Yes, being a responsible company can drive tangible business value

In a recent study published in the Journal of Brand Management, three academics with African links tackle a key strategic challenge: How companies can move beyond shallow social and environmental messaging to meaningfully shift consumer perceptions. 

The three academics are Russell Abratt, now a marketing professor at the Costello College of Business at George Mason University in the US, and co-authors Emmanuel Silva Quaye of the University of the Witwatersrand and Nicola Kleyn of the University of Pretoria. Both universities are in South Africa. 

When a brand holds values of fairness, a concern for society, and an obligation to goodness, it becomes a conscientious corporate brand – a brand that’s trusted to do the right thing consistently and authentically. 

But brands also want to know whether ‘being conscientious’ translates into delivering better business outcomes. 

Being responsible can drive tangible business value 

Building on their 2023 work, which introduced a framework for developing conscientious corporate brands, the research team now offers empirical evidence that this framework not only enhances brand trust but also leads to the response companies are hoping for – being seen as responsible can drive tangible value for the business. 

“In order to succeed these days, firms really need to go beyond profits,” says Abratt. “You’ve got to be ethical in whatever you do. You’ve got to be socially aware. And you’ve also got to be very, very conscientious about what you are doing.” 

To further investigate Abratt’s 2023 framework and understand what changes stakeholder perceptions, the researchers conducted two appropriate experiments with South African participants. 

Their research identified four elements in a chronological sequence that contribute to conscientious corporate branding: organisational purpose, brand authenticity, corporate social responsibility (CSR), and ethical organisational culture. These are not separate strategies; they reinforce each other. 

The first element of this sequence is organisational purpose. A company must begin by defining why it exists beyond just profits.  

Next is authenticity. “Authenticity leads to trust,” explains Abratt. “The more authentic an organisation is perceived to be, the more positive perceptions the stakeholders have.” According to the research, authenticity acts as a bridge that connects an organisation’s purpose to stakeholders’ perceptions of conscientious corporate branding. 

The third element is corporate social responsibility. This must be integrated, not performative. “Developing a corporate social responsibility strategy should be part of the organisation’s overall strategy,” notes Abratt. It should not be seen as greenwashing; as added on and fake.” 

Lastly, an ethical organisational culture is created by top leadership through example and prioritising ethical values across the organisation. 

So, what does this mean for business leaders? It means that building a conscientious brand is no longer just a marketing strategy – it’s a business imperative, the researchers believe. But the real challenge lies in making sure those sustainable actions resonate with consumers to ultimately result in success. Can companies do well by doing good? 

Looking ahead, Abratt and his colleagues hope to expand their research to other industries and other countries or regions to test whether their results apply to other contexts. 

“Brands that have a purpose beyond profit are the ones that are going to be seen by stakeholders in a more positive light. And if they are seen in a more positive light, those stakeholders, especially customers, are likely to support that particular organisation,” Abratt concludes.