GLOBALIZATION: THE CHALLENGE FOR THE CORPORATE BRAND

While the march of global brands, whether by organic growth or by acquisition, has continued unabated, we have begun to see vigorous signs of some questioning of its desirability. Whether it be protesters in Seattle attacking global capitalism, French farmers objecting to MacDonald’s or Scandinavians cutting logos from their chic sports shirts, there are unmistakable indications that the corporate brand owner must not ignore the social implications of is actions. It is clear that a significant and growing proportion of the population will be making their decisions about corporate brands on the basis of new criteria, on ethical standards as well as respect and admiration for the product or brand, and the corporate brand warrior must address these issues.

Of course there is a much bigger debate on the extent to which multi-national branding and manufacture exploits the developing world and destroys cultural distinctiveness. Global companies will continue to want to invest in the developing world, primarily as an opportunity to offer their products to the populations of these markets and secondarily in certain sectors (for example, clothing) as an opportunity to secure low-cost manufacturing. These ventures will offer opportunities of employment to local people, with advancement and career progression for some, and contribute to the development of local infrastructure in retailing, transport and communication.

However, the key lesson from that debate is that global brand management involves having clear policies which can mitigate the negative impact. Most large multinational companies do have excellent policies and practices, in particular in being good citizens wherever they operate, in spending on housing, healthcare and education for their employees, but they have not been good at communicating these to an audience beyond their employees and sometime their investors.

In the future, corporate brand management will have to develop specific communication programmes to ensure that their corporate brand stands high in the consumers’ minds for their ethical behavior and their cultural sensitivity.

In case we get carried away, branding is about enduring values, not about spin to manipulate tomorrow’s headlines. Brands must retain their integrity – brand warriors never lie, are never economical with the truth and always prefer long-term gain to short-term pain. Pharmaceuticals companies who choose to give medicines to people in undeveloped countries who otherwise cannot afford them may deserve recognition, even if they used this as a PR opportunity. But brands who attach themselves (parasitically) to social issues should be challenged.

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