In an era defined by instant access to information, brand trust has become more critical to success than ever before. With expectations evolving, companies face a challenge to evolve past superficial messaging and demonstrate a commitment to something larger than themselves. Here, we’ll discuss this trend in more depth and shed some light on how businesses must reprioritize in the age of ethical entrepreneurship.
Swapping marketing bravado for measurable values
Ideas like social responsibility and sustainability have long been a part of how companies present themselves to consumers. However, those principles have often been regarded primarily as a matter of optics, with organizations incorporating these ideals into branding exercises as a means of differentiating themselves from the competition. While this has worked to some extent, returns are diminishing with this approach due to the evolution of the commercial landscape. In particular, the increase in digital visibility has been especially impactful.
In today’s global marketplace, customers have access to more information than ever before, and consumer behavior has changed as a result. People no longer have to take companies at their word. They can seek out information and scrutinize every aspect of operations, from supply chains and labor practices to carbon footprint, to see if brands are matching words with action. In this environment, greenwashing is quickly exposed, so companies that want to succeed must focus on transparency and turning their marketing claims into tangible values with a measurable impact on operations.
Simply put, what we’re talking about is ethical entrepreneurship. Think of what a brand such as Patagonia has done, for example. The company has embedded environmental values into production and processes, and has emphasized complete transparency, making detailed carbon footprint data on products available for consumers to access. Brands like this were once exceptions to the rule, but that’s changing as consumer sensibilities and priorities evolve. Now, this approach is becoming a base expectation.
Nowadays, commercial success is all about building a value-based identity from the ground up, rather than retrofitting one, to resonate with consumers on a much deeper and more authentic level.
Trust is the premium currency in a global economy
Now, perhaps more than ever, we are in a trust-driven economy. The explosion of e-commerce in recent times has meant that consumers are now reachable to a wider range of brands than ever before. On one hand, the growth of the global digital marketplace has given companies more opportunities to access their target customers, but on the other hand, the sheer breadth of options has prompted consumers to become more discerning. In digital marketplaces, where visibility is limited, trust is at a premium, and immense value is placed on authenticity.
Going forward, ambitious entrepreneurs need to prioritize transparency and impact-oriented approaches. This is the only way to signal to modern consumers that values are truly aligned. Many organizations have adopted this approach wholeheartedly and are seeing significant success with it.
In the skincare space, for example, many companies are embracing cruelty-free and vegan supply chains, as well as more environmentally friendly glass packaging. Companies like Okoa Skin have gone all the way, emphasizing sustainability as a core pillar of their brand identity and making ethical supply chains and responsible production fundamental to their operations. Companies like this exemplify the concept of purpose-led ventures, and their success illustrates the importance of prioritizing transparency and value alignment in customer relationship building.
The key point to keep in mind here is that this kind of brand trust needs to be built holistically, with values consistent across every touchpoint. This requires considerable, concerted effort, but brands that genuinely embed their values into strategy and operations can resonate with today’s consumer in a transformational way.
Redefining performance in the age of accountability
The imperative to shift to purpose-led business models is becoming increasingly clear, as are the benefits of doing so. But it’s also true that making such a transition places new demands on leadership. This is because when a brand seeks to embody values larger than themselves, company leaders must succeed by different metrics than before.
At a value-driven organization, financial performance is no longer the sole determinant of success. Rather, leaders need to demonstrate accountability to their chosen cause and to make choices that further contribute to that cause. None of this is to say that ethical business and profitability are mutually exclusive – far from it – but it requires some adaptation and a new perspective.
Rather than thinking about short-term optics, leaders need to fully embrace the idea of structural change and long-term external goals. Many companies are devising ESG (Environmental, Social, and Governance) goals and integrating them into executive compensation for this reason. Internal leaders need to see purpose-driven adjustments as brand-building investments and to learn how they contribute to traditional performance metrics.
Ethical business can absolutely be a catalyst for commercial success, but it’s crucial to remember these efforts need to be authentic. Today’s consumers are savvy, and most can recognize a façade when they see it. Customers want to see that the brands they support are making meaningful trade-offs and are truly committed, so full, sincere buy-in is essential to building long-term trust.
Rethinking growth in the digital era
Consumers are constantly bombarded with misinformation and superficial promises these days, so snazzy marketing isn’t enough to build the kind of trust that will sustain growth long-term. Rather, brands need to define their purpose, embed values into strategy, operations, and leadership, and redefine not only how they present themselves to the public, but also how they see themselves internally. In a world where words are cheap, the brands that succeed with modern consumers are those that let their actions speak for them.
