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Brands that take a stand: Good idea?

Brands that take a stand: Good idea?

iModerate

Mar 21, 2014

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With all the pressure from major brands and companies rallying against SB 1062 (the recent bill in Arizona allowing businesses to refuse service to gay or other parties if it was against their religion), Arizona governor Jan Brewer vetoed the controversial bill. Big companies like Apple, Delta, Marriott and American Airlines all sent letters strongly urging the Arizona Governor to veto the bill and even the Arizona Super Bowl Host Committee and Major League Baseball publicly opposed it. Is it me or does there seems to be a lot more brands/CEOs of brands choosing a side on an issue and taking a stand?

The modern day CEO seems like a celebrity these days. Mark Zuckerberg, Howard Schultz, Bill Gates, the late Steve Jobs and even Mark Cuban are all household names.  You see them engage with the public on a regular basis, whether participating in a Reddit AMA (like Bill Gates did) or through updates and interactions on Facebook and Twitter. These leaders and their brands are making bold statements and dropping bombshells around social and political issues regularly. Has this phenomenon always been this rampant, or is it just that everything is more visible in the 24/7 news and social media era we live in today? There’s no doubt that captains of industry have been activists and puppeteers in the past, but often their opinions and stances  came through donations, quiet side projects, or initiatives that occurred behind closed doors. And while that business still transpires, there is something more open, more authentic going on now. Simply put, I can’t remember a time when more CEOs and brands stood up and bared their soul in public.

These days, many of the controversial social and political issues seem to stem from marriage equality, gun rights and civil rights for the Gay and Lesbian community.  25 big name brands received some backlash for supporting LGBT rights. And in the last couple of years we have seen leaders of big brands take stands on either side of these issues. In 2012, Dan Cathy of Chick-fil-A took some heat but also received some support when he announced his stance in opposition of gay marriage.  Last year, Adolphus Busch IV, heir and former CEO of Anheuser-Busch, also took a stand to support background checks and wrote a letter to the NRA to immediately remove his name from all membership roles.  Howard Schultz of Starbucks hit both of those sensitive subjects last year. In March he vehemently defended marriage equality citing the principle of diversity and even told shareholders who opposed his stance that they can sell their shares. Then in September, he wrote an open letter requesting all Starbucks customers to not bring firearms to his stores or outdoor seating areas even in “open carry” states.

I am always curious as to the motives of big business owners and CEOs taking such a strong stand and putting his or her brand on the line. I have to believe the impetus to do so isn’t spawned from simply a bottom line perspective as customers surely stand to be alienated. Also, I want to believe Howard Schultz as he boldly decried, it’s about principle. Yet I can’t help but wonder how much they consider the business implications of the attrition that can be generated by such statements. Are they taking the calculated risk that much of their target audience is in tune with their core values and principles? Do they consider if this sect will become even bigger advocates because of this stance and possibly zero out the detractors? Are some of these owners and CEOs so arrogant and indestructible that they think nothing can bring them down? Or are they so passionate about what they believe in that they don’t care if it does? Whatever is going through their brains, and whatever research, informal or formal, they might be conducting before their public decrees, it is certain that they feel there is something to be gained there. Whether that gain is a moral one, a branding image one, a revenue one or some combination of the three is what’s in question.

As a consumer in this changing landscape I have been asking myself: is this a good thing? Should brands identify themselves with social and political issues? Are companies letting consumers know where they stand just part of doing business now? And my answer is yes across the board. Knowing what a business values or what they stand for lets me know who I’m really supporting with my dollars. It personalizes and personifies the brand and their company leaders. In the modern world of non-stop exposure, I think brands need to take a stand. It’s quickly becoming an expectation, a piece of important information that is being weaved into the brand’s story and image. In a world where everything is driven by the bottom line, choosing brands based on their out in the open principles is a refreshing concept.

What do you think? Do you like it when brands you respect and/or whose products you purchase reach beyond their role and take a stand on an issue?










  • Brand identities and and their requisite social allegiances are infinitely important, as I am finding out with my own fledgling blog effort. What a well-written piece.

  • Brand identities and and their requisite social allegiances are infinitely important, as I am finding out with my own fledgling blog effort. What a well-written piece.

  • Chelsea Gibbons

    Interesting post, I particularly like the comments around CEOs being celebrities.

  • Chelsea Gibbons

    Interesting post, I particularly like the comments around CEOs being celebrities.

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