Why brands should prioritize company statements over global commentary

Brands face increasing pressure to weigh in on every major social and political issue. However, new research suggests that companies may be better served by focusing their communications on their own business operations and values rather than trying to address every global crisis. This article explores the pros and cons of brand activism and provides guidance on developing an effective corporate communications strategy.

The Rise of Brand Activism

In recent years, we've seen a significant increase in brands taking public stances on social and political issues. From climate change to racial justice to LGBTQ+ rights, companies are speaking out more than ever before on topics that may not directly relate to their products or services.

This trend toward brand activism has been driven by several factors:

• Growing consumer expectations for companies to be socially responsible
• The rise of social media giving brands direct platforms to share their views
• Pressure from employees for their employers to align with their values
• A desire to appear relevant and connected to current events

As a result, many brands now feel compelled to issue statements on every major news story or social movement, even if it's not directly related to their business.

The Pitfalls of Weighing In on Every Issue

While brand activism can be powerful when done authentically, there are significant risks to commenting on every global issue:

Appearing Inauthentic or Opportunistic

When brands rush to comment on trending topics, it can come across as bandwagon-jumping rather than genuine concern. Consumers are increasingly skeptical of corporate virtue signaling.

Alienating Customers

Taking a stance on divisive issues risks alienating customers who disagree. This can damage relationships and impact the bottom line.

Distracting from Core Business

Constantly reacting to external events can pull focus and resources away from a company's actual products, services, and operations.

Inviting Increased Scrutiny

Once a brand starts speaking out on social issues, they open themselves up to criticism if their own practices don't align with their stated values.

Diluting Brand Identity

Commenting on too many unrelated topics can confuse consumers about what a brand actually stands for.

The Case for Focusing on Company-Specific Communications

Given these potential pitfalls, new research suggests that brands may be better served by prioritizing communications about their own business rather than trying to address every global issue.

As a marketing professor Americus Reed explains:

"What we're finding is that consumers are much more interested in hearing about what the company is doing versus what the company thinks about a particular issue."

This insight comes from a recent study that examined consumer reactions to different types of brand communications. The research found that statements focused on a company's own operations, values, and initiatives were generally more effective than commentary on broader social issues.

Benefits of Company-Focused Communications

There are several key advantages to prioritizing company-specific statements:

Greater Authenticity

By speaking about their own business, brands can communicate from a place of genuine knowledge and authority. This comes across as more authentic than weighing in on unrelated topics.

Stronger Brand Identity

Consistent messaging about a company's values, practices, and initiatives helps reinforce brand identity and differentiation.

Improved Customer Relationships

Providing transparency into business operations builds trust with consumers and strengthens relationships.

Reduced Risk

Focusing on company-specific topics is less likely to alienate customers or invite controversy compared to taking stances on divisive social issues.

More Actionable Information

Statements about a company's own practices and initiatives give consumers concrete information they can use to make purchasing decisions.

Developing an Effective Corporate Communications Strategy

While the research suggests brands should prioritize company-focused statements, this doesn't mean completely ignoring broader issues. The key is developing a thoughtful, strategic approach to corporate communications.

Here are some guidelines for brands to consider:

Define Core Values and Purpose

Brands should clearly articulate their fundamental values and purpose. This provides a framework for determining when and how to engage on social issues.

Focus on Relevant Issues

When addressing external topics, prioritize those that directly relate to the company's industry, operations, or stated values.

Lead with Action

Instead of just issuing statements, focus on concrete actions the company is taking. As Reed notes:

"Consumers want to know, what are you doing? Not just what do you think, but what are you doing?"

Provide Transparency

Be open and honest about company practices, both positive and negative. Acknowledge areas for improvement.

Maintain Consistency

Ensure external communications align with internal culture and practices. Authenticity is key.

Consider Stakeholder Impact

Evaluate how communications may impact various stakeholders, including employees, customers, investors, and communities.

Be Prepared

Develop crisis communication plans to respond quickly and effectively when issues arise that demand a response.

Examples of Effective Company-Focused Communications

Several brands have successfully implemented more company-centric communication strategies:

Patagonia: The outdoor clothing company focuses its messaging on its environmental initiatives and sustainable business practices rather than broader political issues.

Ben & Jerry's: While known for social activism, the ice cream brand ties its advocacy closely to its company values and ice cream flavors.

Walmart: The retail giant emphasizes communications about its employee programs, sustainability efforts, and community investments.

Microsoft: The tech company prioritizes transparency around its AI ethics policies and practices as AI becomes a major societal issue.

The Future of Brand Communications

As consumers become increasingly savvy and skeptical of corporate messaging, brands will need to evolve their communication strategies. The most successful companies will likely be those that find authentic ways to connect their values and operations to broader societal issues.

"The sweet spot is when you can connect what's happening in society to what your brand stands for in a way that's authentic and genuine." By focusing primarily on company-specific communications while selectively engaging on highly relevant social issues, brands can build stronger connections with consumers and navigate an increasingly complex media landscape.

In today's volatile world, it's tempting for brands to weigh in on every trending topic. However, research suggests that a more measured, company-focused approach to communications may ultimately be more effective in building consumer trust and loyalty. By emphasizing transparency, authenticity, and concrete actions, brands can develop communication strategies that resonate with consumers while staying true to their core identity and values.