The Rutter Organization

The Responsibility of a Parent Company When It Comes to Advertisement

parent company

Advertising a product or service today looks vastly different today than it did even a couple of years ago. Today, with the click of a button, you can have audiences reacting. This can be both good and bad. The speediness of the internet has made it so that within minutes you can go from being a reputable brand to one that people are demanding a boycott. There is also the possibility of the reversed effect where people are doing their part to show brand loyalty. That was recently the case with Nike who used Colin Kaepernick in an ad about embracing diversity after he was left unassigned from the NFL for taking a knee during the National Anthem to protest police brutality. Nike’s sales rose 31% following the release of the ad.

Just recently Gillette’s parent company Procter & Gamble (P&G) came out with an ad that was intended to call out the toxicity of men that has long been associated with “what it means to be a man” but the message was lost when critics began claiming the ad centered too much on the negative behavior of men and that it didn’t represent all men. Gillette, who is most known for their razors and the catchy slogan “Best a Man Can Get” was negatively impacted by the ad when boycotters began using the hashtag #BoycottGillette as a means of displaying their disapproval for the ad.

Taking a Stance as a Parent Company

As a parent company, you must make decisions for your subsidiary companies that aren’t always easy. Audiences are now interested in what side of the matter you’re on. Often times not saying anything about the matter can have a negative effect because staying silent may imply that you don’t care. Taking a stance on social issues isn’t easy. So what can you do as a parent company to carefully and thoughtfully represent your companies and their respective brands? Here are a couple of suggestions:

  • Always define your company’s purpose. Consumers are now buying or using the services of companies with a purpose. According to one study, 1 in 2 people is belief-driven, which means they will switch to and from a product based on the brand’s stance with a social issue. In the same study, it was found that 65% of consumers won’t buy from that brand if they stayed silent on an issue. Let your audience know why you exist each day or as often as possible.   
  • Connect with your community. Being community-centric is crucial for the strength of your companies and their respective brands. They may be serving unique communities who have been long underrepresented or underserved. Connecting with those communities can make the biggest difference. Whether it be understanding their financial capabilities or staying relevant to what’s happening in their neighborhoods.    
  • Confront an issue head-on when it goes against your values. If there’s a controversial issue that hits home, say something. Make sure that as a parent company you’ve taken into consideration who’s being affected and show your support in the best way possible. Even if it is sharing a short message on your social media accounts. Your consumers want to know you’re there for them.

What Does Being a Parent Company Mean to You?

Procter & Gamble’s slogan is “A Force For Good — A Force For Growth.” They represent some of the biggest names in the home care and grooming industry. So when they choose to take a stance, it can certainly have a dramatic impact, good or bad. That’s the responsibility of being a parent company.

At The Rutter Organization, we keep our goal of bettering the El Paso community through our subsidiary companies who consistently work to improve and strengthen the community. We’re committed to ensuring our community receives the best in healthcare, tax services, and rentals. Connect with us today to learn more!

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