Balancing ethical storytelling and profit: can brands do both?

Can brands genuinely stand for something and still make money?

It’s a tough balance. Consumers today expect companies to reflect their values. At the same time, stakeholders expect steady financial growth. So how do companies navigate this?

Consumers expect more than marketing

First, ethical storytelling has to go beyond marketing.

A 2023 Edelman report found that 64% of global consumers make purchasing decisions based on shared values. But the public is just as quick to call out brands that exploit causes solely for personal gain or to boost their image. It’s increasingly clear that some companies include any trending social issue in their campaigns, not out of genuine commitment, but to ride the wave of public attention.

Terms like woke washing, pink washing, and green washing were coined precisely to expose these opportunistic marketing tactics.

These strategies turn real, urgent issues into promotional tools, making brands appear hypocritical, superficial, and eager to profit from the very problems they claim to fight. Often, behind an alleged stance lies a cynical approach: instead of truly supporting a cause, it’s being exploited.

Protesters march against greenwashing at COP26 [satyobchod.cz]

Let’s look at what this means in practice

Take Patagonia. Their commitment to the environment is deeply embedded in their operations, not just their ads. They donate 1% of their sales to environmental causes, invest in sustainable materials, and even turned ownership of the company into a trust supporting the planet. As a result, they’ve built strong loyalty from both consumers and employees.

Contrast that with Pepsi’s 2017 ad featuring Kendall Jenner. The ad was pulled almost immediately after backlash. It attempted to link soft drinks with global protest movements, but it came across as tone-deaf and trivialising serious issues.

The difference? Authenticity and long-term commitment versus a poorly timed, superficial campaign.

Patagonia highlights its environmental responsibility with a powerful message:

If backlash is inevitable, a brand’s response can change the outcome.

Nike’s 2018 ad with Colin Kaepernick caused controversy, but Nike stood by it. The campaign, which encouraged people to "Believe in something. Even if it means sacrificing everything", resonated with younger audiences and sparked important conversations about race and justice. Online sales surged by 31% in the days following the launch.

The Gillette campaign, launched in January 2019, was titled "The Best Men Can Be". It was a bold reimagining of the brand’s long-standing slogan, “The Best a Man Can Get”, and aimed to address issues of toxic masculinity, bullying, harassment, and outdated male stereotypes. Many applauded Gillette for taking a stand on social issues and using its platform to challenge harmful norms, while others accused the brand of virtue signalling, being anti-male, or lecturing its customers.

Despite the controversy sparked by the backlash, Gillette stood its ground: not only did it avoid a drop in sales, but according to the data, it also managed to get closer to a younger audience.

Nike's controversial 2018 ad campaign featuring Colin Kaepernick, showcasing the bold slogan "Believe in something. Even if it means sacrificing everything."

Purpose must go deeper than slogans

Unilever reported that its purpose-led brands grew 69% faster than the rest of its portfolio. These brands contributed 75% of Unilever's overall growth, showing that being value-driven isn’t just good ethics, it can be smart business.

Ethical storytelling can fuel business success, but only when it’s backed by real values and consistent action. Consumers and employees are paying attention. Adopting a values-based approach forces a brand to define its "why." This goes beyond slogans and campaigns. The brands that thrive are those that turn words into action and purpose into practice.

It might sound idealistic or unrealistic, but people prefer to work for companies that reflect their own values, not just for the pay-check. This is supported by a 2022 study by Qualtrics, which found that companies rated as 'great places to work' are often those where 70% of employees say the organisation promotes values they personally believe in. And more than half said they would consider leaving if their company didn’t reflect their personal values.

When purpose is truly embedded, it influences not just marketing, but internal culture too.

Brands, just like people, can (and in many cases should) take the time to reflect on themselves, their identity, and engage in introspection. For the same reason we do it as individuals: when we adopt a value system that is not truly ours, our actions, whether personal or brand-related, come across as unconvincing, weak, even false. On the other hand, if we take the time to identify and embrace an authentic set of values, it will be much stronger and more consistent when we put it into practice.

A clear purpose acts as a "north star," guiding every aspect of the brand’s strategy. Companies that decide to champion a cause must ask themselves: Why do we exist beyond making money? What core values do we stand for? These questions sharpen brand identity and help distinguish genuine storytelling from opportunistic campaigns.

Sources

Abbas, T. (2023, May 27). Pepsi crisis management case study (2017). Change Management Insight. https://changemanagementinsight.com/pepsi-crisis-management-case-study-2017

Edelman. (2023). 2023 trust barometer: Europe report. https://www.edelman.be/insights/2023-trust-barometer-europe-report

Kortum, G. (2018, November 9). Patagonia’s approach to environmental responsibility. Business Today. https://journal.businesstoday.org/bt-online/2018/patagonias-approach-to-environmental-responsibility

Patagonia. (n.d.). Our responsibility programs. https://eu.patagonia.com/gb/en/our-responsibility-programs.html

Petter, O. (2019, January 25). Gillette’s advert about toxic masculinity hasn’t affected sales, says P&G. The Independent. https://www.independent.co.uk/life-style/gillette-advert-toxic-masculinity-sales-impact-a8745966.html

Qualtrics. (2021). 2022 employee experience trends. https://www.qualtrics.com/m/assets/au/wp-content/uploads/2021/11/FINAL-APJ-GLOBAL-EX-TRENDS-2022-171121.pdf

Unilever. (2019, June 18). Unilever’s purpose-led brands outperform. https://www.unilever.com/news/press-and-media/press-releases/2019/unilevers-purpose-led-brands-outperform/

Victor, D. (2017, April 5). Pepsi pulls ad accused of trivializing Black Lives Matter. The New York Times. https://www.nytimes.com/2017/04/05/business/kendall-jenner-pepsi-ad.html

Youn, S. (2018, December 21). Nike sales booming after Kaepernick ad, invalidating critics. ABC News. https://abcnews.go.com/Business/nike-sales-booming-kaepernick-ad-invalidating-critics/story?id=59957137