Underscored by heightened environmental consciousness and social awareness, both from consumer and regulatory aspects, global brands currently face a level of demand and scrutiny for products that not only meet levels of global regulations and compliance - but also those that exceed ethical and sustainability visions of the consumer.
The demand for sustainability and ethical products and practices goes beyond buzzword-laden marketing strategies and is being applied organically by customers and lawmakers. As brands strive to align with sustainability guidelines, compliance standards have taken center stage.
However, compliance isn’t simply just a legal requirement anymore. Developing products that go beyond the bare minimum is now an essential element of a brand’s integrity in the eyes of most customers in all markets. Brands must navigate the complexities of international agreements, industry-specific regulations, and stakeholder expectations, while also being very aware of the impact their end product has after the sale is complete. Ethical, environmental, and social responsibilities must be met and exceeded for clout in today’s consumer market.
For global consumer brands, adherence to these compliance guidelines signifies a commitment to ethical business practices, sustainability, and accountability. It also serves as a safeguard against accusations of greenwashing—a practice that erodes trust by misleading consumers about a brand’s commitment to responsible practices.
Combine the ever-evolving vision of the consumer and their commitment to a more sustainable world, with the impact of many social media-wielding influencers, and the motivation to stay accountable is an easy sell. Influencers, armed with the tools of thousands to millions of followers on social media, have been taking to their channels to, simply put, call brands out for their claims of sustainability. Brands are falling under the microscope of influencers, which, of course, if your brand is following through on its promises, shouldn’t pose an issue and can even have tremendously positive outcomes.
The influence of compliance on brand credibility is highlighted by the growing role of influencers who can very easily applaud brands for their commitment to sustainability and meeting compliance and ethical levels. Influencers can become allies, celebrating brands that demonstrate a genuine dedication to sustainability and ethical conduct, and their endorsement can resonate deeply with consumers who seek to make conscious choices.
By spotlighting a brand’s genuine commitment to sustainability and ethical practices, influencers can celebrate positive efforts and bolster consumer trust. However, when influencers uncover discrepancies between compliance claims and actual practices, they can ignite consumer outrage, leading to reputational damage and decreased consumer loyalty.
Positive, authentic feedback underscores the brand’s commitment and creates a ripple effect, encouraging other brands to prioritize compliance and sustainability. However, the negative repercussions resulting when influencers identify gaps between a brand’s compliance claims and reality can dramatically change the landscape.
While we can never be sure when our brands will be subject to an unsolicited review of sorts, it is important to navigate the manufacturing waters effectively, adopting a proactive approach that places both compliance and quality at the core of brand operations.
• Third-party inspections: Independent, third-party inspections at each level of production, from procurement and supplier, to manufacturing and final testing, is the most effective way of ensuring all steps in the process are followed to the strictest guidelines. Third-party audits and certifications hold a brand accountable at all stages to ensure compliance and in the end, enhance a brand’s credibility. Whether it’s labor ethics, recycled materials or emissions, having an outside, neutral partner will certainly benefit the supply chain.
• Transparency: Develop transparent practices, openly sharing information about those compliance efforts and the thoughtfulness of opening the manufacturing processes up to those third-party inspections. Authentic communication builds consumer trust and deters accusations of greenwashing.
• Influencer partnerships: Brands can collaborate with influencers who share their values and are aligned with their compliance efforts. Influencers can serve as authentic messengers, endorsing compliance measures and creating a positive feedback loop with consumers.
Of course, going back full circle, if you did consider partnering with a social media personality because of their following, ensure they’re also reliable and focused on authenticity. There have been instances recently, including one with a large clothing brand, of brands that brought in influencers to hide unethical practices by strategically attempting to shield issues. The brand was quickly called out and blasted with even more negative publicity.
In this era of heightened scrutiny, brands must navigate the compliance landscape with integrity, transparency, and a willingness to evolve. By embracing compliance as an everyday value, brands can help safeguard their reputation and inspire positive change across industries, ensuring a sustainable and responsible future for all.
Consumers today are armed with information and expect transparency. Brands that fail to uphold their compliance obligations risk alienating a generation of conscious consumers.
About the author:
Dory Lanenter is senior business development and sales manager for QIMA, which provides quality control solutions for supply chains.
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