Good Works!: Marketing and Corporate Initiatives that Build a Better World...and the Bottom Line

by Philip Kotler

doing well by doing good is more than just a catchy phrase. Corporations that apply rigor to creating effective marketing and corporate social initiatives can help build a better world and enhance their bottom line.

When we come out of this fog, this notion that companies need to stand for something—they need to be accountable for more than just the money they earn—is going to be profound.

We've divided these initiatives into two groups: those that are marketing-oriented (cause promotion, cause-related marketing, and corporate social marketing) and those that more broadly express and advance corporate values and objectives (corporate philanthropy, workforce volunteering, and socially responsible business practices).

good has many names including: corporate social responsibility, corporate citizenship, corporate philanthropy, corporate giving, corporate community involvement, community relations, community affairs, community development, corporate responsibility, global citizenship, and corporate societal marketing.

Corporate social responsibility (CSR) is a commitment to improve community well-being through discretionary business practices and contributions of corporate resources.

Marketing and corporate social initiatives are major activities undertaken by a corporation to support social causes, strengthen its business, and fulfill commitments to corporate social responsibility.

Causes most often supported through these initiatives are those that contribute to community health (i.e., AIDS prevention, early detection for breast cancer, timely immunizations); safety (i.e., designated driver programs, crime prevention, use of car safety restraints); education (i.e., literacy, computers for schools, special needs education); employment (i.e., job training, hiring practices, plant locations); the environment (i.e., recycling, elimination of the use of harmful chemicals, reduced packaging); community and economic development (i.e., low-interest housing loans, mentoring entrepreneurs); and other basic human needs and desires (i.e., hunger, homelessness, protecting animal rights, exercising voting privileges, anti-discrimination).

The decentralization of communications tremendously amplifies and accelerates the power of individuals and groups to spread criticism of corporate efforts.

Business for Social Responsibility is a leading non-profit global organization providing businesses with information, tools, training, and advisory services related to integrating corporate social responsibility in their business operations and strategies. Their research and experience concludes that companies have experienced a range of bottom-line benefits, including several of the following:23 Increased sales and market share Strengthened brand positioning Enhanced corporate image and clout Increased ability to attract, motivate, and retain employees Decreased operating costs Increased appeal to investors and financial analysts

1. Cause Promotion: A corporation provides funds, in-kind contributions, or other corporate resources for promotions to increase awareness and concern about a social cause or to support fundraising, participation, or volunteer recruitment for a cause.

2. Cause-Related Marketing: A corporation links monetary or in-kind donations to product sales or other consumer actions. Most commonly, this offer is for an announced period of time and for a specific product and for a specified charity.

3. Corporate Social Marketing: A corporation supports the development and/or implementation of a behavior change campaign intended to improve public health, safety, the environment, or community well-being.

4. Corporate Philanthropy: A corporation makes a direct contribution to a charity or cause, most often in the form of cash grants, donations, and/or in-kind services. This is perhaps the most traditional of all corporate social initiatives and for many decades was approached in a responsive, even ad hoc manner.

6. Socially Responsible Business Practices: A corporation adapts and conducts discretionary business practices and investments that support social causes to improve community well-being and protect the environment.

Most social initiatives under the corporate social responsibility umbrella fall within one of the following distinct categories: cause promotion, cause-related marketing, corporate social marketing, corporate philanthropy, community volunteering, and socially responsible business practices.

initiatives, to underscore the distinctions. Cause promotion may be most similar to programs sometimes described as cause marketing, cause sponsorships, cause advertising, co-branding, or corporate sponsorships.

Corporate philanthropy may be expressed as corporate giving, community giving, community development, community involvement, corporate social investing, or community outreach.

Community volunteering is often covered when referring to community service, community development, community relations, community involvement, community outreach, community partnerships, and corporate citizenship programs. And socially responsible business practices is synonymous for some with corporate social responsibility, corporate citizenship, and corporate commitment.

Connect to a partner who shares your brand's or company's values. Unite with a partner who is willing to work with you to develop your own angle on the cause. Commit to a consistent long-term relationship. Bring your sponsorship to life. Plan to spend two times your sponsorship fee activating. Break through. Never underestimate the impact of great design. Reach and remind. Make the effort to ensure you have created strong awareness. Be where your consumer is— don't expect them to find you. Leverage your champions—consumers, customers, partners, and employees. Introduce yourself. Find new consumer targets and expand your program in relevant ways (versus creating something completely different).

Focus your community service on your core expertise/product. Involve employees in hands-on giving. Push program ownership to the local level. Brand the program with a strong, single identity. Forge partnerships. Set, communicate and track program goals.”

Pick a cause your company and your target audience are or can be passion about. When selecting a charity partner seek one that has a broad base of engaged supporters that can be activated to stimulate high volumes of activity. Target a product offer that has the most chemistry with the cause, looking for the intersection between your customer base, your products, and people who care about the cause. Research the idea with targeted customers, or consider a pilot program to gauge general appeal and refine marketing strategies. Give the effort considerable visibility with potential buyers. Small mentions on product labels or small type added to existing ads may go unnoticed. Keep the offer simple and transparent to ease communication and avoid consumer suspicion. Consider the benefits of disclosing the actual or anticipated amount to be donated to the charity and its potential impact (e.g., the next $1 million raised will be designated to eradicating polio in the world). Be willing to recognize errors and make changes.

Builds needed community infrastructure and access for family services, healthcare, technology, literacy, and education. Provides a tangible contribution that a customer can see and benefit from. Supports local governments and health services projects to make communities more economically viable. Provides access to corporate dollars for investment in regional and urban communities.

Successful campaigns utilize a strategic marketing planning approach including conducting a situation analysis, selecting target audiences, setting behavior objectives, identifying barriers and benefits to behavior change, and then developing a marketing mix strategy that helps overcome perceived barriers and maximize potential benefits.

Health issues including tobacco prevention, secondhand smoke, breast cancer, prostate cancer, physical activity, fetal alcohol syndrome, teen pregnancy, skin cancer, eating disorders, diabetes, heart disease, HIV/AIDS, and oral health. Injury prevention issues including traffic safety, safe gun storage, drowning prevention, suicide, and emergency preparedness. Environmental issues including water conservation, electrical conservation, use of pesticides, air pollution, wildlife habitats, and litter prevention. Community involvement issues such as volunteering, voting, animal rights, organ donation, crime prevention, and blood donation.

Cool Choices is a Wisconsin-based nonprofit with a mission to inspire and help “individuals, communities and businesses achieve meaningful reduction in greenhouse gas emissions through voluntary action.

When the primary objectives of an initiative are to support corporate marketing goals and objectives versus corporate giving or community involvement agendas (e.g., an electronic store wants to build traffic and advertises that according to the public health department, it's time to check your home fire alarm batteries this weekend and then mentions that they're having a discount special on them in all their locations). When the issue the organization wants to support (e.g., healthy children) is one that has the potential for an individual behavior change component (e.g., a fast-food restaurant then teams up with the local children's hospital and community health clinics to print immunization schedules on tray liners). When the dollars for support of the initiative are coming (primarily) from the marketing department and can therefore be managed and integrated into marketing communications (e.g., a produce company putting the national 5 A Day logo on packaging, advertisements, and coupons). When the behavior can be tied to one or more corporate products and then integrated into their features, pricing, distribution channels, and promotions (e.g., a life-vest manufacturer attaching water safety tips to labels and creating retail displays on how to choose a life vest that's right for your child, and then distributing discount coupons via a local children's hospital).

Corporate social marketing is most distinguished from other social initiatives by its focus on individual behavior change, as well as changes that will help improve health, prevent injuries, protect the environment, and increase community involvement. Potential corporate benefits are greatest for supporting marketing goals and objectives, including strengthening brand positioning, creating brand preference, building traffic, and increasing sales. Potential and significant additional benefits beyond marketing include improving profitability and making a real social impact.

Most large corporations and many smaller ones encourage their employees to volunteer in the community. The dilemma facing most executives centers on the levels and types of support to provide and whether to promote specific volunteer opportunities or to let employees feel free to follow their interests. Increased and more formalized support for employees