It will come as no surprise to corporate executives that “cause” has gone mainstream. We have seen evidence of this recently in our 2007 Cone Cause Evolution Survey , where a shocking 30 percent drop in “word of mouth communications about a product or company after hearing about a company's commitment to social issues” was reported.

One reason for this is the increasing number of cause campaigns that are not properly aligned and executed with corporate strategy. It is my opinion that in the same way we require authenticity, focus, credibility, interactivity and other business drivers from brand and product performance, we should also hold our cause investments accountable. When we do this, we can deliver programs that last and break through.

Two impactful frameworks for integrating cause and business that I have had success in developing and have observed move the needle with stakeholders (employees, consumers, the public at large, etc.) include:

Cause as an extension of the brand:

- Involves developing a signature cause program and outreach infrastructure

- Includes diverse engagement components such as volunteerism, grants and content communications

- Has a distinct marketing communications budget

- Uses public relations to support the issuance of grants and related activities

- Can achieve business results including corporate reputation, employee pride, stakeholder relations and permission to operate, while driving meaningful social impact

Great examples of this include: ConAgra Foods' Feeding Children Better and Crest Healthy Smiles .

Cause as part of the brand DNA:

- Incorporated into differentiation strategy emphasizing customer experience, building community and heart, connects with stakeholders on emotional levels

- Becomes a tangible demonstration of the brand promise, driving consumer experience and engagement

- Used as reference point to communicate human, emotional and inspirational brand messages

- Incorporated into overall marketing communications budget

- Can achieve business results including aforementioned, plus increased sales, customer loyalty, consumer switching/sales person overrule and consumer acquisition

Great and diverse examples here include efforts by: Whirlpool , Aldo and Ben & Jerry's .

Both frameworks have terrific merit and adopting either is sure to be an evolutionary process. No matter which is right for the business based on your goals, resources and institutional will, each forces an understanding of purpose, an integrated approach, diverse engagement options and the assignment of results – ultimately insurance that a program will be in line with the business, brand, and stakeholder expectations. And, when a corporate cause does that, it gets noticed.

- Kristian

Last week, Alison DaSilva and I attended in Louisville, KY an internal meeting of Athletes for Hope , a seven-month old nonprofit focused on assisting professional athletes with their charitable endeavors.  The idea of an organization created to help professional athletes with their philanthropy is nothing new; organizations like The Giving Back Fund and the Sports Philanthropy Project have been around for years. 

But, Athletes for Hope (AFH) is different.  It was created by athletes for athletes.  Its founders are some of the best known sports personalities on the planet, including Muhammad Ali, Lance Armstrong and Andre Agassi.  These icons have joined with nine others, including Cal Ripken, Jr., Jeff Gordon, Mia Hamm, Tony Hawk, Mario Lemieux, Andrea Jaeger, Jackie Joyner-Kersee, Warrick Dunn and Alonzo Mourning, to pass on their passion for philanthropy to other athletes.

AFH has a three-pronged mission: to educate professional athletes on philanthropic options, connect them to charities throughout the country based on their specific interests and ultimately recognize and honor athletes for the significant contributions they are making to communities.

The group's development comes at an interesting time in sports philanthropy.  The sizeable increase in the number of athlete charitable foundations is being met by another trend—increased skepticism by the public and media.  This is due in large part to media reports from the New York Times and Wall Street Journal which have criticized several athlete foundations for (1) operating as little more than a way to provide jobs for family and friends and (2) their operating costs at times far exceeding the money or services provided to the community.  The result is a much higher level of expectation for not just athletes but for all facets of the sports community—leagues, teams and even owners, when it comes to their charitable efforts.

With its impressive lineup of founding athletes, its multiple free services for athletes and sustained financial support from Genworth Financial and Stanford Financial Group , Athletes for Hope is well positioned to be a force in sports philanthropy, helping athletes develop sustained philanthropic programs that meet the increased public demand.

Travel Tip: Next time you make it to Louisville, be sure to check out the Muhammad Ali Center .  Located on the Ohio River, this beautiful facility is part-museum, part-cultural center, where groups of all types—local to international—travel to meet and learn from one another. Just as Ali hoped.

-Rich Maiore, Account Director, Cause Branding

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 .

Take my word for it...

I cannot tell you how many times I am asked for statistics to support the business case for cause and corporate responsibility, outside of our own. The good news is there are many other organizations that also have done terrific work to advance the field.  Here is a quick sampling of some global statistics (and related studies) out there:

• 82% of citizens worldwide agree that companies should do more than give money to solve social problems. (Corporate Social Responsibility Monitor, 2003)
• In forming impressions of companies, people around the world focus on corporate citizenship ahead of either brand reputation or financial factors. (Environics International, Millennium Poll, 2000)
• 76% of consumers would switch brands to one that practices social responsibility. (Edelman, Corporate Social Responsibility Study, 2001)
• 42% of North American consumers reported to have punished socially irresponsible companies by not buying their products, compared to 25% in Europe, 23% in Latin America, 18% in Africa, 10% in Eurasia, and 8% in Asia.  (Environics International, Global Public Opinion on the Changing Role of Companies, 2001)
• A strong majority of opinion elites say they have purchased a company’s products and services (72%), and have recommended the company to others (61%), in response to positive news about a company’s social responsibility.  (APCO Worldwide, Global CSR Study, 2004)
• 60% of opinion elites have boycotted a company’s products or services in response to negative news about a company’s social responsibility.  (APCO Worldwide, Global CSR Study, 2004)
• 14% say they have purchased shares of a company’s stock in response to positive CSR information, and a similar proportion (12%) have sold shares in response to negative news. (APCO Worldwide, Global CSR Study, 2004)
• Three-in-10 shareholders strongly agree that they would sell their shares in a company if it behaved socially irresponsibly, even if the share earnings were significant. (Corporate Social Responsibility Monitor, 2002)
• 88% of international executives agree that social responsibility initiatives contribute a significant amount to their company's overall reputation. (Hill & Knowlton, Corporate Reputation Watch: Global Survey of Business Leaders’ Views on Corporate Reputation Management, 2002)
• More than 70% of CEOs surveyed believe that mainstream investors will have an increased interest in corporate citizenship issues. (Why Global Corporate Citizenship Matters For Shareholders: A Survey of Leading CEOs, 2004, World Economic Forum)
• Executive perceptions of public expectations include (The Center for Corporate Citizenship, The State of Corporate Citizenship, 2003-2004):
  - 75% of businesses believe the public expects them to exceed the law to make sure products are safe and reliable
  - 58% of businesses believe the public expects them to exceed the law to protect the environment
  - 53% of businesses believe the public expects them to contribute time and money to address community needs
  - 53% of businesses believe the public expects them to be involved in solving problems in society
• 56% of respondents worldwide found a company’s social responsibility to be important in forming their opinion of that company, while only 34% found business basics to be important. (The Conference Board of Canada, Revered or Reviled: How Corporate Social Responsibility Can Affect Your Reputation, Choquette and Turnbull, 2000)

And this, of course, is just the tip of the iceberg. Please post your compelling facts as you have them here to help advance the dialogue and make a greater impact.

-Kristian

Doesn’t a long-lasting, low-cost, anti-malarial bed net that can be manufactured AND sold in Africa seem like a good idea?  It’s not just a smart invention that will help save millions of lives—it’s a sound investment. And investors like the Acumen Fund are bound to take notice. The Acumen Fund has invested more than $11 million in social entrepreneurs since 2001, including the founders of A to Z Textile Mills , the manufacturer of anti-malarial bed nets.

Acumen is an example of an investment fund that uses strict business practices to create financial and social returns from small to medium-sized enterprises.  These types of organizations offer loans at near-market rates and provide ongoing strategic consulting to ensure the investment is a success and the business continues to grow. Just as in any for-profit business venture, revenue from sales of the product is used to pay off the loan.

In this case, A to Z produced more than seven million nets a year by the end of 2006. With Acumen’s help, they were able to decrease the cost of each net from $7 to $5.  A to Z would be a shining example of business success by any measure, but thanks to the double bottom line of social entrepreneurship, A to Z and Acumen can reap the social returns as well: their partnership has helped to protect more than five million people in Africa from malaria.

Businesses like A to Z Textile Mills are on the frontlines of the burgeoning field of social entrepreneurship, where great ideas with a social conscience are paired with strong business practices.  Loaning money to these enterprises with corporate giving dollars promises long-term impact because money from repaid loans can be reinvested and thus continuously generate returns.  Meanwhile, start-up businesses reap the benefits of invaluable knowledge that will help them succeed.  To put it simply, everybody wins.

-Leah Gutstadt, Assistant Account Executive, Cause Branding