There is no such thing as the perfect enterprise or brand, so being an ethical brand means something
else, but what?
In 1997 we noticed that a number of very well known brands were cultivating their ability to portray
themselves as socially responsible and environmentally friendly, when clearly they were not. We started thinking how
it might be possible to distinguish between those that are genuine and authentic ethical brands and the fakes that
choose to covertly disavow their social and environmental responsibilities in the name of free enterprise.
It wasn't until after 2003, when the ethical brand initiative had become a full-time research and
development effort that we came to rest on a cohesive framework that provides an unbiased setting for the
clinical analysis and authentication of genuine ethical brands.
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"The ethical brand Identity® is probably the most inclusive and authentic symbol of social, economic and environmental
integrity. Licenses to use the ethical brand Identity® are not sold, but granted and not on the basis of
what a brand says, but what it actually does or doesn't do."
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Brands reflect the diversity of enterprise. We typically associate brands with the products and
services sourced, produced and distributed by commercial entities, but the concept of branding is actually far more pervasive and
profound. It is the context in which our perceptions of value are abstracted. The concept of branding touches every conceiveable type of organisation
as well as people and places. Importantly, brands have also evolved from labels for these things to experiences we associate with
their identities.
Our early work on the ethical brand initiative identified peculiarities that clearly distinguish all ethical brands from all others.
We eventually concluded that no matter what ethical brands actually do, how large or small they are, or which geographic or
cultural environments they operate in, authentic ethical brands are qualified by their respect for the needs, interests and
concerns of the stakeholder communities, economies and environments they touch. We then architected a world class approach based on this
inescapable truth, as well as the fact that - in the broadest sense - authentic ethical brands are genuinely committed
to 'doing the right thing', whilst retaining their fiercely competitive nature and strong commercial instincts.
Even the most well-intended top-down initiatives can be overwhelmed and undermined by the
efforts of the organisation itself to create the appearance of 'doing the right thing'. If obstacles such as poorly aligned incentives and
inconsistent policy enforcement (to name a few) are allowed to persist then those responsible for execution are most likely
to eventually conclude that the only way forward is to engineer the appearance of doing so. That may deliver short term
satisfaction, but the real cost of allowing this scenario to unfold is actually substantially greater than the cost of
effectively enabling and supporting an authentic commitment, which delivers far more value over the long term.
An organisation that is genuinely committed to 'doing the right thing' not only needs to clarify and articulate its
commitment in policy and procedural terms, but to activate its ability to do so in a very deliberate and visible manner
so that everyone engaged in the fulfilment of the brand promise, or experience not only feels authorised, but
encouraged and supported to make consistently accurate interpretations about what 'doing the right thing' actually means. Enabling people
operating in different departments and locations, dealing with different situations to exercise that capability in a manner
that serves consistent outcomes can be challenging to even the most committed brands.
If the commercial promise is to be fulfilled, then current and future stakeholders need to be fully aware that
the organisation is genuinely committed to 'doing the right thing'. These communications need to be particularly succinct and effective
at the point of sale where the integrity of the brand needs to be asserted as part of the overall value proposition of
the products or services under consideration. However, today this claim almost certainly needs to be independently verified,
or authenticated, because the wide-spread practice of greenwashing has severely undermined the ability of brands to
make convincing assertions about their own integrity.
Leaders of ethical brands:
Are genuinely attentive to the interests, needs and concerns of all of their stakeholder communities,
which they strive to balance;
Want their organisations to diminish their reliance on linear systems by leading, if not participating in initiatives
that promote sustainable practices; preserve fragile eco-systems and uplift communities.
Are not fixated with managing perceptions, but realities and the one they all recognise
is the clock ticking faster as yesterday's innovation becomes tomorrow's status quo.
Respect what the scientists might be saying, but are motivated by their recognition of the fact that the demand for more
responsible brand experiences is rising sharply in those markets they depend on for talent, capital and customers.
Recognising that this groundswell demand is not for the latest must have gizmo but for fundamental change
and this is presenting opportunities that nimble organisations - particularly the smaller ones - find relatively easy to address.
The
characteristic qualities exhibited by authentic ethical brands do not occur naturally, or emerge merely
as a consequence of any particular cultural influence, structure or even maturity - no matter how well intentioned a
directive to 'do the right thing' might be. Genuine ethical brands have strong leadership that instil these qualities.
Of course, some of these naturally occuring influences may be responsible for some of the more unique, brand specific
qualities, or rather the individual character of an authentic ethical brand, but the common denominators associated with the
ethical brand Process are the consequence of deliberate leadership.
This begins with a clear mandate and commitment to
'doing the right thing'. However, this alone still is not enough. The organisation must also be provided with the practical ability
to make more frequently accurate interpretations about what 'doing the right thing' actually means and that needs to be clarified,
enabled, stimulated, nurtured and supported.
The essential nature of the challenge for any entity that aims to
service this demand for change involves constantly visualising, refocusing and re-engineering the brand experience to incorporate
right responses, without undermining the commercial clarity or ability of the organisation to compete.
After all, what use to the world is an ethical brand if it is unable to deliver a reasonable return on investment or worse, if it is going out of business? So,
authentic ethical branding is not about altruism, charity or philanthropy, but fundamentally about bottom line performance and advancing
competitiveness to an entirely new level.
The ethical brand business case has always been inspired by a simple, but solid case for enabling organisations that are
de facto 'ethical' to express this fact in the market - as a means to securing competitive advantage. All of
the most reliable research on the subject of commercial ethics consistently confirms that the vast majority of individuals
are strongly inclined to 'do the right thing'. So much so that when they
are able to overcome the very real challenge of identifying what is right, more than 90% generally do so. Surprised? When
we first uncovered this research in 1997 we certainly were, but then we realised that it merely confirms a simple truth that
has been standing for more than 1,600 years.
Socrates, the ancient Greek and founding father of modern philosophy - said in the 4th century: "People will
naturally do what is good, if they know what is right." This certainly helps to explain why the ethical brand Identity® resonates
with the vast majority of individuals. Of course, there are
a number of important considerations taken into account when decision-makers encounter choice, but the presence of the
ethical brand Identity® invites everyone who encounters it within their range of options, to seriously consider the prospect of
'doing the right thing' against alternatives where the evidence of right is likely to be absent. Clearly, the right to display and
use the ethical brand Identity® represents a compelling commercial advantage.
The responsibilities and challenges associated with 'doing the right thing' clearly extend to everyone in the value chain - including
all stakeholders themselves. The ethical brand Identity® engages stakeholders with this proposition and in so doing attracts confidence,
trust and loyalty to the host brand.
The opportunity to inspire, motivate and engage all stakeholders in the overall challenge
of 'doing the right thing', making a difference and 'changing the world... one experience at a time' inspires problem-solving, innovation, quality, teamwork and sets a
solid foundation for personal accountability. The over-arching objective is to impact commercial performance in all the right
ways and for all of the right reasons.
Each public expression of the ethical brand Identity® is, in effect, an invitation to make a difference. This not only enhances loyalty
among existing stakeholders, but also resonates with prospective new customers, employees, investors and partners - and not
just marginally so, because as the Socrates Effect illustrates, buyers prefer the ethical option on an
overwhelming scale.
In a world where commercial trust is merely continuing a sustained period of decline; where the
most predictable feature of so many brand experiences is more likely to be their pedestrian or insipid and sometimes downright
inhuman nature, the ethical brand Identity® promises an altogether different experience that is rational, explicable, refreshing and
inspiring as well as rewarding, honest and respectful on so many levels, and above all communicable.
The ethical brand Process is the short-hand we use to refer to a sequence of activities that combine: Listening, Learning and
Responding, which we identified as the quintessential enabler of the ethical brand. This process is employed by all
de facto ethical brands who organise, manage and use it - formally, or informally, knowlingly or otherwise - to
facilitate their commitments to 'do the right thing'.
Many organisations claim to be doing all of these things and in most cases they
probably are. However, many organisations are - generally speaking of course - notoriously poor listeners and in any
event seldom connect these interdependent activities to one another in any meaningful way.
Smaller entities find it relatively
easy to do all of these things well and to 'join the dots'. However, in larger environments, for example
Listening may be assigned to Marketing; Learning to Human Resources while Responding is
quite likely to be a rather more ad-hoc responsibility, which anyone may be expected to deal with on demand.
Worse yet, it may be fielded by a call centre that is so disconnected from the core business that learning is denied.
See the problem? Authentic ethical brands recognise the inescapable ubiquity of this process, as well as the need
for a more
conscientious approach to using it and greater recognition of the skills required.
Listening is the area where the process of 'doing the right thing' typically starts to go wrong and where the
intrinsic lack of process integrity often creates, or at least fosters conditions that simply allow bad situations to get
worse. Often, much worse. Again, generally speaking, the problem is not hearing as such, but the unwillingness, or
more often the inability of the organisation to effectively recognise and synthesise information that is both
important and clearly audible to it. In other words, it is the ability to filter, distill, learn important lessons and
formulate appropriate responses to external input that is problematic for most.
Deficiencies in the area of Listening effectively deny Learning. However, couple this with the typically
short attention span of an organisation that is accustomed to Responding to situations and events in ways designed
to serve the lowest common denominator - commonly its legal obligations - as opposed to an authentic ethical brand experience
and this is an enterprise that is very likely to be haemorrhaging costly goodwill as it lurches through day to day decisions
that are poorly informed, tasteless substitutes for 'doing the right thing'.
Reputation management is a term we hear quite a lot. However, we believe that efforts to manage reputation are
misguided if they are not accompanied by any dedication to the business of managing integrity. To do otherwise is rather
like treating symptoms instead of causes. Any reputation based on perceptions of integrity which are not strongly aligned
with a corresponding set of realities is essentially unmanageable and unsustainable. The sum of the differences
between these corresponding perceptions and realities is a measure of integrity.
The word integrity is defined by two key
words: 'wholeness' (functional, or operational capability) and 'principles' (moral and professional standards).
Wholeness may be demonstrated without principles, but principles cannot be demonstrated without the
corresponding wholeness.
So, the actual integrity of a brand - any brand - cannot be reliably assessed on the
basis of an examination of principles (i.e.: policies, etc.) alone, but must also consider its wholeness, that
is its functional or operational capabilities, or at least its intrinsic capacity or propensity
for 'doing the right thing'.
No matter how committed the leadership is to 'doing the right thing' every organisation needs the right resources - tools, materials,
data, information, intelligence, policies, procedures, incentives, etc. - in place to enable and support frontline
decision-makers to make consistently accurate interpretations about what 'doing the right thing' actually means.
Evidence of the actual integrity of a brand permeates every facet of the brand experience and is most vividly
illustrated by the gaps between what stakeholders expect from the brand and their actual
experiences of it. These gaps afflict every organisation from time to
time - without exception - and contrary to what many are inclined to believe, these mismatches are rarely the product of
any sinister, or malevolent intention. More often than not they are the consequence of unchecked human errors of judgement,
as well as the poor translation or execution of policies or strategies, which can be commonly attributed to a failure to
equip the organisation with the capabilities it requires to service the intention.
The ability to identify, analyse and monitor the life-cycles of these gaps in real-time deliver exceptionally valuable
insight at a relatively low cost.
It gives leaders unparalleled insight into the brand experience as it unfolds. This intelligence can be used in very
practical ways to motivate, inspire and enable the organisation to adapt and respond quickly to unfolding events and
opportunities - as well as to institute corrections and improvements and promptly mitigate unintended outcomes. It also
produces the most compelling evidence of functional, or operational integrity of the brand, which in turn essentially
underwrites, validates and authenticates its credentials as an ethical brand.
The credentials of an ethical brand can not be reliably assessed on the basis of any evidence of altruism,
philanthropy or indeed outcomes. These things alone do not assure the holistic integrity associated with an ethical brand.
Quantifying the gaps between stakeholder expectations and the reality of the brand experience provides a far more reliable
indication of this and our monitoring program is entirely focused generating this insight and sharing it with Sponsors.
This means both our approach and that of each authentic ethical brand are focused on the quantifiable,
measureable and actionable insight into the way things are actually being done versus the way things
are expected to be done. No other perspective provides more insight into the true heart of a brand.
We ruled out approaches with subjective dependencies such as check-box management declaration, or
self-assessment and rejected any that required us to make routine judgements about what particular activities, arrangements,
behaviours or practices might qualify, or disqualify an ethical brand. Not because we're uncomfortable making judgements of this
nature, but because our philosophy recognises de facto stakeholders as the ultimate owners
of this responsibility. Providing management with insight into bodies of stakeholder opinion is an important pillar of
the ethical brand value proposition.
Our Service Plans deploy all of the elements needed to authenticate an ethical brand, but in so doing they
also deliver exceptional value to each enterprise - irrespective of licensing considerations. We provide each registered
ethical brand with the
practical insights, tools and capability support that it needs to enable, authenticate and communicate its credentials
so that it can begin to secure the combination of competitive advantages, opportunities and benefits that only genuine and
authentic ethical brands are able to access. We are here to do everything we reasonably can to support each
authentic ethical brand to realise its fullest potential.
We look forward to being of service to you.Θ
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