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Graham Birkenhead, April 30 2024

The Peril of Weak Values

And conversely, the power of strong, lived values

A company's values are becoming an increasingly important part of a market's buying decision making - and that market is made of up thousands or millions of individual people. And, in a world where people are losing trust in governments and other traditional guiding institutions (Edelman Trust Barometer), there is evidence that they are turning or rather expecting more leadership from business - and the people who run those businesses.   Sixty-three percent of consumers and employees buy or advocate for brands based on their beliefs and values, and 69 percent say having a societal impact is a strong expectation or deal breaker for job candidates. 

There have been several cases recently where companies have truly demonstrated the strength - or weakness - of their values; 2 in particular provide and interesting contrast: 

In general, a majority of consumers buy or advocate for brands that stand up for what they believe in.  The specific values your company holds are less important than how authentically and consistently you adhere to them.  Consumers are increasingly adept at sensing the gap between a brand’s promotions and its actions. Nike's success came not just from taking a stand but from doing so in a way that aligned with its historical brand message. In contrast, Bud Light's initial move and subsequent retraction suggested a lack of firm commitment to the values it espoused, leading to consumer distrust. 

And while those consumers are more likely to purchase from, remain loyal to, and advocate for brands that align with their personal values, Millennials and Gen Z consumers in particular, prioritise corporate social responsibility, environmental stewardship, and ethical practices highly when choosing brands.  

Here are some other companies that have built strong customer loyalty primarily through their commitment to ethics and values, sometimes going against market norms and even impacting product or service features like prices or convenience:

 Are your values truly reflected in your (and your company's) everyday behaviours, core business practices, and strategic decisions? Are they embedded in your culture?   More about that here:  How to Evaluate your Values 

Give me a call if you want to discuss.  

Graham

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Graham Birkenhead

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