Articlegreen2005

Ethical branding and corporate reputation

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273 citations0/0 files storedCorporate Communications An International Journal

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Corporate Identity and Reputation Corporate Social Responsibility Reporting Consumer Behavior in Brand Consumption and Identification

Abstract

Purpose The purpose of this paper is to explore the concept of ethical branding and its link to corporate reputation. Brands have traditionally been studied only as an economic construct. Brands, as a social construct, have not yet been fully understood due to the lack of research. Design/methodology/approach The paper discusses major issues with references to existing literature and practical examples. Findings In the conventional brand models the value of brand equity is defined and measured by its economic performance in financial terms. This model has a number of deficiencies. First, two basic elements are missing: legality and ethics, which form the foundation of brand equity. A good brand must be a legal as well as ethical one. Thus brand value needs to be assessed by both financial and ethical measures. Second, conventional brand models focus largely on product brands rather than corporate brands. Brands and branding have such a profound impact on the society as whole and not just on these people who buy them. There is a wider public, in addition to shareholders and consumers, who may be potentially affected by the branding decisions. The impact of branding on these stakeholders should also be taken into consideration. An ethical brand enhances the firm's reputation; such a reputation reinforces the brand in turn. On the other hand, any unethical behaviour will severely damage or even destroy the total intangible asset as evidenced by the recent high profile corporate scandals. Research limitations/implications The paper questions the conventional branding practice, and explores the links between ethical branding and corporate social responsibility. Many questions remain to be addressed. Practical implications Ethical branding could provide the company with a differential advantage as a growing number of consumers become more ethically conscious. It could also help overcome the increasing consumers' scepticism and cynicism towards branding communications. Originality/value The paper is perhaps the first to raise the importance of ethics in branding.

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References

2007The Social Responsibility of Business Is to Increase Its Profits 1999Corporate Social Responsibility 1991Managing Brand Equity 2001The myth of the ethical consumer – do ethics matter in purchase behaviour?1997The influence of firm behavior on purchase intention: do consumers really care about business ethics?1981Positioning: The Battle for Your Mind 1987Social Responsibility, Ethics, and Marketing Strategy: Closing the Gap between Concept and Application 1999Social Contracts and Marketing Ethics

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2010Shaping the Halal into a brand?2014The relationship between legitimacy, reputation, sustainability and branding for companies and their supply chains 2013Is doing more doing better? The relationship between responsible supply chain management and corporate reputation 2011Effects of corporate social responsibility on brand value 2009Prospective Students' Perceptions of University Brands: An Empirical Study 2013

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