When Values Shape Brand Loyalty
No, this is not yet another “social media will save the world or at least my company brand type of post,” but Eric Reynolds, CEO and founder of Nau clothing, affirmed an idea that that is beginning to take hold in exciting new ways: the brand loyalty of tomorrow will be shaped by corporations who exhibit radical transparency in values that align with their customers’ own shared beliefs of social good.
Reynolds was speaking at the Q conference in NYC last week, and discussed how Nau was founded on radical principles of how they create and define success – always striving to create innovative outdoor clothing – but never at the expense of human dignity, the care of the environment or to the detriment of social justice.
But while addressing those of us attending Q, Reynolds talked about more than just the good work Nau is doing through their sustainable line of clothing and socially responsible business model. He announced the launch of a new initiative called the Code of Corporate Citizenship based on the work of Robert Hinkley:
A social sector movement to change the laws governing all corporations in this manner is now in the early stages of development.
This phrase would be appended to the sentence in all charters that directs the officers and board of the corporation to conduct the affairs of the corporation for the financial benefit of the shareholders, period. Instead this sentence would replace the period with a coma, followed by the words – “… but not at the expense of the environment, human rights, the public health or safety, the communities in which the corporation operates, or the dignity of its employees.”
While this change would be nothing less than a monumental shift change to the DNA of our economy, Reynolds’ campaign got me thinking about the role of social media in establishing company values. As brands increasingly open up to input by their customers in everything from product design to marketing, customers will have a greater role influence in determining what behavior is acceptable by an organization. In their attempt to showcase their authenticity, some brands will be able to proudly share their values, while others will be forced to realize their actions simply do not align with their users’ expectations for being socially responsible.
Perhaps the greatest potential for social media is to applaud those who are doing good, and to reform those who do not.
Nau is a great story of a company founded on rock-solid principles of corporate and social good, authentically sharing their story of creating excellent clothing to the betterment of their employees, the environment and their community.
Let’s hope other brands begin to recognize that the marketplace is shifting, and those who live out authentic values of corporate good will be the companies that find the deepest brand loyalty with their customers. It’s good for the world, and it’s good for business.
8 Comments, Comment or Ping
Kyle Stickens
Ryan…good stuff and great read. I enjoyed Eric Reynolds and what he challenged us with. Thanks for sharing your thoughts and perspective.
Apr 16th, 2008
geoff livingston
great post, ryan. But instead of reforming cos, won’t bad attract bad? Consider loren feldman’s ongoing smeer shel effort and all the attention and biz 1938 is getting.
Apr 16th, 2008
ryanmoede
@Kyle – Enjoyed meeting you at Q – looking forward to next year!
@Geoff – You raise a good question, and while hopefully my post didn’t go too far down the idealist track, I do think the companies that are changing are doing so in part because of customer’s expectations and ability to apply a certain level of pressure. Regardless, I think I think there is something to be said for companies willing to think about creating brand loyalty by focusing on shared values – something that runs far deeper than satisfaction with a product or service.
Apr 16th, 2008
Qui Diaz
I want to support Nau because of their morals, and because of their larger societal improvement efforts (the code for corp. citizenship). Not everyone cares about this kind of stuff: others pride themselves on cynicism and how loud they can crow.
Maybe orgs like now can convert these folks into attaining new lenses for life and consumerism. Maybe not. And if Nau fails, then it’s just another way for me to put some distance between myself and toxic people. Bad might indeed attract bad (to Geoff’s point), but good attracts good. That’s great.
Apr 16th, 2008
Josh
@Geoff: The 1938 campaign is a good example of bad following bad. That’s a classic problem. There will always be “bad” people/companies. But, my expectation & hope (and perhaps naively so), is that the “bad” doesn’t constitute the majority.
Because there are unethical and “bad” people/companies out there; that shouldn’t inhibit “good” people/companies striving for “good” and environmentally and social sustainability.
Perhaps in the short term, the bad would bolster the bad, but I would hope if the majority of companies began operating in the way that Ryan is suggesting, the bad would lose their steam. I mean, I can only speak for myself but while I think the 1938 videos can be funny; I would never work with Fedlman or any of his cronies because I am so turned off by their behavior.
Apr 16th, 2008
Josh
@Ryan: Great post. Sorry…forgot to include this. Have you seen these guys?
http://www.freerangestudios.com/
Apr 16th, 2008
ryanmoede
@Josh: Thanks for the link – the folks at Free Range do great work.
Apr 16th, 2008
Reply to “When Values Shape Brand Loyalty”