Why your ethics and values do matter to customers and should be in your branding and marketing

We should all be trying to make a positive impact and reduce damage as people and in business. But it will also help your business if you are ethics and values-focused and transparent about how you run your business.

Customers care about the purpose behind a business.

94% of consumers globally say it is important that the companies they engage with have a strong Purpose

Zeno Strength of Purpose Study

The Cambridge dictionary definition of purpose says ‘why you do something or why something exists‘. Increasingly people are looking to buy from, support and work with companies driven by purpose, values and ethics as the priority over making money.

Why your ethics and values do matter to customers

Research has shown many consumers do care about the type of companies that they will purchase from. I think people want to buy from businesses trying to do good in the world. And customers will actively boycott businesses that they feel aren’t up to that standard.

You see many calls to action from people to boycott certain companies that have been perceived to have done something bad or are involved with bad practices. There is a growing number of people that do factor in things like that, it is often factored in to magazines like Ethical Consumer.

Our purchases say something about us

Ultimately the purchases that people make are a reflection on them and we all want to be reflected in a good light by the choices we make. You buy a luxury brand because you want to say something about yourself to the world. it might not even have the best design, but it has that logo, that brand name on it, and people want to buy into that. And I think the same thing is true regarding ethical businesses and people wanting to buy into that. They want to show that they care about the environment. I’m not just saying that it is all virtue signalling either because most people when it comes down to it care about how the environment, animals and people are treated. If they can choose a brand that cares about those things too, then they’re going to prioritise them over another brand.

A lot of people, whether they are vegan or not, might choose to buy cruelty-free makeup because a lot of people obviously don’t like the thought of that. I’m sure you can all think of examples as well whether that’s your own purchases, or in your family and friends and the type of purchases that they make and choose.

We all want to, to make the right choice and comes from a good place. Doesn’t it like you’re going to look for the soap brand. That’s vegan, that’s palm oil free that’s environmentally friendly.

Sourcing matters

Another study in 2021 by OpenText showed that nine in 10 so 88% of global consumers try to prioritize buying from companies that have ethical sourcing strategies. And 83% would spend more for ethically sourced products. It showed that gen Z and millennials in particular would choose not to buy from companies with unethical sourcing.

Nowadays with global news and social media people can find out about things that have happened in the sourcing process, like workers treatment, how things are made and how resources are taken. We are increasingly aware of things that go on in industries. And we want to be making the better choices because we see the devastating impact they can have for humans, the environment and animals.

If you’ve got a product based business, it’s not just about the actual product inside either you might need to consider things like your packaging and manufacturing too.

In particular for larger companies they will be held accountable when there are injustices or consequences in their supply chains due to poor working conditions. There’s been a lot of incidences in the fashion industry that were very high profile showing how the garment workers have poor conditions and the human tragedies that happened. Larger companies have purchasing power with consequences. They, they could choose to pay more. They could choose to insure the facilities at better and worker’s rights are upheld. As a smaller company, it’s less likely that you’re going to be held accountable but do due diligence.

Customers want this communicated to them

64% of consumers find brands that actively communicate their purpose, more attractive.

14th annual global consumer pulse research – Accenture Strategy, 2018

The commercial argument is strong that you can and should communicate your brands purpose in your marketing. You should avoid greenwashing but you can definitely talk about it. You should be putting it on your website, in your marketing, on social media, on your packaging. Most people wouldn’t be put off by the fact that you talking about the various ethics and values and in fact will appreciate it.

65% of consumers are influenced to buy a brand product or service by the words, actions, values, and beliefs of a company’s employees. Not just the CEO or marketing spokesperson.

14th annual global consumer pulse research, Accenture Strategy

For companies that have employees, the ripple effect matters too. Company culture has become increasingly important to employees and customers partially because we are more aware of who we are buying from. Reading reviews online and looking on glass door where you can see what employees are saying about the company.

Even if you love a brand if you were to see that the employees aren’t treated well it reflects badly on the company and you would probably be less inclined to buy. As people become more interested and passionate about the environment, they want to work for companies that are doing good, such as working with charities, non-profit companies, and the environmental sector.

Customers will complain

Another fact that I found from Accenture was that 53% so more than half of consumers who are disappointed by brands, words, or actions on a social issue, complain about it. This doesn’t just mean complaining in a letter writing exercise that might’ve happened in the past, now we publicise it, post on social media, tell our global friends or take it to the news and press even. It becomes more high-profile than it ever might have in the past.

What you need to consider

For most of you reading this, you will have a strong purpose already built on your ethics and values for your business. Commercially you need to know and understand what issues your target customers care about and ensure that you can address those things.

• Be mindful of things that will cause a disconnect with your brand such as having an organic product but then packaging in plastic!
• Be transparent as much as you can be about sourcing and suppliers that you work with
• Take small actions to make improvements within your business
• Use the positive messaging within your marketing to help your customers make purchasing decision

A further point I have thought of after recording the podcast is the influence we each have over others both on a personal level and as business owners. If you are making lots of ethical changes but your competitor isn’t for example they might then see what you are doing and decide to as well. Which is only a positive thing for our planet and society!

To wrap this up

Customers increasingly want to support brands that align with their values, stand up for social issues, show transparency, have ethical sourcing and treat employees well. In general customers are more lenient with smaller brands that are coming from a good place. Consider what matters to you and your customers. Review what you can do now and in future as a business that has built ethics into your core, you have the advantage of being able to highlight these things to your customers.

If your business branding isn’t truly conveying your values you can find out more about working together on your brand identity, website and marketing.

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