The rise of social consciousness and its impact on businesses

The voice of the conscious consumer is louder than before — such as calls to boycott brands that supported former US President Donald Trump, and, conversely, campaigns to support sports brand Nike after former football quarterback Colin Kaepernick was announced as its brand ambassador, following his kneeled protest against police brutality during the National Football League’s 2016 season.

From the emergence of call-out culture on social media — whereby eagle-eyed consumers publicly denounce brands and founders with discriminatory policies (such as how a UK nurse called for a boycott of Benefit Cosmetics, claiming that it had turned healthcare workers away on the basis that they were in contact with Covid patients), dishonest claims, or brands guilty of mistreating employees — to a greater sense of social awareness ingrained in younger generations, it is no longer enough for a product or service to be profitable and match the needs of a customer. Social consumerism, in which social issues are positively impacted through marketing and sales, is now a key consideration for both brands and shoppers alike.

The rise of social consumerism is inextricably linked with the common purchase behaviour of millennials and Gen Z consumers — in other words, the “woke” generation. Increasingly, brands have responded by creating campaigns that connect directly with this consciousness; in fact, it has become commonplace for corporations to leverage on this consumer psyche.

The question is, how much of this is authentic, and how exactly are businesses impacted?

Associate Professor of Marketing Hannah Chang, Director of SMU’s LKCSB’s PhD programme, shares her insights on the topic as a marketing specialist in consumer behaviour, as well as consumer judgement and decision-making.

Social consumerism and bandwagon effect

Hannah notes a correlation between consumers’ attitudes towards brands and the social issues with which they are aligned. Today, brands are tapping on social media to communicate not just their unique selling proposition, but also their values, social, and occasionally political — stance.

“Globally, these issues are discussed more immediately on social media and among a much larger group of people than ever before,” she observes.

“So, it's not right to say that consumers didn’t care about such things previously. Instead, they now possess a heightened awareness and set of expectations when it comes to what a brand stands for.”

The Black Lives Matters (BLM) movement in the US, for example, illustrates this rapid-fire awareness and shift in attitudes as compared to even two decades ago, when the internet and social media did not exist, and people were not able to express their thoughts and stance on issues on a large scale, in turn influencing each other. BLM is a decentralised social movement against racially-motivated violence, specifically police brutality towards black people.

Millennials and Gen Zs, in particular, are demographics demanding greater awareness and action towards social equality much more than their predecessors — and expect the brands they support to have a firm voice on such matters.

“Thanks to social media, a lot of these discussions happen quickly and on a large scale, which results in a bandwagon effect,” states Assoc Prof Chang.

“For example, personal care brand Dove has had a well-known campaign (Real Beauty) addressing the topic of gender equality, or inequality,” adds Hannah.

“It has now become a norm for consumers to expect brands to take a stance on important social issues, because they believe that brands can make an impact.”

The importance of timing in creating social impact

Today, consumers develop trust and loyalty in a brand based on how well businesses position their take on social issues through their marketing channels.

“We live in a world where we are faced with abundant choices. If a brand like Ben and Jerry's are very vocal about the values they stand behind, then that makes it easier for consumers to show their support through purchase behaviour.”

Beyond being a purveyor of decadent ice-creams, Ben and Jerry’s consistently voices its position on issues of social justice, including US voting rights, climate change and LGBTQ+ matters.

“In a marketplace, we have the businesses on one side, and the consumers on the other. For loyalty to happen, both sides have to agree on issues that are important within the ecosystem.”

Hannah thinks that in today's climate, timing is everything when it comes to making a brand statement or even positioning related to any kind of social issue. Increasingly, brands need to master the delicate art of taking a public stance without appearing opportunistic to the cause. She says that brands that wait too long to make a stand risk appearing insincere and inauthentic.

“Perhaps 10 years ago, people didn't really expect brands to take a stance on social movements, racial inequality or other important issues concerning gender and equality,” she says.

“But now well-known brands like Nike and Lego have started stepping up to talk about social issues or environmental consciousness, on par with conversations that are now being brought to the forefront on online mediums.”

Still, this does not imply that consumers — even those from a generation that is more socially aware — are always accepting of any brand’s grand statements on social issues. As always, context is key.

“The US Superbowl, for example, is a high-profile event attracting commercial slots bids for some $16 to 17 million, and is a platform where a lot of brands campaign strongly,” she states.

When it comes to airing social issues here, this may get a mixed reaction from viewers, calling into question the exorbitant expenditure on prime-time advertising slots, as opposed to the brand simply donating the same amount to fund the causes it claims to support.

“This situation puts brands in a somewhat challenging position. How can they align themselves with social issues in a way that is authentic, especially regarding something that is a polarising issue that consumers care a lot about now?”

Diversity and inclusion in brand positioning

While Hannah acknowledges that although issues may be polarising, it is nevertheless important for brands to have a voice, rather than stay silent for fear of alienating a group of customers with a differing value system. Social consumerism is also something that is not likely to be trending out soon, not with the current context of our social landscape and place in history.

“I think that inclusiveness is an important concept for brands to tackle now. Some consumers may feel like they don’t identify with certain values and thus disregard the brand. But I do not think that's necessarily the intention of brands to alienate certain groups when they design campaigns,” says Hannah.

“A single, salient event could bring an issue to the forefront because it's so visceral when you read the news or watch a video online. These discussions are then fuelled by emotionally charged content and people are brought together on public discussion and forums.”

For as long as the public cares about showing support for a good cause, brands can also step in by making a firm stand and adding their voice to the ongoing conversation.