Do you also think that branding and ethics in business are two different paths? Well, they both overlap with each other in the modern business world.
As ethics in branding is not just a nice-to-have, it becomes an integral part of modern brand identity and goes beyond the superficial. Since today, consumers are more aware than ever. They actively seek out ethical brands that are making a positive impact on the environment and society.
You might also like
For the same reason, over 79% of millennial consumers prefer brands that show sustainability in operations. Meanwhile, Gen Z shoppers are 2x more likely to boycott unethical brands. These statistics are proof of the considerable impact of ethics in branding.
So branding and ethics in business are equally important to get a positive consumer perception of your brand.
You’ll get a complete understanding of branding and ethics, their importance, real brand examples, and best practices to follow at the end of the article. So hook up till last.
What is meant by ethics in branding?
When ethics are incorporated in branding, it’s commonly known as ethical branding. So what actually is it? It is the strategic approach to developing a brand around values and actions that seem morally correct and honest. At the same time, those brands that follow moral principles and values and don’t do any kind of wrong to humans, animals, or the environment are considered ethical.
An ethical brand carefully looks at the manufacturing process to avoid damage to its surroundings. To cut a long story short, brands live their ethics in daily operation to contribute good to society, not bad.
What are the ethical implications of branding? Do & Don’t
Branding is all about creating a unique identity and shaping the audience’s perception of a company. In the meantime, the ethical implications of branding are creating an identity by following values and actions.
The potential moral consequences that emerge from branding are what a company must consider. The ethical implications of branding can have either positive or negative outcomes, including benefits or harm, distress, or breaches of trust. Let’s cut through the noise and walk through the ethical implications of branding.
Do: Authenticity and transparency
The first thing that comes to mind in branding and ethics is transparency. The practices, values, offers, and impact that the branding holds must be clear and honest—that’s what makes a brand ethical in the first place.
At the same time, transparency and authenticity go hand in hand in ethical branding as authenticity is being true to values and brand promise, while transparency is being open about its operations, products, and impact.
It’s not just about saying what a company does; the brand has to back up words with actions. That’s how it builds customer trust and loyalty as your brand is standing true to its values and ethics. When consumers know the brand’s ethical practices align with their values, it builds a positive brand image.
Don’t: Greenwashing
As eco-friendliness is not just a word to use in branding and marketing, you have to follow the track to make it. And with rising demand, many brands are claiming to be eco-friendly.
And some of the brands are actually making no effort and just dodging their eco-conscious consumers. It’s a big red flag in branding.
It’s commonly known as Greenwashing, an act of making a brand look sustainable in social platforms, but in reality, it’s all misleading and false statements.
And did you know many popular brands also get into it and face controversy? In one of the Changing Markets Foundation 2021 reports, H&M, a high-street fashion brand, was exposed. H&M hadn’t actually been holding its claim of sustainability, as 96% are just fake statements, not action-driven.
Therefore, it’s critical to only claim what you actually know, as you can’t trick modern consumers. Your brand action must align with its branding messaging. In addition to greenwashing, branding must avoid exaggerating claims or making false promises that manipulate consumers into buying.
Do. Social Responsibility & Sustainability
About 63% of teens said they have higher chances of purchasing from brands that support social causes or charities. They think brands have a responsibility to give back to society. Even in one of the studies, almost a third of people stated that they are inclined to boycott brands that support causes they oppose.
And ethical brands use the company to bring change in people’s lives and the environment while having fair labour practices.
Ethical brands are strongly committed to sustainability and take social responsibility to do good for humans and their surroundings.
TOMS As A branding and ethics example (Social Responsibility & Sustainability)
Let’s take an example of TOMS as a company that follows branding and ethics alongside. TOMS is a Certified B Corporation that follows the “Triple Bottom Line” sustainability framework: People, Planet, Profit. Optimising all three bottom lines, TOMS has been creating a positive impact on the world while progressing financially.
You likely know TOMS for its “One for One“ program, as the company donates with every purchase the customer makes.
At the same time, the ethical principles of TOMS’ social responsibility and philanthropy are driving social change in reality by creating a positive impact on society. The company perfectly created the perception that TOMS uses business to improve lives, and consumer purchases can make a difference.
TOMS designed its product by keeping the planet in mind. For instance, it utilises eco-friendly materials, including recycled cotton, jute, recycled polyester, recycled rubber, and recycled foam, to minimise its carbon footprint.
Additionally, the brand transitioned to 100% recycled LDPE polybags and more environmentally friendly packaging. Meanwhile, Toms measures its carbon footprint and figures out solutions to reduce it for minimal impact on Mother Earth.
While leading by example, TOMS annually publishes its Impact Report that captures all the good made because of its consumers. This is what makes it a transparent ethical brand that is improving the lives of millions of people around the globe.
Do. Equity & Diversity
Equity and inclusivity are ethical obligations in branding that carry significant weight. A new culture from a generational shift welcomes everyone and wants every person to be understood. Diversity, Equity, and Inclusion gain importance to Gen Z and Millennials. So a brand must represent its undervalued consumer groups that need to be heard and seen. Let’s understand it by a real-world example.
Dove is an excellent example of a brand that prioritises fairness and intersectionality–driving change in society. Dove showcases women of all ages, sizes, and ethnicities, breaking the stereotypical beauty standards of the industry.
You can see the real women of various skin tones, body sizes, and hair textures in Dove’s branding messaging and campaign, which adds diversity to the brand. Meanwhile, the Dove rejects the AI manipulation that adds insecurity and only shares unedited photos that all kinds of women can relate to globally.
Not only that, Dove is driving change by supporting peace, justice, and equity through initiatives such as
- The CROWN Act to combat systemic hair-based discrimination and to gain the confidence to be proud of one’s crown(hair).
- Dove Men+Care’s “Commit to C.A.R.E. Now” to fight for racial equity and social injustice for black men.
- Black Birth Equity Fund is addressing inequalities in Black maternal health.
- The Self-Esteem Project aims to educate parents, teachers, and mentors so they can help youth build body confidence.
Don’t Wokewashing
Be authentic with your audience about the positive impact you are creating for society, and avoid ‘woke washing’. Ever heard of this term “Woke washing”?
It is often used to illustrate unethical brands that make shallow statements on supporting social justice issues like racial equality, gender equality, or environmental sustainability, all without taking any significant action or making plans.
Tips to follow Branding and Ethics side by side
Your ethical values shouldn’t be a separate list on an “About Us” page. They must be deeply integrated into every action you take. The goal is for your brand’s perception to match your company’s reality.
- Before you even design a logo, define 3-5 core ethical values. Go beyond generic terms, be specific, like radical transparency, inclusivity by design, and employee well-being. These are just examples; you have to find yours.
- Trust is built on honesty, not perfection. Be open about your processes, successes, and failures. Show your “how.” Where do materials come from? How are employees treated? What’s your carbon footprint?
- Your brand’s social or environmental mission must be actionable, authentic, and integrated.
- Don’t manipulate your audience; empower them, like move from “fear-based” or “insecurity-driven” marketing to “empowerment-based” marketing.
- Commit to inclusivity and representation and cultivate a diverse internal team. Make your website, stores, and products accessible to people with disabilities. (e.g., alt text for images, closed captions on videos).
- Your brand’s environmental impact is a core part of its ethics. Sustainability is a journey, not a destination. Therefore, be honest about where you are on that journey.
Discussion about this post