The Rise of the Societal Brand
What’s big, broad and influential, whether it wants to be or not? The societal brand.
Today, we are witnessing the rise of a new phenomenon on the brand landscape: orga nizations whose sheer size, wide sphere of influence and fundamental impact on the national or world economy makes them, by definition, societal brands; that is, they literally shape how society works, whether they intend to or not. They are agents of societal change.
Consider Wal-Mart. Wal-Mart is probably the most dramatic current example of a com- pany whose sheer might has led it to alter the economic landscape across America. It has been a boon to millions of consumers with its everyday low prices, allowing people to buy products they might not otherwise be able to afford. Wal-Mart has, however, also caused a firestorm of debate around its hiring practices and wage policies as well as its steamroller effect on smaller, local businesses which have disappeared, unable to compete with the retailing giant on price and merchandise selection. Wal-Mart is a clas- sic societal brand. The company alters economic and social trends simply as a result of being in business, along with other societal giants like Microsoft, GE and Google.
BEING A SOCIETAL BRAND ISN’T NECESSARILY A REWARD FOR BEING BIG AND SUCCESSFULL.
Being a societal brand is first and foremost a responsibility that comes with size and influence: the responsibility to respond to the needs of society in ways that actually complicate the traditional branding formula, where making customers happy is the main measure of victory. In Wal-Mart’s case, brand victory going forward isn’t going to be just about driving down prices for consumers. It is also likely to be about establishing business policies that respect people’s rights to fair wages, or working to maintain the local flavor of longstanding communities that thrive in part by supporting local mer- chants. Being a societal brand is challenging at best, drawing attention to the means a company employs to achieve its goals, not just the end.
A useful way to grasp the power of being a societal brand is by considering Einstein’s theory of relativity, where energy equals mass times velocity. Companies that qualify as societal brands have achieved the “mass” -that is, the size -and the “velocity” -the momentum -to become energy forces in their own right. And, just as Einstein’s famous equation has influenced how we live, so does being a societal brand influence the lives of people in profound and permanent ways.
Companies whose growth trajectory suggests that they’re on the path to becoming a societal brand would benefit from understanding the obligations, as well as the rewards, that come with achieving this vaunted status. When developing their brand, these organizations need to start now to consider how to shape management policies and practices, as well as marketing and communications, to ensure that their societal status reinforces, rather than erodes, the power of their brand.