When it comes to customer loyalty, today’s consumers often look beyond a company’s products and services to connect with those who share the same values. For example, consumers who are passionate about equality might look for brands with inclusive hiring practices, while consumers who are passionate about the environment might look for products with sustainable packaging. There are many different approaches to brand activism, especially as younger generations gain greater spending power and become more politically active, leading to increasing pressure on companies to get involved. What is brand activism, and how can marketers leverage it to build stronger consumer relationships and long-term customer loyalty?

What is brand activism?

Brand activism is when a company takes a stance on a social, political, economic, or environmental issue that aligns with their values. This can include charitable donations, operational changes, and external initiatives, such as partnering with nonprofit organizations or collaborating with activist groups.

Previously, brand activism was known as corporate social responsibility (CSR), where companies measured their social and economic impact by practicing environmental, philanthropic, ethical, and economic responsibility. This includes reducing their greenhouse gas emissions, providing a livable wage to their employees, and donating a portion of their profits to charity. However, consumers not only want brands to practice CSR - they expect it, with “more than half buying or advocating for brands based solely on their beliefs”. They’re also less likely to trust brands that remain silent on important issues, such as climate change, consumer privacy, and human rights. As a result, brand activism has evolved beyond CSR to become its own set of business initiatives and marketing strategies.

Benefits and challenges of brand activism

Benefits of brand activism

One of the main advantages of brand activism is its ability to highlight a brand’s values and elevate its reputation above its competitors. Consumers want companies to play an active role in making the world a better place and want to know exactly how they’re doing it. When brands sponsor a charity event, donate to a nonprofit organization, or announce new data protection policies, consumers are more likely to view them positively, leading to increased sales and engagement. On the other hand, if companies withhold their position on important issues, consumers may think they’re hiding something, resulting in decreased trust and transparency.

Brand activism also helps companies build communities of dedicated consumers and connect with new consumers who were previously unaware of or uninterested in their brand. For example, consumers who are passionate about animal welfare may choose Dawn over other detergent brands, as they regularly advertise their contributions toward wildlife rescue efforts. Brand communities lead to stronger consumer relationships, increased social proof, and long-term customer loyalty, especially among people who share the same values.

Another advantage of brand activism is its ability to boost employee engagement and loyalty. People who are passionate about the same causes as their employers will be more motivated to perform well and feel more invested in the company’s success. Brand activism can even help brands attract new talent, increasing employee satisfaction and strengthening company initiatives.

Lastly, brand activism helps companies form mutually beneficial partnerships with other organizations. This can be between two or more brands selling similar products and sharing similar values or between a brand and an organization working towards solving a sociopolitical issue. For example, Aerie, an apparel brand, inspires consumers through their ambassador program and philanthropic partnerships with organizations like the It Gets Better Project and the Special Olympics. These partnerships can lead to increased resources, more connections, and a larger consumer base.

Challenges of brand activism

The main challenge of brand activism is learning how to navigate its nuances. While more and more consumers want brands to become politically involved, others may prefer for companies to remain neutral, especially if their products or values aren’t related to the topics being discussed. For example, technology companies can weigh in on issues like consumer privacy and renewable resources but don’t necessarily need to contribute to conversations about gender equality or mental health. Otherwise, they may appear more opportunistic than sincere.

Brands also risk falling on the “wrong” side of an issue or misunderstanding the deeper discussions behind them, making them appear ignorant and attempting to capitalize on a trend. For example, DiGiorno Pizza used #WhyIStayed in a humorous Tweet, failing to recognize that the hashtag was to help victims of domestic violence share their stories. As a result, they angered and alienated consumers due to their lack of research. Marketers must fully understand the context of a hashtag, trending topic, or conversation before deciding whether to get involved. Otherwise, they risk losing customers, revenue, and brand partnerships.

Types of brand activism

Corporate social responsibility is traditionally broken down into four categories: environmental, philanthropic, ethical, and economical. Brand activism, on the other hand, can be segmented by medium (e.g. email campaigns, fundraising events), type (e.g. political, social), or specific cause (e.g. global warming, LGBTQ+ rights). It’s also more society-driven than corporate-driven, leading to a wider variety of issues, perspectives, and opinions.

Cause marketing

Cause marketing (also known as cause-related marketing) is a collaborative partnership between a for-profit business and a nonprofit organization or a charity campaign run by a for-profit business. It helps increase awareness and engagement for both companies at the same time. Nonprofits with small marketing budgets can utilize the partnership to reach and engage with potential supporters, while businesses can build stronger relationships with new and existing consumers.

The Body Shop, a British cosmetics and skincare company, provides some of the earliest examples of cause marketing. They first partnered with Greenpeace in 1986 to support their Save The Whales campaign, then went on to run campaigns to preserve the rainforests, ban animal testing, and promote renewable energy. In 2020, The Body Shop launched a “Time To Care” campaign to support healthcare workers during the COVID-19 pandemic, donating care packages of soap, shampoo, and body wash to people working in shelters and assisted living facilities. They also created the #TimeToCare hashtag to promote the importance of self-care and increase its accessibility through discussions, tutorials, and product giveaways.

Diversity, equity, and inclusion (DEI)

Another type of brand activism that has become especially prevalent in recent years is diversity, equity, and inclusion (DEI). The rise of social media and globalization helped highlight cases of inequality and discrimination, leading to more and more consumers pushing for brand accountability. For example, putting pressure on companies that lack women in executive positions or don’t use people of color in their marketing campaigns.

Shoppers want more diversity and representation in advertising, decision-making, and company leadership, with 71% of consumers believing that brands should see DEI as one of their top priorities and 49% reporting that DEI significantly impacts their purchasing decisions and habits. However, while companies with DEI initiatives are 1.6 times more likely to retain consumers, it’s estimated that 80% of them don’t have any DEI goals. This is because brands and marketers see it as a risk, rather than an opportunity, due to the difficulty of creating and executing a successful DEI plan.

Mattel states that “Barbie is the most diverse and inclusive doll line on the market today”, currently offering nine body types, thirty-five skin tones, and features typically overlooked in children’s toys. For example, some Barbie dolls have vitiligo or prosthetic limbs, while others use hearing aids or wheelchairs. They also created the Inspiring Women and Role Model doll lines to teach children about famous women like Rosa Parks, Sally Ride, and Jane Goodall.

In addition to its diverse line of Barbie dolls, Mattel has also taken on internal initiatives, pledging their commitment to supporting the Black community through product, content, people, and marketing strategies. This includes working with Black vendors and partners, creating Barbie content featuring discussions about race and racism, and donating $250,000 to NAACP youth programs. They also curate special doll collections for events like AAPI Heritage Month and Hispanic Heritage Month while donating to organizations that help communities “prepare for future personal, academic, and professional success”.

Environmental, social, and governance (ESG)

Similar to DEI, environmental, social, and governance (ESG) refers to a company’s commitment to ethical and sustainable business practices and their level of accountability in how they treat the planet and their employees. Environmental factors include a brand’s carbon footprint, resource depletion, and waste management practices. Social factors include labor standards, data protection laws, and health and safety protocols. Lastly, governance factors include political lobbying, auditing policies, and whistleblower programs.

Currently, ESG is more widely recognized and practiced than DEI, with “more than 90 percent of S&P 500 companies now publish[ing] ESG reports in some form”. This is because factors like greenhouse gas emissions and labor standards are already heavily regulated in many parts of the world. However, like DEI, there has also been some pushback against ESG because of its complexity. Some companies also find it difficult to measure ESG performance or correlate it with financial performance.

Like Mattel’s commitment to diversity through representation and partnerships, the LEGO Group pledged its dedication to “building a sustainable future and creating a better, brighter world for our children to inherit”. To start, LEGO designs its products to help children boost their creativity and confidence, offers coding workshops to teach children how to solve real-world sustainability issues, and creates tools to help children understand concepts like cybersecurity, online privacy, and digital footprints. LEGO also partnered with UNICEF to co-create the Digital Child Safety Policy and the ‘Child Online Safety Assessment’ tool (COSA), and launched the Emergency Relief Response Policy to “provide support for families in armed conflict and natural disaster zones”.

For their employees, LEGO’s Global and Local Employee Advocacy Groups consist of volunteers who work on internal initiatives like mentorship programs and more inclusive hiring practices. They also have a strong focus on employee advocacy and gender balance, and regularly partner with organizations like UN Women, the Business Disability Forum, and Workplace Pride to create safe working environments for everyone.

Lastly, LEGO has set multiple environmental goals for reducing plastic waste and carbon emissions. For example, they want to make all LEGO bricks from sustainable materials by 2030, and are currently developing prototypes using recycled materials like plastic bottles and renewable materials like sugarcane. They’re also working towards fully sustainable packaging by 2025, from eliminating the use of blister packs to switching from single-use plastic bags to paper bags. Finally, LEGO’s Replay program helps people donate their used LEGO bricks to schools and non-profit organizations that work with children, contributing towards their goal of zero-waste to landfill by 2025.

Consumer accessibility

Though not as widely discussed as DEI or ESG, brands need to keep accessibility in mind when designing products, services, and experiences. Accessible design is not only inclusive, but it also helps people with and without disabilities, seen in things like automatic doors, voice controls, and curb cuts. As for businesses, accessibility helps “reduce legal risks, strengthen brand presence, and improve customer experience and colleague productivity”. Reduced barriers to entry and increased usability benefit both companies and their consumers.

Some general examples of accessibility include large fonts and high-contrast graphics for visually-impaired consumers, easy-open mechanisms for people with arthritis, and subtitles or transcripts to help consumers easily translate things like commercials and instructional videos. Some companies take it one step further by creating adaptive products for people with disabilities. For example, Degree Deodorant created Degree Inclusive to assist people with limited dexterity. The product features a hook, magnetic closure, and grips for easy one-handed use, as well as a Braille label for people who are blind or low-vision.

Best practices for brand activism

Define company values

To execute acts of brand activism that are genuine, effective, and non-performative, companies need to clearly define their values, intentions, and goals, then align them with their existing products and services. This not only leans on a brand’s credibility and expertise but also boosts their reputation among new and existing customers. For example, a pet food company might donate to a veterinarian’s association or work with local animal shelters to run adoption events. Focusing on specific causes that seamlessly integrate with existing operations makes it easier for organizations to create and run their strategies.

Identify potential risks

Some brands avoid getting involved with sociopolitical issues altogether due to their complexity, while others get involved without understanding the full context or taking the time to identify possible consequences. One of the best-known examples is Pepsi’s “Live For Now” commercial featuring Kendall Jenner, which received widespread backlash for trivializing the Black Lives Matter movement and oversimplifying issues like racism and police brutality. If brands want to become more politically active, they need to fully understand the issues at hand and where they could go wrong.

Work with experts

One of the best ways to navigate potential risks is by partnering with experts and organizations who can educate brands and lend their credibility. For example, as mentioned previously, LEGO partnered with UN Women, the Business Disability Forum, and Workplace Pride to create more inclusive workplaces. These organizations can provide the most accurate, timely, and complete information about their areas of expertise, then provide ongoing support as companies shape their strategies.

Listen to feedback

Most importantly, when highlighting sensitive topics like inequality or climate change, brands need to listen to stakeholders and consumers, accept criticism, and learn from their mistakes. They could damage their reputation if they fail to fix or even acknowledge their faults. On the other hand, if they’re receptive to feedback, they can simultaneously improve their approach and build better relationships with consumers. For example, while known for their DEI efforts, Mattel had to issue an apology when they released a doll line for the Tokyo Summer Olympics that didn’t feature an Asian Barbie, stating “our intention to represent the Asian community fell short and we fully receive and recognize the feedback”. They have since curated a special doll collection to celebrate AAPI Heritage Month and formed a partnership with AAPIWomenLead.

Drive customer loyalty through activism-focused marketing campaigns

Brand activism can be tricky to navigate and difficult to execute. However, shoppers are no longer satisfied with brands that take a neutral stance. They want them to be an active voice in conversations about widespread issues like global warming, human rights, and wealth inequality. As a result, companies that make honest and educated efforts to get involved see greater levels of consumer engagement and customer loyalty.

With 3 tier logic’s PLATFORM³, brands can build stronger relationships with their customers through marketing campaigns like gift with purchase promotions, sweepstakes and contests, and customer loyalty programs. Modules like Dynamic Messaging, Social Sharing, and Data Capture & Analytics help marketers create meaningful connections and nurture long-term customer loyalty. To learn more, chat with an expert today.

Complete Guide to Brand Activism (Examples Included)