Sustainability vs. Greenwashing: how credible are you

What is purpose marketing?

Purpose marketing, originating in the United States, stems from growing consumer interest in sustainable and responsible business practices. It goes beyond profit; companies are expected to embrace broader societal goals that go beyond purely financial gain. Often, the purpose of an organization aligns with its 'why' or mission. Purpose marketing involves communicating about your business activities that contribute to a better world.

Shell and purpose marketing

The application of purpose marketing is clearly visible in Shell's recent campaign, focusing on sustainable energy. Environmental organizations and the UK advertising watchdog question its sincerity, labeling it as 'greenwashing.' This term refers to organizations presenting themselves as greener or more socially responsible than they actually are. Skepticism is supported by figures: 15 percent of jobs in the sustainable energy division disappear during the campaign, and Milieudefensie reports that Shell invests only 12 percent in sustainable energy. Where is the communication about the remaining 88 percent?

Does purpose marketing help Shell in this case, or are they missing the mark? Probably both. Research shows that consumers value corporate social responsibility, but their assessment is primarily based on how companies communicate about it. Shell can effectively showcase its CSR policies, but it remains crucial to act in accordance with their promises.

Kruidvat aims for 'sustainability for everyone'

Another recent example of purpose marketing with a sustainability focus is the recent campaign by Kruidvat, revolving around 'sustainability for everyone.' As part of this campaign, Kruidvat discontinues the sale of plastic disposable bags, with the introduction of the 'sustainable shopper' playing a prominent role. Kruidvat and Trekpleister also jointly encourage their customers to bring their own bags to the store. Whether Kruidvat is at the forefront of sustainability can be debated, but these are, at the very least, steps in the right direction. Nonetheless, it is a thoughtful transformation from a 'price fighter' to a 'heartthrob.'

'Human' telecom with Odido

Also, during the launch of the new brand Odido, emerging from T-Mobile Netherlands and Tele2, a significant emphasis was placed on purpose marketing. Odido claims to improve the telecom sector by making it more 'human.' Although the specific implementation of this is not entirely clear yet, the customer service still starts with the familiar menu and corresponding robot voice, and a chatbot remains active on the website. It remains to be seen what Odido will exactly undertake to shape the telecom industry in a 'more human' manner.

The major contradiction between 'marketing' and 'purpose'

The contradiction between commercial profit and corporate social responsibility applies not only to Shell but to most organizations. Even in the term 'purpose marketing,' a contradiction arises between 'marketing' and 'purpose.' Marketing often focuses on increasing brand awareness and stimulating purchases, while 'purpose' encompasses broader goals, such as combating climate change or addressing inequality. Since such goals do not always yield commercial benefits, this contradiction forces companies to find a balance between commercial objectives and social responsibility.

A seismic shift in the business world

Purpose marketing is not a passing trend; it is a seismic shift in the business world. Increasingly, companies are demonstrating, at the very least, an intention to prioritize objectives beyond mere profit. This shift is propelled by consumer support for brands that actively contribute to positive change, fostering loyalty and driving the expansion of market shares. For organizations, it is no longer sufficient to focus solely on their products and services; they must also consider the contribution they make to society.

Companies like Tony Chocolonely, The Ocean Cleanup, or Patagonia are often cited as positive examples. However, these companies are exceptions rather than the rule. Very few companies owe their existence to a purpose. For most companies, purpose marketing needs careful consideration.

Act on what you promise

It is crucial for an organization to be cautious with purpose marketing. Everything must align with the DNA and ambition of your organization, and more importantly, you must also act on what you promise with purpose marketing.

Feel free to communicate your organization's societal efforts to your target audience, but maintain focus on what truly defines the company and enables growth. The success of your business creates the space to invest in purpose goals.

Tips for successful purpose marketing:

Here are some powerful tips to effectively implement purpose marketing:

1. Identify an authentic purpose: Choose a purpose that is genuine and aligns with your company's core values. Buyers can discern authenticity.
2. Communicate clearly: Make your purpose clear and communicate it understandably. Show how your company is committed to positive change.
3. Internal involvement: Involve your employees in the purpose story. Internal engagement ensures authentic external communication.
4. Measure and share impact: Demonstrate the impact of your efforts. Transparency enhances credibility.
5. Create interaction: Encourage customers to participate in your purpose initiatives. Customer engagement enhances the outcomes of your efforts.

Starting with purpose marketing

Purpose marketing transforms how businesses operate and communicate. Look beyond mere profit and strive to make an impact that transcends the boundaries of your company or industry. Start by thoughtfully deploying purpose marketing and bring purpose initiatives to the forefront of your communication, without losing sight of the core of your business activities.

Interested in discussing your purpose marketing strategy?

Would you like to discuss your purpose marketing strategy? Feel free to contact us for a non-binding advisory conversation.