One of the world’s largest retail brands, Nike, launched a campaign to mark the 30th anniversary of its “just do it” tagline – and boy has it caused a stir!
The controversy stems from Nike’s use of former NFL quarterback Colin Kaepernick in the campaign. Kaepernick is heavily involved in social activism and caused much debate in the US when he ‘took a knee’ during the US national anthem on the sideline before NFL matches. He has become a pariah to many in the sport, hasn’t been able to find a new team, and has divided opinion on whether he is standing up for a cause or disrespecting the US.
I don’t know enough about the issue to provide an opinion either way. What is interesting is the amount of publicity this brought to Nike. That said, it does also pose the question: Is taking a stand on social causes that whip up controversy something a business should do?
Taking a stand can pay dividends
I’ve written before about businesses large and small using their corporate social responsibility programs (CSR) to prove their community credentials.
There’s no doubt that consumers today are more driven by social causes than ever before. Mainly when dealing with younger generations, such as Millennials and Gen Z, who are much more heavily inspired by social causes than their predecessors.
Nike’s approach is to present itself as an elite brand. Its new campaign shows that it’s not afraid to take a stand and exploit that for commercial gain. They’re not the first, and they won’t be the last.
The campaign will play well with the average Nike consumer. True, there has been some backlash, and there was a dip in the share price as a result. However, many would argue this is a minor blip, which will be corrected in the short term. Nike is gambling that it will win over the big-spending younger generations.
Controversy isn’t always good for business
The flip side is that it is, indeed, a gamble. What remains to be seen is whether the campaign will damage the Nike brand in the longer term. I doubt that Nike is excited by viewing images of its product on fire. However, this can be the risk you run when you put CSR firmly at the centre of your marketing. In a country such as the US, one of Nike’s bigger markets, it certainly plays to the fractured community issues that have plagued that nation (and others). There is always an element of risk attached to the CSR campaign.
Think before you act
For financial planners or any other business, there are a few matters to consider before launching into a CSR campaign:
- Will the campaign alienate our core clients?
- Will it cause long-term damage to our brand and business?
- Can we back up the campaign with our actions; i.e., if we support a cause, can we show we believe?
If you can provide the answers those questions, then CSR can work for you. If you can’t, my advice is to rethink your approach.
