2 Truths and a Lie About Corporate Sustainability

The public's diminishing interest in corporate activism isn't a call for businesses to remain silent and focus solely on profits. Rather, it's a demand for authenticity and relevance in corporate messaging.

Brand Provided | By Caleigh Farrell | Published 4 hours ago | About a 3 minute read

Image: Ben & Jerry's is well-known for its activism on a variety of issues. | Ben & Jerry's

Truth 1: US consumers’ appetite to hear from businesses on current events has dropped 10% in the last two years (Gallup, 2024).

Truth 2: Sustainably marketed products grow 2x faster than conventionally marketed products (NYU Stern, 2024).

Lie: Sustainability communications have seen their heyday.

Consumer paradox

Over the last 18 months, there has been a dizzying volley of research that predicts the collapse of sustainable business practices one day and the growth of them the next. As purpose practitioners, we must resist the temptation to cherry-pick data that solely supports our position and confront this complex reality head on.

Corporate political responsibility: Lessons learned in 2024 and support for 2025 and beyond

Since 2021, the SB community has explored what it means for companies to use their political influence responsibly in an increasingly polarized world. What have we learned? Join us for an interactive "community café" to dive into this — as well as the Erb Institute's new CPR Decision Tool & Executive Conversation Guide and related case studies — Monday, Oct. 14, at SB'24 San Diego.

Tell me more!

The reality is that consumers are increasingly fatigued by businesses taking positions on social and political issues, as the new Gallup data show (although it’s worth noting that there’s greater appetite for businesses to comment on issues that are classified as issues of low divisiveness, according to a recent HBR article. Sometimes they just want to make a purchase without considering a myriad of ethical implications.

However, this does not mean that sustainability has lost its importance with consumers.

There’s endless research to prove consumers want to shop sustainably and hear from companies about what they’re doing to minimize their impact. We also know that they’re putting their money where their mouth is — with consumers spending $44 billion on sustainable brands in 2023. Further to this, a belief that a company is supporting causes I (the consumer) care about is a massive driver of brand reputation health.

Reconciling contradictions

So, how do we reconcile the reality that consumers' appetite to hear from companies on social and political issues is declining while demand for sustainable products is growing?

The key lies in recognizing that corporate activism (corporate commentary on socio-political issues such as vaccine mandates, geopolitical war etc) and corporate sustainability are distinct concepts. While consumers may be wary of businesses commenting on every socio-political issue, they still value and seek out sustainable products and practices.

The path forward — alignment is key

The diminishing interest in corporate activism isn't a call for businesses to remain silent and focus solely on profits. Rather, it's a demand for authenticity and relevance in corporate messaging.

A relationship between a company and its customers is built on integrity, reliability and trust. These pillars are reinforced through consistency. Your customers should never feel blindsided by your company’s messages or commitments.

For sustainability-linked messaging to resonate, it must:

Align tightly with your core business (what you do and who you serve)
Address causes your audience genuinely cares about.

This is where corporate activism has failed — when the message is inconsistent with customers’ relationship with the brand/business, it can leave both external and internal audiences feeling disconnected.

Capitalizing on purpose hinges on your company’s ability to identify a select few social and/or environmental issues that meet the above criteria. REI has done it with “Opt Outside,” IKEA with its planet-focused commitments, Nike and accessible youth sport (to name just a few). These companies have masterfully aligned their sustainability efforts with their brand identity and customer values.

The bottom line

Effectively leading with purpose isn't about speaking out on every issue — it's about strategically aligning your sustainability efforts with your core business and your customers' values. By doing so, you create a powerful synergy that drives both social impact and business success.

Remember: In the world of corporate sustainability, relevance and authenticity are your most powerful tools. Use them wisely, and you'll not only contribute to a better world but also forge stronger connections with your customers and stakeholders.

Caleigh Farrell

Head of Research
Public Inc.

Caleigh Farrell is Head of Research at Public Inc. — North America’s leading social-impact agency helping companies and organizations profit with purpose.

Tags:

Consumer Insights