August 24th, 2023
The Third Sector and consumer brands often seem worlds apart. Rarely do they cross paths, such is the difference seen between both their purpose and their business structure.
For those in the brand space, it may seem there isn’t much that can be learnt from charities. Stereotypically under-funded, slower and less glamourous, brands may feel that there isn’t much to be learnt from their poorer cousin.
However, as business continues to evolve, many consumers are asking questions of the brands that they buy from and expecting to see more in the way of social and sustainable benefit.
70% of consumers say it’s important for brands to take a stand on social and political issues, up from 66% in 2017. (Sprout Social)
Can brands learn from charities, those organisations created solely to “do good” and what could that look like for brands if they were to replicate these values?
Impact-driven
Charities are typically more impact-driven than brands. They can successfully build loyal donor bases and entire communities through the practice of promising that small actions can create bigger impact. They are masters in prompting people to part with hard-earned cash for social impact (and no personal benefit) and in converting one-off donations (or purchases) into repeat business through donor retention.
How do they do it? They report on impact. Being impact-driven doesn’t just mean having purpose or fulfilling ESG practice. It means reporting back honestly, regularly and personally to donors/customers. From impact reporting and case study emails that declare ‘Thank you! Here’s what your donation achieved’ to statutory Annual Reports or grant impact monitoring, charities know the importance and value of reporting impact to prove their worth.
For brands, this is a key learning. To avoid greenwashing claims or even greenhushing, brands can take inspiration from charities who use impact-reporting to achieve loyalty. Feedback emails, social media and publishing sustainability reports can go a long way in ensuring impact is carefully measured, tracked and reported back to increase brand credibility and consumer confidence.
Conscious
Charities are often very conscious of public attitudes, challenges faced by communities and barriers that prevent the disadvantaged or more vulnerable from engaging. Through ensuring that equality and diversity are more than embedded in their business practice but also evident through programmes and schemes of work, charities are conscious of equity and access.
Brands can learn from this practice by considering their target audiences and staying ahead of social issues. There are many times that even global brands have fallen foul of public perception by coming across as tone-deaf. Take Burger King’s ‘women belong in the kitchen’ tweet on International Women’s Day – a key example of a brand trying to jump on to the day for coverage, misfiring and falling very flat. Charities by contrast, need to stay ahead of social issues and constantly evolve to address these with flexibility and through genuine content. What’s even more impressive is that they often do this with small budgets and retain their donor base through clear communications, avoiding alienation or damaging their own brand values.
Disruptive
By nature, all charities are, to some degree, disruptive. Whether they openly campaign to raise awareness and change policy or whether they fill gaps and advocate for those who have been failed by national or international affairs, charities don’t tend to sit back and conform. Instead, they focus on building futures on their terms through correcting damage, rescuing, changing and saving lives. Whether natural disaster, man-made oppression, generational poverty or deeply-embedded inequality, charities work to disrupt these issues for a better world.
This disruption takes boldness and self-belief to challenge the status quo and places profit or personal benefit secondary to wider purpose. It is this same disruption that earns charities loyal, dedicated donors who not only give continually but also spread the word to raise awareness and instigate change through collective action. In short, by appealing to the pain-points of hearts and minds, charities can win over hearts and minds to build long-lasting relationships.
Brands can take inspiration from this by ensuring that they are not afraid to stand out for the right reasons with social message that disrupt the norm. See Dove’s Real Beauty campaign, whose work to tackle social media beauty standards has rocketed sales and cemented brand loyalty or LEGO’s Protect the Planet.
Another way in which brands can learn to be more disruptive is not by taking the place of charities but by supporting them in valuable and impactful collaboration. Supporting one another, these partnerships can be very powerful in by responding to real issues and improving wellbeing. Take a look at Network Rail and the Samaritans who have worked together to tackle rail suicides and improve mental health.
Accountable
Similar to being impact-driven, being accountable for charities means really understanding how they contribute to the current world and the future world. Many non-profit organisations focus on sustainable aid development that ensures they can create lasting benefit. What’s more, they are accountable for that by ensuring that the donations they gather actually go towards the work and benefit that they promise. The Fundraising Regulator holds charities to a code of practice that ensures they must operate openly, transparently, honestly and ethically, being accountable for how they gather income and what they do with this. Charity set-up ensures that they must stay true to the mission and aims they have recorded in law with The Charity Commission, thereby ensuring that donors know what is happening with their money and where they stand.
Brands can learn from this accountability by ensuring they are accountable for how their business impacts the world. A great example is Lush’s policy and practice which is clearly aligned with their brand values.
Whilst purpose may not yet be a brand value for all, integrating this into a mission and aims publicly can ensure that brands are accountable. Completing ESG reporting is one example of essential accountability that can contribute towards become circular in business. However, brands should be careful to ensure that this doesn’t become a tick-box exercise and instead should take learnings from charities who work for genuine long-term change. Swapping manufacturers, suppliers, and changing logistics to remove themselves from unsustainable practice are all essential as consumers continue to look to brands and hold them accountable for climate change and inequality.
If brands choose to learn from charities, they can enjoy:
· Improved sustainability (which can contribute to lower expenditure with time)
· Strengthened brand credibility (remaining memorable, relatable and more likely to be shared with others)
· Better brand flexibility (moving with the times for years to come through agile working)
· Increased customer loyalty (ensuring regular, reliable income, less competition threat and increased profit margins).
So, what are the first steps in becoming more charity-like but retaining your brand? Begin by reviewing the following:
1. Brand values, voice and marketing. Are you conscious and impact-driven?
2. Manufacture and logistics - these must stack up with your brand values.
3. Sustainability policy – this must reflect the impact both internally and externally you want to achieve and to which you will be accountable.
4. Sustainability and ESG reporting – this must report on the genuine impact achieved and how.
Want to know more about how your marketing and branding can be more purpose-driven?
I've worked with charities and brands in crafting copy and content backed by research and strategy. Drop me a line at [email protected] and let’s get chatting about where your organisation can go next and how you can communicate effectively.