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March 12, 2010 at 11:28 AM by Knowledge Leadership

As more than 1.5 million nonprofit organizations in the U.S. vie for the attention of potential donors and supporters, the newly released 2010 Cone Nonprofit Marketing Trend Tracker reveals a powerful, if unexpected, ally – for-profit companies. According to the new survey, more than three-quarters (78%) of consumers believe a nonprofit’s partnership with a trusted company or brand makes a cause stand out.

 

We have long known such cross-sector partnerships benefit companies, but the results of this survey reveal the nonprofit is perched under the same halo. Not only do many consumers feel better about a nonprofit when it partners with a company (56%) – they are also more likely to support it:

• 59% of Americans are more likely to buy a product associated with the partnership;
• 50% are more likely to donate to the nonprofit;
• 49% are more likely to participate in an event for the nonprofit; and
• 41% are more likely to volunteer for the nonprofit.

American consumers are highly attuned to nonprofit-corporate partnerships in the marketplace today and, as a result, want to see the complete picture. They are seeking details of partnerships (61%) before deciding to support the cause, and they want to see results – 75 percent want to hear about the effect on the social issue or the0 money raised for the cause. In light of this penchant for detail, fewer than half (45%) think nonprofits and companies disclose enough information about their partnerships.

Leading nonprofit brands can harness the power of strategic corporate partnerships and, by offering complete details and a compelling call-to-action, enhance relationships with existing supporters and rally new cause ambassadors.

For additional results and insights from the 2010 Cone Nonprofit Marketing Trend Tracker, download the release and fact sheet from our Web site. 

Tags: corporatepartnerships nonprofitcausebranding research cone

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March 5, 2010 at 2:15 PM by Knowledge Leadership

Donations for relief efforts in Chile pale in comparison to those for Haiti. The Chronicle of Philanthropy reports in an interview that a mere $250,000 raised by Americans three days following the Chile disaster, which starkly contrasts the nearly $97 million raised three days following the Haiti earthquake. Despite experiencing a stronger earthquake, Chile’s existing building codes and infrastructure better prepared it to cope with damages. However, several other factors may have influenced the difference in donations:


Consumers Are Tapped Out – Many Americans responded to the Haiti crisis by taking part in the widespread text-to-give campaigns promoted by major relief organizations, through which the American Red Cross alone raised $32 million. Mobile giving was a fast and easy way to respond to the crisis, but some may simply be overwhelmed by donating to the second major disaster in a two-month period. In addition, there has seemingly been more media attention for the Haiti disaster, which continues to capture headlines amidst the Chile crisis.  

Call To Action Was Less Urgent – The Chile government’s call for aid didn’t take place for several days after the disaster which influences donor urgency. According to The 2010 Cone Text-to-Give Trend Tracker, more than one fifth (22%) of respondents indicated they would donate to causes via text message only when the need was urgent.

Haiti Activated Grassroots – In Haiti, the need for donations was immediate and urgent. Individuals were activated to help not only through popular donation campaigns by organizations such as the American Red Cross and Yele Haiti, but also through their own grassroots efforts that utilized events and social media. The Wall Street Journal this week highlighted some of the more extraordinary methods for individual fundraising, such as a skydiving nun and pajama-clad office workers.

Celebrity Involvement – The star power that surrounded Haiti undoubtedly drew additional attention to relief efforts. Whether sports stars making a statement on the courts or a star-studded telethon, celebrities came together for the cause and inspired other Americans to do the same.

None of these factors are the responsibility of any one stakeholder. Governments, relief organizations, businesses, influencers and consumers need to work collaboratively toward a common solution for maximum impact, and we saw this collaboration in top form following the earthquake in Haiti. The sobering reality of the back-to-back earthquakes of 2010, however, made it clear that no two disasters, or their resulting relief efforts, are the same. What will you and your organization proactively prepare to do when another disaster strikes?


Tags: crisis donation currentevents cause fundraising global newmedia

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February 26, 2010 at 1:23 PM by Knowledge Leadership

To infuse passion into a cause, organizations can look to this classic adage for inspiration - “Give a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for a lifetime.” In the cause-related marketing space, we’re seeing this concept play out as some organizations offer not just philanthropic dollars and product tie-ins, but the actual tools and infrastructure needed to empower consumers to rally their own supporters for the cause.  


Case in point is the recently launched Bisquick Pancake Nation (Cone client), which provides consumers with the tools they need to host a successful pancake breakfast in support of a cause. Bisquick bypassed the more traditional cause route (i.e., donating a portion of sales) and instead is offering a collection of resources to help the organizers of the nation’s many community pancake breakfasts plan, promote and execute successful events.  The Web site offers everything from pancake recipes to signage templates and downloadable placemats. In addition, there are grants available for organizations to promote their events.

Other recent examples of “teach a cause to fish” include Macy’s holiday 2009 “Come+Together” campaign and Yahoo’s 2009 year-end “You In?” campaign. Macy’s approach encouraged consumers to host a dinner party and ask guests to donate money to Feeding America (Cone client) in lieu of the traditional hostess gift. In addition to matching any donations, Macy’s provided celebrity recipe ideas/meal plans, invitations and music ideas to create the perfect dinner party. Yahoo harnessed the power of consumers by asking users to commit to random acts of kindness and use the Yahoo network to post their good deeds and encourage others to do the same.
 
Empowering consumers to lead cause efforts encourages a deeper level of engagement with both the brand and the issue and a bigger impact in the communities where it’s most needed.  When consumers have an active role in the program, they’ll be evangelists for your message and more likely to engage in future efforts, too.

Have you seen other examples of this approach?  Please share!


Tags: newmedia corporategiving causebranding campaigns trends

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February 22, 2010 at 1:16 PM by Knowledge Leadership

The following is a guest post by a Cone client. Evan Hochberg directs Deloitte’s national Community Involvement program where he provides strategic direction for philanthropy, volunteerism, pro-bono and workplace giving.

 

It has been 10 months since the Serve America Act was passed into law. During that time, the tremendous buzz created by President Obama and others on the subject of service has been palpable. However, much of the discussion has been focused on driving numbers – volunteers and volunteer hours. Today, as the corporate giving community celebrates International Corporate Philanthropy Day, I encourage the corporate philanthropy and nonprofit communities to extend the service dialogue beyond transactional goals and metrics. If volunteerism is to be a powerful driver of social impact and business value, we must focus not just on more volunteers, but on more productive volunteering.

 

It is not enough to simply encourage our employees to volunteer, when volunteerism too often equates to unskilled labor. Nonprofits are sophisticated organizations and they need more from us. When it comes to impacting critical issues through volunteerism, we must remember that this is not an area where more volunteers necessarily equals greater impact. Volunteers are a means to making a positive contribution to society, but it's what these generous people do with their time that is really important. We must design volunteer efforts that can truly make an enduring difference. For example, at Deloitte, we have developed initiatives that harnesses and contributes the best thinking of our people, including our $50 million pro bono program, our Deloitte Center for Leadership and the Community, and many other skills-based volunteering programs. By sharing our personnel’s critical business skills and knowledge, we are able to deliver more valuable outcomes to the nonprofits with whom we work and to the communities that depend upon them.

 

Deloitte has also been proud to serve as a co-convener of Reimagining Service, a coalition of leaders from the government, nonprofit and corporate sectors who seek to increase the impact of volunteers and their ability to address our country’s most pressing social issues.

Too often, talented people with good intentions are given volunteer tasks that do not leverage their skills and knowledge. A key to our success as a service nation is not just getting people to care, but also helping them figure out how they can make the greatest difference, given their time, their skills and the pressing needs of the community.

- Evan Hochberg, National Director of Community Involvement, Deloitte Services LP 

Tags: philanthropy research corporategiving

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February 19, 2010 at 3:58 PM by Knowledge Leadership

We’re getting our sports fix in 2010, bouncing from the Super Bowl right into the Olympic Winter Games. Luckily for us, cause marketers have reason to cheer, as cause connections with sports are gaining prominence. Street & Smith’s Sports Business Journal even noted in a recent issue, “as sports properties have grown in prominence, so has the sentiment that they must do more for the community, beyond wins and losses.”

 

 

The immense passion and strong commitment required of both sports and causes make them ideal teammates, and cause marketing for sports can be approached in a number of ways: from the perspective of the individual athlete, league, corporate partner or nonprofit. Here are a few examples of sports causes in action:

• Individual Athlete – Several Olympic athletes are giving back, including 2010 halfpipe silver medalist Hannah Teter, who began selling maple syrup called Hannah's Gold in an effort to raise money for underprivileged children around the world.
• League – The NFL PLAY 60 campaign is tackling childhood obesity by encouraging kids to be more active. Engagement takes place through in-school, afterschool and team-based programs, and through online child-targeted outreach and in partnership with like-minded organizations.
• Corporate Partners – Possibly the most notable sports-related cause is the Lance Armstrong Foundation, raising money for cancer research largely through the success of its partnership with Nike.
• Nonprofits – This week, the Ad Council engaged athletes Drew Brees and Tony Hawk for its latest PSA campaign supporting First Lady Michelle Obama's Let's Move! effort to fight childhood obesity.

Regardless of which sports figure or organization is driving the cause message, there are a few best practices that hold true for all:

1. Focus – Identify an issue that is relevant to the person or organization and stick to it.
2. Leverage All Assets – Think beyond the big check and utilize other valuable assets, such as volunteers, airtime and celebrity appearances.
3. Engage – Think of ways to engage multiple audiences, such as fans, the media or others in the sports community.
   
4. Commit Long-Term – Cause commitments made over a long period of time offer the opportunity for the player or organization to gain the reputational benefits of the cause association.
   

Tags: charity celebrityengagement charitablegiving nonprofitcausebranding nonprofit causebranding

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February 12, 2010 at 11:46 AM by Knowledge Leadership

Americans were quick to react to the Haiti disaster last month, donating millions of dollars in a matter of hours. A driving factor in the lightning-fast fundraising was the ease of donating through the Web and mobile devices.

 

 

The results were so impressive – the American Red Cross raised more than $32 million alone through its mobile text-to-give effort – that Cone wanted to explore how, and why, many Americans engaged in text-to-donate campaigns. We fielded a brief, two-question online survey with Invoke Solutions to explore the trend, and the results revealed 13 percent of respondents donated via text message following the earthquake. Although this number may seem low given the massive support for relief organizations, it represents well over a 100 percent jump from Cone’s 2009 Consumer New Media Study conducted just last fall. In that survey, six percent of American adults said they had donated to any cause via mobile phone over a 12-month period.

Most of the 13 percent who texted a donation to Haiti indicated they did so because it was the fastest and easiest way to respond to the urgent need (8%). But the survey also indicated that the success of text-to-give efforts for Haiti may be more than just a flash in the pan. Nearly a quarter of respondents (23%) said if they donate once through a text message, they are more likely to donate again.

 

Mobile donations are clearly building traction with American donors, but what does this mean for future fundraising efforts? Nonprofits looking to engage supporters through this channel should note the other survey findings:

• 27% of Americans are more likely to donate via text message if there is a credible endorser (person, company, nonprofit)
  
• 27% would be more likely to text a donation if a company/organization “matched” their gift
  
• 22% would use text messaging to donate to causes only when there is an urgent need
  
• 19% would rather text a donation to a cause or nonprofit organization than through other means (e.g., write a check or donate online)
  
• 18% are now more likely to text a donation to their favorite nonprofit organization if it is an available option

We may have reached the tipping point for mobile donations after the earthquake in Haiti. It will be interesting to watch if and how nonprofits adapt this technology to their own causes through urgent, yet strategic appeals.

About the 2010 Cone Text-to-Give Trend Tracker:
The research presents the findings of an online survey conducted in February 2010 by Invoke Solutions among a demographically representative U.S. sample of 1,183 adults. The margin of error associated with this sample of this size is ±3%.

Tags: donation currentevents newmedia nonprofitcausebranding fundraising

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February 8, 2010 at 4:49 PM by Knowledge Leadership

Every year, we watch the Super Bowl with great expectations for cause marketing, which has become more prominent in the sought-after advertising spots. Although Pepsi received much of the pre-Super Bowl advertising buzz for not buying spots and instead investing in its cause program, the Cone team felt disappointed there weren't more cause efforts during the big game.

 

Check out the video below to hear what they had to say:

 

 

Tags: causebranding superbowl

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February 5, 2010 at 1:42 PM by Knowledge Leadership

The country is awash in red today as millions support the fight against heart disease by uniting for National Wear Red Day. This icon day is a cornerstone event of the American Heart Association’s (Cone client) year-round Go Red For Women initiative and has helped raise millions of dollars - and supporters - for the cause.

 

The Cone team goes red for National Wear Red Day 2010

 

Go Red For Women has transformed the issue of heart disease - the number one killer of women in America – to be more approachable and engaging through a multi-faceted program. Today’s sweeping support of National Wear Red Day on TV, in the news, on the Internet and in the workplace is evidence of the immense passion supporters have for this cause.

 

Its ability to capture the hearts and attention of the public makes it no surprise that the American Heart Association (AHA) came out as one of the top nonprofits on The Cone Nonprofit Power Brand 100. The organization serves as a beacon for others in its ability to engage the public and create an army of supporters for the cause. Here are just a few of the reasons the AHA resonates with the public:

 

Strong corporate partnerships – Macy’s, Merck, Campbell’s and Jiffy Lube (Cone client), among others, are supporters of the Go Red For Women campaign, offering additional resources to help drive awareness of the cause.

 

Celebrity endorsement – Actress Jennie Garth joined the Go Red movement as a celebrity spokesperson for 2010, helping drive additional attention to the issue. Past spokespersons have included Marie Osmond and Andie MacDowell, who continue to engage in and drive awareness of the cause.

 

Iconic color – The AHA has created a movement around the color red and the red dress, establishing it as a symbol for the fight against heart disease.

 

Multi-channel engagement – Go Red For Women has penetrated the communications landscape, with messaging for the cause in print and broadcast channels, through social media, in the workplace and even on mobile phones.

 

Brand ambassadors – Go Red For Women owes its success to the millions of passionate supporters who rally for the cause by fundraising, advocating and educating others about the disease.

 

All of these, and more, contributed to the AHA Go Red For Women's honor as one of the top Public Relations Campaigns of the Decade by the Holmes Report. To learn more about Go Red For Women or National Wear Red Day, visit www.goredforwomen.org.

 

Tags: nonprofitpowerbrand100 corporatepartnerships nonprofitcausebranding campaigns celebrityengagement

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February 2, 2010 at 1:50 PM by Knowledge Leadership

Geolocation apps for mobile devices are one of the rising social media trends du jour and Foursquare is the undisputed leader of the pack. But Shopkick’s latest free iPhone app, CauseWorld, delivers geolocation technology with a philanthropic twist - it allows users to make charitable contributions just by walking into stores.

Launched in December of 2009, CauseWorld works in the same way as apps like Foursquare and Gowalla. Using geolocation, the app will show the user a list of nearby participating stores. The user enters the store, checks in on their phone, and earns “karma” – no purchase necessary. “Karma” is not measured in dollar amounts, but in actual deeds. There are nine pre-defined causes, with karma costs ranging from 2-100. Supported by a $500,000 fund donated by Citi and Kraft, CauseWorld is able to take action without any paid contribution from the app user.

With so-called “microgiving” on the rise, Shopkick seems to have stepped into an open mobile niche. But can CauseWorld compete with Foursquare? Let’s take a look at how they stack up:

 

CauseWorld vs. Foursquare

1. Integration with Other Platforms. Both have wisely integrated with Facebook, allowing users to post their latest accomplishments in order to generate more interest but Foursquare also integrates with Twitter. Real-time updates rock – +1 Foursquare
   
2. Prizes vs. Donations. Foursquare users earn badges for visiting participating locations. The most frequent visitor can become a location’s “Mayor,” entitling him or her to free promotional items. CauseWorld karma-collectors are able to make increasingly more large-scale charitable contributions as their visits pile up. Giving is in – +1 CauseWorld
   
3. City Guide vs. Karma Guide. Foursquare serves as a neighborhood guide, showing lists of all businesses in the area. According to Michael Arrington at TechCrunch, CauseWorld lists only the businesses that offer karma. To-do lists and tips are good – +2 Foursquare
   
4. Competitors vs. Do-Gooders. Foursquare may attract users with a desire to compete (looking to earn Mayor-status prizes). After the thrill of the chase has ceased, these users may move on to a new challenge: a different app. With only charitable giving offered in exchange for use, CauseWorld attracts users who have a desire to “do good.” As Marijane Miller of WhatGives writes, a CauseWorld user is “potentially more likely to be converted into a regular shopper” at a store that back his or her cause and values. Doing good and potential ROI – +2 CauseWorld

Winner: ?

CauseWorld is just the first of Shopkick’s soon-to-expand repertoire of offerings. However, bloggers such as Joe Waters have begun to speculate how philanthropy and microgiving can be more consistently incorporated into the Foursquare universe. Is it idealistic to believe that CauseWorld has a fighting chance to survive in the same arena as Foursquare?

 

 

- By Emily Coogan, New Media Intern & Marcus Andrews, New Media Associate

Tags: cause donation causebranding newmedia

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January 29, 2010 at 3:20 PM by Knowledge Leadership

Transparency is a critical issue for corporate leaders, one that separates the compliers from the leaders in corporate responsibility reporting. It is a difficult aspect to measure, but Corporate Knights has tried to do just that with a new and improved release of its annual study, The Global 100 Most Sustainable Corporations in the World.

 

 

The Corporate Knights added a unique measure this year, called a Transparency Indicator. The number quantifies how easy it was to find information for the 10 other Key Performance Indicators (KPIs), therefore indicating the level of disclosure companies are practicing. As Corporate Knights' editor-in-chief Toby Heaps notes, "You need to have transparency if you want people to take you seriously. Then you can get beyond platitudes and discuss issues that people really care about."

 

But Corporate Knights is not the first to incorporate transparency. In 2009, CRO based its analysis of the 100 Best Corporate Citizens on data that was publicly disclosed, but Corporate Knights took it to the next level by creating a transparency metric that factored into the overall scoring.

 

What effect does transparency have on the final rankings? At #1, GE had a 73 percent transparency rank and at #2, PG&E had a 25 percent transparency rank. It's difficult to say without further analysis, but could decreasing the transparency gap have helped PG&E rise to the top? Fortunately, Corporate Knights walked its own talk by publishing complete data tables on its Web site for you to review.

 

Tags: global corporateresponsibility research transparency

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January 26, 2010 at 12:12 PM by Knowledge Leadership

Cause sponsorship remains the fastest-growing slice of the sponsorship pie, projected to grow 6.1% in 2010, according to IEG. As a nonprofit, finding the support to keep your organization growing is more crucial than ever. No matter your size, now is an ideal time to tap into the power of cause marketing by aligning your organization with like-minded companies who see the strategic value of association with a cause. Here are a few tips for getting started on your selling journey:

 

• Create guidelines. While corporate partnerships are a proven method to grow revenue, expand relevance and enable program delivery, even more important is protecting your organization’s brand and reputation. Before you begin the selling process, convene the key stakeholders in your organization and come to consensus around what types of companies/industries you will and will not partner with. Put these decisions on paper and make a simple process for determining if new companies fit your standards moving forward.
  
  
• Recognize that it’s not just about the cause. Coming from a nonprofit background myself, I still find it hard to believe – but many companies won’t be sold on supporting your work simply because it is important or meaningful. While you should absolutely educate the company on the social benefit of your organization’s work, your primary job is to show sponsors that association with your work will positively impact their bottom line. A great resource for data to support your case is Cone’s Research and Insights page.
  
  
• Prepare to sell. Ensure that the program or package you’re selling has a specific target audience, multiple points of engagement and a built-in plan to measure success. Develop solid criteria and objectives about the types of organizations you want to work with, research which have a history of (or potential of) supporting cause programs and approach each with its own tailored opportunity.
  
  
• Find the right contact. Don’t overlook networking – you never know when your plumber’s cousin or mom’s best friend might be your ticket to that breakthrough meeting. If you don’t already know the right person, look first for contacts with marketing or brand responsibilities, (they typically have the promotions budget) and quickly identify if they have access to the tools that make things happen at your target company: decision-making authority, budget ownership or a weekly golf date with the CEO.
  
  
• Know their WIIFM (“what’s in it for me?”). Do detailed research on a prospective partner before the first meeting. Tailor your pitch to their needs and share initial ideas of what you envision a partnership becoming. Be clear about the benefits they will receive as a sponsor and show how their key audiences will engage with the program, and by extension, their brand.
  
  
• Close the deal. Don’t let the “ask” linger. Set out a timeline by which you need a decision. Simply ask – what would it take for you to say YES to this opportunity?

And always remember – love your sponsors! No matter what organization you represent – the sponsor is taking a risk by committing to a partnership. Recognize this and delight them with your attention and recognition and you’ll be on the road to creating a true partnership.

 

- Emily Nichols, Account Supervisor

 

Tags: corporategiving corporatepartnerships causebranding charity donation

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January 22, 2010 at 11:30 AM by Knowledge Leadership

Malaria has long been a global epidemic, with sub-Saharan Africans under the age of 5 bearing the brunt of almost all the estimated 3 million fatalities occurring every year. Nothing But Nets and similar programs have made great strides toward preventing the spread of this disease in African nations, but a cure has not yet been found.

Image: http://www.gsk.com/community/malaria/factsheets/amp_english.pdf

 
Some may say it’s a problem too big to solve – but GlaxoSmithKline (GSK) thinks otherwise. This week, the global pharmaceutical giant announced it will freely distribute its malaria research to any scientist interested in joining the challenge – marking the first time that a pharmaceutical company has made so much of its data public. What’s more, GSK will provide “open lab” placements for 60 scientists at one of its research labs and is collaborating with Medicines for Malaria Venture, a foundation focused on anti-malarial drug development. In an industry that is often highly confidential and competitive, GSK intends to use open-source collaboration to solve this epidemic.

This collaborative approach to the research process could speed solutions. As Dr. Timothy Wells of the Medicines for Malaria Venture notes, “By sharing the data, the research community…could set a new trend to revolutionize the urgent search for new medicines to tackle malaria.”

GSK is making a huge statement for the pharmaceutical industry, and for all of the corporate world, by recognizing some problems are too big and too important to solve alone.  By engaging the right stakeholders, sharing knowledge and taking a collaborative approach to critical social issues, GSK could be changing the way solutions are found for both business and society.

Tags: global research engagement disease sharedresponsibility

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January 15, 2010 at 12:02 PM by Knowledge Leadership

All eyes are on Haiti this week, and before anything, we must say that the thoughts and prayers of the entire Cone family go out to the people of Haiti. As nonprofit organizations and government agencies quickly deploy their emergency resources to come to Haiti’s aid in the aftermath of this tragedy, American citizens are just as quickly responding through their own channels – digitally.

 

 

With laptops and smartphones at their fingertips, donors are setting records with lightning-fast fundraising tools. Convio, a company that provides donation software to charities, processed more than $20 million as of January 13th – more than it did on December 31st, which is typically the biggest fundraising day of the year. And it wasn’t just online donation that was successful, text-to-donate campaigns saw big numbers too. The American Red Cross has raised $8 million to-date through its mobile campaign, and Yéle Haiti, the nonprofit of musician and Haiti-native Wyclef Jean, has raised more than $750,000 through a similar mobile effort.

Cone’s research on cause and new media this fall found that Americans are using such tools for awareness, but not necessarily translating this into donations. This situation debunks the myth that they won’t donate – for now we know when the need is urgent and the request is easy, citizens will respond through every tool at their disposal. One lesson to emerge from this devastating tragedy is that having new media communications and fundraising capabilities in place before the need is urgent will help mobilize your cause when the situation is dire. And despite the urgency of a message, those that are clear, concise and show ongoing results are lessons all organizations can heed when developing new media communications in support of their causes.

To see Cone’s list of guidelines and resources for companies responding to natural disasters such as the earthquake in Haiti, please click here.

Tags: crisis currentevents donation charity fundraising newmedia cause

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January 8, 2010 at 11:58 AM by Knowledge Leadership

 

Despite what the pundits may say, few of us are really certain what 2010 will bring – will the economy bounce back or get worse? Will nonprofits survive or fold under the fundraising pressure? Will the environmentally conscious lifestyle continue to resonate? So instead of predicting the future, we’d like to pause and look back at what has occurred in our portfolio of research – these highlights show powerful growth in just a couple of years for cause-related and corporate responsibility initiatives and may signal a positive outlook for the year ahead.

 

Cause Research:
Growth in Cause Acceptance: Americans’ acceptance of cause marketing increased from 66% in 1993 to 85% in 2008.
Growth in Global Focus: Since 1993, there has been a 6% decrease in consumers indicating they want companies to focus on the quality of life locally, within local communities and a 5% increase in desire for companies to support the quality of life globally, in countries around the world.
Growth in Differentiation: Americans' likeliness to switch to brands associated with a cause increased from 66% in 1993 to 79% in 2008.
Growth in Purchase: Consumers’ cause purchases almost doubled between 1993 and 2008, rising from 20% to 38%.

 

Environmental Research:
More Interest: 35% of Americans have greater interest in the environment today than they did one year ago.
Higher Expectations: 35% of Americans have higher expectations for companies to make and sell environmentally responsible products and services during the economic downturn.
They’re Watching You: 70% of Americans indicate they are paying attention to what companies are doing with regard to the environment today, even if they cannot buy until the future.

 

New Media Research:
More Interaction: 78% of new media users now interact with companies or brands via new media sites and tools, an increase of 32% from 2008.
Better Service: 68% feel better served by companies or brands present in new media, up from 57% in 2008.
Stronger Loyalty: 72% feel a stronger connection when companies or brands are present in new media, up from 56% in 2008.
Marketing is Okay: Consumer willingness to be marketed to via new media increased a dramatic 72% in one year - from 25% to 48%.

If the past year is any indication of what the year ahead holds, bring it on! As you plan for 2010, what questions do you have? What are you curious about? We’re listening to your comments - please share your outlook below.

Tags: research cone corporateresponsibility newmedia causebranding environment

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December 18, 2009 at 11:40 AM by Knowledge Leadership

Undoubtedly the biggest night in advertising, the Super Bowl attracts all the big players – from Anheuser-Busch InBev to GE – and for the past nine years, Pepsi has been one of the biggest. Until now. This week, the beverage giant announced it will not be advertising in the 2010 Super Bowl. Instead, Pepsi will be investing $20 million into its new cause marketing program.

 

 

What a difference a year makes. Last February, we gave kudos to several companies that spent top-dollar to communicate their social and environmental commitments during the Super Bowl. As the 2010 Super Bowl approaches, we are blown away by one company’s decision not to. Pepsi is forgoing millions of guaranteed consumer eyes and ears for higher-touch social media tactics that will be incorporated into its cause program in the coming year. This decision speaks volumes about both the changing role of media and the growth of cause marketing as a central part of brand strategy.

So, as we head into 2010 with hopes of an economic recovery in our sights, there is really no denying that cause has reached new heights. We stand at an exciting moment in time for cause – at the onset of a new year that will bring new opportunity. And with such bold moves from big brands, it appears we’re off to a good start.

Tags: superbowl causebranding campaigns newmedia

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December 11, 2009 at 11:59 AM by Knowledge Leadership

We’ve all seen examples of companies jumping on the cause bandwagon, but this may be the first boat. According to a recent article from The Wall Street Journal construction is underway on Utopia, a luxury cruise ship that is using more than onboard amenities and exotic ports-of-call to sell its multi-million dollar residences. More than just a luxury cruise, it’s being touted as a “‘platform’ for learning, cultural exchange and philanthropy,” complete with an on-board Philanthropy Concierge.

 

 

So what is the connection to philanthropy? The cruise liner’s Web site indicates residents have opportunities to host galas on board – with mention that fundraising solicitation of other residents is not allowed – a Philanthropy Concierge who will book a lunch or dinner with other philanthropists at destinations along the route or day trips to visit an orphanage. All of these “philanthropic” options are situated alongside amenities such as “shopping” and “indulgences.”

 

But there’s something about Utopia that has us feeling a bit sea sick. Philanthropy requires a contribution to organizations seeking solutions to social problems, yet the Utopia program appears to fall short. There is no clear connection between the on-board services offered and any tangible outcomes, or even tangible opportunities for that matter, which makes it feel more like a way to balance extravagance with altruism than a true commitment to social good.

 

What do you think? Is Utopia smart to promote philanthropic behavior on its luxury ship, or are they simply using the buzzword to appear committed to the greater good?

Tags: causebranding philanthropy

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December 4, 2009 at 1:48 PM by Knowledge Leadership

We hardly need another reason to extol the value of dedicated volunteers to the work of nonprofit organizations, but bear with us a moment, this one is pretty compelling. According to a new study, not only do volunteers add value to an organization, but it turns out they give value, too.

 

A study of more than 1,000 people from the Fidelity Charitable Gift Fund and VolunteerMatch revealed, on average, people donate 10 times more if they have volunteered during the past year. Specifically, the study showed Americans who had volunteered in the past 12 months donated an average of $2,593 compared to $230 from non-volunteers. Finally, this benefit is staying inside the organization’s walls in most cases: 67 percent of American volunteers say they generally give back to the same organizations where they volunteer.

 

These powerful statistics are further underscored by the shared attitude (for two-thirds of survey respondents) that “true philanthropy” translates to both time and money. The survey only spoke to individuals, but this sentiment also holds true for companies who can multiply their own impact on important causes by dedicating both time and financial resources. The takeaway is that “true philanthropy” requires a holistic approach, and frankly, we couldn’t agree more.

Tags: philanthropy charitablegiving volunteering

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November 18, 2009 at 2:16 PM by Knowledge Leadership

The following originally appeared in Cone’s inConetext quarterly newsletter. To read current or past issues, visit our Web site.

 

 

Holiday-themed cause marketing programs have long been a staple for retailers to drive differentiation, loyalty and sales during a cluttered shopping season. This year, major retailers are raising the stakes by creating programs bigger and glitzier than years past. We’ve already begun to see full-scale efforts launched by Macy’s, JCPenny and Walmart that push the needle on innovation and integration.

 

Recently, providing consumers with ‘value’ has been the buzz among marketers of all disciplines. Cause marketers are no exception. Without a lot of money to donate, consumers are seeking ways to ‘do good’ through their shopping. In response, smart retailers are integrating charitable giving into their product offerings and brand experiences to deliver value to consumers on several levels.

 

First, they are triggering donations through consumer purchases or participation. This enables consumers to feel good about their purchase, feel good about helping and offers a critical point of differentiation and reason to buy. Second, they are offering value in terms of specialized offers, such as discounts and coupons, to consumers who participate in cause programs. These incentives provide a pocketbook benefit to consumers, but also give retailers a measureable tool to gauge effectiveness of their marketing efforts. Finally, retailers are demonstrating social impact. Consumers are seeing the real, immediate value of their participation in a cause marketing effort through donation calculators and online tracking.

 

Remember, for this holiday season, when it comes to cause marketing programs, glitz may sparkle, but a value-centric approach will shine brighter.

 

- Rich Maiore, Vice President

Tags: causebranding campaigns holiday

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November 13, 2009 at 12:14 PM by Knowledge Leadership

With all the chatter about the ups and downs of charitable giving during the down economy, it’s refreshing to hear some definitive - and positive - news. According to the 2009 Giving in Numbers Report, released this week by the Committee Encouraging Corporate Philanthropy (CECP), corporate giving was actually up during 2007-2008, despite worries that corporations would back down from charitable commitments as the economic turmoil raged in the second half of the year. What’s more, the data show that companies got creative when the economy started to sink, opting for pro bono work and skills-based volunteerism instead of simply backing down from their social commitments. In fact, the Wall Street Journal this week profiled how four chief executives at leading companies are rethinking their philanthropic strategies.

 

 

Other key findings from the CECP report include:

• A majority (51%) of companies surveyed increased giving from 2007 to 2008 despite 68 percent experiencing profit declines
• Among Fortune 100 companies, who experienced greater-than-average profit declines, 60 percent increased giving from 2007 to 2008
• Of companies surveyed, a full 91 percent report having an employee matching-gift program
• Ninety-four percent of survey respondents have at least one formal domestic volunteerism program and 49 percent of respondents have at least one formal international volunteer program
• The median number of pro bono time donated was 1,080 hours by companies that reported having such programs
• Consistent with past years, 86 percent of companies report having a corporate foundation

To download the full report for free, visit CECP’s Web site.

 

Tags: Volunteer charity economy donation philanthropy corporategiving research

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November 12, 2009 at 6:24 PM by Knowledge Leadership

Brands – and, increasingly, causes – have been tapping celebrity supporters for years, and it’s become a tried-and-true promotional tactic. But it’s important for organizations to understand what they’ll be getting – and not getting – when they bring a celebrity on board. The “ripped from the headlines” best practices below can help guide cause-celebrity relationships in today’s environment.

 

 

1. Know your budget
In many cases, even when a cause is involved, celebrities don’t come cheap. Be realistic about your budget and crunch the numbers beforehand to make sure you’re covering costs – and meeting obligations to partner organizations. Overspending on “operating costs” and administrative expenses leaves a sour taste in the mouths of donors and beneficiaries – like the annual “Funniest Celebrities in Washington” event, which despite steep ticket prices and A-list performers, has failed to make donations to nonprofit partners for the past five years.

 

2. Learn about and leverage your celebrity spokesperson’s passions
Leverage the personal passions – beyond the causes they support – of celebrity supporters. Brad Pitt’s floating house, which combines his appreciation for all things architecture with his charitable efforts – is a perfect example. Through his Make It Right Foundation, focused on providing affordable and sustainable housing for Hurricane Katrina victims in the Lower 9th Ward, Pitt worked with Morphosis Architects to create the “Float House,” a home that can rise up to 12 feet on guideposts, in the event of flooding.

 

3. Think long-term
When searching for celebrity support, look beyond this week’s People cover. Causes that truly resonate with celebrity supporters can foster deep, long-term commitments. Sound like a marriage? Maybe, but you’ll get more bang for your celebrity buck if you find someone who’s willing to do more than pose for photos at your gala. Think advisory board memberships, event hosting and face time with beneficiaries, in addition to attending the usual fundraiser.

 

4. Do your homework
Research isn’t glamorous, but it’s important to understand what you’re getting into with a celebrity spokesperson: they have the power to hurt – or help – your brand. Celebrities are people too, and sometimes they make mistakes (see: Michael Phelps or Chris Brown) that reflect on the brands (and causes) they support.

 

5. Use caution when addressing celebrity compensation
Now that we know celebrities don’t come cheap (see #1), think carefully about how forthcoming (or not) you’re willing to be in addressing compensation for celebrity spokespeople. There’s a fine line between transparency and over-communication.

Example: Promotional materials for the Prostate Cancer Foundation’s campaign (funded by GlaxoSmithKline) featuring tennis star John McEnroe clearly stated GSK paid McEnroe for his involvement. Some are questioning this “full disclosure” tactic – one blog writer said the campaign had thrown McEnroe “under the bus” – while others are applauding its transparency.

 

 

- Kate Dyer, Account Executive

Tags: celebrityengagement causebranding nonprofitcausebranding campaigns

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November 6, 2009 at 11:26 AM by Knowledge Leadership

Temperatures are dropping and the holiday season is approaching, causing an outbreak of the “warm and fuzzies.” Yes, the giving season is upon us, and this year is already proving to be the most digitally driven to-date. Nearly every holiday cause campaign underway has an online component, thanks, in part, to growing consumer comfort interacting with brands via new media – up 32 percent from 2008.

Despite all the glittery online promotions, it’s important to recognize consumers are still hesitant to donate online. The 2009 Cone Consumer New Media Study showed some American new media users are concerned whether their donations will have an impact and others would rather donate offline. But that’s not to say online donations cannot be powerful. A leading holiday fundraiser and one of Cone’s Nonprofit Power Brands, the Salvation Army overcame the odds when, in 2008, online fundraising for its iconic Red Kettle campaign contributed an additional $10 million to annual revenues. However, the nonprofit was savvy enough to use new media fundraising as a complement to its offline efforts, ensuring donor comfort and convenience whatever the medium.

To help build confidence and trust among your online supporters this holiday season, keep in mind some best practices for new media fundraising:

• Demonstrate tangible impact: illustrate for consumers how their donation is being put to work by showcasing goals achieved in real-time
• Tap emotion: demonstrate why your cause is important to donors through emotionally compelling storytelling
• Provide value to contributors: don’t leave your donors hanging once they open their wallets – make them feel special by providing a badge of honor to display on their social networks or offer additional opportunities to support the cause
• Make it social: incorporate tools that make your campaign easy to share and pass along

The Big Warm Up installation, Boston

 

Doing its part to warm communities, Land’s End recently launched the Big Warm Up to encourage winter coat donations to the country’s homeless. The campaign embodies many of the best practices, having a robust online campaign that marries with its offline efforts - and, it just happens to be installed right outside our office windows.

 

Tags: fundraising newmedia causebranding donation campaigns nonprofitpowerbrand100 research top10

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October 30, 2009 at 1:22 PM by Knowledge Leadership

The Bill & Melinda Gates Foundation is taking a results-driven approach to promoting American investments in global health efforts by releasing an advertisement centered on impact. The video, part of the Living Proof Project, will strike a chord with policy-makers, philanthropists and citizens alike not by centering on unmet need, but by highlighting true and measureable change: “Polio cases reduced by 99%;” “Mother-to-child HIV prevention in 16 million pregnancies;” “Malaria cases down 50% in 29 countries.” This approach instills confidence that funding saves lives.

 

 

Aimed at policymakers to sway additional funding, the positive message will reach stakeholders beyond those already engaged with the project. The Gates Foundation hopes the commercial, and specifically the measured results, will encourage grant makers and individual philanthropists to give where it counts. As Bill Gates points out, “We see that these things are working, and we’re willing to continue to make investments. I think then other people say, Okay, it must be working or people wouldn’t put their own money into it.”

 

Additional messages on the project’s Web site encourage advocates to pass along the positive thinking and to “Dispel the myths. When you hear someone say ‘It’s just money down a hole,’ or ‘Saving lives just leads to overpopulation,’ tell them why they’re wrong. These investments work. They empower people, and they’re appreciated."

 

In the bevy of important social and environmental issues that ask stakeholders for financial support every day, programs that show impact are in high demand. The pressure is now on nonprofits to show the ROI.

Tags: advocacy corporategiving philanthropy roi nonprofitcausebranding global nonprofit

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October 27, 2009 at 12:44 PM by Knowledge Leadership

Last week, 13 winners of the 2009 Getting Attention Nonprofit Tagline Awards were announced, giving due credit to this often-overlooked but powerful marketing element.

 

Over 4,800 nonprofit professionals voted for taglines that best delivered the vision and mission of the organization, putting power in the hands of practitioners who live and breathe nonprofit branding. Winners spanned a range of issues and represented organizations that focus on local, national and international causes, indicating that any nonprofit can benefit from a clearly communicated brand.

 

A theme among the winners is a clear connection to the organization’s mission. Essentially, the winners followed the simple yet often disregarded best practice of “say what you do.” In fact, Cone’s research showed nonprofits who clearly state their issue focus in their brand names reaped the benefit of stronger consumer relevance – a key component to strong reputation. For more tips on how to foster a strong nonprofit brand, check out the "10 Essentials for Enhancing Brand Power," part of The 2009 Cone Nonprofit Power Brand 100 report.

 

For the full list of tagline winners, check out the Getting Attention blog.

 

Tags: nonprofit awards nonprofitcausebranding nonprofitpowerbrand100 research cone

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October 23, 2009 at 11:57 AM by Knowledge Leadership

Cone’s latest research, the 2009 Cone Consumer New Media Study, shows consumers are actively engaging with companies and nonprofits through new media channels … but are they putting their money where their mouse is? The answer is divided.

 

 

When it comes to corporate responsibility practices, 62 percent of new media users polled believe they can influence business decisions by voicing opinions via new media channels. And although they report contributing their point-of-view on an issue (24%) or contacting a company directly to share feedback and grievances (23%), new media users are equally or more likely to bypass dialogue and act with their wallets:

• 30 percent indicate they have made a purchase based on POSITIVE information learned about a product, company or brand; and,
• 23 percent indicate they have switched brands or boycotted a company based on NEGATIVE information learned about a product, company or brand.

Yet, in the area of cause, consumer engagement and awareness is not fully translating into dollars. Although nearly eight-in-10 (79%) new media users believe companies and nonprofits should use these channels to raise money and awareness for causes, fewer than one-in-five (18%) have made a donation.

 

And some argue that’s quite OK.

 

As About.com’s nonprofit expert Joanne Fritz points out, using new media is “about making friends, not getting donations. If nonprofits focus on engagement first, the donations will come.” A sentiment nonprofit blogger Nancy Schwartz shares, saying she sees new media as “more about friendraising than fundraising.”

 

Do you agree – is it sufficient that new media is driving powerful awareness today, even if donations aren’t always quick to follow? Share your point-of-view by casting your vote in our latest blog poll.

 

For more information about the study, read the press release and download the fact sheets.

 

Tags: cone trends corporateresponsibility newmedia causebranding research

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October 23, 2009 at 9:07 AM by Knowledge Leadership

Cone’s latest research, the 2009 Cone Consumer New Media Study, shows consumers are actively engaging with companies and nonprofits through new media channels … but are they putting their money where their mouse is? The answer is divided.

 

 

When it comes to corporate responsibility practices, 62 percent of new media users polled believe they can influence business decisions by voicing opinions via new media channels. And although they report contributing their point-of-view on an issue (24%) or contacting a company directly to share feedback and grievances (23%), new media users are equally or more likely to bypass dialogue and act with their wallets:

• 30 percent indicate they have made a purchase based on POSITIVE information learned about a product, company or brand; and,
• 23 percent indicate they have switched brands or boycotted a company based on NEGATIVE information learned about a product, company or brand.

Yet, in the area of cause, consumer engagement and awareness is not fully translating into dollars. Although nearly eight-in-10 (79%) new media users believe companies and nonprofits should use these channels to raise money and awareness for causes, fewer than one-in-five (18%) have made a donation.

 

And some argue that’s quite OK.

 

As About.com’s nonprofit expert Joanne Fritz points out, using new media is “about making friends, not getting donations. If nonprofits focus on engagement first, the donations will come.” A sentiment nonprofit blogger Nancy Schwartz shares, saying she sees new media as “more about friendraising than fundraising.”

 

Do you agree – is it sufficient that new media is driving powerful awareness today, even if donations aren’t always quick to follow? Share your point-of-view by casting your vote in our latest blog poll.

 

For more information about the study, read the press release and download the fact sheets.

 

Tags: cone trends corporateresponsibility newmedia causebranding research

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October 20, 2009 at 11:40 AM by Knowledge Leadership

Do consumers want to engage with companies and brands through new media?
Do they think they can influence corporate responsibility practices online?
Are they supporting social and environmental causes via new media?

According to the 2009 Cone Consumer New Media Study, the answer is a resounding yes … with a few caveats along the way. The new research released today explores American new media users’ interactions with brands, their engagement with corporate responsibility practices and their support of social and environmental issues.

 

This survey builds on Cone’s 2008 Business in Social Media Study, but this year, we expanded the research to explore the diverse ways in which consumers are engaging with companies and nonprofits through new media.

 

Key findings include:

• Brand Marketing: Almost 80 percent (78%) of new media users interact with companies or brands via new media sites and tools, an increase of 32 percent from 2008 (59%).
• Corporate Responsibility: Sixty-two percent of users polled believe they can influence business decisions by voicing opinions via new media channels.
• Cause Branding: Nearly eight-in-10 (79%) Americans who are active on new media believe companies and nonprofits should use these channels to raise money and awareness for causes. Yet, fewer than one-in-five users (18%) have made a donation through new media.

Read the complete release here, and visit www.coneinc.com/consumernewmediastudy to download all three fact sheets.

Tags: trends newmedia corporateresponsibility brandmarketing causebranding research

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October 9, 2009 at 11:16 AM by Knowledge Leadership

It’s the little things that count - when you add up the small efforts of many, they can create real change. As consumers, we adopt simple behaviors that can make a collective difference; turn off the faucet, pick up a piece of trash, buy a product that donates to a cause, recycle a soda can. When times are tough and cash donations are in short supply, how can companies adopt this concept to make a difference in society?

 

 

While cash remains critical to any nonprofit’s ability to fulfill its mission, this recession has led to innovative examples of companies leveraging assets, beyond cash, to solve social problems. Patrick Rooney, executive director of the Center on Philanthropy at Indiana University notes that many companies wanting to conserve cash have shifted from financial donations to in-kind contributions – taking a little and making it into something bigger.

 

Some companies offer employees a few hours time to volunteer for nonprofits, which combined can amount to hundreds of hours in professional services otherwise unaffordable. Others are donating new or unused materials that meet the needs of nonprofits, which when taken collectively can have big results.

 

In an interesting new approach to in-kind, a group of airline financiers has established a program called ISTAT AirLink that allows easy donation of unreserved airline seats and cargo space to causes who need to get volunteers and supplies abroad. The program brings together several airline carriers with excess space, offering valuable resources to nonprofit organizations.

 

A key part of this program’s success is the centralized organization, which allows aid agencies to list people, medicine and supplies they need shipped on a Web site, and permits airlines to post spare seats or cargo space. The result; nonprofits get people and resources on the ground, and companies are able to put to harness space which would otherwise be vacant. There is small added investment for the airline – extra cargo handling or passenger service – but the benefit to the nonprofit is huge. As airline financier and founding member Bob Brown notes, "If we can save an NGO a dollar in cost, that should flow right through to the people they're serving."

 

What excess capacity does your organization hold, and how can it be put to use for the greater good?

 

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Tags: Volunteer charity trends economy donation corporategiving nonprofit sharedresponsibility

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October 2, 2009 at 1:14 PM by Knowledge Leadership

The Sunday paper is filled with pink circulars; breast cancer is trending on Twitter; the shelves are stocked with pink ribbon products; ah, it must be October. Every year, National Breast Cancer Awareness Month brings exciting momentum to the issue, and this year, some campaigns are taking on an edgy tone as they strive to reach younger women and men with information about this serious disease.

• Yoplait’s* newest initiative is titled “Know Your Girls,” aimed at encouraging young women to understand what is “normal” for their own breasts, or their “girls,” and recognizing important changes. The campaign features video and print materials focused on Gen Y females.
  


• Rethink Breast Cancer has released two controversial PSAs that take an unconventional approach to breast cancer. A bold new take on awareness, the campaign hopes to engage a younger generation of women and men.

Other breast cancer campaigns in the marketplace include:

• Following the recent introduction of limited-edition mike’s hard pink lemonade,* the malt beverage company is launching “Share Some Pink,” a promotion on Facebook. Mike’s will donate 10¢ for every virtual mike’s hard pink lemonade gift passed, in addition to a $250,000 donation already made to The Breast Cancer Research Foundation in memory of Jacqueline S., a part of the Mike’s family since its founding who lost her battle with the disease earlier this year.
  
  
• Taking a “girl-power” approach to awareness, women’s health care company Hologic, launched the “Promise to Me” campaign. On the program’s microsite, women pledge to take care of their own health and encourage women in their lives to do the same.
  
  
• Delta Air Lines lit up the JFK air traffic control tower in pink lights as part of its ongoing support for the Breast Cancer Research Foundation. In addition, lucky passengers were treated to a surprise in-flight concert by Melissa Etheridge, a breast cancer survivor.
  
  
• Today is the 14^th anniversary of the annual Lee National Denim Day, which is revitalized this year with celebrity ambassador and survivor Christina Applegate and interactive online communication components.

This October, stop for a moment and observe the sheer force of this cause. It boasts an incredible roster of supporters including corporate America, nonprofits, media, celebrities and retailers. Whether the approach pulls at your heart strings or tickles you pink, thanks to the ongoing efforts of these players, breast cancer has become an issue that resonates with all audiences and is truly a movement to admire.

* Cone Client

Tags: donation yoplait causebranding cancer campaigns trends

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September 28, 2009 at 4:48 PM by Knowledge Leadership

Voting for the 2009 Getting Attention Nonprofit Tagline Awards is now under way, and you can help determine the best of the best. According to founder Nancy Schwartz, voting will:

• Sharpen your understanding of what does and doesn’t work in nonprofit communications.
• Inform and inspire your organization’s messaging.
• Give you the chance to register for the free 2009 Nonprofit Tagline Report, with 2,500 tagline examples.

 

What are you waiting for? Be heard by casting your vote for 13 different categories, and then register to receive the free report, including the 2009 winners. Polls close on Wednesday, September 30 at midnight, so don’t delay!

 

Tags: awards nonprofitcausebranding marketing nonprofit

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September 25, 2009 at 12:11 PM by Knowledge Leadership

The 5th Clinton Global Initiative Annual Meeting (CGI) wraps up today, leaving in its wake a list of new commitments to solve the world’s most pressing problems. The event is structured to spark action – boasting discussions, not presentations, and requiring results. Former president and meeting host Bill Clinton states, “If you don’t make a commitment or you make one and don’t keep it, you don’t get to come back. That’s what started it, that’s what makes it run.”

 

 

The results of the initiative to-date prove the effectiveness of this model: $46 billion in funding has been directed toward causes such as education, climate change and healthcare since the CGI inception in 2005.

 

Cross-sector collaboration is the other key tenant of the CGI. This year, a record 960 attendees representing 84 countries took part, including heads of state, celebrities and nonprofit and corporate leaders – a true Who’s Who of cross-sector leaders and dignitaries with personal passion for societal solutions. The media buzz alone surrounding the event helped spur action by attracting attention and notable donors to important causes. This year’s event focused on harnessing innovation for development, strengthening infrastructure, building human capital and financing equitable sustainable future. For the first time, the event also focused on narrowing the gender gap.

 

Action speaks loudly. As President Obama stressed during his kickoff speech, “You can't just be an advocate of someone else doing it, preach lofty goals and wait for someone else to act. You have to step up." Could his words hold true for G-20 Summit leaders gathering this weekend in Pittsburgh?

 

Tags: sharedresponsibility CGI philanthropy currentevents charity

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September 18, 2009 at 11:49 AM by Knowledge Leadership

Shared Responsibility is a new What Do You Stand For? series from Cone’s Corporate Responsibility team that focuses on addressing the sustainability challenges of our time.

 

Cause-related promotions and light-hearted campaigns have dominated much of the cause landscape this year as many companies took a “back-to-basics” approach to cause to drive short-term sales and loyalty. However, amid all the creative cause campaigns are the stirrings of a new crop of companies who, understanding their shared role in addressing crucial world issues, are stepping up to the plate to understand, to engage, to collaborate and to solve. These are the game-changers.

 

Two examples in the news this week:

P&G – No question, P&G is a cause leader with many of its brands executing some of the most creative and powerful campaigns in the marketplace today (e.g., Pampers’ One Pack = One Vaccine). But these campaigns all have their roots in a deeper corporate philosophy - P&G’s “purpose-inspired growth” strategy, which emphasizes the company’s culture and values as drivers for innovation and sales. New CEO Bob McDonald states, “We will provide branded products of superior quality and value that improve the lives of the world’s consumers, now and for generations to come. As a result, consumers will reward us with leadership sales, profit and value creations, allowing our people, our shareholders, and the communities in which we live and work to prosper.”

Merck & Co. – The pharmaceutical giant announced a partnership with British nonprofit the Wellcome Trust, to create affordable vaccines against diseases common in underdeveloped countries. Both partners will make equal cash contributions for the project, but what is most powerful is the “shared responsibility” approach this project requires. It will engage governments, charities, universities and other for-profit pharmaceutical companies for additional funding and solutions. Merck spokeswoman Amy Rose says, "The goal here is to involve a number of parties that would be interested in the success of vaccines in the developing world.”

“Shared responsibility” is about identifying the right opportunities to engage stakeholders and to collaborate to solve the world’s most pressing issues. It’s about being part of the solution, without going it alone. In these examples, company goals are not lost, but rather enhanced through collaboration, stakeholder engagement and a focus on innovation. These companies are not only supporting important social or environmental issues. They are also changing the way they – and others – do business.

 

Tags: corporateresponsibility causebranding trends sharedresponsibility

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September 17, 2009 at 3:07 PM by Knowledge Leadership

Attention employers: your employees need some focus. OK, maybe not news to you, but we’re not talking about the memo that should have been done last week (hardly our business!). We’re referring to your employees’ company-supported charitable giving.

 

 

 

At a time when many companies are moving toward more focused corporate philanthropy, fewer may be tapping an underutilized resource – their employee giving programs. More strategic employee giving can provide a number of benefits for the company, its staff and the nonprofit beneficiaries, and like its name (“strategic choice employee giving”) implies, it can be both focused and flexible.

 

To learn about strategic choice employee giving and the role it plays in a focused corporate philanthropy program, download Cone’s latest insight, “Corporate Philanthropy: Are Your Employees Working Hard Enough?” and read on… Then take a moment to participate in our poll question on this topic to the right.

Tags: philanthropy corporategiving employees

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September 16, 2009 at 4:18 PM by Knowledge Leadership

Yoplait, a Cone client, announces its latest cause campaign on our sister blog, Brand Channeler. Know Your Girls is aimed at Gen Y women, encouraging them to to take an active role in their breast health. For all the details, check out the full post and watch the video below.

 

Tags: campaigns cancer yoplait causebranding newmedia

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September 11, 2009 at 11:50 AM by Knowledge Leadership

If there is an upside to the economic turmoil that’s plagued 2009, it is that it has renewed Americans’ spirit of service to others. And the icing on the giving-back cake is that, as part of the Edward M. Kennedy Serve America Act, September 11 is now recognized as the annual National Day of Service and Remembrance. A date already engraved in the memories of Americans, September 11 is well-suited for a day of service, to remember those lost and to celebrate those who volunteered time and even risked their lives to save others during the tragedy of 2001.

 

Photo credit: http://image.guardian.co.uk

 

However, the national call-to-service is not only aimed at individuals. It is also motivation for businesses and organizations to address the needs of the communities where they operate. Many organizations have already responded, establishing programs that motivate employees to roll up their sleeves and get to work for their neighbors.

To spur the business community’s involvement in economic recovery, the U.S. Chamber’s Business Civic Leadership Center (BCLC) created a collaborative campaign called “Together For Recovery.” And today, the BCLC is featuring various community service projects that companies are undertaking to celebrate the first annual National Day of Service and Remembrance. To name a few:

• IBM employees will volunteer in Washington, D.C., making quilts for children of deployed service members with Greater DC Cares.
• GlaxoSmithKline will host an employee volunteer project in the Harlem Children's Zone, during which GSK employees will lead class discussions with school children about H1N1 prevention and other healthy lifestyle topics.
• Hasbro’s employee volunteers will come together to assemble much-needed kits for two worthy organizations – World Vision and Birthday Wishes.

Although ranging in sector and scale, these organizations can serve as inspiration for others to come together for social good. When businesses or organizations encourage volunteerism, individual contributions can be elevated to an effective, collective effort for change. Are you doing something special to celebrate this day of service? Tell us about it by leaving a comment.

Tags: employees september11 corporateresponsibility currentevents corporategiving

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September 4, 2009 at 12:46 PM by Knowledge Leadership

Even cold water can’t douse the fire that reusable water bottle company SIGG found itself under this week. The company was berated in the news for deceptive claims after its CEO acknowledged that the liners of bottles produced before August 2008 contain traces of BPA, a substance that has raised significant health concerns in recent years. Elaine Shannon, editor-in-chief of the Environmental Working Group, notes SIGG’s current crisis is less about the actual presence of BPA and more about how the company chose to address the issue. Although company officials knew of the traces of BPA since June 2006, they did not address it publicly until last month.

 

The lack of transparency set off a torrent of angry blog posts, tweets and online articles by consumers who felt betrayed. The company has already begun to fight the damaging criticism through letters from the CEO and by establishing a program where consumers can opt to exchange their old bottle for a new one. However, the long-term damage to the brand and business will probably be deep.

 

 

Today’s 24/7 new media environment is forcing companies into greater transparency about their products, services and business practices, but just as some dig in their heels, there are also those companies who are going quite willingly. In the cleaning products and alcohol industries, not without their share of judgment for the social and environmental impacts of their products, two companies are raising the bar.

 

SC Johnson – Early in 2009, the company began voluntarily disclosing product ingredients via a Web site, toll-free hotline and on product labels. It will continue to add products over the next three years, aiming to have all ingredients for air care and home cleaning products available to the public by January 2012.

 

Brown-Forman – The spirits maker recently launched a Web site dedicated to addressing leading alcohol-related social issues, such as youth and alcohol and marketing and access. The site will serve as a forum for the company to share its own positions on the issues and also invites dialogue by allowing visitors to submit comments. Although it remains to be seen how it will use this public feedback, the company is nonetheless demonstrating its willingness to proactively acknowledge difficult issues and work toward collective solutions. According to Jim Bareuther, executive vice president of global business development, “It is an opportunity for us – and for all interested parties – to contribute to the ongoing dialogue and discussion about the role of alcohol in society and how to curtail abuse and promote responsible consumption.”

 

Those companies who take an active stance in providing concerned stakeholders with complete and accurate information and an opportunity to voice their positions will reap reputational benefits over the long-term, as well as the opportunity to continually innovate and improve their products, services and communications.

 

The need for transparency is not limited to the area of corporate responsibility and reputation. In its September 2009 brief, Trendwatching.com discusses “Transparency Triumph” as an important consumer trend, shaping both the marketplace and society.

Tags: newmedia corporateresponsibility currentevents transparency

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August 28, 2009 at 11:22 AM by Knowledge Leadership

‘Tis the season for major storms and Ana, Bill, Claudette and Danny have already joined the festivities. Although it’s said that hurricanes are arriving fashionably late this year, there is still an active forecast ahead, and The American Red Cross is encouraging the public to be proactive. Its new campaign, “Do More than Cross Your Fingers,” focuses on disaster preparedness and is using a multi-channel approach to urge consumers to develop an emergency kit and plan. It features an online resource center, offline media outreach, celebrity spokesperson Jamie Lee Curtis, corporate partnerships with Clorox and FedEx and an online store where consumers can purchase emergency kit items.

 

 

As the hurricane season carries on, consumers may not only be thinking about their own emergency plans, but also how they can help others in the event tragedy strikes. To aid fellow citizens in the aftermath of natural disasters, consumers will seek to donate time, money and goods to organizations addressing domestic needs. One of the biggest motivators for consumers when choosing a cause or organization to support is the assurance that their contributions can have a direct and significant impact on the issue, and it’s easy to see these results when it’s in our own communities or on the local news. For this reason, it is no surprise that the domestic social needs sector was found to be the most valuable in The Cone Nonprofit Power Brand 100.

However, it’s important to remember that natural disasters require more than reactive support after a storm hits, as there is often long-term rebuilding necessary for full recovery. By proactively partnering with service organizations that provide relief for and recovery from national disasters that are close to home, companies can position their brands in a relevant way around an issue that resonates with all Americans.

Check out Cone’s guidelines for how companies can most effectively support disaster relief efforts.

Tags: campaigns causebranding currentevents environment

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August 25, 2009 at 2:49 PM by Knowledge Leadership

This week on Brand Channeler, a Cone employee tells her tale of experiencing a “Covert Cause.” To the detriment of any cause promotion, without adequate details and cohesive communications, consumers may find companies’ efforts inauthentic. In this post, she leaves us begging the question, “what’s the point of a cause promotion if no one knows about it?”

Check out her take and more from Cone’s brand marketing group.

 

 

Tags: cone Reputation employees causebranding

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August 21, 2009 at 10:48 AM by Knowledge Leadership

Products on shelves today have more eco-label flair than a casual-dining restaurant’s employee of the month. This week alone, announcements for a Good Company Seal and a new “Clean Water Wash” label for Gap Inc. jeans were announced, adding to the explosion of new certifications. As organizations create countless standards using different measures and methodologies, how can consumers know which products are “best” or which companies are truly “good?” And with so many certification options, how do companies themselves know which to pursue?

 

For companies or products that focus on environmental responsibility and value the credibility certifications can provide, any new standard or label is something they will examine. But which are the best? Which are most relevant to your consumer? And how many is too many? At some point, your target customers become overwhelmed and unaffected, so it is important to qualify all the options before jumping in. It won’t make sense to chase after every “latest and greatest” environmental label or certification, as most require a rigorous verification process that companies must commit to, which can mean a large investment of time and money.

When deciding which certification to pursue for your organization or product, do your research. Consider the criteria Consumer Reports uses to evaluate eco-labels which include:

• Meaningful and verifiable: Check for an independent 3rd party inspection organization.
  
• Consistent and clear: Standards should be written in a way that can be verified in a consistent manner so that the label is consistent in meaning among different products.
  
• Transparent: The organization behind an eco-label should make information about organizational structure, funding, board of directors, and certification standards available to the public.

Don’t treat your eco-labels as flair on your sash. Think strategically to determine which label is the best fit for your organization.

Tags: labels corporateresponsibility transparency trends

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August 14, 2009 at 10:51 AM by Knowledge Leadership

As the economy struggles to rebound, it’s inspiring to see the number of organizations, programs and projects dedicated to social and environmental issues continue to multiply. This week alone, Macy’s, Nestlé Pure Life, Kmart and PNC all announced new campaigns or projects:

• Macy’s is kicking off a star-studded campaign encouraging consumers to host a dinner party and donate money to Feeding America in lieu of the traditional host gift.
• Nestlé Pure Life is encouraging families to adopt new, healthy habits with ongoing efforts within its Pure Life/Best Life campaign.
• Kmart has partnered with TIME for Kids to develop a curriculum that teachers and parents can use to help teach kids about managing money.
• PNC announced the installation of North America’s largest soil-based living wall on the exterior of its Pittsburgh headquarters, enhancing it's existing efforts to be a world leader in green building.

 

The economy can be good, bad or downright ugly, but no matter because doing good has staying power. Goodness builds trust, trust fosters reputation and reputation drives sales. What’s more, 78 percent of consumers expect corporate contributions to social and environmental causes to remain the same or grow, indicating it’s more important than ever to be committed to the greater good in order to stay relevant and profitable. Stated simply - perseverance pays.

Tags: Trust Reputation campaigns corporateresponsibility economy causebranding

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August 13, 2009 at 5:11 PM by Knowledge Leadership

Today, the Cause Marketing Forum held a teleseminar that featured Movember, a campaign to raise awareness about men’s health issues – specifically prostate and testicular cancer.

 

The signature component of the campaign is the “Mo” – a.k.a. mustache – that participants grow during the month of November to raise awareness and funds for the cause. This fun and humorous campaign considers the Mo its cause ribbon, setting it apart from the pink ribbon which has become a popular symbol for women’s cancer awareness.

Originating in Australia, Movember has since expanded to a global movement with initiatives in New Zealand, the U.K., Canada, the U.S. and Ireland. To date, the campaign has raised $47 million to fund research, support programs and awareness campaigns that improve that state of men’s health.

Why is this campaign so successful?

• Community: The approach and issue resonate well with the target group, young men, and rallies them around a common cause.
  
• Partnerships: The products and values of the program’s partners align closely with its objectives, helping to reach participants more effectively.
  
• Innovative Approach: Movember’s online strategy is at the core of the program, which helps drive word-of-mouth.
  
• Local Appeal: A grassroots movement that enables participants to launch local initiatives.
  
• Humor: Each “Mo Bro” that participates serves as a walking billboard for the cause, literally “Changing the Face of Men’s Health.”
  
• Emotion: Despite the humor, there are captivating stories that are shared among the community of participants, many whose lives have been affected by prostate cancer.
  
• Measurable: Organizers have tracked behavior change among its participants and the campaign has been recognized for driving three vaccine research programs that otherwise would not have funding.

Yet another example of a “Cause Lite” campaign, Movember has made fighting cancer fun and appealing to men around the globe. For more information about Movember, visit its Web site.

 

Tags: nonprofitcausebranding campaigns newmedia

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August 12, 2009 at 5:01 PM by Knowledge Leadership

Like a proud parent, we couldn’t be happier knowing our client, PNC Financial Services Group Inc., has both social and environmental commitments. PNC, who has made an unprecedented 10-year, $100 million investment in school readiness, recently announced plans to install a soil-based living wall on the exterior of the company's Pittsburgh headquarters building. The living wall, which will be installed September 2009, will be the largest green living wall in North America, and just in time for the G20 summit, which will be taking place in Pittsburg this fall.

 

 

Certainly, the wall will provide cooling benefits for the building, but by timing it with the G20 event, it will also draw notice to the bank’s large inventory of green buildings and bank branches. PNC Director of Corporate Real Estate Gary Saulson commented, "The wall will be a fitting reminder that PNC is the world-leader in green building."

 

Cone has been working with PNC on its cause program, Grow Up Great, for six years, and we are thrilled that it also recognizes the importance of committing to the environment.

 

Tags: corporateresponsibility causebranding environment

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August 7, 2009 at 10:24 AM by Knowledge Leadership

Dawn, a P&G brand, has launched special-edition packaging and a social media and advertising campaign to revitalize its commitment to a cause it has supported for over 30 years – wildlife conservation. It’s all part of a trend we’ve seen in recent months as companies infuse fresh life into their existing causes, a rebirth if you will. That’s why we have coined this trend the “cause renaissance.”

This is just one of 10 hot cause-related trends we have identified in the marketplace over the past several months. Our list includes:

 

1. Cause Lite: organizations approach heavy issues with a light heart
2. Seasonal: when life gives them lemons…companies make lemonade campaigns
3. Home Grown: there’s no place like home…to focus a cause campaign
4. Feeding America: companies are feeding America by partnering with this eponymous organization
5. A La Carte Cause: brands put consumers in the driver’s seat and let them choose from a range of options
6. BOGO: the cause value equation is simple = you buy one + we give one
7. Ready, Set, Activate!: for these companies, consumer engagement doesn’t stop in the store
8. Service with a Smile: companies encourage volunteerism by tying it to some of America’s favorite indulgences
9. Cause Renaissance: if it ain’t broke…companies infuse new life into existing causes
10. Make Your Mark: the messages may be temporary, but the impressions are lasting

These trends reveal some interesting insights into the state of cause as we endure a reset global economy. Many of these examples are cause promotions, so it is clear that organizations are taking a back-to-basics approach to cause, seeking to connect with consumers and ultimately drive sales. Companies are also handing over much control to the consumer, giving him or her the ultimate voice in supporting the cause that matters most.

Intrigued? For details and examples for each cause trend, download the list from our Web site.  Then cast a vote in the poll to the right for which trend you think will stick.

Tags: trends campaigns cone causebranding

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August 5, 2009 at 1:52 PM by Knowledge Leadership

The following originally appeared in Cone’s inConetext quarterly newsletter. To read current or past issues, visit our Web site.

 

 

Sustainability, corporate citizenship and corporate social responsibility are just a few of the words used by C-suite executives to describe how businesses provide social, environmental and financial value for key stakeholders and society. It’s no wonder so many companies struggle with the sheer volume and complexity of corporate responsibility issues and stakeholder expectations when they can’t even agree on what to call it.

 

And today, new media have only complicated everything further by accelerating the communications process. The power of stakeholders is much stronger than ever before given their ability to assemble online, wresting control over the message away from companies. So, how does a company keep up? Creating a Facebook page or adding a widget is not going to cut it among today’s tech-savvy consumers and stakeholders, nor will it satisfy their skeptical stance on corporate responsibility marketing efforts. Like all other communications, a new media presence must have the right mix of strategy, messaging and audience to be a success. Cone helps companies navigate this journey from strategy and reporting to engagement and new media communications.

- Jonathan Yohanan, Senior Vice President

 

Tags: engagement corporateresponsibility cone newmedia

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August 3, 2009 at 3:10 PM by Knowledge Leadership

We are humbled by Cone’s inclusion in Christine Arena’s article naming the “Foremost World-Changing Agencies” on the Fast Company Blog. Thanks to Christine for including us in her article and recognizing the hard work of our employees and clients to reach positive social and environmental outcomes.

 

Tags: cone causebranding research

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July 31, 2009 at 11:22 AM by Knowledge Leadership

In Cone’s recent nonprofit brand report, we encouraged organizations to consider adopting “New Currencies” as an essential element to help boost their brands.  These alternative forms of philanthropy include non-cash support such as in-kind donations, pro bono service and skilled volunteerism.  Every organization needs dollars-in-hand to fulfill its mission, but when the financial resources of companies and consumers are dwindling, savvy nonprofits recognize the value to be found in more creative tender.  These currencies allow organizations to expand the scope of sponsorships and engagement opportunities, and foster relationships even when traditional financial contributions are waning.  At a time when the nation is flush with volunteers – according to a new study from the Corporation for National and Community Service, Americans donated 8 billion hours of volunteer time in 2008 – this trend likely won’t reverse even when the economy recovers.

 

 

The Center on Philanthropy at Indiana University found these philanthropy vehicles to resonate particularly well with Gen X donors.  Citizens in their 20s and 30s are more interested in social advocacy and engagement philanthropy and are more likely to want to work directly with organizations instead of just donating money.

 

The future landscape of philanthropy will include the next generation of not only high net-worth donors, but high-engagement contributors who want to offer their skills and engage in a more meaningful way.  As this shift occurs, nonprofits will need to prepare to accommodate this influx, including establishing the necessary space, guidance and structure for eager volunteers, a challenge many organizations are already experiencing.  Yet, for this effort comes the reward: the valuable assets skilled volunteers can provide include legal advice, IT support and consulting services, to name a few.

Tags: nonprofitpowerbrand100 corporategiving economy research donation

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July 24, 2009 at 11:10 AM by Knowledge Leadership

Worldwide, a record number of companies are reporting on their sustainability performance. Whether these companies are reaching their employees with these messages is another story.

 

 

Two new studies uncover a disconnect between corporate responsibility efforts and employee awareness. According to a Public Policy Polling survey, nearly one-quarter (24%) of survey participants indicated their company has made sustainability a top priority in business decisions, yet only 17 percent said sustainability efforts are frequently communicated to the workforce. The 2009 Corporate Citizenship Survey, conducted by a group of firms, found a more startling figure – a full 70 percent of employees say they are not aware of any socially responsible practices their own employer is taking. A company’s social and environmental practices can affect everything from recruitment to employee pride, loyalty and retention, so inadequate communication has far-reaching implications inside a company’s own walls.

 

What’s more, employees serve as natural brand ambassadors for their organizations. Failure to adequately educate them about corporate responsibility efforts and initiatives hinders a powerful, cost-effective and credible channel for reaching consumers and other external stakeholders.

 

Tags: engagement employees environment research corporateresponsibility

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July 17, 2009 at 11:30 AM by Knowledge Leadership

The media was abuzz with industry-changing news from retail giant Walmart this week. The company has begun the tricky process of establishing a worldwide “sustainable product index” for its suppliers, with the goal of eventually displaying this on all products it carries. The concept is not new – other companies such as Timberland and Nike have already created their own product evaluation systems – but the goal is to develop the first comprehensive source of data for evaluating sustainability across all products. In the final phase of the process, the company intends to equip consumers with a simple rating system that will disclose product sustainability, allowing consumers to make more informed purchase decisions. As Walmart CEO Mike Duke stated, the company wants to “create a new retail standard for the 21st century.”

 

Although the consumer-facing label will take a few years to develop, the company will begin the process by first surveying its more than 100,000 suppliers on current practices using a 15 question survey focused on energy and climate, material efficiency, natural resources and people and community. Walmart chief merchandising officer John Fleming explained, “The questions aren’t complicated but we’ve never before systematically asked for this kind of information. The survey is a key first step toward establishing real transparency in our supply chain.” Following this, Walmart will collaborate with several universities, governments, suppliers and other retailers to develop a global sustainability index.

 

Suppliers whose products are currently on Walmart shelves will no doubt be scrambling to shine light on their sustainability initiatives. This will be an exciting opportunity for those companies already working to reduce their impacts to display their environmental stewardship. Those not already operating with the environment and society in mind, and/or those not measuring such data, will have a lot of work to do in the coming months. And yet, the generality of Walmart’s questionnaire, which doesn’t delve into product-specific or even industry-specific nuances, just skims the sustainability surface. It leaves lots of room for interpretation, and it is not clear how – or if – Walmart will verify the data.

 

That said, Walmart’s vision is a worthy one and establishing a shared baseline for the industry is a monumental step indeed. The retailing giant, already credited with helping set the standard for items like concentrated laundry detergent, likely has the wherewithal to bring something this complex to life. If the rest of the retail industry joins this effort, it could be gamechanging.

 

Tags: timberland labels corporateresponsibility transparency walmart

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July 10, 2009 at 12:14 PM by Knowledge Leadership

Organic, non-GMO, 100% recycled, “oh my!” By default, supermarkets are getting a rapid makeover as companies strive to become more responsible.

 

 

To start, shoppers can likely expect an influx of organics on local shelves, as it’s been identified as the No. 1 food trend of the coming decade, far surpassing easy meals and low-calorie labeling. With a market already estimated at more than $23 billion annually, there is no doubt that continued consumer interest will have companies rushing to capture a piece of the expanding pie.

 

Not to be outdone, Whole Foods is adopting a non-GMO verification for all its private-label products and is expected to begin rolling out new packaging later this year. Executives note that although the verification is not required, they hope it will help consumers make more informed purchase decisions.

And the momentum in the supermarket doesn’t end with the product itself. Earthbound Farm and Naked Juice separately announced they are raising the bar by converting to 100% post-consumer recycled plastic packaging. "These are major consumer brands using recycled content," says Anne Johnson, director of the Sustainable Packaging Coalition, in an article in USA Today. "It's a big deal." For its part, Earthbound Farms explains the move is about marrying its organic food with a responsible image. The switch has happened in light of research that found environmental packaging by food companies to be the third most important purchasing factor for North American consumers — ranking slightly below freshness of ingredients and additional health benefits.

Tags: corporateresponsibility research trends

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July 7, 2009 at 11:05 AM by Knowledge Leadership

We’ve discussed powerful cause videos in the past, but Dawn’s latest cause commercial is once again tugging at our heart strings. The spot, which shows how Dawn dishwashing liquid can be used to safely wash animals affected by oil spills, coincides with its latest cause promotion. For every bottle of specially marked Dawn purchased and activated online, the company will donate $1 to organizations like The Marine Mammal Center and The International Bird Rescue Research Center.

 

Dawn nailed many best practices for cause videos with this commercial – it’s the right mix of emotional, uplifting and transparent.  Visit Dawn’s wildlife site for more information about this program.

Tags: donation causebranding campaigns transparency

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July 1, 2009 at 11:44 AM by Knowledge Leadership

Want to build a brand relevant to your supporters? Then say what you do in a crisp and clear way.

 

The Cone Nonprofit Power Brand 100 found that organizations who clearly state their issue focus in their brand names are perceived by consumers as more familiar and personally relevant. For example, the National Cancer Coalition captured higher consumer relevancy ratings than organizations whose names were more ambiguous. Clever or creative branding is good, but clarity makes communication easy - donors, volunteers, clients and potential advocates can easily understand who you are and what you stand for.

 

 

Another brand element to consider: your organization or program tagline. Does it support the mission of your organization? Does it say what you do? To explore this topic, nonprofits and foundations of all sizes can enter their taglines in the 2009 Getting Attention Nonprofit Tagline Awards. Visit Nancy Schwartz’s blog for more details about the friendly competition and to submit an entry.

 

 

Tags: nonprofitpowerbrand100 nonprofitcausebranding nonprofit awards

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June 30, 2009 at 1:43 PM by Knowledge Leadership

Corporate giving in 2009 may not be quite as dire as anticipated. According to a new survey from the Chronicle of Philanthropy, about half of responding companies said they would maintain roughly the same giving levels in 2009 as they did last year.

 

The Chronicle study (premium login required) on the state of corporate philanthropy is composed of corporate giving data from 108 of America’s largest companies. It’s chock full of useful data and information that address some of the most common questions among cause marketers and those interested in corporate giving trends.

 

A few key findings the Chronicle reported:

 

• 2009 Predictions: Of the 96 companies that provided predictions about how much they would donate in cash and products this year, 51 said the amount would stay roughly the same as in 2008, 15 expected it to decline and five said it would grow.
• 2008 Giving: The survey found that despite the gloomy outlook, cash giving among big companies grew in 2008. Of the 71 companies that provided data for 2007 and 2008, cash donations rose from $3.6-billion to $3.9-billion, a 9-percent increase — or about 5 percent when adjusted for inflation.
• Biggest Givers (cash & in-kind): When both cash and products are counted, the computer software company Oracle gave the most in 2008 ($2.1-billion), followed by Pfizer ($1.9-billion) and Merck & Company ($821-million). Product giving makes up most of corporate philanthropy, accounting for 66 percent of what the companies in the survey donated in 2008.
• Biggest Givers (cash): Among cash contributors, Wal-Mart led the pack, awarding $320.5-million, an increase of almost $20-million over 2007. The second and third largest cash donors were Bank of America ($226-million) and Exxon Mobil Corporation ($188-million).
• 1% Rule: Businesses awarded a median of 1 percent of their 2007 pretax profits to charity in 2008. This represented a decline from last year, when they donated 1.4 percent of their profits.
• Matching Gifts: Ten companies have reduced or cut their employee matching-gift program.
• Business Alignment: The results also show that companies are becoming increasingly strategic with their giving, often focusing on basic human needs and decreasing giving to arts, culture and capital campaigns. The article discusses giving among financial and automotive companies, as well, given the stress these industries are under.

Tags: corporategiving

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June 25, 2009 at 12:05 am by Knowledge Leadership

Since yesterday’s launch of The Cone Nonprofit Power Brand 100, we’ve had many great discussions about the research. Every conversation starts with the same question. “What is it about the Top 10 that makes them the Top 10?” The answer, in a word, is ENGAGEMENT.

Whether 100+ years old, or newer kids on the block, these nonprofits are experts at leveraging multiple points of consumer engagement. Many have bricks-and-mortar facilities (YMCA, The Salvation Army, American Red Cross, Goodwill, Boys & Girls Clubs) or in-your-face marketing (Habitat, American Cancer Society) that keep them top-of-mind with consumers, donors and other stakeholders.

 

Other common threads include:

• Their services have broad appeal to an array of stakeholders
• They are entrenched in hundreds or even thousands of local communities across the country with extensive consumer touch points
• They provide a credible voice and are a sought-after resource to help in difficult times
• They have successfully partnered with companies to reach a broader array of constituents with a clear call-to-action
• They have derived significant revenue through cause commerce (selling goods or services that help fund their cause)

It’s also notable that six of the Top 10 Nonprofit Power Brands are domestic social needs organizations (The Salvation Army, United Way of America, American Red Cross, Goodwill Industries International, Catholic Charities USA and Habitat for Humanity International). This sector is thriving as Americans turn their attention homeward since the devastating disasters of September 11 and the 2005 hurricane season. And, in these tough economic times, individual support of nonprofits providing life’s basic necessities has actually increased, and we expect this sector and its organizations will only sustain their upward momentum.

Visit our Web site to get branding insights straight from the Top 10, or to hear from the CEOs of the United Way, Catholic Charities and the American Cancer Society.

Tags: engagement nonprofitpowerbrand100 research top10 cone nonprofit

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June 24, 2009 at 12:11 PM by Knowledge Leadership

The Cone Nonprofit Power Brand 100 is officially in the marketplace, and not surprisingly, amid all the chatter about who is ON the list, there is some about who is NOT. So, how did we choose the 100 leading organizations to evaluate? The answer is quite simple- we used Forbes 200 Largest Nonprofits list to give us a starting point. Check out additional info on the filter criteria.

 

We looked at 100 impressive organizations, but in the end that’s a fraction of the 1.5 million total nonprofits in the U.S., so there are bound to be some favorites that aren’t on the list. To the right, on our blog poll, we’ve listed a few notable absences. Who did you miss?

Tags: nonprofitpowerbrand100 research cone nonprofit

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June 23, 2009 at 5:40 PM by Knowledge Leadership

• The YMCA of the USA’s brand is worth almost $6.4 billion, making it the nation’s most valuable nonprofit brand.
  
• The American Cancer Society is the single most relevant nonprofit among American consumers.
  
• The domestic social needs sector is the most valuable nonprofit sector in the nation.
  
• Yet, by not fully leveraging their powerful brands, some nonprofit organizations may be leaving millions of dollars in potential unearned revenue on the table.

 

Intrigued? Then check out Cone’s latest research – The Cone Nonprofit Power Brand 100 – released today. In collaboration with Intangible Business, Cone valued the brands of some of America’s leading social, environmental and animal organizations. We’re excited to share with you this first-of-its-kind research that explores the unique relationship between nonprofit brand image and financial performance, which culminates in the nation’s first complete list of the top 100 nonprofit brands.

 

On the Cone Research and Insights page, we share the complete list and accompanying report, as well as much more, including insightful commentary from the CEOs and executives of many of the Top 10 organizations (for a sneak peak at the Top 10 list, see below).

 

We’ll discuss the research in greater detail right here in the coming days, but first we encourage you to take a look. Feel free to share your thoughts with us here – we’re looking forward to a robust discussion around nonprofit brand value.

 

Tags: research cone nonprofitpowerbrand100

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June 19, 2009 at 1:16 PM by Knowledge Leadership

Social media engagement and public service have been cornerstones of President Obama’s candidacy and administration. Merging these two, this week he announced a summer volunteerism initiative (June 22-September 11) called “United We Serve.” The program asks Americans make service a part of their daily lives and to help supplement the federal government’s investments in core areas of the recovery agenda – healthcare, energy independence, education and community and economic renewal. Obama is calling for cross-sector collaboration to bring this initiative to life. He says, “We need community organizations, corporations, foundations and our government to be part of this effort.”

 

 

 

At serve.gov, prospective volunteers can easily search for opportunities in their own communities, and the site provides turn-key tools to share experiences via their existing social networks (see this week’s article, “Hello? Arkansas? Yeah it’s Facebook.” for an example of the power of social networks in action). The search tool is integrated with the open-source Web project hosted at AllforGood.org, which was designed by technology and nonprofit partners and is fueled by the nonprofits, volunteer service listing providers and companies who submit volunteer opportunities to the site. This is certainly not the first volunteerism site or aggregator, but the cross-sector collaboration it will take to make it a success is compelling.

 

The “United We Serve” campaign serves as an example of how the government, nonprofit and for-profit organizations can, and should, come together to encourage positive civic behavior and better address pressing social and environmental concerns.

 

 

Tags: economy campaigns newmedia

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June 15, 2009 at 5:56 PM by Knowledge Leadership

Cause-related campaigns understandably flourish at certain times of the year- during the winter holidays, October and Earth Day, for example. But this summer is turning out to be just as ripe for opportunities to do good. A few sunny summer campaigns that have launched recently:

 

Electrolux’s “Virtual Lemonade Stand”
Electrolux and its sprightly spokeswoman, Kelly Ripa, have launched a new initiative to support the Ovarian Cancer Research Fund. For each Virtual Lemonade Stand consumers open online, Electrolux will donate $1 to the OCRF (with a minimum of $10k and a maximum of $15k). The company has also committed to donate $500,000 to the cause.

 

 

 

Tom’s of Maine “50 States for Good”
Corporate-sponsored online contests that allow consumers to decide which organizations will get charitable dollars are a leading cause-related trend right now, and during the hazy days of summer, it’s just getting hotter. Through Tom’s of Maine’s “50 States for Good” campaign consumers can help the company decide where to invest $100,000 in communities across the U.S. by nominating and/or voting for their favorite organizations in their states. In the fall, Tom’s will donate $20,000 to each of the five winning nonprofits.

 

 

Gap’s “The Ultimate Happy Hour”

This one’s just for Gap employees around the world. In celebration of its 40th anniversary, Gap has launched The Ultimate Happy Hour to encourage and reward its employees for their volunteer work. In keeping with its commitment to serving underserved youth and women, employees are encouraged to focus their volunteer efforts in these areas.

 

Tags: Volunteer charity celebrityengagement causebranding campaigns

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June 12, 2009 at 12:20 PM by Knowledge Leadership

In 2008, the U.S. Federal Trade Commission (FTC) began a series of public workshops to review its “Guides for the Use of Environmental Marketing Claims.” Initial sessions focused on carbon offsets, product packaging (for which Cone shared findings from its 2008 Green Gap Survey) and buildings and textiles. But since then, momentum seemed to slow.

 

Until this week, that is, when rhetoric turned to action as the FTC cracked down on Kmart and two other companies for making deceptive biodegradability claims. Kmart claimed that its American Fare private label brand of paper plates was biodegradable. The FTC challenged the retailer not because it questioned whether the paper plates actually decompose, but instead because of the way Americans typically dispose of their trash- in landfills where the plates have little hope of degrading. In essence, the FTC is indicating that it is not just about the inherent accuracy of the claim, but whether consumers can realistically act upon it.

At the same time, the House subcommittee on commerce, trade and consumer protection held a hearing entitled “It’s Too Easy Being Green.” In testimony, James Kohm of the FTC’s Bureau of Consumer Protection explained:

“Competition based on green claims drives businesses to greater innovation, which ultimately benefits consumers by increasing the availability of the types of green products and services they desire. For the marketplace to thrive, however, companies must compete on the basis of legitimate advertising claims and consumers must be able to rely on those claims.”

Kmart may be under fire today, but as the FTC continues to investigate instances of greenwashing, we can expect that more companies will follow.

 

Cone VP Liz Gorman expands upon the Kmart case in her post.

 

 

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Tags: FTC corporateresponsibility marketing

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June 5, 2009 at 2:49 PM by Knowledge Leadership

Business leaders who hold traditional beliefs about the role of business in society continue to use the economic crisis to espouse their conviction that the primary responsibility is to do well, not good. In their recent BusinessWeek column, Jack and Suzy Welch argue just this. It’s not as one-sided of an argument as we often see, but the point is clear: profit begets purpose, not the other way around. If a rash of new M.B.A. programs is any barometer, however, fresh thinking is on its way in.

 

Case in point—a story this week about Harvard Business School’s creation of “The M.B.A. Oath.” This promise “to serve the greater good” was organized by students and 20 percent of the program’s 2009 graduating class has opted to take it. Student advocates of the oath hope to establish a formal code that all future graduates will be required to uphold, similar to the Hippocratic Oath for physicians or the pledge taken by lawyers to uphold the law and Constitution.

 

 

M.B.A. professors, too, are recognizing the shift in attitudes among today’s students, and schools have ramped up courses and created new centers focused on ethics and corporate responsibility to satisfy the increased demand. Business school professors agree “they are seeing a generational shift away from viewing an M.B.A. as simply an on-ramp to the road to riches” and are viewing “business as more than a money-making enterprise, but part of a large social community.” This trend shows that future leaders may well care about more than just profits, and feel a stronger sense of responsibility for the good of society.

 

It’s not just corporate responsibility seeing this shift in thinking. Enrollment in climate-focused M.B.A. programs is surging, graduates are opting for careers in community organizing and public service agencies such as Teach For America and the Peace Corps are experiencing a swell in applications. In fact, research shows that M.B.A. students are willing to sacrifice an average of 14.4 percent of their expected compensation to work for a responsible company.

 

There is little doubt that corporate America’s attitudes will shift even further when these graduates become leaders. Dare we predict consumer perceptions of corporate America will follow?

 

Tags: trends economy research MBA corporateresponsibility

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May 29, 2009 at 11:44 AM by Knowledge Leadership

Some recent cause-related campaigns have proven that a little levity can go a long way in capturing consumer attention.

 

Comedian Will Farrell launched a gag-gift-worthy line of sunscreen, which will benefit the charity Cancer For College. The line of products featuring comical (and slightly stomach churning) images of the popular celebrity will be sure to capture consumer attention. It certainly caught ours.

 

 

 

This week, The New York Times discussed another campaign by The Blood Center of Central Texas, which suggests giving blood can offset bratty behavior, such as failing to hold the elevator, mooching Wi-Fi or taking home office supplies. The humorous tone has resonated with Austin-area residents, and the organization has seen a 20 percent increase in blood donations since the campaign launch. The creative director of the multi-channel campaign notes, “This isn’t the time to go out there and be heavy.”

On the corporate side, KFC’s highly publicized pothole program and Kroger’s involvement in the Bread Art Project captured much attention from consumers and the media alike in recent months for their amusing approaches to addressing problems.

 

 

The stress brought on by the battered economy and struggling job market can make heart-wrenching messages hard to process. A little humor can help capture consumer attention, and when done right, light-hearted messages don’t necessarily undermine the seriousness of the cause.

 

A guest post on Katya Andresen’s Nonprofit Marketing Blog, which shared further “proof nonprofits can be funny,” summed it up this way:

“In conclusion: don’t be afraid to be funny! Remember that humor is just a tool to engage the audience. Once they’re engaged, you can transition to the sensitive subject. The humor is not about the actual subject - nobody is joking about cancer or genocide - it’s just a way to help approach something to which people might otherwise be resistant.”

For much more news on this topic, please see our weekly newsletter. Click to subscribe to Cone's newsletter.

Tags: charity donation causebranding celebrityengagement nonprofitcausebranding campaigns

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May 22, 2009 at 11:36 AM by Knowledge Leadership

The Humane Society of the United States is showing a softer side for one of its former animal cruelty targets. The nonprofit organization has partnered with football sensation turned convicted dogfighting offender Michael Vick to become its anti-dogfighting campaign spokesperson. Wait - what?

 

That’s right, the very organization that rallied against Vick and helped put him behind bars in 2007 announced he will become the face of its campaign. The incentive for Vick is fairly clear. Looking to repair his damaged reputation following his fall from the sporting spotlight, he likely sees aligning with the cause as a direct route back into the public’s favor.

 

 

For The Humane Society, however, the choice to engage a man prosecuted for animal cruelty is harder to grasp. But the organization is using the outcry to its benefit. The aftermath of the scandal actually gave The Humane Society and other animal organizations a unique opportunity to draw upon public attention and address the issue of animal fighting. As his sentence comes to an end, the organization believes working with Vick will provide a direct line of communication to the urban youth it is trying to reach with its anti-dogfighting message. Vick himself grew up exposed to dogfighting and claims he didn’t question its immorality when he became an adult. Perhaps like drunk driving offenders or former drug abusers who take to the speaking circuit to share their “lessons learned,” Vick may supply an authentic voice to the campaign the organization couldn’t achieve with another spokesperson.

 

Partnering with celebrities, as we’ve discussed in previous articles, is always a perilous venture, but joining with one so blatantly in conflict with your organization’s mission is nothing short of treacherous. The Humane Society is taking the controversial decision in stride, claiming it will “reserve judgment until he demonstrates that he's part of the solution rather than a further part of the problem.” Time will tell how the public, Humane Society supporters and animal rights advocates react to this unlikely partnership. Frank, ongoing communication from the organization will be critical.

 

Tags: engagement celebrityengagement currentevents advocacy marketing campaigns

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May 15, 2009 at 2:23 PM by Knowledge Leadership

Want to really engage consumers in your cause efforts? Then give them a voice. Target, well-regarded for its philanthropic commitments, relinquished some control this week as it launched “Bullseye Gives,” a campaign allowing consumers to decide how to give away Target’s money. The company will divide a $3 million donation among its 10 charity partners, determined by consumer votes on the Target Facebook page.

 

 

Consumer-centric philanthropy campaigns like this are not new, but they are clearly resonating. In the past year, American Express, Western Union* and Trip Advisor have all launched similar consumer-driven online contests, powerful because they offer unique benefits to all parties.

 

First, online contests’ user-friendly, low- to no-cost tools provide companies a channel to connect with consumers on a more personal level than traditional checkbook philanthropy (in turn, perhaps breeding greater trust, engagement and loyalty). It allows consumers to select a cause of importance to them, which, according to Cone’s research, is the leading factor (84%) they say will influence their support of a company’s social efforts. And, as The New York Times says, such campaigns are “adding yet another weapon to charities’ fund-raising arsenal” while also building awareness. Most importantly, it helps level the playing field for both consumers and nonprofits who all have an equal voice in influencing the outcome. Bullseye.

 

 

For much more news on this topic, please see our weekly newsletter. Subscribe to Cone's newsletter here.

 

*Cone Client

Tags: campaigns fundraising engagement causebranding newmedia philanthropy marketing donation

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May 8, 2009 at 1:13 PM by Knowledge Leadership

In an “always online” culture, it is increasingly important to communicate with and engage audiences where they’re plugged in. At Cone, we define new media as “technology-facilitated dialogue^sm among stakeholders.” Engaging audiences through technology is a powerful tool to increase awareness of issues. In fact, The New York Times recently highlighted an organization using new media - the Adolescent Pregnancy Prevention Campaign of North Carolina (APPC), whose innovative Birds and Bees Text Line offers information to curious teenagers about sexual heath on their mobile devices.

 

 

The state faces growing teenage pregnancy rates and risky behaviors - issues that weren’t being mitigated by traditional classroom education. The APPC knew its target audience of 14-19 year-olds had mobile phones, and that the anonymity provided by text messaging would offer a safe and comfortable forum to ask difficult questions about sexual health. The choice of mobile devices as a communications tool shows the APPC understands new media is less “build it and they will come” and more “build it where they already are.” APPC health educators respond to text inquiries within 24 hours, and refer to the service as “sex ed on their turf” - therefore creating a dialogue with teens as opposed to talking at them.

 

Unlike similar programs in other cities and states, the program provides for one-to-one interaction, demonstrating that new media can still be an intimate forum for communication. The Birds and Bees Text Line is only a piece of a larger strategic plan to educate teens about sexual health beyond the classroom, but it has allowed the organization to reach its target audience more effectively and in a way that is culturally relevant.

 

Cone will be speaking more about how to align new media with a corporate responsibility communications strategy at the 2009 Sustainable Brands Conference, where Mike Hollywood, director of new media, and Jonathan Yohannan, senior vice president, will be leading a workshop about New Media for Sustainability.

 

For much more news on this topic, please see our weekly newsletter. Subscribe to Cone's newsletter here.

 

Tags: engagement conferences campaigns nonprofit newmedia

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May 5, 2009 at 4:19 PM by Knowledge Leadership

Spring is in the air, and Cone is revving up for an exciting (and busy) conference season. Here is a sneak peek of where you can find us in the next two months:

 

The Better Business Bureau of NY

CSR Forum II: Leading the Recovery and Restoring Transparency and Trust in Business

May 12, 2009

Carol Cone will be moderating a panel entitled “Responsibility Strategies for Rough Times.” The discussion will include representatives from Verizon, Time Warner and Pfizer.

 

Sustainability 50

May 12, 2009

Jonathan Yohannan, SVP, will join a candid discussion among business leaders about effective environmental communications.

 

Entrepreneurs Foundation

May 14, 2009

Carol Cone will lead a roundtable discussion entitled “Anatomy of the Corporate Soul.”

 

The Bulldog Reporter Media Relations Summit

Expanding the Value of PR in the Digital Age

May 18, 2009

Mike Lawrence, EVP and Chief Reputation Officer, will speak on a panel entitled “Lightning Response: Surviving the First 24 Hours of Crisis.”

 

The 2009 Cause Marketing Forum Conference

May 27, 2009

Carol Cone will help kick off the event with a keynote at the opening dinner about trends in cause marketing and Cone’s latest cause research.

 

CECP’s Corporate Philanthropy Summit

Under a New Lens: Corporate Philanthropy in a Changed Economy

June 2, 2009

Carol Cone will moderate a panel entitled “Beyond Cash: Leveraging Your Resources.” The discussion will include representatives from Cisco, American Express Foundation and The Eli Lilly and Company Foundation.

 

Sustainable Brands 2009

June 4, 2009

Mike Hollywood, Director of New Media and Jonathan Yohannan, SVP, will lead a half-day workshop on “Sustainable New Media” where participants will learn how to successfully integrate new media into corporate responsibility communications strategies.

 

We are honored to be speaking at these leading conferences and hope you can join us!

Tags: Reputation environment corporateresponsibility newmedia causebranding crisis conferences

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May 1, 2009 at 12:29 PM by Knowledge Leadership

This week Sony joined a roster of companies providing in-store recycling kiosks for any electronic product, regardless of its brand. Waste Management also launched a new CFL bulb that comes packaged in a postage-paid box. Consumers can use the container to return dead CFLs to a recycling center, ensuring the bulbs, which contain a small amount of mercury, will be properly discarded. And earlier this month, the Estee Lauder brand Origins announced it will accept and recycle used cosmetic containers from any manufacturer (cosmetics packaging like lipstick tubes and shampoo bottles account for a third of landfill waste!) at all of its stores and counters nationwide. What does this mean for consumers? It’s getting easier to be “green.”

 

 

Step one was creating and providing environmentally responsible products, but the cost of a corporate environmental commitment today goes far beyond the store shelf. Companies are stepping up to help ease the common barriers which prevent consumers from proper use and disposal of their products. They are extending their commitments by offering turn-key solutions for responsible engagement throughout the product life cycle, minimizing not only the manufacturing impact of their products, but also accommodating the safe disposal or reuse of materials they contain. And frankly, they are eliminating, one-by-one, the excuses consumers have for not being green.

Tags: corporateresponsibility recycle environment trends

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April 24, 2009 at 10:44 AM by Knowledge Leadership

Perhaps we sound a bit like a broken record, but we just can’t stop talking about volunteerism. The momentum simply hasn’t slowed since we first called 2009 “the year of service” in January. National Volunteer Week concludes tomorrow, but it’s not the calendar marker that is resonating as much as some of the news and research that has been released in light of it.

 

This week, President Obama brought to fruition his call for service when he signed “landmark” legislation expanding service and volunteer programs in the U.S. He called upon Americans to “make an enduring commitment to serving your community and your country in whatever way you can.” The Serve America Act will more than triple the size of AmeriCorps, create new volunteer programs and help nonprofits expand programs and recruit and manage volunteers.

 

Photo Credit: The Huffington Post

 

The latter is particularly relevant given new findings from Deloitte’s* 2009 Volunteer IMPACT Survey. The study, the latest in Deloitte’s research series which explores skills-based volunteerism, revealed a troubling disconnect in the pro bono space. At a time when more than nine in 10 nonprofit respondents say they need and want pro bono support, “most have a startling lack of knowledge about where to get it.” What’s more, about one-in-four nonprofit respondents say they have “no plans to use skilled volunteers or pro bono support in any capacity in 2009.” This insight points out that corporations and nonprofits are still more focused on giving and getting cash, despite these challenging times. Until the conversations between these two parties extend beyond financial support, both will leave significant value on the table. As Deloitte notes, pro bono is currency. And it’s a tender that will become increasingly valuable as the nationwide, sector-spanning spotlight on volunteerism intensifies and the corporate purse strings tighten.

 

For much more news on this topic, please see the Philanthropy & Volunteerism section of our weekly newsletter.  Subscribe to Cone's newsletter here.

*Cone client

Tags: Volunteer Obama

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April 17, 2009 at 1:25 PM by Knowledge Leadership

Tide may be going back to cause marketing basics, but it has also upped the ante considerably for consumer packaged goods cause promotions in the grocery aisle. The detergent brand recently announced that, at least for a limited time, it will give its bottle a complete overhaul, including a special yellow cap and imagery to support its cause marketing program, “Loads of Hope.” This is the most radical change to its packaging in its 60-year history, and it is the next evolution in Tide’s cause marketing program which helps families affected by natural disasters.

Cause marketing efforts are proliferating online, but it is nice to see that on-pack and in-store messaging has not lost its luster. It is a proven way for companies to connect to consumers at point-of-sale and to reward them with an effective dual benefit: a do-good feeling even as they shop for everyday staples.

 

Other cause marketing fundamentals that are resonating as consumers weather today’s tough economic climate:

• Coupons (example: Jiffy Lube’s* “Maintenance Partners for Life” program with the American Heart Association*)
• Turn-key engagement opportunities (example: Betty Crocker’s* “Stirring Up Wishes” program)
• Tangible impact (example: Disney’s buy-a-ticket, plant-a-tree promotion)
• Basic needs, with a twist (example: Campbell’s “Help Grow Your Own Soup” program)

*Cone clients

 

Tags: campaigns economy causebranding marketing

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April 3, 2009 at 12:30 PM by Knowledge Leadership

Citizen volunteerism is growing at a rapid rate, fueled by the poor economy, President Obama’s public call-to-service and allocation of stimulus dollars to government-funded service programs. But the time is also right for a surge in corporate volunteerism.

We know employee volunteerism is a valuable way for companies to give back to their communities and boost morale among employees, and a new study released by the Taproot Foundation’s Pro Bono Action Tank (PBAT) and the Committee Encouraging Corporate Philanthropy (CECP) provides a helpful standard for companies to better measure their contributions.

 

This valuation, of what can be an ambiguous line item for businesses that aren’t professional services firms, may provide the incentive they need to send more employees to serve their communities. The standards will allow corporations to more accurately track and report the value of pro bono services as cash equivalents, according to Charles Moore, executive director of the CECP.

As the old business axiom goes, what gets measured gets done.

 

Tags: Volunteer economy research

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March 27, 2009 at 1:11 PM by Knowledge Leadership

New research finds that 63 percent of workers in the U.S. feel their companies should be doing more to reduce their power consumption. A simple step? Power down PCs.

The PC Energy Report 2009 found that businesses in the U.S. are wasting $2.8 billion a year in energy costs by failing to turn off computers. According to the report, “If all the world’s 1 billion PCs were powered down just one night, it would save enough energy to light up New York City’s Empire State Building – inside and out – for more than 30 years.” Shutting down office computers during the evenings and weekends when they are not in use can save individual organizations thousands of dollars each year, while helping to minimize overall office energy use.

This weekend is a perfect time to start. Saturday, March 28th marks the third annual Earth Hour event – a global initiative organized by the World Wildlife Federation to raise awareness about climate change. At the time of this story, an impressive 2,848 cities, 21,014 businesses, 6,299 organizations and 8,742 schools within 84 countries signed up to participate by turning off their lights between 8:30 and 9:30 p.m. local time on Saturday.

 

Take this symbolic act, which is designed to raise awareness, a step further to something that can have a sustained impact on your energy use and your bottom-line: encourage all employees to ensure their computers and monitors are turned off for the entire weekend. Earth Hour is an awareness builder, but only if it translates to true, ongoing action.

Tags: currentevents research environment

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March 26, 2009 at 11:48 AM by Knowledge Leadership

Is micro-volunteerism the future of volunteering?

 

Hat tip to Meghan Keaney at the Speak United blog for drawing my attention to The Extraordinaries, a fascinating software solution which allows volunteers to take part in small bursts of activity when time allows, all from the comfort of their smartphones (think helping to translate a microfinance loan for Kiva while waiting in your doctor’s office or transcribing a Witness human rights video on the bus).

 

Sure it will never take the place of traditional volunteering – which requires a substantial commitment from both the volunteer and the organization and provides an equally powerful return – but it is a good start toward tapping the unused minutes of the deluge of laid off Americans seeking a way to put their time to good use.

Tags: newmedia

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March 20, 2009 at 11:33 AM by Knowledge Leadership

The Salvation Army’s annual holiday fundraising drive, with its iconic red kettles, hand bells, and volunteers in Santa suits collecting change, seemed to defy the odds this holiday. Despite a retail season with lighter foot traffic and pockets with fewer coins to spare, the Salvation Army reported record fundraising in 2008, bringing in $130 million.  That’s 10 percent higher than 2007, which represents the largest one-year jump in revenue growth in more than a decade. With the economy on the brink of a meltdown, how did the Salvation Army achieve record-breaking fundraising?

 

It innovated. The Salvation Army stretched pocket-change fundraising to new heights, elevating its strategy to a multi-channel, highly engaging program.

 

First, it recognized the power of younger donors and sought them out where they were already plugged in- online via social networks and through their mobile devices. The 2008 program included the ability to donate online, to spread the word via social networking sites and to download an iPhone application specifically developed for the campaign. Other high-tech advancements in the signature red kettle collections included regional testing of “cashless kettles,” which accepted credit or debit cards and “mobile giving,” which allowed consumers to text donations from their cell phones.

 

 

The Salvation Army leveraged these online capabilities and went viral by providing turn-key online fundraising toolkits and incentivizing consumer participation. The Online Red Kettle Campaign provided tools such as email templates and widgets and featured the top fundraisers on its Web site. Internet giving alone brought in $10 million in 2008.

 

At the same time, the organization stayed true to more traditional means of fundraising and awareness by engaging the teen-idol band the Jonas Brothers, leveraging several corporate partnerships including Wal-Mart and Target and never forgeting its volunteer base of 25,000 on-site bellringers.

 

Research shows that consumers are generally giving the same this year but to fewer organizations.  By mixing traditional fundraising tactics with new digital approaches, the Salvation Army was able to tap those with money to give and came out of the season further ahead than ever before.

 

For more fundraising tips beyond the holiday season to use throughout 2009, read our latest article, Fundraising Remedies for the New Economy.

Tags: newmedia charity economy research fundraising campaigns

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March 13, 2009 at 1:29 PM by Knowledge Leadership

A new report confirms short-term price cuts do little to breed customer trust or loyalty. In fact, the Yankelovich poll says, they can actually be damaging to your brand. Seventy percent of respondents said that price cuts probably mean the brand is overpriced to begin with or the company is just trying to move old product. “People are suspicious if you significantly discount your brand,” explained J. Walker Smith, president of Yankelovich Monitor. “If you make significant changes in your value proposition it can confuse them. You have to give them reasons to buy stuff as opposed to just lowering prices as a knee jerk reaction to the economy.”

 

 

But how can companies appeal to penny-pinching consumers who, at the same time, are seeking greater value? Forbes reports on several alternative ways companies are helping recession-weary Americans get back on their feet:

• FedEx, hoping to help those affected by layoffs, offered to print 25 free resumes for customers looking for a new job
• Hyundai offered to buy back cars purchased before a layoff
• The New Jersey Nets offered free tickets to unemployed fans who posted their resume to the team’s online job site
• JetBlue is refunding tickets for customers who lose their jobs after booking flights
• CitiMortgage (subsidiary of CitiGroup) offers three months of reduced mortgage payments for newly laid-off borrowers
• Various restaurants are running “Pink Slip” promotions, including Laiola Restaurant in San Francisco who offered a free meal to anyone who was recently laid off

Rather than slashing prices across the board, these companies are zeroing in on opportunities to show they care and to make life a little easier for consumers. For their effort, they will reap the reward of having a loyal customer base once the market turns around. Consumers who take advantage of companies’ generosity in their time of need are likely to return when they do have money to spend.

Have you seen other examples of companies stepping up? Tell us about it!

Tags: research marketing campaigns corporateresponsibility economy

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March 6, 2009 at 11:38 AM by Knowledge Leadership

Business and consumer news could hardly be more grim, but corporate environmental efforts seem to be coming through relatively unscathed. Companies are maintaining their investments and consumers continue to buy.

So why is “green purchasing” proving so resilient?

Three driving forces:

• Small Change – Companies are providing easy, cost-effective opportunities for consumers to make a difference through everyday purchases and activities (e.g, Marriott’s “Celestial Seasonings Trees for the Future” and the ongoing success of Clorox Green Works).
• True Value – Consumers evaluate much more than price when determining a product’s “value.”
• EcO-bama – The Obama administration’s continued attention to environmental policies and green stimulus spending have brought complex environmental issues into living rooms across America.

 

Trendspotting.com also lists 12 of its own eco-trends fueling today’s “eco-bounty” in its latest trends report, but we want to know what you think. Why does consumer environmental purchasing continue to grow despite the economy? Vote in our poll, located on the blog sidebar, and share your thoughts on what is motivating consumers to shop with the environment in mind even as they pinch pennies.

Tags: research trends corporateresponsibility economy environment

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March 5, 2009 at 9:32 AM by Knowledge Leadership

Philanthropy that’s focused, yet flexible enough to respond to the changing business and social climate is the smart approach leading companies are taking today. Companies such as Wal-Mart, GE and Visa have said they are allocating more funds and/or in-kind donations to address immediate domestic needs. One of the most pressing is childhood hunger. In the U.S., 1 out of every six children (more than 12.4 million) are going hungry, and as the economy deteriorates, this number will only grow.

To make it easy for people to take meaningful action in the short-term, Tyson Foods is joining Share Our Strength, Hum. Minds at Work., Kompolt and MediaSauce in a new collaborative initiative called the Pledge to End Hunger. For every pledge made on the site (as long as it reaches the 1,000+ goal), Tyson will donate 35 lb of food (enough to feed 140 children) to a food bank in Austin, TX where attendees will soon gather for the annual SXSW Interactive Festival. The two states that generate the most pledges may also have an opportunity to receive their own truckload of food if the tally passes 1,000.

You likely have hundreds of followers and friends on your Facebook and Twitter networks alone, so simply visit the site and pledge- to give, volunteer or help spread the word.

Tags: newmedia Volunteer charity currentevents campaigns

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February 27, 2009 at 10:23 AM by Knowledge Leadership

It’s troubling, as Dress for Success founder Nancy Lublin argues in her recent Fast Company editorial, that intentionally or not, some companies are learning to cause market without the cause.  Lublin cites Macy’s “Shop for a Cause” last fall, which promoted its cause-related shopping day through full-page newspaper ads saying simply, “in support of nonprofit groups.” In reality, Macy’s raised more than $9 million dollars through the promotion which benefited several important charitable organizations (listed on its Web site), but consumers reading the ads wouldn’t know that. The nationwide event benefited local organizations, so logistically, communicating these details may have been complicated. Yet that doesn’t preclude Macy’s from providing its nonprofit beneficiaries with the recognition they deserve. In the end, the organizations benefited from the funding, but they did not have access to the immense awareness and brand building power that a well-marketed cause partnership should provide.

 

 

 

Clearly, insufficient details can quickly undermine the credibility of even well-conceived cause programs and may eventually threaten consumer support. For example, a majority of consumers (91%) want to hear about corporate efforts in supporting causes, but far fewer (58%) believe companies are providing sufficient details about their cause marketing efforts. Mitigate this communication disconnect by providing the detail and transparency consumers and other stakeholders need to believe in your campaign. In many states, legal regulations dictate what must be disclosed, but in general, sufficient details should include the nonprofit partner(s), the amount of the donation, the donation cap and/or the portion of each sale which will go toward the cause, and the length of the promotion.

Tags: causebranding nonprofit transparency

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February 20, 2009 at 10:55 AM by Knowledge Leadership

Economy does not eclipse environment. It’s not a tongue-twister; it’s the very real, very encouraging takeaway from Cone’s newly released research, the 2009 Cone Consumer Environmental Survey. The brief survey explored the environmental attitudes and shopping behaviors of American consumers during today’s economic crisis and found that American interest, shopping habits and expectations of companies to act responsibly have not been blunted by the state of the economy. Key findings include:

• Purchasing: 34 percent of American consumers indicate they are more likely to buy environmentally responsible products today, and another 44 percent indicate their environmental shopping habits have not changed as a result of the economy
• Interest: 35 percent of Americans have higher interest in the environment today than they did one year ago
• Expectations: 35 percent of Americans have higher expectations for companies to make and sell environmentally responsible products and services during the economic downturn

Another key takeaway: Even if they are not buying today, consumers are still holding companies accountable for their sustainability efforts over time. A full seven in 10 Americans say they are paying attention to what companies are doing regarding the environment today, even if they cannot buy until the future.

As Andrea Learned states on her blog, “Don’t assume your brand can give up on ‘green’ to ride out these tough times. If your customers are sticking to their environmental ways through thick and thin (or at least trying very hard to so do), they’ll expect you to do the same.”

Please click here to access the complete 2009 Cone Consumer Environmental Survey release and fact sheet.

To see Cone’s past consumer environmental research, including the 2007 Cone Consumer Environmental Survey and the 2008 Green Gap Survey, please visit www.coneinc.com/research.

 

 

Tags: cone research corporateresponsibility economy environment

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February 13, 2009 at 1:18 PM by Knowledge Leadership

We often talk about consumers’ inclination to purchase cause-related products, but Cone’s 2008 Cause Evolution Study found that a corporate-nonprofit partnership is also a valuable tool for activating consumers in other important ways. After learning about such a partnership, 42 percent of Americans are more likely to tell a friend about the charity, 36 percent are more willing to donate money and 23 percent are more likely to donate their time to volunteer for a cause.

Time is a precious commodity in today’s 24/7 society, so it is hardly surprising that volunteerism falls toward the bottom of the spectrum. What is somewhat troubling is the “service gap” that Porter Novelli’s latest Styles research uncovered. It shows a significant difference between the causes Americans find personally relevant and those to which they are most likely to give their time- up to a 64-point gap for certain causes. This disconnect, and 2009’s strong call for service by all sectors, presents a great opportunity for companies and their nonprofit partners to take their cause programs to the next level and to better engage consumers beyond product sales and donations.

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February 11, 2009 at 4:32 PM by Knowledge Leadership

USA Today reports that twice as many U.S. companies as previously expected are cutting their travel spending this year in response to economic weakness and uncertainty.  At the same time, however, attendance at leading business conferences may actually rise as executives seek and share advice on pressing business issues.   To ensure great value for your time and financial investment, Forbes has a list of 12 Executive Gatherings for 2009 to consider adding to your agenda.  Many focus on corporate responsibility, sustainability and philanthropy.

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February 10, 2009 at 2:41 PM by Knowledge Leadership

The recession seems to be bringing critics of corporate responsibility out of the woodwork.  Recent media coverage has dismissed corporate responsibility as everything from "hot air" to "unsustainability."  A column in the Financial Times, in particular, made this disparaging remark, "Thank goodness, now the recession’s here we can forget all that nonsense about corporate social responsibility (CSR) and get back to trying to make some money." Diane Osgood, VP of CSR Strategy for BSR, shares a compelling counterargument to these antiquated claims on the BSR blog.  Read her commentary here.

Tags: corporateresponsibility BSR

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February 6, 2009 at 2:34 PM by Knowledge Leadership

Advertisements for Bud Light Lime and GoDaddy.com may have scored the most viewers (according to Nielsen) in the most-watched Super Bowl of all time, but from our perspective, not surprisingly, the true victors were the brands who used this estimated $100,000-per-second forum to communicate their commitments to social and environmental issues.



Pedigree’s Adoption Drive commercial (#7 on USA Today’s Ad Meter) was humorous and endearing and a nice alternative to the heart-wrenching animal adoption spots we’re most used to seeing, but as the Good Concepts blog notes, it may have been more successful with a more direct call-to-action for consumers. GE’s smart grid technology ad (#28) featuring the Scarecrow from the Wizard of Oz was inventive and nostalgic, if not exactly actionable. And Kellogg’s Frosted Flakes spot (#36) was simple, actionable and community-oriented, a shift we’re beginning to see in many programs as companies reassert their role as good neighbors in times of turmoil. Kellogg’s also put consumers right in the driver’s seat for its cause program, something our research has found is important to 84 percent of Americans when they support cause-related campaigns.

As a whole, the three cause-minded spots were successful because they were simple, largely engaging and well-aligned with the upbeat, effortless tone consumers expect from Super Bowl ads.

But we want to know what you think. Did this year’s cause-related marketing spots score a touchdown or fumble the ball? Take part in Cone’s poll to share your opinions. We’ll share results on the What Do You Stand For? blog.

Click Here To Vote! (or visit us on Facebook)

 

__________________________________________________________________________

 

Update:

 

The results are in, and 100% of respondents agreed that this year's cause-related Super Bowl ads were a touchdown!  However, we must disclose that there were only seven participants- a slow start for our first poll, but thanks to those seven for participating! 

 

Have a burning question? Let us know!  We will be posing questions to our readers regularly.

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January 30, 2009 at 4:24 PM by Knowledge Leadership

Stocks, sales, jobs and morale are plunging, so it’s not that surprising to learn about the latest victim of the current climate to hit rock bottom: consumer trust. According to the 2009 Edelman Trust Barometer, 77 percent of U.S. respondents have less trust in corporations than they did a year ago. For the record, that’s lower than the days following Enron, the dot com bust and September 11th.



Globally, the study found the ability to trust a company is one of the most important factors in determining a company’s reputation, just behind product quality and employee treatment. During a time when reputation and consumer trust is critical to market survival, what can companies do to mitigate further damage?

• Act Responsibly- Actions speak louder than words or spin, and people will be quick to call attention to any missteps. Taking a corporate jet to legislative hearings for a bankruptcy bailout is one of the most obvious blunders of late, but all companies are faced with making tough decisions every day from prioritizing investments to pricing goods, to choosing suppliers and fair treatment of employees.
  
• Be Authentic- Before communicating with your stakeholders about your positive efforts and good work, ensure that there are credible corporate practices in order to support any information you are sharing.
  
• Be Transparent- Stakeholders expect a more open book regarding financials and business transactions today. Now is not the time to hide behind closed doors. Acknowledge your struggles and the solutions you will pursue to assure your stakeholders that you are proactively addressing any issues.
  
• Engage in Dialogue- Instead of talking at your stakeholders, start a conversation and listen and respond to what they have to say. Social media offers an inexpensive and direct way to engage, so meet people where they are online and provide new forums for them to express themselves.
  
• Be a Good Neighbor- During times of crisis, companies that can prove they are more than mere providers of goods and services and demonstrate their commitment to their communities, employees and other stakeholders will stand out after troubling times have passed.
  
• Be a Resource- Your stakeholders are feeling the economic pinch too, so take the extra step to provide your organizational expertise or relationships to create a teaching moment for your stakeholders. For example, McDonald’s and Visa launched "McDonald's Practical Money Skills" program to empower employees.

At Cone, we’re heeding our own advice about the unparalleled importance of reputation management today and in the future by appointing our first “Chief Reputation Officer." In this new role, Mike Lawrence will be responsible for all client-facing reputational issues across the agency related to business issues, corporate responsibility, media relations and crisis prevention and management.

Tags: Trust Reputation

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January 23, 2009 at 3:15 PM by Knowledge Leadership

Ethical Performance (subscription required) reports that layoffs among corporate responsibility professionals have begun to trickle in as JPMorgan, Citigroup and the global law firm Eversheds integrate their functions and make some of their lead CR posts redundant.

 

For a growing number of companies, however, corporate responsibility continues to prove recession-proof. Fortune reports this week that despite harsh financial realities, many major companies, including Intel, PricewaterhouseCoopers, Wal-Mart, GE and Starbucks have no plans to abandon their commitments. Intel, for example, saw its stock price fall 42 percent in 2008 and had a weak fourth quarter, but pledges to continue its green investments and its commitments to global education programs in 2009, including the recent launch of the “Small Things Challenge,” an investment of up to $300,000 in education and development in a number of countries. “You can’t save your way out of a recession,” says Intel chairman Craig Barret. “You have to invest your way out.”

 

A long-term vision and a refusal to allow today’s short-termism to hamper progress and future sustainability may be the driving force behind these decisions. As GE’s chairman and CEO Jeff Immelt explained at the BSR conference last November, “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.”

 

 What do you stand for?

Tags: corporateresponsibility economy

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January 16, 2009 at 3:19 PM by Knowledge Leadership

It’s hard to see a light at the end of the economic tunnel these days, but at least there is a twinkle along the way:  2009 may just be the year of service.

 

As President-elect Obama, in conjunction with the Ad Council, announces his push for public service through TV and radio PSAs, Starbucks times its initiative to encourage community service among its consumers, one million hours worth, to coincide.  But let us not forget employees.  Employee volunteerism programs may be one of the first casualties of the down economy (if not in policy, at least in practice) as employees worry about saving their jobs and employers are concerned with making the books.  Yet, the benefits of employee volunteerism outweigh the scant investment by providing consistency where there may be little and by helping to restore goodwill and a sense of community among a dispirited staff.  Skilled volunteerism is also, according to Deloitte’s 2008 Volunteer IMPACT Survey, a highly cost effective, but underutilized, training and development tool.  

The benefits could extend outside of the office walls, as well.  In the cases where current conditions have forced cuts in charitable contributions and have even sent matching gifts programs (which account for about 10 percent of total corporate giving) to the chopping block, employee volunteerism may be one last vestige of constancy to keep valuable corporate-nonprofit partnerships intact today and in the future.

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January 9, 2009 at 3:19 PM by Knowledge Leadership

We’ve commented over the past few months about why and how cause marketing is an increasingly valuable strategy to drive consumer trust and loyalty for companies as the economy worsens.  No doubt it remains a win-win strategy for nonprofit organizations, as well.  Cause can dramatically increase sales (resulting in funds for both the corporate and nonprofit partners), but its power to drive awareness may be even more feasible and enticing to nonprofits right now.  In a recent news blurb (“’Idol Gives’ The Donations – Finally,” January 1, 2009), The NonProfit Times reports that American Idol Gives Back, the highly publicized cause effort in which millions of viewers helped raised more than $64 million in 2008 for several charities, has finally awarded the donations to the organizations, a full six months later.  What struck us about the article, however, is not the time it took to allocate the money, but this quote by Malaria No More’s communications director, “The exposure on American Idol is invaluable for a disease like malaria…You can’t put a price tag on the ability to educate more than 30 million Americans about a crisis halfway around the world in the context of their favorite TV show.”  He concludes, “We were flooded with interest and support.”

 

 

 

Unfortunately, Malaria No More and the other nonprofit recipients won’t have the benefit of such a forum courtesy of American Idol this year.  It has been reported that Idol Gives Back won’t air this season, likely as a result of the recession.  Beyond the millions of dollars raised directly, the decision is also disappointing because it takes away a powerful outlet for awareness-building for several worthwhile organizations.  Here’s why:

Cone’s research confirms that upon learning about a corporate-nonprofit partnership, 42 percent of Americans are more likely to tell a friend about the charity, 36 percent are more likely to donate money, 29 percent are more likely to participate in the charity’s programs and events and almost a quarter (23 percent) are more likely to volunteer.  Shopping aside, the exposure that cause marketing programs bring to nonprofit organizations and social and environmental issues is tremendous.      

Let’s hope American Idol reconsiders its decision in 2010, and in the meantime, others step in to be a voice that can help deliver both funds and awareness for nonprofit organizations addressing critical issues.

Tags: economy research nonprofitcausebranding

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December 31, 2008 at 10:57 am by Knowledge Leadership

Some say the tradition of a midnight kiss on New Year’s Eve ensures good tidings in the coming year- and this year, Proctor & Gamble will ensure this is true for the benefactors of Operation Smile. For every kissing couple spotted on their Scope “ Kiss Cam ,” the packaged goods giant will make a donation to the nonprofit, which raises money to treat childhood deformities. This campaign is not only a great way to promote their mouthwash product when people are likely to get up close and personal with one another, but also a wonderful way to give back during the holidays.

 

 

The cause partnership will be carried into the New Year with an in-store promotion to benefit Operation Smile through March 2009. Scope’s brand manager anticipates they will raise enough money to help 200 children.

During these hard financial times, various companies are digging deeper to give back, with the hopes of not only making a difference in the lives of others, but also hoping to benefit from the additional reputational boost during times that are also tough on business. Cone’s 2008 research shows that 85% of Americans accept cause-related marketing such as the P&G “Kiss Cam” donation to Operation Smile, and 78% think businesses should continue to give the same or even more during tough economic times. Further creation of authentic, relevant and meaningful cause programs will be critical in the coming year, as businesses continue to compete for consumer attention during a time of tightening wallets. It will be the recognized leaders in charitable giving during hard times that will be strongest coming out of the economic downturn, making now more critical than ever for businesses to show they care.

 

Happy New Year!

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December 19, 2008 at 11:44 am by Knowledge Leadership

The GE Foundation just announced  that it will shift its philanthropic focus in 2009 toward meeting basic needs. The company will redirect $20 million dollars, a fifth of its total giving, to feeding, clothing and providing shelter for people in need. What’s more, GE is engaging its employees in the effort by increasing its match for employee contributions up to two-to-one if they are giving to organizations meeting basic needs in their communities. 

http://www.ge.com/citizenship/index.jsp

Although the issues from which the money will be diverted will no doubt feel the pinch, GE is taking a bold position in fulfilling its social contract by tailoring its philanthropy to those areas where it sees the greatest immediate need, while maintaining its existing commitments where possible. The announcement brought to light Cone’s recent prediction that companies will move their giving toward local causes and basic needs as they strive to support the communities in which they have a presence during tough economic times. Companies continue to invest in issues core to their business success, while also recognizing the need to meet social needs as they arise. It's about being focused, but fluid.  Leadership companies with strong values understand their obligation to make good on both ends. 
 
The evidence indicating companies have no intentions of giving up on their commitments to society in 2009 is plentiful, but as GE has shown, the approach, priorities and objectives are likely to change. To see Cone’s complete article on how companies will sustain their cause initiatives in the new year, please click here . 

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December 12, 2008 at 1:07 pm by Knowledge Leadership

The Boston College Center for Corporate Citizenship just announced it is seeking entries from companies who have demonstrated their responsibility through video for its inaugural International Corporate Citizenship Film Festival. We’re excited to see the winner revealed at the annual conference in 2009 because we’re also big believers in the power of video to showcase compelling stories about pressing issues. Not only does video have an almost unparalleled power to tug at the heartstrings, but it can also inform (build brand and issue awareness) and mobilize (generate funds or advocacy and drive change). 

 

ITT Watermark Video

 

Video was once typically associated with compelling TV advertisements (Whirlpool’s Habitat for Humanity spot on the film festival’s Web site is a great example), but social media channels have today provided new, less resource-intensive ways to produce and distribute pieces that educate and bring complex issues to the masses or specialized audiences (e.g., Dove or ITT videos). Increasingly, companies and organizations are turning the screen inward to rally their own employees or secure partners through videos not shared publically. They’re even handing the camera to those touched by the issue to tell the story in their words . Video may not be the most novel tool in the communication arsenal, but it continues to translate complex issues, capture attention and inspire unlike most any other medium.

A few best practices for communicating your cause via video:

• Humanize the initiatives – use real people affected by the issue to show the need
• Provide context (e.g., a few defining statistics) to illustrate why efforts are urgent, especially for complex global or business issues
• Show the impact you’re making on the issue, but don’t overstate or overpromise
• Ensure it is more than a boast about your accomplishments
• Be transparent with the details of your commitment – a requirement if you’re also selling a product or service that triggers a donation for the issue
• Offer a convenient venue for people to learn more about the issue and opportunities for engagement
• Spread the word – tap social media networks to encourage others  to advocate on your behalf
  

Tags: campaigns advocacy causebranding nonprofitcausebranding currentevents

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November 7, 2008 at 12:57 pm by Knowledge Leadership

What do Obama and Western Union have in common?

Both have successfully tapped into the power of Millennials in their recent campaigns.  Our research shows that an astounding 88% of 18-24 year olds use social networks, and both “brands” have been able to engage this growing market. Marketers are finding social media to be a valuable platform for promoting their cause, and young Americans are increasingly accepting of being marketed to online.

Many have attributed the success of president-elect Barack Obama’s election campaign to his ability to utilize new media platforms in his campaign. He was able to rely on his Internet presence for much of his record-breaking fundraising, and Advertising Age even deemed him “Marketer of the Year” for 2008. The use of social media made his campaign widely accessible and empowered voters to have a voice in the election, especially younger voters who are comfortable navigating this realm of communication. But it is not only future presidential hopefuls who can take a tip from Mr. Obama; the engagement of youth activists is increasingly important, and social media is the way to capture their attention. 

 
Photo Credit: www.Gearlive.com

Western Union, a Cone client, mobilized its cause campaign via Facebook with the launch of its Our World Gives application , which encourages users to vote for one of eight nonprofit organizations to receive a $50,000 donation from the Western Union Foundation.  To date, the application has attracted over 40,000 voters in its attempt to gain awareness among younger and social media-savvy individuals.

As Millennials surpass baby boomers as the largest generation in the United States, the need to engage via online and social media will become increasingly important, and organizations must be prepared to act.  Whether for-profit or not-for-profit, all organizations must take a tip from social media innovators such as Barack Obama and Western Union.  It is no longer enough to be present online, as younger consumers are looking for higher engagement and more power to voice their opinions and show what they stand for.

Tags: WesternUnion Obama newmedia marketing

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July 21, 2008 at 9:04 am by Knowledge Leadership

A very powerful and innovative example of how companies can leverage their unique assets to solve pressing social issues was highlighted this week in The New York Times (login required) when an anthropologist living in Africa contacted some of the world’s leading corporations and asked them to help save lives.  But this wasn’t a traditional request- Dr. Val Curtis was not seeking financial support or product donations.  Instead, she wanted to learn how to manipulate people’s behavior.

 

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June 27, 2008 at 11:11 am by Knowledge Leadership

It's a precarious time for business as it relates to corporate giving.  The economy is down, and companies are exploring ways to make their philanthropy more impactful so they can maintain their commitments and still demonstrate a business and social return.  As we sit on the heels of major disasters in China and Myanmar, in the midst of severe, localized flooding in the United States and on the precipice of hurricane season, it is important to note that companies must begin thinking about disaster relief in a different way. 

 

In “ The Corporate Citizen ” this month, the president of the Office Depot Foundation discusses the important distinction between disaster relief (short-term) and disaster recovery (long-term).  To be most effective, companies must think about disaster response not as a reaction to a singular event, but as a strategic process addressing both immediate and lasting needs.  Cone recommends the following guidelines for companies to most effectively support disaster relief efforts:

 

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June 23, 2008 at 12:38 pm by Knowledge Leadership

 

Relationships are rarely easy, but this one sounded like a partnership made in heaven.  The parties complemented each other well, and the partnership wasn’t based in superficialities.  We’re talking about the relationship between the Sierra Club and Clorox’s line of Green Works cleaning supplies.  The partnership, in which the Sierra Club lends its name and environmental halo to the company in exchange for an undisclosed portion of sales was, not surprisingly, scrutinized from the beginning.  But the commitment seemed genuine and the products passed muster.  Yet a new story last week in Ad Age tells us that despite an estimated $20 million in sales and endless exposure, behind the scenes the relationship remains controversial, at least among the environmental group’s own members.  Ad Age notes, “four of the Sierra Club’s 64 chapters outright opposed the association.  And it’s not hard to find a blog by outraged former Sierra Club members decrying the partnership.”  In fact, one chapter insists it was suspended as a result of its criticism of the partnership, but the Sierra Club argues there were other mitigating factors.

 

Whatever the truth, one key lesson is that “creative” partnerships need to be forged with both internal and external constituencies in mind.  It seems the Sierra Club carried out due diligence to ensure the product line that was to carry its seal truly lived up to its promise. But the environmental group may have failed to apply the same due diligence to engaging its own vociferous members.  When there are such strong nonprofit and corporate forces at play, there will also be strong opinions, particularly in an arena as highly contentious as the environment.  We’re still in the nascent stage of environmental product endorsements, so both partners must tread carefully to avoid accusations of “selling out” or greenwashing.  The greater the engagement of key stakeholders- including internal ones- in the conversation, the more apt they will be to air their concerns and find a common ground. 

Tags: campaigns

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June 13, 2008 at 12:27 pm by Knowledge Leadership

According to initial findings released by the Committee Encouraging Corporate Philanthropy this month, corporate giving grew by 5.6 percent last year to a per company median of more than $26 million.  The findings, compiled from data collected from 155 companies, revealed that about two-thirds of companies increased their giving, including seven of the eight who reported losses.  The data are reassuring.  Even as the economy weakens and amidst what Newsweek calls “ The Coming Charity Crisis ,” companies recognize the significant reputational and social benefits their corporate philanthropy provides.  Nevertheless, companies will face increasing pressure to justify their commitment to corporate philanthropy to the very stakeholders who have high expectations for it in the first place, from consumers (who are struggling with higher prices), to employees (as they worry about job security), to executives and shareholders (who want to see the ROI).  Today and always, a strategic, focused philanthropic program has the most measurable business and social impact, so we recommend a number of elements for companies to consider to better ensure the sustainability of their corporate philanthropy programs in uncertain times:

• Choose a social issue to support that is aligned with your business to leverage your size and assets for greater impact.
• Focus your giving within this issue space (considering revisiting your employee giving policies as well).
• Prioritize giving in key markets based on your areas of greatest need (e.g., increase employee morale and minimize turnover, spread corporate culture to a new facility, leverage existing sponsorships in certain cities, etc.). 
• Evaluate/reevaluate your nonprofit partners to ensure they fit within your focus area, meet your established partnership criteria and have proven, measureable social impact.  Limit pet charities. 
• Engage your nonprofit partners to identify ways, beyond cash, in which you can provide much needed support.  Professional expertise, employee volunteerism, cause marketing and advertising or marketing support are just a handful of ways in which you can add value.
• Measure to ensure demonstrable business and social return. 

Alison DaSilva, Cone’s VP of Knowledge Leadership and Insights, will be speaking on this very topic next Tuesday at the Northern California Grantmakers Corporate Philanthropy Institute.  For more information, please visit the Web site . 

Tags: philanthropy

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June 6, 2008 at 1:11 pm by Knowledge Leadership

 

A recent article in the New York Times featured the much-lauded malaria-prevention campaign Nothing But Nets ; a campaign we’ve been following too.  In fact, Carol Cone spoke about the grassroots campaign, stemming largely from a 2006 Sports Illustrated column, to conclude her speech on “Harnessing New Media for Your Cause” at last week’s Cause Marketing Forum.  The program, for a mere $10, allows donors to purchase an anti-malaria bed net and save the life of one of the million children who die from the preventable disease each year. 

 

The campaign is successful precisely because it provides simple tools that deliver easily achievable results.  It utilizes the power of new media to inform, connect with and mobilize people to save lives.  Due to their sheer volume and seeming complexity, the use of new media tools for cause campaigns can feel like an overwhelming endeavor, but it need not be if we remember that the objectives are still the same:  to tell powerful human stories, to listen to and engage with our audience and to provide actionable, tangible results.  New media tools provide a more efficient infrastructure for people to spread a call-to-action virally among their friends and other contacts.  With the help of a diverse array of partners and supporters (including the UN Foundation, the Methodist and Lutheran Churches, the NBA, VH1 and American Idol), Nothing But Nets has successfully raised more than $20 million, largely from teenagers and young adults who are drawn to the Web-based communication (including videos, a game and interactive maps), and who can effectively save a life for less than the cost of a pizza.  Few other small investments provide such a substantial return.

Tags: campaigns

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May 16, 2008 at 2:08 pm by Knowledge Leadership

The proof that corporate responsibility has a demonstrable return on investment continues to add up.  The Wall Street Journal released new research this week confirming consumers will pay a premium for products made with high ethical standards (defined as progressive stakeholder relations and environmental practices and demonstrated respect for human rights). 

 

Of a random survey of 97 adult coffee drinkers (admittedly, a small sample size), those who believed the coffee was produced ethically said they would pay $9.71 per pound, $1.40 more than the control group.  Perhaps more telling, consumers who were presented with information indicating the coffee was produced using unethical standards said they would pay only $5.89 a pound.  The moral of the story?  Consumers will not only reward responsible companies for their efforts, they will punish companies whose ethical standards are subpar.  This is sound support that a company’s responsible business practices can have a noted impact on sales, but the implications don’t stop there.  Cone’s own research has consistently found that, from brand loyalty to job loyalty to investments, Americans are likely to reward or punish companies for their corporate responsibility practices in a variety of ways.

 

This insights brief is part of Cone's weekly roundup of cause, corporate responsibility, philanthropy and volunteerism news.  To subscribe, please email skerkian@coneinc.com . 

Tags: corporateresponsibility

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May 9, 2008 at 10:07 am by Knowledge Leadership

 

Some of the world’s most high-profile cause efforts are under the media microscope this week.  Ad Age discusses the scrutiny Unilever and P&G face as a result of their highly visible support of social and environmental issues.  The article notes, “No good deed goes entirely unpunished; high-profile stances on social causes can have unintended consequences; and the water is getting pretty murky as ‘ethical marketing’ encourages consumers and activists to delve into corporate policies in even-greater detail.” 

 

This is not news to Dove, who, in a startling account in another Ad Age story , is accused of professionally airbrushing the so-called “real” women in its Campaign for Real Beauty.  Unilever and the photographer deny this claim , but it is a blatant reminder that when you take a stand in a highly visible way, there is no room for error. 

 

The companies who are truly “walking the talk” will examine all of their business practices to ensure they are aligned with their values, and they understand that only through transparency and authentic engagement with even the most virulent stakeholders can they truly advance the social or environmental agenda.  Those whose practices are found to be inconsistent with their messages will answer to consumers in the court of public opinion.

 

This insights brief is part of Cone's weekly roundup of cause, corporate responsibility, philanthropy and volunteerism news.  To subscribe, please email skerkian@coneinc.com

Tags: causebranding

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May 2, 2008 at 12:17 pm by Knowledge Leadership

Conferences, seminars and offsites have long been part of the corporate lexicon when it comes to professional development (to a tune of over $100 billion annually), but an increasingly powerful tool in the employee training arsenal is volunteerism .

 

Traditional employee volunteerism is alive and well, but some of today’s leading corporate programs are facilitating more strategic skills-based volunteerism in which specific business expertise (e.g., marketing, accounting) is applied to help nonprofits around the world solve complex problems and work more effectively.  By lending talented staff, the return on investment for business is a more content employee whose skills have been sharpened and whose professional perspective is enhanced.

 

Yet, as is often the case in such initiatives, there is a disconnect between rhetoric and reality.  According to Deloitte’s* fifth annual Volunteer IMPACT Survey , the vast majority (91 percent) of Fortune 500 HR managers believe skills-based volunteering adds value to training and development programs, but only a handful (16 percent) intentionally and regularly offer such opportunities to employees.

 

Companies should strive to minimize this gap because skills-based volunteerism is a thoughtful, cost-effective approach to advancing institutional knowledge and developing the next generation of corporate leaders. 

 

*Deloitte is a Cone client

 

Thie insights brief is part of Cone's weekly roundup of cause, corporate responsibility, philanthropy and volunteerism news.  To subscribe, please email skerkian@coneinc.com

Tags: research

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April 18, 2008 at 1:42 pm by Knowledge Leadership

As Earth Day approaches, an occasion Ad Age has likened to Christmas due to its paradoxically commercial slant, it is critical for companies to communicate their environmental commitments accurately and responsibly. The FTC is taking notice of the abundance of environmental messages in the marketplace and is holding a second workshop in late April to reevaluate its Guides for the Use of Environmental Marketing Claims.

 

In light of these events, Cone, in collaboration with The Boston College Center for Corporate Citizenship, this week released the 2008 Green Gap Survey exploring Americans’ understanding of and attitudes toward environmental marketing claims, as well as their desire for oversight of such messages.

 

The findings revealed that although Americans are trusting of companies, there is a disconnect (the “Green Gap”) between the environmental claims they hear and what they conclude these messages to mean.  Almost half of the population (48 percent) erroneously believes common environmental terms such as “environmentally friendly” or “green” best describe products that have a positive (read: beneficial) impact on the environment.  In reality, these terms more accurately describe products that have either a lesser impact than previous iterations or than competitive products.  A majority of Americans also indicate they would welcome oversight of environmental marketing claims. 

 

The combination of these findings underscores the precarious nature of the environmental marketing landscape.  Currently operating under a “trust, but verify” assumption, American consumers risk disillusionment and possibly disaffection as they begin to realize that the environmental claims they hear are not necessarily what they may seem. 

 

For more on the research findings and some guidelines for companies, please visit our Web site . 

Tags: environment

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April 11, 2008 at 1:20 pm by Knowledge Leadership

Dove’s “Campaign for Real Beauty” has helped define the landscape for modern cause movements, but as Dove announces its plans for a new online community for women, an April 10th advertising column in The Wall Street Journal questions the marketing impact of the campaign.  Suzanne Vranica writes, “...the marketing impact has been somewhat blunted by the fact that the social cause hasn’t been linked directly to specific Dove products.”  Yet this is precisely what makes the campaign so powerful and so appealing to millions of women.  Rather than a targeted cause marketing program that benefits a particular product, Dove has infused its entire brand with a sense of doing good. 

 

Early on, some critics assailed the campaign for touting a cellulite cream in its ads.  How can you campaign for “real beauty” they would argue, while hawking a cellulite minimizing product?  Although there are still incidental product ties, today it seems that connection has largely dissipated, and the campaign has discovered its real roots as a self-empowerment movement for women that crosses generational, ethnic and socioeconomic lines.  (Incidentally, according to Dove, sales did increase for products featured in campaign ads, by an astounding 600 percent in the first two months.  The company also saw a 20 percent increase in overall sales across the entire brand in 2005.)   

 

Product lines come and go and their appeal is limited to target audiences, but a movement that speaks to women on a deep emotional level has staying power.  By avoiding overtly promotional connections to products in this campaign, Dove has built a legacy brand.

 

For more on this issue, please see Cone’s recent article in the Jan-Feb issue of Contribute magazine (under 'Cone Research and News' at right). 

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April 4, 2008 at 10:45 am by Knowledge Leadership

It seems there are few areas of our society that have not been permeated by reality television, and this holds true for philanthropy and cause awareness.  “American Idol” gave back; even Oprah’s giving big in primetime.  And though the debate over whether so-called “philanthro-tainment” helps or hinders the field, the latest example is giving us a headache.  While these efforts may be effective in bringing social issues and the notion of philanthropy to mainstream America, in certain instances we can’t help but question their approach and substance.  If there is any doubt that reality television has, at the very least, a questionable role in the world of cause awareness and philanthropy, this recent promotion should put that to rest.

 

Last weekend, Reality Cares, an organization founded and supported by representatives of the reality television industry to raise funds and awareness for an array of issues, partnered with SUNSTYLE tanning studio in West Hollywood to host its “Tan for a Cause” event.  Leading reality stars from shows like “American Idol,” “Project Runway” and “The Amazing Race” “[got their] tan on” to raise awareness for a nonprofit that mentors at-risk youth through extreme sports.

 

In the nearly six minutes of red carpet coverage on Access Hollywood’s site , we caught only a single mention of the nonprofit organization, Stoked Mentoring, by name, and never did the attendees or the host explain how, or whether, any funds were being raised for the cause.  We talk a lot about authenticity here at Cone.  When a cause-related event centers on an arguably dangerous practice and is more about pseudo-celebs strutting their stuff on the red carpet than raising awareness for the cause, we say it’s time for a reality check. 

 

*This insights brief is part of Cone's weekly cause and corporate responsibility newsletter.  If you are interested in receiving the newsletter, please email skerkian@coneinc.com .  

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March 28, 2008 at 3:44 pm by Knowledge Leadership

A tongue-in-cheek editorial in the Pittsburgh Post-Gazette takes a critical look at the myriad health-related observances (awareness months, weeks and days) that crowd the calendar with opportunities to draw attention to a cause.  They are so pervasive, the writer argues, that “almost nobody is aware of anything.”  He points to a web listing of health-related observances in which a dozen and a half are associated with this month alone.   

 

What the columnist neglects to discuss, however, is that when these occasions are executed well, they provide context, structure and immeasurable opportunities for raising funds, building awareness or changing policy.  We need only think of October, an entire month virtually synonymous with breast cancer awareness, or National Wear Red Day, when the country is awash in a scarlet sea, to realize the power an awareness observance can have to rally the nation around an important issue.  The media, influentials and the public alike take notice.  However, as Earth Day approaches and environmental releases and announcements flood journalists’ inboxes nationwide, the point, that an awareness occasion in and of itself is not a sufficient news peg, is well-taken.

 

Companies and nonprofits must add new and meaningful content to the dialogue, as well as provide a relevant call-to-action, to engage and inspire constituents before hitting send on the press release.  And please, don’t wrap yourself in a green flag without the substance to back it up.

 

*This insights brief is part of Cone's weekly cause and corporate responsibility newsletter.  If you are interested in receiving the newsletter, please email skerkian@coneinc.com .

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March 21, 2008 at 11:46 am by Knowledge Leadership

Are bells and whistles key, or is it what’s under the hood that counts?  A recent Environmental Leader column, “CSR Reporting:  Rainbows Versus ROI” by Timberland’s Alex Hausman addresses this very conundrum that companies face as they try to determine whether powerful visuals and inspirational stories are more or less warranted than hard, quantifiable data in describing a company’s responsibility efforts.  The truth, as the article points out, is that it’s a combination of both.  We should also recognize that the CR report is just one tool around which a company can build a broader communications strategy.  As part of this strategy, Cone recommends that companies:

 

1. Map and prioritize stakeholder audiences: As every company faces resource constraints, this prioritization allows you to focus limited dollars on those objectives with the highest potential return.

 

2. Engage with stakeholders: Through meetings, surveys, e-mail and telephone feedback, find out what your stakeholders are thinking about your company's CR activities. Build in this dialogue as an ongoing part of your communications strategy.

 

3. Develop a CR message guide: Different stakeholders have varying degrees of CR issue knowledge and needs. By developing a comprehensive guide with key messages tailored for each stakeholder group, companies are able to deliver consistent messages that resonate with each audience.

 

4. Identify communications vehicles based on determined objectives: In most cases, existing vehicles may be the most appropriate way to communicate your CR commitments as stakeholders are already expecting to hear from you through those channels.

 

5. Execute: Communicate with multiple audiences at the same time to ensure an integrated approach. During execution, keep in close contact with the operations side of your company to make sure your company is 'walking the talk,' and you are apprised of any issues that arise, so you can respond accordingly. Use feedback from your efforts and from stakeholder engagement to evolve messaging and look for new CR opportunities.

 

*This insights brief is part of Cone's weekly cause and corporate responsibility newsletter.  If you are interested in receiving the newsletter, please email skerkian@coneinc.com .

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March 14, 2008 at 10:32 am by Knowledge Leadership

A controversy has arisen about the decision of a Columbus, Ohio children’s hospital to name its emergency department and trauma center after locally-based retailer Abercrombie & Fitch.  The company made a $10 million donation in 2006. 

 

Clearly, this is not the first time the Nationwide Children’s Hospital has offered corporate naming rights in exchange for donations, but this is the first time the decision has been so controversial.  Critics argue this instance “is more egregious” as the hospital is linking itself to a brand some consider highly provocative and inappropriate for a young audience.

 

In light of increasing pressure among nonprofits to compete for the major donor dollar, many are struggling with how to provide the strongest recognition and ROI.  Anyone can question the hospital’s decision, but it is ultimately up to the organization and its stakeholders to decide what is appropriate.  The key is whether they have clear criteria in place to guide these decisions.  Would they grant Columbus-based Victoria’s Secret, a major segment of Limited Brands, the honor of naming rights in exchange for a significant philanthropic gift?  It’s a slippery slope, and established guidelines are critical to help navigate the decision-making process.  Questions to consider:

 

- What industries, business practices, products and/or services conflict with the mission of the organization? 
- Are the company’s values and brand in alignment with the nonprofit?
- How authentic is the company’s commitment to the issue and organization?
- What are the reputational risks of aligning your brand with theirs? Has the company been involved in any questionable practices?
- Are there other ways the nonprofit can work with the company that will provide value to each entity, beyond naming rights?

 

For those who think the critics can easily be ignored, note that one of the major groups behind the hospital initiative, the Campaign for a Commercial Free Childhood, launched an aggressive public relations campaign around McDonald’s sponsorship of student report cards.  The company discontinued the program earlier this year.

 

*This insights brief is part of Cone's weekly cause and corporate responsibility newsletter.  If you are interested in receiving the newsletter, please email skerkian@coneinc.com .

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March 7, 2008 at 12:59 pm by Knowledge Leadership

According to an article in this week’s Ad Age, P&G and Unilever are in a “race to show who’s best at saving the world.”  Competitive companies’ quests to continually innovate their cause and corporate responsibility initiatives may bolster their bottom lines and differentiate their brands, but in the end, they are ultimately driving toward similar social and environmental goals.  In a way, it is a socially- or environmentally-driven form of cooperative competition or “coopetition,” a concept referenced last weekend at the Harvard Social Enterprise Conference.

 

The same competitive market force that drives companies to differentiate themselves by developing better products or more efficient services applies in the cause and corporate responsibility space.  When businesses compete to offer better goods, the net gain is typically for the consumer, but when they compete by altering their practices, developing more robust cause programs or finding new solutions to pressing issues, we all stand to benefit.

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February 29, 2008 at 1:10 pm by Knowledge Leadership

McKinsey recently released a new report about the state of corporate philanthropy, and a notable finding is that nearly 90 percent of companies say creating business benefits (including enhancing corporate reputation or brand, improving employee recruitment and retention and competitive differentiation) is a key goal for their organizations’ philanthropy programs.  This might indicate a move toward more strategic corporate giving if it weren’t for a later stat that points to the CEO’s and board members’ personal interests as the leading driver of a company’s philanthropic focus.  This is an obvious disconnect.

 

The vast majority of companies view business benefits as a critical outcome for philanthropic efforts, but the personal interests of senior management trump business factors (e.g., alignment with business needs, option to leverage existing corporate capabilities or assets) when determining direction.  Perhaps this is a contributing factor to why only 14 percent of companies believe their philanthropy programs are very or extremely effective at meeting their business goals and only about a fifth of respondents believe they are very or extremely effective in meeting their social goals and stakeholder expectations.  When philanthropy is regarded as strategic among CEOs, it will be more aligned with a company’s business needs and more effectively integrated throughout the organization.  Only then will the right assets be leveraged to drive toward more attainable and sustainable business and social outcomes.

 

*This insights brief is part of Cone's weekly cause and corporate responsibility newsletter.  If you are interested in receiving the newsletter, please email skerkian@coneinc.com .

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February 22, 2008 at 11:36 am by Knowledge Leadership

And the winners are: a small Oklahoma charity that aids orphaned Chinese children, a small animal rescue group in New Jersey and an organization that fights epilepsy.  These are the winners of major new charity contests designed to promote online fundraising, such as “America’s Giving Challenge” and the “Causes Giving Challenge.” These contests are just one new media application providing unprecedented opportunities for smaller nonprofits to extend their reach and competitively vie for donor attention.  Though they provide greater access than ever before, such activity has stirred a debate about whether this success comes at the expense of the traditional charitable players.

 

According to a Reuter’s article this week, “Tough times, more charities pinch Salvation Army,” the Salvation Army and perhaps other large organizations are experiencing a decline in the rate of growth of their donations.  The increasing cost of living and the threat of a recession certainly play a role, but Sandra Miniutti, a spokeswoman for Charity Navigator, believes that other factors also come into play. She states that the growing number of charities vying for donations and the changes in what are considered “trendy causes” over time (today, the environment) are shifting the priorities of donors.  It comes as no surprise to say that nonprofits, even those with a long history of donor loyalty, will have to become increasingly innovative in communications efforts to stay top of mind with potential donors who have a veritable buffet of cause options at a click of the mouse.      

What do you think?  Do grassroots new media efforts that bolster small, lesser known nonprofits run the risk of doing so at the expense of the traditional, large nonprofits?  If you’re interested in joining the discussion, please share your comments below.

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February 15, 2008 at 4:48 pm by Knowledge Leadership

In a recent post on the Non-Profit Marketing Blog, author Katya Andresen of Network for Good equates the approach many fundraisers take in appealing to donors to a stranger accosting someone at the bus stop with a random plea for friendship.  In reaching out to prospects, Katya explains, “We should not solely focus on what we want from them.  We should focus on what we can achieve together.”  This may seem intuitive, but she calls this a forgotten fundamental in fundraising because, as we are so passionate about our own cause or issue, we too easily forget that our audiences may have vastly different priorities.   

 

Though Katya’s commentary refers specifically to fundraising, the concept of engaging in a robust two-way dialogue with your audience has equal application in the areas of cause branding and corporate responsibility.  In a recent post here, vice president of corporate responsibility Henk Campher shared his tips for stakeholder engagement and advises companies to “start by talking, learning about each other and building trust rather than immediately expecting ground-breaking strategic partnerships.”  No matter your appeal--to nonprofit or corporate partners, to donors, to stakeholders, activists or NGOs--let us not forget this most fundamental rule of engagement.  We all know it, let’s just be sure we are truly practicing it. 

 

*This insights brief is part of Cone's weekly cause and corporate responsibility newsletter.  If you are interested in receiving the newsletter, please email skerkian@coneinc.com .

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February 8, 2008 at 12:05 pm by Knowledge Leadership

Pardon the pun, but we’re seeing red.  The critics of the (PRODUCT) RED campaign in “ Bottom Line for (Red) ” in the New York Times this week seem to misunderstand the concept of cause-related marketing.  They imply that consumers must choose between supporting a social issue through a donation or with a cause-related purchase. 

Charitable activity, in any form, is not a zero-sum game.  Those who buy (RED) products are not doing so in lieu of signing a check.  They are not buying a red t-shirt or laptop solely to fulfill their civic duty or some moral obligation.  They are buying a red t-shirt or laptop, frankly, because they need clothes or a computer, and the fact that a portion of the price goes to support a global cause is a value-add.  Let’s be clear:  cause marketing is not philanthropy (the repurposing of existing wealth); the intent is to create new wealth for both partners. 

 

Which leads the critics to further cite imbalances between the companies’ advertising expenditures and the amount donated.  The good the companies are receiving, in other words, is greater than the good they are giving.  While transparency, accountability and balance are critical, this view neglects to acknowledge the benefits of a highly visible campaign, above and beyond the money.  The awareness built around this issue as a result of (RED) is immeasurable, and it may even attract those people who otherwise would not give.  Cone’s research has shown that more than three-quarters of Americans have a more positive image of a nonprofit organization involved in a partnership with a company and are more likely to support it.  In fact, 70 percent are more likely to donate money to that charity as a result. 

 

The (RED) campaign is satisfying consumers’ desire to engage in “conscientious cool” shopping, it provides companies with an opportunity to demonstrate their support of an issue, while--gasp--still marketing their brands, and it has raised funds and awareness for a critical issue.  Cause marketing will not “solve” this health epidemic, nor will pure philanthropy cure the world’s ills, but companies and nonprofits must continue to seek innovative models for change to make any progress at all.  According to an official at the Global Fund cited in the article, (RED)’s more than $59 million in contributions has “allowed the fund to divert money to programs in 136 other countries and to increase its visibility.”  All for the price of a t-shirt?  Sounds like a smart investment to us.

 

*This insights brief is part of Cone's weekly cause and corporate responsibility newsletter.  If you are interested in receiving the newsletter, please email skerkian@coneinc.com .

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February 1, 2008 at 3:55 pm by Knowledge Leadership

At Cone, “greenlash” and “karma offsetting” (coined by the Cassandra Report to describe those individuals who purchase carbon offsets as a way to assuage guilt about their environmental impact without actually changing their lifestyles) are just two of the new words we’re using when we discuss trends in the environmental movement.  So, admittedly, we were more than a little surprised to hear the Today Show’s Al Roker and Meredith Viera introduce an upcoming segment with the acknowledgement that they had never heard the term “greenwashing,” let alone know what it meant.  As members of the media, they are presumably more informed than the average American consumer, so their naiveté in this area is telling.  The lesson for those of us who work in this space is that we are so immersed in the news and trends, the terminology, the advances and the setbacks, that it is easy to forget not all Americans live and breathe this stuff (yet).  In this lies both the opportunity and the challenge for business and environmental organizations. 

 

The charge is to meet consumers where they are with simple, powerful messages, and, at the same time, drive the playing field forward through education and awareness-building.  It’s about finding the difficult balance between simplifying the information and still advancing the agenda, between not overwhelming your audience and not underestimating it, either. 

 

Clearly, it’s not an easy undertaking, but it’s a critical one.  While some consumers may still be in the nascent stage when it comes to the environment, they won’t stay there for long.  Companies are all vying for their attention, and sites such as the Greenwashing Index , that allow consumers to judge for themselves green claims made by advertisers, are taking hold. Those organizations that deliver credible information while demonstrating an authentic and substantial commitment to the environment will serve as trusted resources to Americans in the coming years as new environmental complexities emerge, as “greenlash” intensifies and as all things “green” become as intertwined with Americans’ lives as “pink” is with breast cancer.

 

-Sarah Kerkian, Insights Associate

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January 25, 2008 at 12:38 pm by Knowledge Leadership

Bill Gates spoke at Davos this week with a call-to-action for companies to embrace “creative capitalism,” pushing companies to focus on building products and services for the poor.  "Such a system would have a twin mission: making profits and also improving lives for those who don't fully benefit from market forces," Gates explained.

At Cone, we refer to this dual-purpose as “Socially Aligned Business Initiatives(sm),” strategies that leverage an organization’s operations and scale to drive long-term social change, while providing the greatest opportunities to grow and reinforce the business. 

Gates urges that the key to successful creative capitalism is for businesses to “dedicate their top people to poor issues.”  To go above and beyond traditional philanthropy, it is essential that the effort is cross-functional and taps not only corporate giving, but also human resources, marketing, product development and other areas.  The leaders in the space—Nike, GE and Home Depot, to name a few—realize the benefits they can derive from their efforts: enhanced reputation and brand equity, stronger relationships with NGOs and influentials, increased sales, market development and product innovation.

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January 22, 2008 at 9:43 am by Knowledge Leadership

We’re seeing lots of action by nonprofits recently as they realize the importance of evolving their campaigns and positioning to keep their programs fresh and relevant.  The American Heart Association (AHA) kicked-off its Start! Challenge this month to continue to build on the momentum of the award-winning Start! campaign a year after its initial launch.  With a media tour featuring Donny Osmond, an online reality challenge, interactive tools for personal lifestyle change and connection to the new Start! American Heart Walk, the AHA aims to continue inspiring Americans to live healthier, more active lives.

 

The March of Dimes also announced this week that it is renaming its largest fundraising event, Walk America, to March for Babies in hopes of broadening public awareness about what the organization stands for.  Research showed that while people found the March of Dimes to be trustworthy and credible, fewer than half actually knew its mission. 

 

Finally, the United Negro College Fund has announced a rebranding campaign in which it will play down its full name and move toward its initials, UNCF.  The shift is intended to address the alienation the organization’s name causes for some today, while at the same time, maintain its long history and brand equity.  The organization will also reveal an updated logo, but will retain its long-time slogan, “A Mind is a Terrible Thing to Waste.”   

Each example highlights the need for innovation, one of Cone’s best practices for Cause Branding.  True cause leaders constantly evolve their programs to add energy, new engagement opportunities and content in order to remain relevant with existing stakeholders, to connect with new audiences and to ensure a sustainable program, without losing sight of their original mission, objectives and identity.

 

*This insights brief is part of Cone's weekly cause and corporate responsibility newsletter.  If you are interested in receiving the newsletter, please email skerkian@coneinc.com .

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January 11, 2008 at 3:27 pm by Knowledge Leadership

Amidst the proliferation of green communication in the marketplace and growing skepticism among consumers about the authenticity of such messages, the Federal Trade Commission recently began a series of hearings to review its environmental marketing guidelines, the “Green Guides,” last updated in 1998.  On Tuesday, the FTC held its first hearing in the series, focusing on carbon offsets. 

A recent survey by the WPP Group found consumer spending on green products will hit an estimated $500 billion this year, so updating and potentially redefining what it means to be green will benefit not only conscious consumers seeking to minimize their environmental impact through their purchases, but could also be valuable to companies.  Another survey , this one by TerraChoice, examined more than 1,700 green marketing claims and found all but one of them to be “either demonstrably false or that risk misleading intended audiences.”  Companies whose green messages are authenticated by credible business practices will stand out among their competitors in the sea of green ambiguity. 

*This insights brief is part of Cone's weekly cause and corporate responsibility newsletter.  If you are interested in receiving the newsletter, please email skerkian@coneinc.com .

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December 21, 2007 at 11:25 am by Knowledge Leadership

Given the proliferation of cause-related marketing campaigns (also referred to as “embedded giving”) and the resulting media coverage , it is no surprise that Senator Robert Menendez of New Jersey is introducing federal legislation that will require companies to inform consumers how their money is being used, as well as to notify nonprofits that their names are being associated with the campaign.  A nonprofit’s implied endorsement of a product raises certain issues around deceptive advertising and marketing practices, and in fact, many states have existing disclosure regulations for such commercial co-venture promotions.

In general, an advertisement complies with these regulations if it includes the following items:

• Name of commercial co-venturer
• Name of charity(s)
• Percentage of money donated to the charity(s)
• Timeframe for the promotion
• Statement of charitable purpose
• Maximum amount of donation (if applicable)
• Toll-free number for more information about the program and the charity

However, in states where these regulations do exist, they are often unenforced.  The recent open dialogue surrounding disclosure is critical to the evolution of cause, as it will continue to raise the bar for companies and nonprofits to develop more substantive, long-term programs that deeply impact a social issue.  Measurement and transparency are essential to encourage corporations and nonprofits to be more accountable, and uniform parameters will respect consumers’ sensibilities and ultimately increase their trust.  However, there is a fine line that must be acknowledged because unreasonable restrictions may dissuade well-meaning programs and impede the resulting benefits. 

*This insights brief is part of Cone's weekly cause and corporate responsibility newsletter.  If you are interested in receiving the newsletter, please email skerkian@coneinc.com .

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December 7, 2007 at 11:36 am by Knowledge Leadership

The millions of toys recalled this year due to lead and other hazards continue to have a long tail. While the toys may have been cleared from store shelves, they are still showing up in the donation boxes of charities across the country .  These organizations and their volunteers are now tasked with carefully sorting and inspecting holiday donations to ensure the gifts they will provide to the nation’s families in need this year will not bring more harm than holiday cheer.  Some organizations have brought in extra volunteers to assist in the process while others, such as 150 Salvation Army locations in the south, have stopped accepting toy donations altogether.  It’s a telling example of the damage that can result from an industry’s failure to effectively manage and monitor its supply chain, one that affects not only consumers, but a number of other indirect stakeholders, as well.  The consequences may be unintentional, but they are no less dangerous and far reaching. 

*This insights brief is part of Cone's weekly cause and corporate responsibility newsletter.  If you are interested in receiving the newsletter, please email skerkian@coneinc.com .

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November 30, 2007 at 2:46 pm by Knowledge Leadership

According to this year’s Cone Holiday Trend Tracker , most Americans (71 percent) are motivated to purchase cause-related gifts this season because they want to introduce a cause they care about to others.  A number of organizations are providing opportunities for consumers to fulfill this need by offering gifts that allow recipients to make a donation to the organization or cause most relevant to them.  A few of the programs we’ve learned about this week include:

 

• Network for Good’s “ Good Cards ”
• Global Giving’s biodegradable, charitable gift cards
• ChangingthePresent.org , where consumers can purchase donation gifts for their friends and family from $2 to $5,000

 

Some companies, too, are offering gifts with a charitable or environmentally sensitive edge, including:

• MasterCard-branded “ GiveCard ”
• Barneys “ Give Good Green ”
• Hallmark’s part in the (PRODUCT) RED campaign

 

However, the Holiday Trend Tracker also found that while nearly half (49 percent) of survey respondents proactively seek opportunities to purchase gifts associated with a cause, a full 71 percent say they are not aware of what companies are doing to support causes around the holidays.  As holiday shoppers seek opportunities to make a difference with their purchases, companies must make a concerted effort to tell consumers not only what they as a company are doing to support a cause, but also how their consumers can get involved and the specific impact they stand to make.

 

*This insights brief is part of Cone's weekly cause and corporate responsibility newsletter.  If you are interested in receiving the newsletter, please email skerkian@coneinc.com .

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November 16, 2007 at 4:24 pm by Knowledge Leadership

Environmental news continues to dominate the media and marketplace—just this week, the Wall Street Journal issued its “ Consumer’s Guide to Going Green ,” the nation’s largest institutional investors sent a letter to Congress urging passage of a national energy bill, Wal-Mart issued its first environmental report and major retailer Kohl’s announced it will pursue LEED (Leadership in Energy and Environmental Design) certification for every store opening in 2008.  And that’s just the tip of the iceberg.

 

As “green” has gone mainstream, Americans are increasingly looking to make a difference by incorporating environmental practices into their lives.  And, according to the 2007 Cone Holiday Environmental Study released yesterday, it seems there is no better time to capture this group of motivated consumers, 48 percent of whom will try to buy fewer gifts or holiday products this season because they are concerned about the effect their consumption may have on the environment.  Of those Americans we surveyed:

 

• Almost six in 10 (59%) are more likely to buy green products this year than in the past
• More than half (54%) are willing to pay more for a holiday gift or product if it is environmentally responsible
• A similar number (55%) proactively seek opportunities to buy green gifts and products around the holidays, with 42% purchasing gift wrap made from recycled paper and 32% decorating with energy efficient holiday lighting

Consumers are looking for easy ways to become environmentally responsible, particularly around the holidays.  During the remaining weeks of the season, companies should take the opportunity to clearly communicate to these motivated consumers what green gifts and other products they may purchase to lighten the environmental footprint of their celebrations.

 

*This insights brief is part of Cone's weekly cause and corporate responsibility newsletter.  If you are interested in receiving the newsletter, please email skerkian@coneinc.com .

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November 2, 2007 at 2:27 pm by Knowledge Leadership

This week Wall Street Journal MarketWatch commentator Herb Greenberg delivered interesting commentary on how corporate philanthropy often reflects that a company has strong cash flow and overall positive financial performance.  He likens philanthropy to paying dividends: it sends a positive message to investors not only that the company has cash on hand, but that the company is a good corporate citizen. 

We are delighted to see this because, as we have found in our research , companies that are good corporate citizens do win the favor of investors.  In 2007, we found that 66 percent of Americans consider a company’s commitment to social issues when deciding which stocks or mutual funds to invest in, a longitudinal increase of 65 percent from 2001.  There seems to be a cyclical effect here: as companies perform well, they have the ability to increase their charitable giving, which in turn creates an increasingly positive vibe among investors who will then increase their support for the company in the financial marketplace.  So, to stay ahead, companies should sharpen their focus on investors, making sure they make a significant effort in analyst presentations, annual reports and news releases to communicate their commitment to social issues.

*This insights brief is part of Cone's weekly cause and corporate responsibility newsletter.  If you are interested in receiving the newsletter, please email skerkian@coneinc.com .

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October 12, 2007 at 1:07 pm by Knowledge Leadership

In this week's Advertising Age , editor Jonah Bloom explains that the traditional marketing model focusing on price, promotion, placement and product benefits is no longer resonating with consumers.  We are delighted that he highlighted Cone's latest research, the 2007 Cone Cause Evolution Survey, as this insight is precisely the shift in the value equation we discuss in the report on our findings we are releasing next week.  Good business used to be primarily about providing fair value, good service and quality, but today this is no longer sufficient for competitive differentiation.  Companies must now develop deep and meaningful emotional connections to their stakeholders to stand out among a bevy of brands vying for consumer attention.

 

As Bloom describes, consumers now understand their purchasing decisions wield enormous power.  They are looking beyond product features and benefits--and in many cases beyond the brands themselves (as the recent criticism of the Axe ad in light of the Dove Real Beauty Campaign exemplifies)--to scrutinize a company's reputation.  Today, whether companies can sufficiently address the question "What do you stand for?" will determine whether they will be embraced or chastised by savvy, empowered consumers.  Effective marketers should be prepared to communicate the answer.

 

*This insights brief is part of Cone's weekly cause and corporate responsibility newsletter.  If you are interested in receiving the newsletter, please email skerkian@coneinc.com .

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October 5, 2007 at 11:48 am by Knowledge Leadership

Every October I do a lot of media interviews about “pink.”   So, I thought I would take some time to talk about how we think about a month that is saturated with corporations, nonprofits and individuals raising money and awareness for breast cancer.

This is still an important and relevant issue that people want to support.  It’s just that in the age of what we at Cone call “Ribbonization,” it’s more important than ever to differentiate your brand in a way that is authentic and connects with your consumer.

I am still amazed at how many marketers and brands are not listening to their consumers in order to reach them in an emotional and relevant way.  When it comes to cause, this is an absolute in our world today.

Consumers are smart and have high expectations.  When we talk about reaching them with respect to cause, we believe you need to meet your consumers where they are by providing and communicating different levels of cause engagement.

So, in a world where cause has gone mainstream, you need to provide what we call a Spectrum of Engagement for stakeholders seeking various levels of engagement.  At the end of the day, isn’t the overall goal to educate and engage them on an issue or cause inspiring a change in behavior?

As consumers think about getting involved, they consider three things:
1. Time commitment
2. Financial commitment
3. Emotional commitment

So, you need to give them choices based on this...

From a low commitment like purchasing a pink soup can (single use, small financial investment), to a higher engagement such as the American Express Members Project, to donating hair for Pantene’s Beautiful Lengths program, to walking for Start! , to rebuilding homes for Habitat after Hurricane Katrina (huge time, financial and emotional commitment).

The thing I love about the Hamilton Beech/AHA red blender that you can purchase to support the American Heart Association’s Go Red for Women campaign is that it is an everyday reminder that lands in a woman’s kitchen.  How could you not think about the fact that you need to be heart healthy since heart disease is the No. 1 killer of women in this country?  It’s a gentle reminder everyday to take care of yourself.

This is not just about awareness but behavior change.  It’s about providing opportunities for consumers to personally EXPERIENCE your brand with a cause they about.

Bottom line:

1. It is important that you give consumers choices to engage.

2. Your consumers should feel good about their purchase decisions and know they are part of something that really matters.

3. Make sure they know they are making a difference through their involvement.

-Julia  

Tags: causebranding

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September 28, 2007 at 10:49 am by Knowledge Leadership

There has been a lot of discussion recently about the increasing saturation of cause-related programs in the marketplace (at Cone, we refer to this as the “Ribbonization of America").  As we approach the beginning of October--when it seems that every magazine and retailer is awash in a sea of pink ribbons to promote National Breast Cancer Awareness Month --we ask, how do you cut through the cause clutter?  Fortunately, as a panelist on yesterday's Advertising Week "Brand Pink" panel pointed out, the growing saturation of cause programs is paralleled by an increasing number of socially-conscious consumers.  It's a case of supply meets demand: the competition is increasing, but so too is the potential audience.  By tailoring a program to meet the needs and demands of your audience, there are still many opportunities to break through.  However, today's savvy consumers are asking tough questions about how much money is donated, what it supports and how the company behaves in other ways.  A ribbon of any color will only stand out if it marks an authentic, sustainable, transparent and well-communicated cause program.

*This insights brief is part of Cone's weekly cause and corporate responsibility newsletter.  If you are interested in receiving the newsletter, please email skerkian@coneinc.com .

Tags: causebranding

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September 21, 2007 at 11:56 am by Knowledge Leadership

The last few weeks have been filled with news about the investment community's interest and involvement in cause and corporate responsibility, a growing trend tracked in our research over the last few years.  (Our 2007 Cone Cause Evolution Survey found that two-thirds of Americans consider a company's cause commitments when making investment decisions, up from 40 percent in 2001.)

Just this week, the Haas School of Business at UC-Berkeley announced the launch of the first ever student-managed investment fund to focus on social and environmental responsibility.  This is a progression from years ago when B-schools' token offering of anything related to "doing good" was limited to an elective class on corporate ethics!  Most exciting about what Haas is undertaking is the knowledge this will generate—both for SRI funds themselves and for Wall Street firms overall.  And, Haas (and hopefully other schools who follow suit) will be fueling the finance workplace with ethical graduates who have the hard-core, quantitative experience in SRI to make strong recommendations.

*This insights brief is part of Cone's weekly cause and corporate responsibility newsletter.  If you are interested in receiving the newsletter, please email skerkian@coneinc.com .

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September 14, 2007 at 11:19 am by Knowledge Leadership

There was a lot of buzz around new research this week about Generation Y's passion in helping the world become a better place. A study from Alloy finds this year’s returning college class is more socially conscious than ever.  Since these are the future employees, consumers (wielding more than $198 billion in spending power) and even ardent activists, corporations should take notice.  As Cone’s Millennial Cause Study found last year, this generation will reward and punish companies based on their commitments to social and environmental issues.  As consumers, a full 89 percent say they are likely to switch brands if the second is associated with a good cause, while as employees, 68 percent would refuse to work for a company that is not socially responsible. In order to effectively reach and connect with this pro-social group, companies need to provide hands-on cause-related experiences and then clearly and consistently share the resulting societal impacts.  This engagement is critical as another recent poll found, when it comes to the environment, Gen Y has mixed feelings at best about the importance of retailers' environmental policies and practices when making shopping decisions. 

In an interesting twist, another story on the Alloy research reports college students ranked Wal-Mart as the second most socially conscious brand.  This generation appears to be willing to consider a range of corporate issues and practices when examining a company and does not allow bad press in some areas to dissuade them from recognizing a company’s positive efforts toward social and environmental change. If nothing else, the flurry of research shows that young people are an active part of the conversation--another reason why companies should prioritize communications with this demographic.

*This insights brief is part of Cone's weekly cause and corporate responsibility newsletter.  If you are interested in receiving the newsletter, please email skerkian@coneinc.com .

Tags: causebranding

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September 13, 2007 at 4:52 pm by Knowledge Leadership

September 11th marks a day we will never forget. We can all remember where we were and our thoughts about what we could do to help the victims of one of our nation’s most significant tragedies.

Corporate executives responded with tremendous speed and generosity to show their support. Within hours of the terrorist strike on the World Trade Center, many companies pledged $1 million or more in aid.  In fact, the growing list of corporate contributors became a highly tracked who’s who of the Fortune 500.  Following the September 11th and Hurricane Katrina tragedies, companies have learned a lot about “thoughtful patriotism.”   

Is making a large cash contribution the right approach?  What should companies do to be responsible corporate citizens?

We offer the following five tips for companies to best support future relief efforts:

1. Cash first, but then think longer-term:  Immediate cash donations allow relief organizations to buy items that meet their most urgent needs. Companies may also want to reserve some support until long-term reconstruction goals become clear.

2. Align longer-term giving with current social commitments:  Many companies already support a specific issue, such as health, education or the environment.  These programs and relationships may be leveraged to support reconstruction activities.  For example, a company that supports education could provide transitional programs for displaced students.  This maximizes in-house expertise and builds a company’s reputation for supporting a specific cause.

3. Don’t give products just because you have them:  By sending in-kind products that are not immediately needed by relief organizations, companies can actually slow down the relief process by creating unnecessary administrative burdens.  Companies should instead proactively seek out in-kind requests from government agencies or relief organizations.

4. Involve your employees:  Employees want to help.  Companies should provide a way for their employees to donate and should also consider offering a matching grant program to inspire them to give.  Companies may also deploy employees as volunteers to assist with reconstruction activities if they have the needed skills.

5. Communicate efforts internally and externally:  No company wants to appear exploitative or inappropriate during times of tragedy.  At the same time, companies that fail to communicate their efforts may be criticized by employees and customers for neglecting to contribute.  To ensure transparency, companies should communicate internally to employees; issue brief and modest, facts-only news releases on Business Wire or PR Newswire to communicate with the media; and reach external stakeholders by providing updates on company participation via the company’s Web site. 

Immediately following any humanitarian tragedy, companies should create a cross-functional team to develop a charitable response strategy.  This team should include senior management from corporate giving, human resources, operations and communications to determine the level, type and timing of support.  Companies must also conduct due diligence on immediate and longer-term grant recipients to ensure their money is being used effectively.  Finally, the team should agree on a transparent internal and external communications strategy.

While we hope tragedies like September 11th and Hurricane Katrina never occur again, we must all strive to be better prepared in our response to assure a truly meaningful impact for those who need it most.

-Alison

Tags: philanthropy

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September 11, 2007 at 11:21 am by Knowledge Leadership

As we all know, American Express coined the term cause marketing in 1983 with a promotion encouraging consumers to give a few cents with each card usage to restore the Statue of Liberty.  This showed the business world that aligning with a cause is a powerful way to increase sales in the short-term.

In 1999, Cone coined the term Cause Branding as leading companies such as Target, Avon, Lenscrafters and others recognized that “cause” was a powerful business strategy used to enliven brand equity, enhance reputation and create meaningful relationships with consumers and employees.  These companies’ cause efforts are multi-faceted and deeply engrained in the companies’ DNA and values.

So, where do we go from here?

Today’s pioneers are responding to complex business issues, intense scrutiny from diverse stakeholders and pressure from an increasing socially conscious, sophisticated group of consumers.  Supporting an issue is no longer enough.  Also, a company’s commitment to a cause can’t live within the silo of a corporate foundation or corporate giving department.  Americans – in their roles as consumers, employees, investors and community residents – want to know the companies they do business with are authentic in their commitment to be good citizens.  Today, like never before, companies must look at their business practices and make sure they are walking the talk throughout the organization.

In some cases, especially with large business-to-business companies, we are seeing companies re-evaluate how they support causes.  It is no longer about the size of their philanthropic donation to a cause that emotionally compels a particular stakeholder group.  They are looking at a new set of issues that are aligned with their business needs and challenges. They are looking at their values, scale and operations to see where they can have transformational business impacts and social benefits.  These initiatives may include everything from bolstering the bottom line, to improving the workforce, to product innovation, to streamlining operations and to stimulating the growth of future markets.  They also have the capacity to impact business operations and to affect multiple stakeholders.  By understanding this business-social synergy, companies go beyond expressing their values through philanthropy to weaving them into their operations and organizational fabric. For now, we at Cone are referring to this strategy as “Socially Aligned Business Initiatives.”

GE, The Home Depot, Patagonia and Aveda are just a few companies who have recognized that, by tapping and seeking alignment from their operations, philanthropy, marketing and public affairs, they can have a truly transformational impact on the environment. When these functions are working seamlessly, they are able to build a two-way dialogue with NGOs, impact their business practices, change the behavior of others and positively contribute to their communities in an authentic way.  They are able to change their own environmental footprint and that of their suppliers, customers and consumers.  It is truly about using their scale for greater good.

All of us at Cone are continuously trying to figure out where the “puck” is going in this rapidly changing field.  We welcome your comments to collectively help companies figure out “what they stand for.”

-Alison

Tags: causebranding

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August 31, 2007 at 8:00 am by Knowledge Leadership

It is fascinating to come across an article like one that appeared recently in the Cincinnati Enquirer .  This article discusses "cause-related marketing" as if it is a new corporate phenomenon.  Surprisingly though, this is not so uncommon--at least once a month Cone's media scanning uncovers an article that reports on cause or corporate responsibility as if they are new concepts.  Those of us practicing in the space know how removed this is from the truth,  but it serves as a good reminder that we all still have work to do when it comes to communicating about the innovative, sophisticated work companies and nonprofits engage in each day.  Rather than over-simplifying the message, let's strive to raise the bar and drive toward more compelling conversations with the media and public.  They will only serve as catalysts to move this important work forward.

*This insights brief is part of Cone's weekly cause and corporate responsibility newsletter.  If you are interested in receiving the newsletter, please email skerkian@coneinc.com .

Tags: causebranding

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