the message inspiring. What’s exemplary about this work is that it is not simply a knee-jerk, situational reaction to the moment but an organic response flowing from Dove’s long-standing brand purpose. Courage Is Beautiful speaks to the moment powerfully, but in a way that is consistent with what Dove has stood for over the years.

But brand purpose goes far beyond advertising. It is the wellspring not only of what brands say but what they do. It’s the same with responding to the coronavirus. Brands should offer solutions, not just sentiments, and many are doing exactly that. Examples abound. Early on, the French conglomerate LVMH, makers of fancy scents such as Givenchy and Christian Dior, began manufacturing hand sanitizer in its perfume factories and providing it at no charge to public health authorities. In the UK, Pret A Manger started offering free coffee and half-off lunches to NHS workers. Microsoft has created a health bot for the CDC website to answer the public’s questions about COVID-19 symptoms. As far as merging brand purpose and crisis response, Patagonia deserves a mention. The California-based activist retailer is known for is its incredibly well-made outdoor apparel and commitment to “save our home planet.” A few years back, the company launched a sub-brand of outdoor-related food products called Patagonia Provisions. As shoppers are urged to minimize trips to neighborhood supermarkets, this online grocery is now rapidly adding small, third-party brands that share its commitment to regenerative organic practices. Like Dove, Patagonia is stepping up to the needs (and opportunities) of the moment in a way that furthers its enduring purpose.

Cringe-worthy

But not every brand has risen to the occasion. In fact, some have made embarrassing guffaws. The Los Angeles Lakers and Shake Shack are among a long list of shame-faced brands who have returned PPP loans after incurring critics’ wrath. PPP loans were intended to help small businesses weather the storm. But the initial round of funding was quickly depleted, leaving legitimately needy businesses without relief. It was even worse for Richard Branson. The billionaire Brit who founded Virgin Atlantic initially asked 8,000 employees to take unpaid leave and lobbied the UK and Australian governments for taxpayer-supported loans. Denunciation ensued. As damage control, he offered his private island as loan collateral. 

Some brandwatchers have questioned whether such missteps will do lasting damage to these brands. The Edelman study cited earlier suggests they will. There, 71% of respondents said if brands put profit before people now, they will lose their trust forever. But observers like Jennifer Faull and David Frymann aren’t so sure. They argue that consumers have short memories when it comes to brands behaving badly. Faull cites Volkswagen which “went from Third Reich to hippie culture in one short generation” and will surely recover from its more recent misdeeds. Frymann talks about FaceBook. Despite the Cambridge Analytical debacle and the spanking Mark Zuckerberg got from government overseers on both sides of the Atlantic, consumers continue to post and comment like crazy. FaceBook’s data-sharing sins appear to have harmed it not a whit.

Do The Right Thing

Perhaps Faull and Frymann are right. Perhaps screw-ups today won’t cause brands irreparable damage. But whether they will or won’t is beside the point. Our own counsel to brands is, be true to your purpose and do the right thing. And the right thing is always to care about people first, profits second. If you have a brand purpose that counts, remaining true to it will serve you well today and tomorrow. And treating people with fairness and compassion is always a good thing, pandemic or not. Figure out how to do both at the same time, and you will have cracked the code. 

But in the end, the reason to do the right thing is because it’s the right thing.