Marketers need to think about how their company affects the environment and society, and how it's run because more customers like brands that are good for the planet. This article gives ideas for putting corporate responsibility into marketing, like checking how your company does in ESG, making goals, and being open about what you're doing.
When you do these things, you make customers trust you more and stick with your brand, which helps you grow. Now, it's really important for marketers to embrace ESG, moving beyond greenwashing, so you can grow the right way.
Understanding ESG and Its Importance for Brands
Why ESG Matters?
ESG practices are becoming increasingly crucial for companies and brands. Doing well in ESG can attract investors, make the business run better and safer, get good workers, and make people like the brand more. Businesses with ESG performance and transparency may be valued more highly and have reduced capital expenditures. Companies doing well in ESG have operating margins that are on average 3.7x higher than those that don’t do as well.
Authenticity is Key
ESG should be handled truthfully to prevent "greenwashing" and harm to consumer confidence in brands. Businesses should create objectives, carry out materiality evaluations, and have open communication with stakeholders. Companies and brands can benefit in the long run from this strategy. This stops customers from being misled about the impact on the environment or society.
Developing an Authentic ESG Strategy
Define Your Mission and Values
Establishing the purpose and values of your business is the first step towards creating a genuine ESG plan. Assess the ways in which governance, social, and environmental aspects complement your company's goals. For example, if your mission focuses on community building, social impact may be a high priority. If innovation is key, strong governance and sustainability practices may be crucial. Clarifying your mission and values provides a compass to guide strategic decisions.
Set Concrete Goals
Set specific ESG goals, like cutting down on pollution, making the company more diverse, or being more transparent about what's going on. Make sure there are clear deadlines and that someone's responsible for making it happen. Tie ESG goals to business KPIs and employee incentives. This way, you'll make the biggest difference.
Communicate Internally and Externally
Inform all relevant parties, such as employees, customers, shareholders, and collaborators, about your ESG approach and objectives. Describe your goals and the long-term success of your ESG activities. ESG education should be provided to team members, and investors and consumers should be able to follow your progress via reports, social media, and your website.
Continuously Improve
An authentic ESG strategy evolves based on stakeholder feedback, industry best practices, and societal shifts. Survey stakeholders regularly to assess the impacts of initiatives and identify areas for improvement. Stay up-to-date with reporting standards and expectations in your industry. Make adjustments to goals, resource allocation, and programs as needed to ensure maximum positive impact over time. With continuous monitoring and improvement, your ESG strategy will remain authentic and impactful.
Putting ESG Into Action with the Best Practices
Developing Genuine ESG-Centric Campaigns
Sincere ESG initiatives that tackle problems like diversity, equity, inclusion, and climate change should be developed by marketers. For example, a clothing manufacturer may give proceeds to organizations that support sustainable farming, or plant trees for each item sold. ESG-aware customers resonate with such advertisements.
Partnering With Nonprofits
Companies may collaborate with NGOs and organizations to show their support for ESG expectations. To extend their programs and adopt ESG practices, a technology corporation, for example, may partner with a nonprofit that specializes in STEM education and donate resources and employee volunteer hours. Almost all businesses (97%) and most NGOs (92%)Â say that working together has helped companies learn more about social and environmental issues.
Transparency and Accountability
To be perceived as genuine, companies must also demonstrate transparency and accountability regarding their ESG policies, programs, and impacts. They should publish annual ESG or sustainability reports sharing progress made on key metrics and goals. They must also be willing to acknowledge areas that need improvement to build trust in their commitments and programs.
Final Thoughts
Implementing authentic ESG practices in marketing requires an inside-out approach, focusing on organizational culture change. Partnering with stakeholders, guiding strategy with purpose, and communicating progress openly can build trust with consumers. With a commitment to thoughtful progress, marketing can transform into a force for good.