Today’ Big Branding Issue: What Should Companies Stand For?
The question of whether a company should go beyond the core goal of “maximizing shareholder value” as its main reason for being (e.g. to also pursue broader social ends), has been argued for decades. This debate was supposedly resolved in 2000 when two reputable law professors, Henry Hansmann of Yale and Reinier Kraakman of Harvard, pronounced that the world’s legal systems should converge just on this shareholder value model. Since then, several events have shaken the credibility of this model. Not long after their published article on...
read moreHow The Choice Of “Birdman” Jeopardizes The Integrity Of The Oscars Brand
The recent Oscar choice of “Birdman” as the best movie of 2014 not only defied moviegoers’ preferences, but it is also a lesson on how a strong brand can lose credibility and hence trust when it becomes so self-obsessed. One of the cardinal rules of good branding is to consider the interests of the target audience before making decisions that may be inconsistent with what you want your brand to stand for in the eyes (and hearts) of your main customers. For example, was “Birdman” indeed the “best” movie, or simply the “favorite” of the...
read moreNot One US Company Among The 30 Most Transparent – Why? Impact On Brand Trust?
My recent blog on “Why Transparency is Essential For Building Corporate Brand Trust” generated lots of interest, but also begged a key question – what are the most transparent multinationals in the world, and where do US companies stand in these rankings? Transparency International is the most prominent anti-corruption research organization in the world, and their 2014 study rated the transparency of the top 124 multinationals based on three criteria: anti-corruption programs, organizational transparency, and country-by-country reporting. ...
read moreWhy Tranparency Is Essential For Building Corporate Brand Trust
The growing demand for greater corporate transparency, especially among Millennials, should not be news to anyone. Trust in business has reached new lows, as reported by the latest 2014 Edelman Trust Barometer (e.g. only 50% of Americans trust financial service companies), and insufficient transparency has been one of the key reasons. Yes, businesses are trying to develop and promote more their “corporate social responsibility” (CSR) initiatives, but these will never win over customers unless the details and results are transparent enough...
read moreWhy “Capitalism” Must Be Re-Branded – And How
A recent article in the Economist entitled “Capitalism’s Reputation Has Been Damaged by the Bankers” shed light on some fundamental societal trends and issues. These include increasing income inequality, concerns over “fairness”, declining trust in our basic institutions and questioning the basic principles behind property ownership and competition. These issues have contributed to a growing perception of capitalism as a system that benefits other, more select people, but not us. Webster’s dictionary defines a capitalist as “a person who...
read more3 Big Trends Converging For Big Branding Opportunities
Recently Tom Friedman wrote an article in the NY Times (11/5/14) entitled “The World is Fast”, referring to the 3 biggest forces on the planet and how they present enormous challenges: (1) the geo-economical impact of globalization, (2) the ecological disasters looming from mother nature (e.g. rapid growth of carbons), and (3) the mind boggling digital changes from Moore’s Law, which alludes to the speed and power of microchips that double every two years. These are global dynamics, but they also have an impact on some noteworthy local...
read moreCan Social Responsibility Initiatives Strengthen A Brand Image…AND Satisfy Investors?
There is a definite trend of more companies committing to a specific social mission, whether it involves environmental, health, poverty, social inequality or other sustainable initiatives. However, the immediate reaction by many investors is that this will only increase costs and lower profits. More fundamental is their belief that such social benefit acts conflict with the traditional goal of business: to maximize long-term shareholder wealth. So is there room or justification for corporations to pursue both social and economic goals?...
read moreMillennial “Hipsters” and Boomer “Hippies” – Both Socially Engaged
It is irrefutable that the 75 million Baby Boomers brought about lasting social and cultural changes when they were younger, with their counter culture activism for human rights, self-expression cravings and other social conscious initiatives, especially during their anti-Vietnam rebellious protests in the late 1960’s/early 1970’s. Now there is an equally vocal generation that is extremely “Pro-Social” and shares many of the same values as well, the 83 million Millennials or “8095ers” (born between 1980 and 1995), who will represent 75% of...
read moreRe-Branding – A Better Option Than “Disruptive Innovation”?
A recent “Economist” article compared the virtues of older brands using traditional technologies to the astonishing advances from new internet technology, often the result of the “disruptive innovation” process. Some of these established products have been able to resuscitate their business by re-positioning their brand proposition to create a viable, profitable niche in their markets. These turn-around examples raise insightful questions on the merits of “disruptive innovation” for many companies. Management gurus rave about the importance...
read more“Brooklyn” – A Rejuvenated, Hot Brand
Normally most people associate branding with a product, service or company, not a geographic locale. But the brand image is very important for countries, states or cities as well. The right image can attract new residents, investments, entrepreneurial start-ups and positive notoriety that will enhance the overall brand equity for a place, enriching the perceived value of living and/or working there. At its core, branding is all about developing an emotional relationship with customers. The targeted audience will ideally consist of people...
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