The Pitfalls of Ethical and Values-Based Branding

Marketers and executives have caught on to the fact that consumers are more interested in shopping with brands that align with their personal values. However, the rise of ethics and values-based branding has major red flags that companies and consumers alike should be aware of.

1. Companies Becoming the New Politicians

Brand activism has become a popular strategy, as relevance in the political conversation has not only helped build brand profiles but also saved company reputations. For example, Nike’s choice to work with Colin Kaepernick in 2018 during the Black Lives Matter movement showed not only corporate social responsibility in racial justice but also strengthened the brand’s reputation. However, in 2020 African American workers within the company called Nike out for hypocrisy in its public messaging versus real-time company practices.

While it seems like Nike came out with a win, this move can easily turn into a new form of identity politics. If companies focus on using social issues merely in the form of on-brand marketing campaigns and gimmicks without implementing a company-wide overhaul in practice and employee relations, then ethical marketing campaigns and values-based branding become shallow and merely focused on what will help the company leverage advertising platforms and social media for…