As we usher in the new year, it’s no secret that your focus is firmly set on executing the meticulously crafted marketing plans for 2024. Staying ahead of the curve is not just about embracing the latest trends but also about aligning your strategies with the values that resonate with today’s consumers. One such paradigm shift that is reshaping the marketing world is the integration of Environmental, Social, and Governance (ESG) principles into marketing activities.
ESG in marketing is not just a buzzword but a strategic approach that is gaining momentum, transforming the way businesses connect with their audiences and leaving a lasting impact on their bottom line. Companies, both big and small, are recognizing the importance of incorporating ESG into their marketing strategies, not only as a way to meet societal expectations but also as a means to foster sustainable growth.
Let’s take a look at some notable examples of companies that have successfully incorporated ESG principles into their marketing activities and have witnessed substantial growth as a result.
One of the shining examples is Unilever , a global consumer goods company. Unilever has not only committed to reducing its environmental footprint but has also made sustainable living an integral part of its brand identity. The company’s Sustainable Living Brands, including Dove and Ben & Jerry’s , have not only resonated with socially conscious consumers but have also driven growth and increased market share.
On the smaller scale, Burt’s Bees Baby , a natural skincare and beauty products company, has positioned itself as a champion of sustainability and environmental responsibility. By emphasizing its commitment to natural ingredients and eco-friendly practices, Burt’s Bees has carved out a niche in the market and gained a loyal customer base that appreciates its dedication to ESG values.
Conversely, there are cautionary tales of companies that have suffered due to a lack of ESG integration in their marketing operations. Companies that have neglected environmental and social responsibilities are facing financial repercussions, with some even going bankrupt or being acquired.
Consider the case of a well-known apparel brand that faced a backlash when it was revealed that its manufacturing processes were harmful to the environment and exploited workers. The negative publicity led to a decline in sales, tarnishing the brand’s reputation irreparably. This serves as a stark reminder that consumers today are not just buying products; they are buying into a brand’s values and ethical practices.
In the tech industry, companies that have faced controversies related to data privacy and ethical concerns are finding it challenging to recover. Consumers are increasingly wary of businesses that prioritize profits over ethical considerations, and this has a direct impact on their market standing and financial health.
The link between a non-ESG mindset in marketing and business struggles is becoming more apparent, and companies that fail to recognize this connection risk falling behind in an era where conscious consumerism is on the rise.
As we navigate through this period in marketing, it’s crucial for CMOs to reflect on their doubts, concerns, or misgivings about incorporating ESG principles into their operations. Are there fears of potential backlash or skepticism about the tangible benefits of ESG-focused marketing?
It’s worth noting that what may seem like a passing trend often evolves into a guiding principle. Remember the advent of sustainability in the 2000s, which many considered a fleeting trend but is now a central focus for companies worldwide. ESG is on a similar trajectory, and businesses that integrate these principles into their marketing strategies are likely to reap long-term rewards.
As you embark on your marketing journey for 2024, consider the stories of companies that have thrived by embracing ESG and those that have faced challenges due to a lack of commitment to these principles. The question remains: Are you willing to make ESG a cornerstone of your marketing strategy, or will you risk being left behind?
The time to act is now, and the urgency is real. Embracing ESG is not just about following the latest trend; it’s about building a resilient and socially responsible brand that stands the test of time.
Oluwafemi Adeniba is a fractional CMO, Media Consultant, Esports Enthusiast and Business leader and he writes from Lagos
