Evidence shows companies who truly embrace sustainability and social impact benefit from increased brand strength - translating to price premiums of around 20% and more stable revenue flows in crisis (like pandemics!). (1)
But beware - using purpose as a gimmick won’t work. ‘Greenwashing’ or making unsubstantiated claims will significantly damage a brand’s reputation and customer loyalty, leading to lasting sales declines. (2)
References:
(1) http://www.emeraldinsight.com/doi/abs/10.1108/17471111011051720
(2)https://www.nielsen.com/au/en/insights/article/2019/finding-success-through-sustainability-aus/
(4)http://www.flr-journal.org/index.php/mse/article/view/j.mse.1913035X20100402.002
(5) https://onlinelibrary.wiley.com/doi/abs/10.1111/ijcs.12125
(6) https://onlinelibrary.wiley.com/doi/abs/10.1002/hfm.20556
(7) https://www.sciencedirect.com/science/article/abs/pii/S0921800916302282
(8) https://www.emerald.com/insight/content/doi/10.1108/JFMM-07-2014-0057/full/html
(9) https://link.springer.com/article/10.1007/s10551-011-0908-8
(10) https://www.sciencedirect.com/science/article/abs/pii/S0959652616313658
(11) http://link.springer.com/article/10.1007/s10551-011-0908-8
(12) http://www.chernev.com/research/articles/DoingWellByDoingGood_2015.pdf
(13) https://www.accenture.com/us-en/insight-un-global-compact-consumer-study-marketing-mattering
(14 )http://www.thelabyr.com.ar/web/wp-content/themes/thelab/pdfs/Y&R_Publications/SPEND_SHIFT.pd
(15)http://dx.doi.org/10.1057/crr.2009.28
(18) https://www.unilever.com/news/press-releases/2019/unilevers-purpose-led-brands-outperform.html