It’s no secret that Millennial consumers are drawn to ethical companies. A whopping 92% are more inclined to purchase products from such businesses. Furthermore, 82% of these consumers firmly believe that ethical brands tend to outperform their counterparts who haven’t embraced ethical principles.
These compelling statistics come from a recent Aflac survey (PDF) that delved into the significant business impact of ethical commerce and corporate philanthropy. In today’s marketplace, brand authenticity is paramount, and companies prioritizing the greater good over solely profits have witnessed a surge in both consumer support and revenue.
This article will explore the concept of ethical marketing and showcase five brands that have successfully implemented it. Through these examples, we’ll see ethical marketing principles in action and understand why supporting good causes resonates with modern consumers.
Defining Ethical Marketing
Before delving into the examples, let’s define ethical marketing.
Image via World Fair Trade Organization
Ethical marketing goes beyond simply highlighting product benefits for customers; it emphasizes how these products contribute to socially responsible or environmental causes.
In essence, ethical marketing is a philosophy, not just a strategy. It encompasses honesty in advertising and fostering strong consumer relationships based on shared values. Ethical marketing-oriented companies evaluate decisions from both a business and moral standpoint, ensuring actions are profitable and ethically sound.
With that established, let’s explore some inspiring examples.
Example #1: TOMS: Walking the Walk
My wife adores her TOMS ballet flats. They are stylish, comfortable, and most importantly, support a good cause.
TOMS’ commitment to corporate philanthropy runs much deeper than mere profit-seeking; it’s deeply ingrained in the company’s values and brand identity.
Blake Mycoskie founded TOMS in 2006 after a life-changing trip to Argentina. (a trip to Argentina) This experience opened his eyes to the harsh realities of poverty, particularly the lack of basic necessities like shoes. Inspired to make a difference, Mycoskie established his company with a core principle of giving back.
Since then, TOMS has donated over 60 million pairs of shoes to children in need globally. And their generosity doesn’t stop there. The company’s eyewear division has provided more than 400,000 pairs of glasses to visually impaired individuals lacking access to proper eye care.
TOMS has expanded its efforts to include clean water initiatives through its coffee business. Additionally, their bag line supports projects that provide birthing kits and training for birth attendants in developing countries. To date, TOMS has helped over 25,000 women experience safer childbirth.
How TOMS Champions Ethical Marketing
TOMS seamlessly integrates its social and environmental philanthropy into every aspect of its branding. This transparency not only informs potential customers but consistently reinforces TOMS’ brand values across all channels.
A prime example is TOMS’ homepage. Directly below the main image carousel, the company clearly states that every purchase translates to helping someone in need:
TOMS’ mission is so central to its brand identity that it receives equal prominence on its website alongside its products. Navigating the site, it’s nearly impossible to miss the continuous emphasis on how TOMS uplifts communities worldwide.
This isn’t a superficial marketing ploy but a genuine commitment reflected throughout their website and marketing materials. Just like display ads aim to increase brand awareness, TOMS consistently reinforces its philanthropic mission, making it almost synonymous with the brand itself.
Example #2: Everlane: Transparency is the New Black
The clothing industry has faced intense scrutiny, particularly regarding its manufacturing practices. Over the past two decades, tragedies like the 2012 the blaze that tore through a garment manufacturing facility in Bangladesh disaster, which claimed 117 lives in a factory supplying major American retailers such as Walmart and Sears, have shone a harsh light on the industry’s practices.
Growing awareness about sweatshop labor has fueled a surge in demand for ethically made clothing. This shift has led to the emergence of companies like Everlane, determined to revolutionize the industry.
Founded in 2010 by Michael Preysman, Everlane is a shining example of ethical manufacturing. All Everlane garments are produced in factories adhering to the highest quality standards, not just in terms of the final product, but also in how workers are treated. The company exclusively partners with manufacturers demonstrating a genuine commitment to worker well-being, a fact proudly highlighted in their marketing.
How Everlane Embraces Ethical Marketing
Like other ethical brands, Everlane’s About page effectively tells its story, emphasizing its dedication to the rights and well-being of the workers crafting its garments. However, what truly sets Everlane apart is its radical transparency.
An Everlane warehouse worker prepares garments at the company’s Mola, Inc. tee-shirt factory in Los Angeles, CA. Image via Everlane. Everlane goes above and beyond simply stating that its clothes are made ethically. The company provides a detailed cost breakdown for each garment, including costs related to materials, labor, transportation, taxes, and even minor hardware elements like zippers and buttons.
For example, the company’s Elements jacket has a production cost of $60, and customers can see precisely how each manufacturing and logistical element influences the final retail price:
Traditionally, clothing production costs are closely guarded secrets, concealing potential profit margins and often masking the poor pay and conditions endured by garment workers.
By openly disclosing its production costs, Everlane offers unparalleled transparency, fostering trust with its customers while simultaneously reaping the reputational rewards of its ethical approach.
Example #3: Dr. Bronner’s: Clean Products, Clear Conscience
Consumer demand for ethically produced cleaning products has skyrocketed, and while countless soap brands flood the market, few are as intriguing or memorable as Dr. Bronner’s, America’s top-selling organic liquid soap brand.
Anyone familiar with Dr. Bronner’s soap knows it’s different. The unique packaging, adorned with the company’s captivating “Cosmic Principles,” a 30,000-word philosophical treatise penned by founder Emanuel Bronner, is hard to miss. Bronner, a self-proclaimed doctor, shared his philosophies while touring the US lecture circuit in the 1940s, offering his now-famous peppermint soap as a freebie to attendees. He soon realized many were there solely for the complimentary soap.
Emanuel Bronner wasn’t the only one passionate about social and environmental activism. His grandson, David, was arrested in 2012 for publicly harvesting hemp outside the White House. This act protested what he perceived as excessive government control over hemp production in the US.
Image via Mother Jones
Since the incident, David Bronner has remained a vocal advocate for social and environmental justice, championing issues such as increased transparency in labeling genetically modified ingredients.
How Dr. Bronner’s Leverages Ethical Marketing
Dr. Bronner’s stands out as an eco-friendly brand due to its founder’s eccentricities. The brand’s identity is deeply intertwined with Bronner’s “Moral ABCs” from his post-World War II lectures.
This unique history positions Dr. Bronner’s to seamlessly incorporate its ethical manufacturing practices into its marketing. The iconic packaging itself serves as a gateway to the company’s philosophy, prompting reflection even during a simple shower.
However, the company’s commitment to what it calls “constructive capitalism” extends far beyond its unconventional packaging and mission statement. Dr. Bronner’s is a certified Benefit Corporation (B-Corp), meaning it operates as a for-profit entity while pursuing legally defined goals that positively impact society and the environment.
Dr. Bronner’s excels in this regard, adhering to tangible objectives. These include raising awareness for vital environmental and social justice issues, prioritizing USDA-certified fair-trade ingredients, and implementing equitable compensation structures where executive pay is capped at five times that of lower-level employees. This stands in stark contrast to statements like that of former Dunkin’ Donuts CEO Nigel Travis, who, in 2015, deemed a $15 minimum wage “absolutely outrageous,” despite earning approximately $4,889 per hour himself.
Example #4: Conscious Coffees: Brewing a Better Future
Coffee is serious business – and we’re not talking about needing that first cup to function. The global coffee industry sustains over 120 million people, predominantly among the world’s poorest. Worryingly, this industry faces a significant threat from climate change; experts predict that without aggressive action, we could lose half the world’s coffee farming land could be lost by 2050 to its effects.
Image via Global Agriculture
Fortunately, companies like Conscious Coffees are striving to create a more equitable and sustainable coffee industry. Based in Boulder, Colorado, Conscious Coffees was founded in 1996 by Mark and Melissa Glenn, who later passed the torch to current owner Craig Lamberty.
Since its inception, Conscious Coffees has worked tirelessly to improve its supply chain, benefiting growers, farmers, and suppliers throughout South America. As a certified B-Corporation, Conscious Coffees has been recognized for its community impact, ranking in the top 10% of all certified B-Corps globally.
How Conscious Coffees Demonstrates Ethical Marketing
Every facet of Conscious Coffees, from its name to its logo, reflects its dedication to ethical sourcing and its broader mission. In many ways, the company embodies ethical marketing rather than simply using it as a tactic.
Conscious Coffees-affiliated growers preparing coffee beans. Image via Conscious Coffees.
Beyond its commitment to ethical production and fair trade, Conscious Coffees engages in various community outreach programs.
Their CAFE Livelihoods Program empowers individuals in El Salvador, Guatemala, Mexico, and Nicaragua to become coffee entrepreneurs through comprehensive training and ongoing support. The company regularly contributes to the local Community Cycles program, a cycling initiative that provides repair, maintenance, and refurbishment services. Conscious Coffees’ experts also offer guidance and technical assistance to coffee growers through the USAID-funded Farmer-to-Farmer initiative, helping South American farmers implement sustainable practices and engage in fair-trade partnerships with North American buyers.
Bike enthusiasts at a Community Cycles event. Image via Conscious Coffees.
Conscious Coffees is a prime example of a company that not only implements ethical marketing practices but truly embodies them in every aspect of its operations.
Example #5: Farmer Direct Co-op: Cultivating Change
Food documentaries often expose the harsh realities of industrialized agriculture. Farming, while essential, is often fraught with unethical practices, from the exploitation of family farms by large corporations to the inhumane treatment of livestock. The idyllic images presented on food packaging rarely reflect the truth.
This is where central Canada’s Farmer Direct Co-op shines as a beacon of hope. This entirely worker-owned cooperative embodies the true meaning of ethical farming. With a network of over 60 privately owned farms across Alberta, Manitoba, and Saskatchewan, Farmer Direct champions sustainable agriculture and responsible environmental stewardship. The co-op aligns itself with organizations like the Cornucopia Institute and the Fair World Project, further solidifying its commitment to ethical practices.
All of Farmer Direct’s produce is certified organic, including staples like beans, peas, and oats, sold at Whole Foods Markets across North America.
How Farmer Direct Utilizes Ethical Marketing
Ethical marketing is at the core of Farmer Direct’s operations. Beyond its active social media presence, where it shares healthy eating tips, recipes, and engaging content, Farmer Direct maintains a blog and newsletter. These platforms further their mission of educating consumers and promoting conscious food choices.
Unusually for an agricultural organization, Farmer Direct has cultivated a strong Pinterest presence, showcasing its commitment to reaching consumers on diverse platforms alongside Facebook and Twitter.
Farmer Direct’s mission might seem more challenging than that of other companies featured. It’s not because they lack a product to sell or face a lack of demand for organic produce. Their challenge lies in transforming consumer mindsets about food sourcing. This is a long-term, ambitious goal, considering the deeply ingrained practices of industrialized agriculture.
Image via Food and Agriculture Organization of the United Nations
Another noteworthy aspect of Farmer Direct’s ethical marketing is its dedication to environmentally sustainable agriculture. While many farms highlight their organic certifications or showcase their livestock grazing in open pastures, Farmer Direct goes a step further, raising awareness about critical issues like topsoil erosion and its devastating impact on farming communities.
Profit with a Purpose: Businesses Making a Difference
The businesses highlighted in this article, while diverse, share a common thread – a genuine commitment to giving back and protecting vulnerable communities. They’ve embraced ethical marketing not as a marketing ploy, but as an integral part of their core values.
Ethical marketing requires a long-term approach involving continuous education, advocacy, and activism. It’s about empowering consumers to make conscious purchasing decisions that support ethical brands. It’s about reshaping our understanding of how goods are produced, valuing the individuals behind those products, and supporting communities reliant on fair trade. Ultimately, it’s about fostering brand loyalty by aligning company values with those of its target audience.
Hopefully, these examples have sparked inspiration for incorporating ethical principles into your own organization. While ethical marketing might not be suitable for every business (think fair-trade plumbers), companies that can embrace it may find that prioritizing people alongside profits is a wise investment.