Were you aware that ethical businesses attract Millennial consumers, as 92% are inclined to purchase from such companies? Moreover, among these consumers, 82% hold the perception that ethical brands surpass those that do not prioritize ethical values.
A recent survey by Aflac (PDF) revealed two discoveries about the potential business effects of ethical trade and corporate philanthropy. In today’s business world, brand credibility is critical to success, and firms that prioritize social responsibility over profits have experienced a significant rise in patronage and income.
The principles of ethical marketing come to life through the following examples, illustrating why advocating for noble causes is crucial for modern brands to succeed.
Ethical Marketing
Marketing in an ethical way entails companies promoting their products and services not solely based on the advantages customers can receive, but also highlighting their contribution to socially responsible or environmental causes.
In other words, ethical marketing is not merely a tactic but a belief system encompassing practices such as promoting truthful and dependable advertisements, to cultivating robust connections with customers based on a common set of principles.
Businesses that prioritize ethical marketing assess their choices based on both their potential for delivering desired returns and whether they align with moral principles or are ethically sound.
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For TOMS, corporate philanthropy is not just a means to earn profits quickly, but rather an essential aspect of their brand identity and values.
Blake Mycoskie established TOMS in 2006 after observing the plight of individuals residing in impoverished parts of Argentina who lacked shoes, a matter that most of us probably do not consider. Mycoskie was motivated to create his enterprise with the objective of making a difference.
TOMS has been donating shoes to over 60 million deprived children worldwide since 2006. Not only that, but TOMS’ eyewear branch has also contributed over 400,000 glasses to individuals with visual impairments who cannot afford optical treatment.
TOMS has expanded its operations to include clean water projects through its coffee business and its bag collection. In addition, their line of bags funds efforts to provide birthing kits to expectant mothers and train birth attendants in developing countries. As a result, TOMS has assisted over 25,000 women in delivering their babies safely.
TOMS’ branding consistently showcases its social and environmental philanthropy, effectively communicating the company’s values to potential customers across all channels.
When you visit TOMS’ homepage, you will notice a message just below the carousel. The company states that if you buy any product from them, TOMS will assist a person in need.
The mission of TOMS is such a fundamental aspect of the company’s brand that it is almost as prominently featured on their website as the merchandise they offer. It is virtually unfeasible to browse through TOMS’ site without encountering additional illustrations of the ways in which the company aids individuals worldwide.
This is not a normal strategy to take advantage of superficial actions or a tactic aimed at making customers feel good. Instead, it’s the same concept utilized by companies that utilize display advertising.
TOMS consistently reinforces its philanthropic mission through its website and marketing materials to promote brand awareness and achieve top-of-mind presence among consumers. This approach has made it nearly impossible to separate TOMS as a brand from its numerous outreach projects and corporate giving initiatives.
2. Everlane
The production of clothing is one of the most contentious sectors globally.
In the last two decades, the fashion industry has become more focused on the production process and location of clothing, especially after incidents like the fire that swept through a Bangladesh clothing factory in 2012 resulting in the deaths of 117 individuals. This factory had relevant business dealings with Walmart and Sears, popular American retailers.
Due to increased awareness surrounding sweatshops, there has been a significant surge in demand for clothing made ethically, leading to the emergence of several companies, such as Everlane, that aim to revolutionize the way we manufacture and perceive apparel.
Michael Preysman founded Everlane in 2010, with a strong dedication to ethical manufacturing.
Everlane ensures that all of its apparel is manufactured in factories that adhere to the highest quality standards with regard to both the products and the welfare of workers. The company solely collaborates with manufacturers that exhibit a firm dedication to promoting the well-being of their employees, which is a cornerstone of its marketing messaging.
Everlane, along with other morally upright brands, shares its brand narrative on its About page, emphasizing its commitment to advocating for the welfare and rights of its clothing manufacturers. Nevertheless, what sets Everlane apart is its unwavering dedication to complete transparency.
In addition to informing customers about the ethical production and sale of their clothing, Everlane takes it a step further by disclosing a comprehensive breakdown of costs associated with each of their chic, uncomplicated garments. This comprises of specifics on the expenses related to materials, human resources, shipping and handling, levies and tariffs, and even small items like buttons and zippers.
For instance, the manufacturing and logistical components of the Elements jacket directly impact its retail price, which is $60 to produce and can be easily traced.
The majority of commercially manufactured garments ensure that their production costs remain confidential. This is because disclosing such information would not only disclose the brand’s potential profit margin but also expose the abysmal wages and working conditions that most garment workers have to endure.
Everlane is able to provide the transparency that customers desire while benefiting from the positive effects of such transparency by openly disclosing the exact manufacturing costs associated with each of its garments.
3. Allbirds
Nevertheless, this remains one of the marketing slogans that Allbirds is committed to using.
With their resolute dedication to environmentally conscious manufacturing, this label is disrupting the fashion sector. Allbirds diligently assesses each factor that adds to their carbon footprint and provides reports on their sustainable practices.
In their marketing approach, Allbirds emphasize their eco-friendly methods, bringing attention to their unique supply chain comprising of sustainable materials, eco-power, and rejuvenating farming practices.
Notable recent marketing projects of the brand include advertising the carbon footprint of every product, such as the Wool Dasher Mizzle shoes which generate 12.9 kg of CO2 and have it compensated.
A project to plant forests in collaboration with Berkeley School Forests.
Working together with NFL celebrity Marshawn Lynch to raise awareness about climate change amongst students in the United States.
Promoting The New Merino Company, an ethical wool enterprise, as a means of supporting sustainable farming methods.
Allbirds has effectively distinguished itself from other businesses and earned a spot among the top Shopify stores by employing ethical marketing strategies. The company consistently references sustainability or social causes in virtually all of its marketing content.
It goes without saying that Allbirds is a certified B Corporation, which is a designation reserved for companies that exhibit exceptional verified social and environmental performance and uphold the utmost transparency in their operations. This achievement is highly valued by consumers.
4. Patagonia
If you speak to any advocate for the environment, they will inform you that the fashion sector is highly responsible for climate change. It produces more than 2.1 billion metric tons of greenhouse gas emissions each year, which exceeds the collective amount produced by Germany, France, and the UK.
The ethos of the brand lies in promoting eco-friendliness, therefore, ethical marketing forms an organic component of its approach. Apart from creating consciousness regarding eco-friendly measures, Patagonia also endorses the concept of anti-consumerism.
Ethical marketing is exemplified by the “Don’t Buy This Jacket” campaign.
Rather than promoting increased purchasing on Black Friday, Patagonia urged consumers to make a commitment to reducing consumption through a pledge (as shown below). This initiative heightened awareness of the ecological consequences of consumerism in the field and motivated numerous individuals to contemplate the impact of their shopping habits.
The organization’s blog contains a wealth of inspiring tales surrounding social activism, advice for repairing clothing, and video narratives of individuals who are safeguarding the environment.
The Patagonia blog offers a remarkable illustrated handbook that guides individuals on how to donate clothing with grace, as part of the company’s aim to safeguard the planet and promote fashion recycling.
Patagonia’s ethical marketing strategy is brilliant not only because of its other considerable aspects but also due to its own initiatives. One of which is the “1% For The Planet” project through which the brand has contributed 1% of its sales towards preservation and restoration of natural environments. This initiative has amassed over $140 million to date.
Due to their emphasis on ethical advertising, Patagonia has become a trailblazer in social activism, safeguarding the environment, and implementing environmentally friendly methods. Additionally, the company makes an impressive yearly revenue of $19.8 million.
5. Warby Parker
During a backpacking trip, Dave Gilboa, a founder of Warby Parker, encountered a similar situation. As a student, he was unable to purchase a replacement pair, resulting in a less-than-ideal semester.
The eyeglasses market was transformed by Gilboa’s business through a significant reduction in prices. The incredible achievements include a 38% increase in annual revenue and a customer base of two million, as reported by the founders (with Gilboa pictured on the left).
Warby Parker stood out among its competitors by being guided by Gilboa’s discontent with the industry’s monopoly.
Offers prescription eyeglasses at lower prices.
Conducts ethical marketing through the implementation of philanthropic initiatives.
Established a charitable organization to provide eyeglasses for individuals who require them.
Warby Parker has made social philanthropy the focal point of its marketing, thereby making it one of the most exemplary instances of ethical marketing – as indicated by the preceding two points.
Consumers are empowered to create change with this initiative, as for every pair bought, the Warby Parker Foundation donates one to charitable organizations. Over 8 million glasses have already been given out in over 50 countries.
The strength of Warby’s marketing strategy lies in the fact that each purchase made by their customers contributes to a worthy cause and positively impacts the lives of individuals it aids. This creates a powerful emotional connection, resulting in heightened loyalty.
6. Faguo
Faguo is a prime example of a brand that encompasses both environmental and ethical principles in their clothing production. Their commitment to sustainability is upheld through:
Compensating for its carbon emissions
Reducing the production of harmful emissions.
More than 2 million trees have been planted so far in conjunction with the sale of each item.
Encouraging practical consumption through product repairs.
Gathering and reusing pre-owned items received from clients.
Faguo bases their strategy around ethical marketing centered on sustainability, honesty, and transparency. This type of marketing aims to educate customers, promote activism, and emphasize accountability, all while staying true to ethical principles.
Faguo aims to assist its clients in making fashion choices that are more mindful. They utilize methods of production that cause minimal harm to the environment and endeavor to inform their patrons about these practices and their significance.
By clicking on the links featured on the product pages, customers can gain additional information. One such link directs them to a page detailing the brand’s production methods.
Faguo participates in various endeavors that advocate for minimized consumerism, offers tree planting whenever customers make purchases, and inspires recycling.
Faguo is committed to its environmental responsibility, as shown by its carbon footprint report (more details). This report monitors the company’s advancements in attaining carbon neutral status.
Just so you know, the Goodplanet Foundation is responsible for measuring Faguo’s emissions as an independent and authoritative entity. Additionally, Faguo’s website provides information on how each aspect of their operations contributes to their overall carbon footprint for interested customers.
Faguo’s entire operation is guided by its goal of being a carbon-neutral enterprise that collaborates with its customers in battling climate change.
