Too often in the Middle East, we see locally born and bred companies trying to copy successful international brands or using them as the only benchmarks for successful branding. What they fail to realise is the opportunity they have to use brand much more strategically by drawing on pre-existing deep cultural instincts that businesses should do good. They might even have certain strategic advantages that allow them to leapfrog the West.
Doing good, social impact, giving back are all terms that have recently become a focus for businesses in the West with a plethora of different models for social impact appearing across all sectors.
In our 2012 Game Changers report we looked at how âmore and more businesses are choosing to explicitly link their economic decisions to the value created through environmental, social, labour and governance effortsâ. Unilever, IBM, GSK, Nike, Little Sun and FutureLearn are all investing heavily in actively creating positive social impact.
The Scandinavian model of social âalignmentâ is probably one that has shown most promise. VELUX is a fair example of the kind of philosophy that drives them. They say: âour solutions create better living environments. So does our way of doing business. By engaging respectfully with the people we work with; by giving back to the societies we do business in; and by working responsibly with the natural resources we all depend on⌠We create value for society and a profit for our businessâ.
Another model â favoured by politicians, rock stars and some big businesses â is to set up foundations that give back and do good. âWe focus on big problems where we can make the greatest impact. To bring about the kind of change that can give all people the opportunity to live healthy and productive lives, our investments must be highly strategic and focused on results. We take risks, we push for new solutions, and we believe in the transformative power of science and technologyâ, say the Bill and Melinda Gates Foundation
While these models for social impact are still getting off the ground in the West, Middle Eastern businesses have actually always had a strategic advantage in this area - driven by Islamic principles. It is fundamental to the DNA of Middle Eastern businesses to do good! The challenge for them now is to use brand strategically to take âdoing goodâ from a passive obligation to a more active, purpose driven outcome.
Noor Bank is using brand to spearhead a number of initiatives in order to deliver on its vision to be a catalyst of the Islamic economy. The Deputy Group CEO of the Noor Investment Group, Dr. Ahmed Al Janahi, recently said: "The cooperation with AMAF, which is aligned with Dubai's vision to shape the future of the Islamic economy, is in line with our strategy to give back to society through support for charities and foundations in the UAE. We will provide expertise..."
Then there's Majid Al Futtaim, a leading shopping mall, retail and leisure business across the Middle East and North Africa, which has a very clear mission: âto create great moments for everyone, every dayâ. But this goes beyond the shopping malls or leisure parks and through the Majid Al Futtaim Foundation the business plays an active role in giving back to society.
âMajid Al Futtaim is engaged in creating a better future for the UAE by providing healthcare and education assistance to underprivileged and marginalised sectors.â They will work with leading international academic institutions to help develop the first national level institution providing best in class education and training for the sector.
And there are many more organisations like Noor Bank and Majid Al Futtaim going beyond their core business and working with society on all levels. The challenge for others in the region is how they can make this natural propensity to do good an integral part of their brand platforms. If they succeed, these brands can spearhead, champion and deliver on those principles as part and parcel of their brand rather than a behind the scenes afterthought.
Ultimately, there is a huge opportunity for Middle Eastern brands to draw on deep local, historic, and cultural instincts about playing a positive social role to create a sustained strategic advantage across all their key stakeholders.
What this means is that people at the very top of these businesses need to embrace this more strategic view of brand as a way of attracting and keeping talent and as a way of guaranteeing their companiesâ longer-term legacy. If they can do that, they can then become authentic global brands, and can leapfrog the West in the process.
Stefano Ferro is managing director of Wolff Olins Dubai.Â
