It used to be that the corporate world supported non-profits simply because it was the right thing to do. But the days of philanthropic giving based solely on goodwill are coming to an end. Today, most companies expect a measurable return on their investment – and understandably so.
Several years ago, “cause marketing” was introduced as a new tactic to help companies sell their products by introducing a charity tie-in. Especially during holiday seasons, shoppers will notice products stating that a portion of proceed sales will benefit a charity. This is cause marketing – introducing a nonprofit tie-in to move products from shelves.
Over time, savvy charities have begun investing in a more long-term approach, known as “cause branding,” which moves the corporate-charity relationship to a whole new, more intense level. Cause branding is a community relations program designed to build brand equity and shape corporate character through a longer-term strategic alliance with a charity cause.
In 1999, Cone Inc., a leading authority on cause related marketing and the organization that coined the term cause branding, introduced the Cause Related Trends Report, which built a strong case for philanthropic giving as a useful corporate tool in fostering a favorable public image. According to the report:
Americans will take action to reward good corporate citizens.
For corporate executives, perhaps the most convincing evidence of the need for strategic philanthropy programs is the impact that they can have on the company coffers. The Cone/Roper report revealed that, with product price and quality being equal – as is perceived to be the case with many companies in any industry – nearly two-thirds of American consumers would likely change their brand or retail preferences based on whether or not an association exists with a community cause.
Corporate citizenship builds employee morale.
Corporations struggle to keep good employees. According to the Cone report, cause-related programs can help with employee retention. Of the workers at companies coordinating cause-related programs, 90 percent indicated a strong sense of pride in their employer as opposed to 56 percent of those whose companies do not engage in such community efforts.
September 11 intensified both.
Cone performed a similar survey shortly after September 11, 2001 to determine if and how consumer and employee expectations changed in the wake of the national tragedy. The results showed a significant spike of between 20 and 50 percent in both categories, leading to the conclusion that an active corporate community relations program is more important to a company's success than ever. While the Cone report focused on the retail sector, several of the themes also apply to other markets.
Since that first report, consumer expectations of companies have risen. And the charities that look for opportunities to make their corporate partners heroes – not just for opportunities for the charity to get a quick donation – stand to prosper over the longer term.
Criteria for successful cause branding programs
Charities should be able to offer their corporate partners cause branding strategies for integrating your mission and stories into every aspect of their business. Start by helping your partners define what would constitute a successful outcome and then work your way backward to develop a program that meets those criteria. Successful cause marketing:
Is designed as a long-term program.
Branding campaigns, corporate or charity, are not six-month or one-year endeavors. They take several years. Deliberate planning and active commitment are key.
Addresses a highly critical, timely, and visible social cause.
Find companies that are not tied to a particular cause and who could benefit from an association with your brand. There are lots of companies who would love to be perceived as a champion for a cause if they only knew how. Show them how they can help people. How they can engage the media. How they can connect with important decision makers and politicians. And how their employees can rally for your cause. The contributions will follow.
Integrates into the corporate values and business model.
A focused cause program must become a part of the sponsor’s corporate culture. Everyone in the company must understand and buy into the effort. It must be included in strategic business planning discussions and become a company program, not a marketing function.
Involves employees.
Some companies encourage pro bono activities or service in non-profit organizations. But few companies actively offer their employees specific and ongoing volunteer opportunities. Cause-related partnerships offer employees the chance to share a common commitment, instilling a sense of pride in their role in the company and the community.
Is supported with money, time, volunteers, promotion.
Many companies are looking to do more than just give money. Show them how they can get involved with the cause from many angles. Charities need to provide account management support to help design and implement multi-faceted campaigns.
Can make a measurable impact.
Your goal is to demonstrate to sponsors exactly how they are making a difference in the lives of people living in their communities. Make sure they can see how and when they are moving the needle.
Cause branding programs are not easy. And not every corporation will be the right fit for a partnership. But when done right, cause branding relationships provide a much bigger benefit to both the for-profit, and non-profit partners than just a one-off donation.
Petri Darby, APR, is a partner with BrightBox, a Houston brand marketing, design, and strategic communications firm. He served in the Make-A-Wish Foundation national office as the first brand manager in the charity arena, and has managed cause/corporate partnerships from the corporate side. He can be reached at pdarby@brightboxonline.com or (281) 252-0979
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