As the world progresses forward, traditional capitalism is becoming more and more outdated and people are beginning to wonder how employers can connect their brand projection to meaning.
Source: Employer Branding and Brand Marketing (blog.arkadin.com)
Over the years, the world has seen a trend towards more inclusive and externally-motivated organizations, represented in part by the idea that employers openly care about causes outside of monetary gain and/or the image of responsibility. Actions are becoming just as important — if not more important — than words.
THE BARGAIN
Previously, employers were seen as “institutions of trust” and employees were willing to give all of themselves to these employers. However, global events such as the 2008 financial crisis have had a severe negative impact on the trust placed in institutions by the general populace, to the extent that several famous movies such as “The Big Short” and “Capitalism: A Love Story” have been made about it. Historically, employers have simply not held up their end of the bargain. We now see this trend of meaning-centered employer brand expressed in a growingly prominent context: the social enterprise.
A DIFFERENT APPROACH
As actions become the metric for employer-employee trust, the social enterprise has become the preferred context for this to play out. It is a fairly new trend, with 60% of American social enterprises created in the past 14 years. Their brands are centered around what they contribute to the world, not just their own organization. For example, Toms, the shoe company that is now a household name, built its brand through donating a pair of shoes to a person in need for every pair sold in stores. Toms is proof that there is a positive correlation between social enterprise and monetary achievement, a conclusion supported by the fact that in 2016, over 75% of Canadian social enterprises balanced their books and 40% did so without financial assistance.
THE LIVING PAST
While social enterprises are becoming increasingly common and some achieve prominence, the kinds of companies that people distrusted after 2008 are still alive and well: the worst example in modern industry is Amazon. Not only did they receive net tax credits for both 2017 and 2018, but they routinely subject their employees to harsh conditions and have terminated those who speak out against management. This lack of commitment to non-stockholders has made its CEO Jeff Bezos not only the richest man on earth, but a pop culture symbol of corporate greed, so much so that successful protests were held in New York against the construction of a second Amazon headquarters last year.
LOOKING INTO THE FUTURE
With traditional and modern capitalism colliding, both consumers and employees are seeking a value-based approach from employers now more than ever. The social enterprise is possibly the most prominent context for this to occur, serving the interests of consumers, employees, employers and other stakeholders alike. This is in no way standard, though, since mega-companies continue to dominate the corporate world. For now, money is still the only meaning for some, but the more balanced model aiming to serve everyone’s interests isn’t going anywhere as we look ahead to the future.
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