Found a timely article in BRANDWEEK by Kenneth Hein yesterday called “Good Things Come to Brands That Give.” The article highlights some of the good will activities of companies like Coca-Cola and Starbucks both of whom are involved in addressing water purification issues:
In Kenya, Coca-Cola is helping teach children how to test drinking water for contamination. The company also is providing water-purification systems for some of the country’s most poverty-stricken areas.
In India, Starbucks is addressing sanitation-related health problems by donating $1 million to WaterAid. With World Water Day looming (March 22), Coca-Cola and Starbucks have taken the opportunity to illustrate the good they are doing for the 1.1 billion people who lack access to clean drinking water.
More importantly, the article sites a study (LOHAS) by the Natural Marketing Institute which indicates that these good deeds impact brand preference:
- Sixty percent of U.S. adults over the age of 18 said “knowing a company is mindful of its impact on the environment and society makes me more likely to buy their products and services.”
- Fifty-seven percent of consumers said they feel more loyal to companies that are socially responsible, and about half (52%) said they were more likely to talk to their friends and families about such mindful corporations.
- More than a third (38%) said they’d be willing to pay extra for products produced by socially responsible companies and 35% said they were more likely to buy stock in such corporations.
One of the issues that socially responsible companies face is the degree to which they tout their own goodness. Some companies are reluctant to make a big deal about their good will efforts preferring to let their actions speak for themselves. For example, according to the LOHAS study, 62% of those surveyed are unaware of Wal-Marts substantial green initiative. While remaining low key about good will activities is indeed a noble approach it may not be smart business. Marketing for Good is about doing good for the right reasons AND growing the business. If growing the business means telling the world about your good will activities then find the nearest mountain top and let the world know. It is okay to take credit when credit is due.