First Thoughts A recent Accenture survey discovered that 60 percent of the 30,000 consumers canvassed worldwide expect companies to take a positive stand on issues such as sustainability, transparency and fair employment practices. There will be no hiding place behind the traditional bottom line. Businesses must now report on “triple bottom-line” criteria — which measure integrity and sensitivity as well as financial performance. Research tells us that 90 percent of millennials feel so strongly that companies should “do the right thing” that they would switch brands to support a worthwhile cause. They shun firms that fail to live up to responsible ethical standards. But — should you suspect that respondents would be unlikely to say otherwise — be aware that in this case, the figures don’t lie. Unilever CEO Alan Jape has pointed out that, in 2018, the company’s sustainable living brands grew 69 percent faster than the rest of the business. (That compares with 46 percent in the year before.)
& Jerry’s campaigns for social justice and climate change action are well known. These are just two of Unilever’s 28 sustainable living brands, and this category accounts for seven of its top 10 best-sellers. The writing is on the wall for companies not prepared to heed consumers. Accenture tells us that brands are now community property. Shareholders have a stake — but so do employees, who bring the brand to life, and customers, who sustain it with loyalty and drive it forward with meaningful demands. “In an era of radical visibility,” the consultancy points out, “technology and media have given individuals the power to stand up for their opinions and beliefs on a grand scale. This power, reflected in everything from the #MeToo movement to the growing intolerance for fake news, is infiltrating every aspect of people’s lives, including their purchasing decisions.”
Almost three-quarters of Unilever’s growth is coming from purpose-led brands. Dove has helped and encouraged 35 million youngsters to tackle low self-esteem over the past 15 years, and Ben
Brands are increasingly reliant on reputation and responsiveness for their existence. The demand for ethically produced, sustainable products and services can only rise.
First Thoughts
Unilever’s sustainable brands are defined as those that communicate concerns for the planet or social purpose, help to reduce the company’s environmental footprint, and enhance the social impact of the business.
Larry Fink, chairman and CEO of BlackRock Inc, makes the point well: “The public expectations of your company have never been greater… Every company must not only deliver financial performance, but also show how it makes a positive contribution to society. Without a sense of purpose, no company, public or private, can achieve its full potential.”
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