A RESPONSIBLE MOVEMENT - FLAGGED ON CONSUMER RIGHTS DAY

We may be up to our oxters in a recession but there’s some green shoots of responsible recovery in evidence.

I’ve blogged and tweeted various brands’ individual activities in this regard, but am today heartened to see industry-wide moves. Especially as they’re all the more important being announced on Consumer Rights Day:

Today March 15th in the UK, more than 150 brands have signed up to the government’s “Responsibility Deal” http://www.dh.gov.uk/en/Publichealth/Publichealthresponsibilitydeal/index.htm  This is about food and drink brands embracing the increasing view that companies need to act responsibly, whether they’re legally obliged to do so or not. This is about taking collective responsibility and an individual moral position, on improving consumer health.


Although announced today, some of the product promises have, in reality, been a while in the making. Brands have long recognised the consumer movement away from less healthy options, so arguably this is a move motivated as much by market and profit as morals. But to be fair, the actions regarding displaying calories on menus and labeling changes, indicate a clear leaning towards greater transparency. And something I’ve long called for – better consumer education and information.


Also the brands’ commitment to increase physical activity in the workplace and improve workplace health is inspiring. This is about implementing ethics throughout the value chain and taking responsibility for employees’ health as well as consumers.


With regard to the drinks industry, it’s now promising to ensure advertising is not within a certain radius of schools http://www.marketingweek.co.uk/sectors/food-and-drink/alcohol-industry-to-ban-school-ads/3024393 Again this shows a shift in the industry’s mindset, building on what it has already created - a recognisable and cognisant responsibility towards young vulnerable consumers.


In isolation each activity by each brand might seem quite discrete. But when collated, these show a distinct directional shift… I guess you could say the industry is taking a leaf out of its own advertising campaign and living the Change4Life message.

Defining ethics (and arguing semantics)

Let’s lay down an appropriate marker and start with the individual’s worth ethic:
Typically we view this as the person’s way of working, and what they deem to be appropriate behaviour. So ethics can be translated into values, conduct and responsibilities.

Then there’s a business’ ethics: These are the values that complement the organisation’s vision and mission, and underpin the brand’s strategy. They are the brand’s moral compass that directs staff on what is acceptable and appropriate for the brand.

These values are driven by senior management. They can be explicit in terms of their articulation at board level and on various governance and consumer reports. But even where they are not formally introduced to staff, or indeed suppliers, they are implicitly evident in every function of the business including marketing. Furthermore, studies show that individuals emulate senior management behaviour, which they believe is what is expected of them, even if it contradicts their own morals.

So ethical marketing then, is based on the organisation’s and the brand’s ethics - regardless of whether they are communicated or discrete.

But here’s the rub:

Logic dictates that the most effective marketing is that which aligns the brand’s values to those of the customer. And customer and market oriented businesses, enjoy better performance, profitability and sustainable competitive advantage (Slater & Narver, Webster, and Hunt & Morgan respectively). So it follows that at a time when the customer is looking for greater integrity and honesty, these are the Utopian values that today’s brands should emulate to succeed. (A possible logic applied to the latest RaboDirect posters perhaps?)

Ultimately, I have two critical points I want to make here:

1. ethics is about behaviour, it’s what you do not what you say
2. ethics are lived through people, so they must be defined and communicated throughout the value chain and not just in the boardroom.