No longer is it just NGOs or fringe groups that are clamouring for change and action; all forces in society have collided to propel 'ethical' issues onto the agenda. Government pressure meets media attention meets public concern. All of a sudden, it’s cool to care.

And in an age of consumerism, what you buy is a way to care and show you care. People know that they can use their purchasing decisions to make a difference: the anti-capitalist movement together with the rise of concepts like fair trade and the fact that the consumer is treated as king have driven that message squarely home. And people have long been using brand choice to say something about themselves. So it makes perfect sense to use brand choice to communicate a sense of ethical concern. Particularly if it requires no personal sacrifice: with near parity on the rational product attributes why not choose the one that makes a difference?

Up rises Concerned Consumerism. 47% of the UK population now actively factor social, environmental and ethical decisions into their purchasing behaviour. Natural viral marketers, they are nearly 60% more likely than the average consumer to recommend products and services to others. Where they lead others follow. We measure and monitor them for the business pages of The Times.

It's not just the consumer mood that has turned. There has also been a shift in the political discourse. Issues such as climate change and obesity demand collective action from all components of society. Lasting solutions will only be found if government, companies, the voluntary sector and individuals all play their part. Politicians on all side of the spectrum know that brands are often the best vehicle to drive change and increasingly expect companies to rise to this challenge. And if they don’t do so voluntarily, legislation will come into play (forcing collective action, which removes an opportunity for competitive differentiation and erodes goodwill.) This is no empty threat, as mandatory strictures on electrical equipment recycling and fizzy drinks in schools make clear. Governments are not afraid to act if they have to.

So the world turns. That much is clear. But what is the appropriate business response?

Well, we think that’s quite clear too.

The first thing an organisation needs to do is understand which issues really matter to the people that matter to its business. This enables it to spend its time and energy focusing on these issues, as opposed to engaging in a box-ticking exercise of monitoring and reporting on the multiple issues which fall under the broad corporate responsibility spectrum. This might sound obvious, but a quick look at the landscape would suggest it's not. Take climate change. For some sectors anything but a near-total focus on climate change is idiocy. Think energy and airlines. But many other sectors seem to be blind sided by it. It's not that they should be ignoring it — all companies are increasingly expected to do what they can in this space. But it does mean being able to take a strategic view as to whether to major on it, and what to major on if not it.

After research and planning, comes action. Companies that don't ensure that consumers can buy their brands safe in the knowledge that the associated social and environmental impacts are being managed risk becoming irrelevant. And it's important to note that while a 100 page sustainability report may have its place, it’s highly unlikely to get this message to the consumer. Corporate responsibility, as it's currently construed, is often all too corporate. The action companies are taking to address ethical issues needs to live in the consumer world.

Taking action to address the issues that matter is increasingly becoming a business imperative. But it alone is unlikely to deliver any real brand benefits.

For that companies need to think about developing leadership strategies. This means showcasing the power of their products and brands by demonstrating how they can be used to effectively tackle a real, compelling and relevant social or environmental cause. And this is where things start getting interesting. Leadership programmes should be big, bold expressions of a vision. They should have publicity built in, so there is never a need to broadcast and breast-beat. They should be designed to exceed consumer expectations and build competitive advantage. We think they are the 21st Century path to differentiation. No longer is it enough to run a brand campaign trying to sell a lifestyle. The iconic brands of the future will be the ones that use their particular strengths and resources to effect positive change and so capture the collective imagination. This is the true path to 'emotional bonding'.

We think both the challenge and the response are clear. Social and environmental issues matter. All sectors of society — and our world — are demanding action. Brands need to show the world just what they can really do.

press