Do You Stand For Something?

Caught Kissing for a Cause

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!

GE- A Philanthropic Shift

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. 

A Better Capitalism for Brands, Companies and Consumers

I always remember breakthrough articles related to cause. While few and far between they provide tremendous inspiration to me and many of  my colleagues, clients and friends.

Six years ago, Geoff Colvin at Fortune wrote a full page editorial about the power of causes on employee commitment and morale. In November 2004, Marc Gunther, also at Fortune wrote Money and Morals at GE, about the new values-based culture CEO Jeff Immelt was instituting to inspire green-related innovation as well as an enticing workplace for the emerging millennial generation. 

This week came Jonah Bloom's Ad Age editorial:  Recession Provides a Chance to Build a Better Capitalism.  Better capitalism reported by AdAge?...I read it with vigor. 

Here is his critical point:  conspicious consumption is no longer a sustainable answer to our lives.  We already have enough. Building brands for tomorrow can and should embrace a different type of capitalism, one that incorporates society and the environment into emerging businesses as well as established ones.

Bloom talks about the opportunity in 2009 and beyond for marketers and their agencies to harness and reflect the mood of the country --  that voted for change--  to advocate "for a new era in business where companies and products are analyzed, valued and attract investment based on a range of metrics that reflect the challenges of the world we live in.." As well they take new approaches to branding, marketing and sales that build in sourcing, operations, and product/service functionality that just makes sense to a new type of consumer, ones that desire to share their values with the businesses they buy from and work for...

This is so so very exciting to hear from Ad Age.

For those of you who have followed Cone and our work since the early 80's, we have always advocated for business to bring their values to life through authentic and sustainable engagement with social issues. Now a quarter of a century later, with our world upended, for this philosophy to become the norm, rather than the exception, is encouraging for our people, planet, our communities and our children's futures.

Jonah ends his editorial with this commentary:  "Next year we will have a chance to wean ourselves off the crack of consumption at any cost to our brands and our planet and instead focus on profitability, sustainability and social responsibility.  Maybe next year can be the start of something good, a different take on commerce..."

This year we went through a robust discussion of Cone's future as a strategy and communications firm.  After much discussion we settled on something we felt was just right:  Our firm's vision: Better Business. Greater Good.

My New Year's wish is that we all answer this call.  Our collective futures may depend on it.

Thanks Jonah for this invaluable commentary.

- Carol Cone

Cause Marketing Amidst a Season of Contradictions

Consumers are struggling to pay their own bills but desperately want to buy meaningful holiday presents. They are less likely to open their tight wallets and donate to worthy causes, but they can’t help but feel a deep sense of compassion for those less fortunate as their friends and family members are laid off and the basic health and human services organizations are unable to meet the growing demand.

Companies too are conflicted. As they face layoffs and their stock prices continue to plummet, they also see increased pressure from their loyal nonprofit partners and communities groups to give back during these difficult times.

While I am not pretending that there is a silver bullet solution for these complex problems, I feel obligated to show you how some leading companies are recognizing that by tapping the hearts and wallets of the thousands, or even millions, of consumers that walk through their doors, they can in fact “do well by doing good.” 

I have been pleasantly surprised by the abundance of very visible cause marketing programs during my many trips to the mall this holiday season. I have to admit, I was concerned that companies would overlook cause marketing in favor of increased price cuts to attract consumers. But pay attention: companies continue to not only maintain their support of causes, but they are also investing in marketing these programs to increase awareness of their efforts and help raise funds for worthy causes. Here are just a few examples:

• Macy’s “Believe” campaign is donating $1 to the Make-a-Wish Foundation for every letter to Santa dropped in its stores.  
• Kohl’s “Care for Kids” has Curious George plush animals it is selling for $5 with 100% of the net profit from the sale of these items supporting health and educational opportunities for children nationwide.
• Sears’ “Heroes At Home Wish Registry” allows shoppers to donate money that goes to military families in the form of Sears gift cards to purchase items on their “wish lists.” 
• Yankee Candle is donating $1 to the American Heart Association's Go Red For Women movement for the sale of every 14.5 oz. Go Red For Women custom candle in the Macintosh fragrance.  Additionally, they will donate 10% of the net proceeds from the sale of the new Red Dress Car Jar® auto air freshener.
• Starbucks Product (RED) promotion:  a portion of proceeds from the sale of exclusive holiday beverages is donated to the Global Fund to fight AIDS in Africa. 
• Jockey Being Family is Jockey International’s corporate citizenship initiative to help strengthen adoptive families for successful futures. The Jockey Being Family Bear helps to support newly adoptive families, as for each bear sold, Jockey donates $3 to the Debra Steigerwaldt Waller Foundation for Adoption and charities supporting adoption.
• Cartier's holiday card collection designed The Art of Elysium kids and will donate all of the profits to the charity.
• Gap ran a special friends and family promotion called “Give and Get.” Customers received a 30% discount e-coupon and were prompted to select their “charity of choice” from a short list of potentials. The charity in turn receives 5% of proceeds from designated purchases. Once selected, the Gap then automatically sent a new email to the customer designed to pass on to friends and family to partake in the discount, while accruing more donations for his or her very own designated charity.
• And finally, St. Jude’s “Thanks and Giving” program is everywhere. Robin Williams and Jennifer Aniston are visibly promoting the campaign through heartfelt PSAs aired during prime time.  CVS, Pottery Barn, Dick’s Sporting Goods and Ann Taylor ask consumers for a dollar at check-out. Other retailers like Brooks Brothers and Kay Jewelers are tying in a donation to the sale of a specific products. 

These leading companies, among dozens of others, are recognizing that consumers want to buy meaningful gifts this holiday season that not only alleviate the pressures on their wallets but also their consciousness. While Americans may not be as inclined to write a check, they remain more than willing to do their part in buying products from companies who share their concern about others in need. These companies are tapping their assets beyond just cash (such as their foot traffic, product offerings and marketing) to raise funds and awareness for critical social issues.

Companies who recognize the mindset of consumers this season and maintain their commitment to causes during these difficult times will gain a competitive advantage today and after the recession is over. 

- Alison DaSilva

Cause Awareness: Videos

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

Association of Fundraising Professionals Toronto: Wrap-Up

I recently had the pleasure of presenting two sessions on Cause Branding and Passion Marketing at the Association of Fundraising Professionals’ 2008 Congress in Toronto, Canada -- two rooms full of extremely insightful and well-read nonprofit executives. Based on the tremendous response, not only to the presentations themselves, but also to the compilations of research and case studies that we covered, I am posting the links to the information here, for all to easily access. Enjoy!

Cause Branding: The Power of Focus - This presentation demonstrates why cause branding is a must-do business strategy in creating brand personality, passion and trust in today’s marketplace, in developing  innovative programs and in communicating them in a credible way.

Addicted to Love: Infusing Passion into Your Brand - This presentation drives home the payoffs of emotive communications and illustrates the path to reaching, engaging and impacting diverse audiences.  It is highlighted by successful audience segmentation examples employed by the American Heart Association (AHA).

More detail on each of the AHA’s cause campaigns is included in these word case studies:
Go Red for Women
Start!
Alliance for A Healthier Generation
Power to End Stroke

Relevant Cone research (as referenced in the presentation) is included here:
Past. Present. Future. The 25th Anniversary of Cause Marketing
2006 Nonprofit Research

- Kristian Darigan, Vice President

Can CR Withstand the Recession?

Need proof that corporate responsibility initiatives can withstand the recession?  Consider this:  According to a new study from Panel Intelligence, 80 percent of sustainability leaders surveyed (65 execs from Fortune 500 companies) in November say they intend to maintain or increase spending in areas related to sustainability next year.  In fact, they reported that sustainability and clean technology spending, as a percentage of corporate revenues, is expected to increase 73 percent through 2010. 

And well it should.  Another recent study by A.T. Kearney reveals that, as a result of “ecoflation” (based on future analysis of increases in commodity prices, environmental  and governmental policy and climate situations), packaged goods companies may expect a reduction in earnings of 19 to 47 percent in the next decade if they do not implement adequate sustainability measures.  That’s nothing short of startling.  Thankfully, unlike much of the rest of the business world of late, optimism and sound business sense do not seem to be in short supply among corporate responsibility leaders of some of the world’s leading companies. 

Hybrids: The latest victim of the economy?

All eyes were on the automotive industry this week, particularly when the Big Three CEOs made their trip down to Washington – in their hybrid vehicles.  According to Cone’s 2008 Green Gap survey, 71 percent of people consider the impact of the environment when buying a car.  It should not be surprising, then, that hybrid sales have dramatically increased over the past few years.  The introduction of the Toyota Prius, for example, left people waiting for up to a year to purchase.  When celebrities like Leonardo DiCaprio were proudly driving around in them, it seemed like everyone wanted one.  More and more models were rolled out for consumers to choose from.  And, as gas prices climbed up to $4, people aggressively sought out more fuel-efficient vehicles. 

The recent decline in the overall economy, however, has left many people deciding to hold off on car purchases altogether.  Additionally, the recent drop in gas prices no longer presents the “urgency” once felt for fuel-efficiency and, ultimately, cost savings.  Does this spell the end of the hybrid boom?   Well, the good news is that while total vehicle sales plummeted in 2008 (down 15 percent in January through October,) hybrids were only down 3 percent.  Hybrids’ market share continues to climb.

As the Big Three CEOs present their plans to Washington, they will certainly talk about sustainability and fuel efficiency.  Let’s hope that they are authentic, because not only are these plans better for the environment, but they are what consumers are looking for.

  Chevy Malibu Hybrid – driven to Washington by GM CEO Rick Wagoner

- Dena Pizzutti, Senior Account Executive

Buy Local Week

This week is the Business Alliance for Local Living Economies (BALLE) Networks’ buy local week. But does place still matter in this age of globalization?

For some, it seems to matter more. Recently, my husband and I visited a new local coffee house. Well, “house” might be an overstatement. It was more of a lab cum temple devoted to elevating coffee above its origins as the humble cup of joe. They roast the beans on the premises and spoke passionately about the various microclimates and artisanal flavors that are brought out by various climates, roasting techniques, water temperatures and brewing times. That might not come as a surprise to anyone who’s read about the Clover.

However, I was surprised that my new neighbors wouldn’t sell me a bag of beans, since the equipment I have at home isn’t good enough for their coffee. (No doubt, my husband will ensure that a burr grinder makes an appearance in our kitchen in the near future.) The java jocks were concerned that the ineffable highs and lows, the essence of place, the terrior, would be lost in translation.

Which brings me to the reason I’m blogging about this here: could place become a new cause célèbre? 

The general awareness that place matters may have started with wine but foodies now consider it when selecting cheese, chocolate, tea, milk and countless other foods. The resurgence of interest in native plants, local culture and even capturing place-based memories all adds up to a new regionalism even as communities wrestle with the implications of globalization. Will it mean homogenization or a dynamic network of connections between vibrant, distinctive communities? In many ways, the choice is ours as consumers – and perhaps more importantly, as citizens.

How does place show up in your life? Are you buying local this week?

-Talya Bosch, Account Director

The Buy Nothing Day Dilemma

Fourth quarter forecasts for retail companies are bleak this year, and consumer confidence is the lowest it’s been in years. A Deloitte survey released in late October reported that almost six in 10 consumers said they would reduce spending this holiday season, and nearly seven in 10 said they would wait for store sales, cut back on shopping trips to save gasoline and use more store coupons.

In some respects, it’s Christmas come early for Adbusters magazine: Each year they promote an alternative to the Black Friday shopping frenzy: Buy Nothing Day, “a day for society to examine the issue of over-consumption.” Given our troubled economy, this year many may unknowingly participate in this “holiday” simply because they cannot afford to do otherwise.

But is this the right time to deliberately choose to buy nothing? It’s a double-edged sword. For years, President Bush has told us to strengthen the economy by shopping more; indeed, the “Shop for America” mentality helped to lessen the impact of the recession in 2001, while at the same time contributing to the credit crisis our country faces today. So maybe a consumer-based economy isn’t the most sustainable model – but where does that leave you, the responsible citizen?  Instead of buying nothing, buy less or buy with a purpose. Consider the environment and the bigger picture (is the product you are buying environmentally friendly?); consider the values your purchase supports (is the company you’re buying from committed to socially responsible business practices?); consider the impact your purchase has on future generations and the planet.

That’s certainly a lot to consider when you’re checking people off your list this holiday season. To keep you sane, here are a few ideas that live up to the above criteria:

• Purchase carbon offsets for family members who are traveling for the holiday
• Share your commitment to a cause  and help someone in need by giving a “virtual charity gift” via Mercy Corps, UNICEF or Heifer International
• Host an organic holiday meal
• Double the impact of a cash gift with a Kiva.org loan
• Be eco-chic and wrap gifts in recycled paper
• Sell gifts you receive and don’t need (or want!) through eBay’s Giving Works and donate part or all of your sales to your favorite nonprofit organization

All you smart blog fans out there – please let us know your ideas and strategies for sustainably sharing the holiday spirit.

Happy Holidays!

- Jillian Wilson Martin, Senior Account Executive