Acknowledging an Impact: The Importance of Socially Responsible Marketing

Marketers play a distinct role in society because they have the opportunity and ability to communicate messages to the general public. Most advertising and public relations efforts are aimed towards promoting a certain brand, product, or service for the specific purpose of increasing an organization's profits. Some marketing, however, goes beyond this profit-seeking function to reach for broader, perhaps more consequential goals. As people become more and more focused on environmental and social issues, businesses have begun to be held accountable for their actions and how they affect the grander scheme. Many have even come to expect that marketers use their communication powers to address the concerns of the communities to which they belong. The manner in which companies choose to approach these issues can take many forms. One way that social responsibility can manifest itself in marketing is by taking an active stance in the support of charitable causes, as is the case with (PRODUCT)RED branded goods (pictured right). Sales of these products support The Global Fund, which provides aid to women and children affected by HIV/AIDS in Africa. Campaigns with a social focus like (RED) provide a visible venue for businesses to promote a positive impact that goes beyond the goals of the organization itself.

Some firms may also decide to market green products or they may spend advertising dollars to convey the company's efforts to help the environment through sustainable business practices. These techniques have become more and more important in the midst of a societal crisis over the uncertainty of the future of the world we live in. In particular, people have begun to realize the negative impact that past and present generations are having on the environment, and they are beginning to question the state of the planet on which their children will live. One way to measure the public's concern over these issues is through monitoring blog activity surrounding the topic. According to a recent Nielsen study, "protecting the environment has become increasingly important to consumers, with online buzz around sustainability growing 50 percent in 2007." While some of the conversations taking place are directed towards individual actions, most of the apprehensions emphasize the environmental impact of large corporations. In fact, the top three sustainability subjects are climate change, renewable energy, and resource conservation, all of which have the potential to be addressed by the manner that industrial producers conduct their business.

Since consumers are clearly concerned about environmental issues, it would only seem plausible that a 'green' message from any organization would help the public image of that brand. However, businesses need to be extremely careful that they do not overstate their claims because the public will be quick to "condemn 'greenwashing' when they suspect companies misrepresent their environmental impact with aggressive PR campaigns--as spurious attempts to be 'green.'" The blogger community is especially skeptical of contrived endorsements, in particular when they feel that a company is contradicting its actions or being incongruent with the actual industry practices. It is not uncommon for marketers to experience a backlash from their "socially responsible" marketing if they are not completely honest and consistent with their message. In fact, companies like Patagonia have found that it is better to disclose all information, good and bad, in order to gain the trust of consumers. Footprint Chronicles (pictured left), the company's new interactive online campaign, does not hide anything and has seen a huge positive response from the online community.

It is especially important for organizations to engage in socially responsible marketing and business practices if they have a negative public image. One of the most controversial brands when it comes to societal and environmental impact is Wal-Mart, who has put millions of dollars into reversing its reputation of being an aggressive profit-seeking corporation. The company's most recent campaign to support Earth Month 2008 consists of advertisements across media as well as in-store products and displays. Among the over 500 eco-friendly items available are co-branded Coca-Cola t-shirts made with a material manufactured from recycled plastic bottles and a line of "organic, Rainforest Alliance and fair trade certified coffees." As a result of this elaborate undertaking, Wal-Mart hopes that consumers will recognize that it is taking strides towards sustainable business practices, and is pressuring its suppliers to do the same. Because the company does have such a powerful hold on its partner companies, consumers expect the "retail giant to humble mighty suppliers into meeting its environmental dictums." All of these added pressures combined with a past image to overcome have caused Wal-Mart to see mixed reactions to its sustainability efforts. In Advertising Age's list of companies that are "Green & Greenwashed," Wal-Mart is the only organization to make both lists. On the positive side, environmentalists realize that as the world's largest retailer Wal-Mart is "already having effects on the way its suppliers produce products." On the other hand, despite its "ambitious goal to reduce greenhouse gasses by 20% in seven years...a look at their recently released report shows that the company's carbon emissions actually increased by 9% last year."

Skeptics of social responsibility in marketing note that while a "corporation's goal is to act on behalf of its owners [...] it would be irresponsible for the management of a company[...] to deploy corporate assets for social causes." According to this philosophy, if an undertaking does not produce a quantifiable outcome in the form of increased stock price, it is not in the best interest of the company's shareholders. While this is an extremely close-minded and perhaps even selfish viewpoint, it is important to realize that this type of marketing does not always automatically translate into increased revenue or even an improved public image. However, organizations that consistently exhibit socially responsible tendencies can eventually gain a strong reputation that could pay dividends in the long run in the form of increased consumer trust and loyalty.