Growing cynicism around purpose globally – but it still matters in SA

The issue of purpose is facing a pressure test worldwide. Scepticism is growing about whether brands are delivering on their purpose and ESG pledges in a world where volatility is a new constant, says WE Communications in its 2022 “Brands in Motion” report.

The study found that 86% of South Africans believe all brands should invest in making the world a better place while 94% believe brands have a moral obligation to engage with societal issues when it affects their employees.

The majority of respondents say brands should be more responsible than in previous years to support consumers. South Africans rank education (82%), cost of living (80%) and access to health care (80%) as the most prevalent areas.

The study also found that there is growing cynicism about purpose, with 48% of respondents saying brands that take stances on societal issues are just trying to sell more products and services while 34% say it is not the role of brands to comment or act on societal issues.

What creates scepticism that brands won’t deliver on their commitments is when they announce a new commitment without a specific budget and resources for it, or when they do not provide current data and commit to specific data-driven goals to reach as they progress towards meeting their commitments.

The majority of consumers prefer companies to focus their efforts on longitudinal, multiyear investments towards a single cause rather than on investing in a new cause every year.

Purpose matters to South African consumers, with 76% saying they are more likely to recommend a brand and 72% saying they would more likely purchase a brand if it is a leader in addressing social issues that are important to the person. The behaviour of CEOs also matters; 45% of consumers say a CEO’s behavior strongly or very strongly influences their decision to support a brand.

The biggest takeout from the report is that a lack of data is one of the leading reasons for consumers being sceptical that brands will achieve their goals, says WE’s MD for South Africa, Sarah Gooding.

“People want companies to take them along on their purpose journey and to show them what happens beyond the pledge and beyond the press release. That 2030 executive-diversity or net-zero promise is important, but it’s only the first step.”

Follow-through, she says, is important. “Stakeholders want to know what organisations are doing this year, this month, this week – they want real-time transparency.”

Companies need to demonstrate the veracity of their initiatives by including stakeholders in the process, providing regular updates with hard data and quantifiable results – even when those results fall short of expectations, she says. “Sharing both setbacks and success stories and revealing how brands are course-correcting along the way will enable companies to build a partnership with stakeholders. Ultimately, consumers are rooting for brands to succeed and they want an up-close view of the progress.”

Gooding concedes that in practice this is not easy and requires something of a balancing act between brands showing their work and focusing on the human impact.

“Sharing hard data and making clear and accurate net-zero calculations is extremely important, but companies must also remember not to get lost behind the math. They need to show how those numbers will help people, especially the world’s most vulnerable. In other words, lean into the social part of ESG.”

The study found that South African consumers want companies to communicate their position or actions on complex social issues publicly via press release or media statement (54%), televised media interviews with the CEO (46%) and e-mails to customers and shareholders (46%).

Gooding explains that people’s belief in a brand is tied to the transparency of the journey. “There is huge appetite for a brand to behave with a sense of genuine and authentic realism. A brand needn’t be a superhero, but it does need to be real, be transparent, provide regular updates and proof of real progress or failures,” she says.

However, while transparency is a key expectation, there isn’t a need to solve or speak out about every issue, and a brand should be guided by its sphere of influence, she adds.

“If brands spoke out on every flaming-hot topic that hit the newsfeed, their communications teams would be in crisis mode every day. If the topic is not necessarily one an organisation has influence over or is not central to the brand’s mission, it is OK to refrain from speaking or acting. But brands can speak out on issues they feel strongly about and be consistent.”

The big take-out: Consumers expect brands to share their progress.