In the past companies have taken a relatively short term approach to sales and marketing but as technology opens up the communication lines throughout the world, building good brand karma is becoming increasingly important to the long term survival of big corporations.
Brand karma is reflected in the way consumers perceive a company’s actions and behaviour in the production, manufacturing and selling of their good and services. Consumers today have access to global news and opinions through the internet and as such multinational corporations in particular must ensure that their actions and behaviour are considered eco-friendly and socially responsible at all times. No longer can large corporations ignore consumer concerns about sweat shops, poor equipment maintenance and negligent or irresponsible behaviour in relation to the environment.
Prior to the internet, multi nationals could avoid the spotlight on this sort of behaviour by setting up manufacturing plants or sweat shops in remote and poorer areas with total disregard for human welfare or the sustainability of the environment. Like brand karma these aspects were simply not on the radar. Companies were not only cost-driven and looking to produce mass product at a minimum cost but also comfortable in the knowledge that brand awareness was all a matter of advertising. Certainly there was no thought about the consequences that flowed from deforestation or over zealous mining in areas where endangered species might exist. Nor was there any pressure from environmentalist groups concerned about the ramifications of climate change.
Today there are journalists on the ground world wide and technological developments such as mobile phone cameras for example have enabled local people suffering because of the actions of large corporates, to record and send pictures around the globe in a matter of minutes. This has exposed the reprehensible behaviour and actions of multinationals and resulted in significant damage to the brand karma of companies involved in such activities. Because of the media and internet exposure consumers en masse are now aware of corporations who flout environmental regulations or behave in a socially irresponsible manner and are in a position to veto this type of activity by simply withdrawing their support for the product. Take BP for example and the recent devastation caused by an oil spill in the Gulf of Mexico. As news unfolded that a proper maintenance programme had not been implemented in relation to the upkeep of the oil rig, consumers expressed their anger by purchasing their petrol from other oil companies. The result: BP’s turnover reduced, BP’s profitability diminished, BP investors with a conscience sold their shares, BP’s brand reputation was tarnished, the price of BP shares fell. The BP debacle has surely sent a strong message to multinationals that brand awareness alone is not sufficient for long term success, but when combined with good brand karma it will certainly enhance long term sustainability. The oil spill has also resulted in consumers realising the power they hold and the influence they can have in driving for responsible actions by corporations in relation to the environment and human welfare.
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Brand Karma - help everyone make better brand choices and influence brand behavior and brand reputation for good.
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