MARKETING
Brands need to build trust
The findings from SustainAbility's recent global research indicate that there is a significant shift in how consumers view the moral behaviour of brands. Legal compliance is just not enough for this actively concerned consumer. Brands should now be looking to lead the way on moral issues rather than just following legal guidelines.
Failure to comply could result in confrontation with consumers and legal activists, who view looking after the environment and human rights as a consumer issue. Understanding the shift in consumer attitudes towards the subject will be fundamental for brand development in the future.
"The subject of trust is one all brands should take seriously," says Geoff Lye, who has been closely involved with companies such as Ford, Nike, British Telecom, Shell International and the US Government on all aspects of corporate social responsibility.
WGSN asks him to explain the findings:
Why do brands need to take trust seriously?
"Consumers now buy into a brand's values in such a big way that they want to know the company behind that brand name. They want to know they can trust it. Previously, consumers wanted reliability, now they want accountability.
"If you break trust down into its component parts to make it less 'fluffy', you get honesty, respect and responsibility and it's these qualities that need to translate into basic brand values."
How do you start to build trust in a brand?
"The starting point is always to get in tune with what your customers and shareholders expect from you as a brand. There are different issues for each industry and fashion has plenty of them, particularly in the supply chain. Brands should check theirs has integrity; are there any social, human or environmental abuses occurring? Good risk management should be looking at this as a matter of course. Don't ignore it, manage it.
"Ethical is becoming very cool in North America. Once all the legal and governmental issues are in place, brands should ask themselves if the brand also has ethical quality. All channels are pointing towards ethical responsibility being a key issue for the future. Just as we think sending children up chimneys in the Victorian age and slavery was wrong, that's how we'll think about ethical abuse. "Ford, for example, don't let anyone under the age of fifteen work in any of its factories, regardless of the fact that it might be legal to do so in the country of production. Consumers are uncomfortable with it, so Ford choses to be proactive on the issue.
"Imagine a world where you will have to pay heavily for greenhouse emissions; all damage you make to the environment will have to be paid for and you'll have to take responsibility for 'end of life' for products. Ten years on, this could be the case.
"Look towards campaign and action groups to see what they are targeting as the next major issue within industry. Campaigners are a good indicator of how consumers feel about a subject and are way ahead of the law. Whatever they're talking about now will be what the consumer will be looking at in the near future.
"I think brands will also need to decide how they implement trust issues. Compliance excellence, keeping to the law in other words, will not be enough for consumers. They want to see brands shift from passive involvement – just toeing the line – to active involvement, going the extra bit to raise the standard.
"Companies still need to 'connect the dots' from the developmental think tank departments to the advertising department; often the message is lost or confused. It's a weakness even in the best companies.
"Is it respectful of the fashion house marketing departments to use models who are over-thin, touched-up and altered to be 'false' images, as opposed to what we all know is the truth? Most current marketing is misleading even though it is legally acceptable."



Ethical Nike
The well informed green consumer
Ford trying harder with the hybrid SUV.
What are the issues for fashion?
"Trust is valuable coinage in fashion retail, just look at the level of trust consumers gave Marks & Spencer before their current problems. Most of that trust was built from simple issues like customers being able to return goods without any questions.
"The supply chain is an important area to watch. Take Nike's issues with sub-contractors that had allegedly been using child labour. The damage this caused to the brand value forced them to look at every link in their supply chain. Now they've built integrity into each section and they check for human rights, environmental and social abuses. They've made huge strides from initially being blind to the issues; now they've faced-up and engaged with them and they have a designated team looking at ethical quality. All brands should be doing this; it's good risk management.
"There's been a shift of importance from the mid-1980s when no one really cared too much about a brand's moral codes. It was always assumed that brands were not accountable for factories in the Far East, particularly the sub-contracted ones, but it turns out that they are and it's a subject the consumer feels very strongly about.
"Laws are a lagging indicator of society's opinions and may not be able to keep up with the consumers' standards. When the legal process lags behind, we move out of the court of law into the court of public opinion which is often far more damaging: consumers will boycott publicly condemned product, as they've done with Coca-Cola after the Dasani water affair."
Does the consumer really care about environmental issues?
"Consumers expect business to be squeaky clean and have high ethical standards. They also demand protection from giant corporations and put the blame for environmental damage on industry, while doing very little to help. But however selfish consumers are, they still care about the issues.
"In North America, car consumers want greater fuel economy, less environmental impact and guilt-free driving, all without extra cost. Ford have taken this and planned a strategy that means by 2030 their entire world fleet of drivers will be emitting fewer greenhouse gasses, however they drive. What they've done is say we will invest in technology that allows our – sometimes not very careful – drivers to drive Ford cars with a clean conscience."
Is this concern over ethical and environmental issues a generational thing?
"Absolutely. The older the CEO the more likely it is that they will not take the issues seriously, which ultimately could harm the brand. The bigger the company, the older the CEO and the less likely it is that ethics and social responsibility will be registering on the agenda. They're likely to think of it as 'soft stuff'."
What about Asia?
"Environmental damage is a very big issue in China and the Government is taking it seriously. China now wants to leap-frog over the recent developments to take the best ideas and be ahead of the world in terms of car manufacture and disposal. They are trying to set standards on fuel efficiency that are higher than in the US. Although we all acknowledge they do have some way to go, there is determination to get there."
Checklist for Building Trust:
Consumers want accountability as well as reliability from a brand.
Investigate what your consumer wants in terms of corporate social responsibility.
Check if your brand has ethical quality.
Watch the campaign groups to see what subjects they are working on.
Make sure the whole company understands the issues, not just the marketing department.
Check the supply chain has intergrity from start to finish.
Shift your brand from passively legal to morally active on CSR decision making.
Corporate Social Responsiblity (CSR):
CSR is a term that embraces financial integrity, corporate ethics and dimensions of economic, social and environmental value.SustainAbility
20-22 Bedford RowLondon WC1R 4EBUKTel: +44 (0)20 7269 6900www.sustainability.com Founded in 1987, SustainAbility is the longest established international consultancy specialising in business strategy and sustainable development – environmental improvement, social equity and economic development. For additional WGSN research see:
Sustain Consumer Attitude Trust Consumer Attitude Ethical Consumption Industry View Massive Change Industry View