It
is virtually impossible to separate the connections and dependencies that exist
in sustainability, social responsibility, social sustainability and ethical
business practices. Some accept it readily whereas
others reluctantly but corporation’s social and environmental
obligations have moved to the centre stage as we call it these days ‘good
business practices’. In response it has put enormous pressure on how businesses
should operate, hence helped to establish a sense that healthy business and
healthy society are mutually dependant. With the increasing concern about
global environment, as well as corporate social responsibility, companies are
forced to integrate environmental good practices and social obligations within
their overall corporate strategy. Harmony with the environment, harmony with
the society and respect for the people have now become new business mantra.
However,
a corporate brand is the visual, verbal and the behavioural expression of an
organisation's unique business model (Knox and Bickerton, 2003). Other says it
is a valuable financial asset (Aaker, 1996; Balmer, Greyser, and Urde, 2006;
Leitch and Richardson, 2003), which acts as an interface facilitating the
interaction of multiple stakeholders with the corporation (Harris and de
Chernatony, 2001). As a public, as well as a customer, my
understanding of corporate brand is familiarity, clarity, reliability,
understanding brand's personality, brand values and higher reputation. If a
company is well known in the community, having a good ethical business
practices then we are all happy to be their customers. The company can further
strengthen their brand reputation by engaging more on social and environmental
obligations and the effect would be even stronger if the customers are already
familiar with the company products and services.
The
importance of underlying brand values are immense, for example the values that
your company stands for, how these values could be achieved, how you are going
to be different than other companies who are already operating in the same
sector. In my view, brand values simply cannot exist without considering any
sustainability and social responsibility issues as businesses fundamentally
depend on environment and society where they operate. Customers usually find
the company name first, then pricing before they chose to buy any products.
Till
now, scant attention may have been given in linking branding and sustainability
issues in general; however companies are very keen to integrate sustainability
within their core business practices because companies have realised that it
brings added values. It provides not only financial benefits, but it also
enhances product innovation, strengthen company’s reputation, mitigating the
risks, increased employee and customer satisfaction. Integrating sustainability
into corporate branding will attract customers who have been looking for
products that have least environmental impacts, high quality and durability,
more over it will fulfil customer’s immediate demands with reasonable costs.
Car
companies like Honda and Toyota have heavily invested on fuel efficiency cars,
which provided their customers with 'more miles from less fuel' in the face of
ever-increasing fuel prices, effectively it also creates less pollution - a
win-win situation for all the parties that are involved. Companies must
continue their sustainability mission on a long-term basis; all of a sudden
they cannot abandon their brand values saying 'it was a short term venture to
capture the market and we will again go back to the old ways of doing
business'. This would be the most damaging effects on brand images, which in no
doubt will cascade down to customer’s level, who may choose to switch to buy
alternative products from other companies. Therefore, company’s brand values
are not only the present once being used perception of sustainability and
social responsibility issues; rather it’s the company’s ability to stay in the
market for the long time and keep generating revenue for them. Therefore, it is
only possible if companies are committed to meaningful long-term contributions
towards sustainability and social responsibility issues.
We
are living in an era where social consciousness is evolving rapidly throughout
the world. In the midst, companies are effectively pressurised to integrate
social obligations into their underlying brand values, it's no longer
acceptable if the companies simply define themselves who they are and what they
make, instead it is very important to have environmental and social policies
embedded in the company’s mission, vision and values. A company's bad motives
on social responsibility will undermine their ability to promote the brand.
Although
child labour is still common in many countries around the world but it has
recently become a widely discussed topic. Companies have to make statement that
they are fully compliant with prohibiting child labour in their domestic and
overseas production sites, also make sure that entire supply chains are free
from these contemptible practices. The Convention on the Rights of the Child
(CRC), which has been ratified by almost all states worldwide, obliges requires
States to ‘recognise the right of the child to be protected from economic
exploitation and from performing any work that is likely to be hazardous or to
interfere with the child’s education or to be harmful to the child’s health or
physical, mental, spiritual, moral or social development’ (Convention on the
rights of the child, Article 32.1). In 2008, Chinese Government was embarrassed
when some big cases of child labour were uncovered in the South West of the
country where thousands of children were sold as slaves in booming coastal
factory cities (Asia Pacific, April 30, 2008). Imagine the consequences if it
is embedded in any company brand particularly on children toys which are made
by children.
Finally,
Sustainability and social responsibility are inter-linked by the brand values.
Corporate branding is the bridge between these two. Companies who have
synergies will continue to be benefited and enriched, successful companies in
the future will be those who will recognise and incorporate sustainability and
social responsibility issues within their business practices. Looking to the
future, as the brand values grow, transparency and authenticity will be
essential for stronger brand images.
