A New Brand of Power

Some product brands, from Apple’s iPods to Nike Air Force Ones, attract fast, global popularity. For many modern products, corporate value centers on patents, skill and brands – and yet firms have less control over brand popularity than ever before. Consumers tend to rely on word of mouth and blogs more than advertising. Customer opinions matter, according to columnist Sebastian Mallaby, and corporate leaders pay close attention to political and social shifts. News of unethical behavior spreads at lightening speed around the world, and the most competitive firms take action on issues faster than some regulators: Fast-food firms offer healthy selections, furniture firms discourage destruction of rain forests, and clothing firms oppose cruel sweatshops. With corporate critiques posted over the internet, more US companies like Wal-Mart and Starbucks will prod government to take action on the health, environment and human-rights issues. “At a time when Washington seems incapable of tackling serious policy challenges,” writes Mallaby, “brands are creating a sort of shadow government.” – YaleGlobal