Reference no: EM133282953
Case: Can companies make us better citizens? If you want to know what coffee and elections have in common, ask Starbucks. In May, the US giant ran a campaign in the Philippines called "care to vote", which rewarded customers with a free drink if they turned out to vote in the country's general election. Having visited a polling station, all customers had to do was show an ink-stained voting finger to a barista in order to get their complimentary coffee or other beverage. "Our intent was simple," says Keith Cole, head of marketing for Starbucks Philippines. "By helping to increase voter participation we believe more people will have an opportunity to make their votes count." From campaigning on voting rights, to sustainability, healthy eating, and gender equality, businesses are increasingly speaking out about societal issues, in the hope of influencing - and improving - our behaviour. The aim, they say, is to use their power and influence for good, and not just for profit. The idea that brands might encourage us to be better citizens is not new.
UK chocolate manufacturer Cadbury and US carmaker Ford invested heavily in the towns where their employees lived in the 19th and 20th Centuries, and in return expected workers to uphold certain values - both in and outside work. But today such efforts tend to be more consumer-facing, the aim being to promote social good while encouraging brand loyalty. Take the Dove Campaign for Real Beauty, which has been calling for a wider definition of female beauty since 2004. Run by Anglo-Dutch consumer goods giant Unilever, the owner of toiletries brand Dove, it aims to celebrate women of all shapes and sizes. Unilever says the scheme has "pioneered the use of attainable images of beauty" in advertising, using women "with real curves". At the same time, Unilever saw annual sales of Dove products reportedly increase from $2.5bn (£1.9bn) to $4bn in 2014.
Responsible drinking Another example is Dutch brewer Heineken, which has promoted moderate drinking in its advertising since 2011.
Heineken PR manager Milly Hutchinson says that the firm believes it has "a role to play in society", and the "perfect platform to spread the message of moderate consumption". However, she adds that the firm is also reflecting a "discernible shift in consumer behaviour", as its own research shows that a majority of young adults now limit the amount of alcohol they drink. A Heineken survey published in January found that 75% of drinkers aged between 21 and 35 limited the amount of alcohol they drank on the majority of their nights out. The study was conducted across five countries - the US, the UK, the Netherlands, Mexico and Brazil. Charlotte West, from UK charity Business in the Community - which encourages businesses to make a positive difference to society or their local community - says it is true that a growing number of firms are making their campaigning voices heard. She says that the trend has been partly driven by the rise of social media, which has empowered consumers to hold brands to account in an unprecedented way. And so firms are having to respond. "More and more, customers want businesses to stand for social impact, and in our changing world they have to play a bigger role in solving societal problems," she adds.
However, Laura Spence, professor of business ethics at Royal Holloway, University of London, cautions that "there is bound to be some enlightened self-interest in these campaigns". She adds: "Companies can see that being associated with a certain practice reflects well on them, and might bring in additional customers. "But they can risk seeming preachy too, which doesn't always play well." Vicki Loomes, an analyst at consultancy Trendwatching, says: "If companies are going to campaign on an issue, it needs to be something they are invested in long-term and aligned with what they do." She adds: "It cannot be a three-month marketing campaign, talking about something like immigration, simply because it is the most newsworthy topic going around." Ms West of Business in the Community agrees. "People can see through rubbish, so it has to be authentic and honest and relevant to your brand." Clearly companies must strike a delicate balance when weighing in on social issues, but it seems that we would rather they tried than did nothing at all. "Businesses have realised they can't just grow and take away from people," says Ms West. "They have to grow while giving back, which I think is a really responsible capitalist approach."
Question 1. What ethical issues are the businesses in the article concerned with?
Question 2. Explain why the businesses are acting ethically.
Question 3. Do you agree that these businesses should act in this way?