Acting ethically is no longer enough: Brands need to 'care' about consumers

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In an era where consumers expect more from brands, merely adhering to ethical guidelines is no longer sufficient, according to new research by the University of Portsmouth.

People now expect brands to act morally, demonstrating care, compliance with rules, and the competence to deliver on their promises. But what does it mean for a brand to act "morally," and how does that differ from acting "ethically"?

A new study, published in Psychology & Marketing, provides answers and lays the groundwork for businesses to better connect with their audiences.

While companies have long focused on ethical behaviors, the paper highlights a key gap in understanding what it means for brands to act morally. To truly win the hearts and wallets of today's consumers, brands need to go further by showing they genuinely care about their customers and local communities, comply with societal norms, and have the competence to back up their promises. Acting ethically is no longer enough.

Researchers developed a "brand morality (BM) scale"; a tool to measure how consumers judge a brand's moral behavior. They conducted 12 in-depth interviews and three surveys with over 1,200 consumers across two national cultures (i.e., individualist and collectivist).

Dr. Kokho (Jason) Sit, from the School of Strategy, Marketing and Innovation at the University of Portsmouth, says, "Consumers today are becoming mindful of the impacts of their shopping activities on the local community and environment. They don't just want brands to merely abide by the rules; they want them to genuinely care beyond fulfilling legal responsibilities, but there's been a lot of confusion in the marketing world about whether acting ethically is the same as acting morally. Our research shows they are not."

Brand care

The study identified three main dimensions that define a brand's moral behavior. Firstly, "brand care" is a concept that goes beyond compliance and rule-following. It encompasses demonstrating empathy, approachability, and a genuine concern for customers.

According to the study, brand care is the most critical factor in building a moral image. Dr. Sit explains, "Brand care is what truly sets a brand apart in the eyes of consumers. It's the emotional connection, a sense the brand is looking out for their best interests."

Brand compliance

The next dimension is "brand compliance." While this aspect overlaps with traditional brand ethics, it's about more than just following laws. Brand compliance shows that a company respects society's norms and expectations. Dr. Sit says, "Compliance is a logical starting point for consumers to judge a brand's behavior. But consumers see compliance as the bare minimum. It's not enough to win their hearts; brands need to go further."

Brand competency

Finally, "brand competency" is a dimension that captures a brand's ability to meet its promises, especially those tied to moral actions, like environmental sustainability or fair labor practices. Dr. Sit explains, "Consumers want to know that brands aren't just making empty promises. They expect results. If a brand says it will reduce its carbon footprint, it better have the capacity to deliver."

Brand morality and cultures

The study also highlighted how consumers from different cultures interpret brand morality differently. While people from various countries might value brand care, compliance, and competency equally on a cognitive level, their advocacy behaviors and purchasing decisions can vary significantly.

For example, the study found that Chinese consumers, with a strong collectivist culture, put more importance on brand compliance because of past experiences with companies producing harmful products. They wanted to see concrete evidence of rule-following. On the other hand, consumers in Western countries, with a strong individualistic culture, were more likely to focus on brand care and emotional connection.

Risks of immoral practices

The BM Scale offers a practical and applicable framework for companies navigating the increasingly complex world of consumer expectations. The study highlighted that brands that fail to embrace moral principles, whether through care, compliance, or competence, risk losing consumer trust. Recent scandals like Boeing's mishandling of the 737 Max crisis show just how damaging a failure to act morally can be.

The study also shows the risks of "moral washing" where the company's actions might technically be legal or ethical, but fail to meet the public's moral expectations. It typically involves issues like social justice, human rights, or environmental responsibility.

Yuksel Ekinci, Professor of Marketing at the University of Portsmouth, explains, "Consumers today are more informed and quicker to call out brands that make hollow commitments. If a brand claims to be sustainable but doesn't follow through, it risks losing its credibility and trust."

This research offers brands a first-of-its-kind roadmap for acting morally that resonates with modern consumers. The three dimensions of care, compliance, and competency provide a clear structure for building stronger brand-consumer relationships.

Professor Ekinci says, "We hope our work will inspire further research in this area and help brands integrate moral principles into their core strategies. This isn't just a trend—it's the future of branding."

For brands looking to foster trust and loyalty with their increasingly mindful consumers, the study provides both a wake-up call and a path forward.

More information: Yunyi Wei et al, More than law‐abiding: A multi‐staged consumer study on brand morality, Psychology & Marketing (2024). DOI: 10.1002/mar.22139

Provided by University of Portsmouth