Corporate Philanthropy: Looking Beyond the Check
While charitable giving is finally back on the rise, so too are the pressures facing nonprofits in appealing to corporate partners. Gone are the days of writing checks to the CEO's favorite "pet" charity, as companies look deeper into the business case for philanthropy. Two new studies released this week demonstrate that employee engagement and ROI from product donations are often key drivers in determining which nonprofit organization to support.

A recent study by Forbes Insights found that 72 percent of the 311 global senior executives surveyed said they primarily donate to charities that also allow their employees to volunteer. Moreover, respondents cited that in addition to social benefits, the top two goals behind philanthropy and community involvement programs are employee motivation and increased skills/leadership. In the case of MasterCard, sending employees to volunteer with Grameen Foundation in Colombia gave staff on-the-ground experience in microfinance and mobile technology, as well as a new perspective of the financial reality of people across the globe. Employees returned armed with new skills to make a difference in their own communities.
Another recent report released from Indiana University examined the business case for product philanthropy. The report found that beyond environmental and social benefits, there is actual return on investment in donating excess inventory instead of liquidating or destroying it. Nonprofits are already cropping up to fill this need, including Good360, an online product donation platform used by some of the world's biggest brands.
While companies may be writing new rules for corporate philanthropy, nonprofits can come to the table prepared. Nonprofits can look to create a diverse spectrum of employee engagement opportunities from company-wide days of service for broad participation to leadership skills-based volunteering. Organizations that work to create sought-after business case metrics for corporate philanthropy will take the lead. While these pressures may be difficult for many nonprofits to manage in the short-term, the end result is strong corporate partnerships, a new group of ambassadors and enhanced capacity for greater social impact.
Tags: donations giving philanthropy product employees corporate
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Eco-labeling: Is There an App for That?
From "Farm Verified Organic" to "USDA Organic," "Processed Chlorine Free" to "Totally Chlorine Free," eco-labels are proliferating and consumers are having a tough time keeping them all straight. Cone's 2011 Green Gap Trend Tracker found 51 percent of Americans are overwhelmed by the amount of environmental messages in the marketplace, and no wonder – there are more than 5,000 products currently on the shelves touting green claims and more than 400 green labels in the market.

What was once a solution for effective green marketing has become a contested topic among marketing experts and environmental authorities alike. Consumers, however, are turning to technology for the answer. Bart King, writer for Sustainable Life Media, offers one possible solution to the green label conundrum – an app. Many products are now equipped with "smart barcodes," which allow users to scan codes to learn more information about the products they are purchasing with apps like GoodGuide. Apps also offer a potential solution for marketers struggling to efficiently communicate the holistic environmental credentials of their products.
On-pack offers only a small space for product messages, yet almost 80 percent of Americans want detailed information readily accessible on product packaging. Armed with apps, curious consumers can now dig deeper into a company's product specifications and environmental impact right in the store, without having to decode a myriad of labels.
Tags: labeling green ecolabel environmental communication
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#whatsinyourstuff: Transparency Predictions for 2012
It’s no secret – almost all of the products Americans buy are produced by workers in developing countries; workers who often receive low pay, work long hours and live in questionable conditions.
87% of consumers say they’ll hold companies accountable for ensuring human rights in their supply chains. Yet, when it comes to our favorite brands, many of us are willing to look the other way. We explored this topic at Cone Communications’ #whatsinyourstuff event, and, even among a crowd of transparency enthusiasts, the majority admitted they own and would continue to purchase Apple products – regardless of the ethics behind their iPhones.

Like the meat eaters who don’t want to think about the history of their steak, we have a hard time remembering – dare I say caring – about the people behind the labels.
But when it comes to our shiny gadgets, the truth is getting hard for everyone to ignore.
Since January 1, dozens of Xbox workers threatened mass suicide, the California Transparency in the Supply Chain Act went into effect and Apple agreed to allow independent monitoring on working conditions for the first time. In many ways it is truly exciting – workers mobilizing, government driving change and a major corporation essentially admitting “silicon sweatshops” are often a harsh reality.
But will the energy last? Will other companies follow Apple? Will “developed world” consumers actually boycott the companies that manufacture their “bling and zing”? As companies come to grips with today’s new, naked reality, here are a few predictions to consider in 2012:
· Tech is Next: Supply chain transparency is an issue for every industry, but there are trends in who we choose to critique. First it was food (Dole, etc.), then it was apparel and footwear, but now the big brands are in tech. Apple may be the current target, but if you accept “the cult of Mac” has issues, you realize everyone else does, too. It only takes a glance at the back of insert any brand’s label for consumers to question everything. Reporters will too. Consumers will accept short-term set-backs if brands demonstrate a long-term commitment to change, but companies should work quickly to get their houses in order now.
· Occupy Shanghai: The 99 percent is even larger in China, and the population there is living a strange dichotomy. Companies are outsourcing to China on the one hand and targeting a new consumer base there on the other – but it’s hard to buy a product that literally includes your blood, sweat and tears. The activist buzz is “Arab spring, American autumn, Chinese winter,” and, in the past year, thousands of Chinese workers have gone on strike or staged protests, demanding more pay and compensation. Unrest isn’t good for business – watch for multinationals to champion, not challenge the legalization of international labor unions and push the central government to do the same.
· Strange Bedfellows: No one company can solve an issue as massive as human rights or change the system on its own. Look for competitors to partner and form coalitions to take on this issue as a group. In aggregate, they can wield their power – pressuring sketchy suppliers to comply with tougher codes of conduct, educating consumers on the sacrifices that support a lower price and engaging employees to create solutions from within.
· Consumer Demand for Cruelty Free: Consumers currently feel paralyzed by this issue – they question the ethics of a tag that reads “Made in India,” but they don’t know if that feeling is wrong or right. Social media and online apps like Good Guide have begun to open the flow of information, but expect “sweat shop free” or a spin on “cruelty-free” labeling to give shoppers the data they need to act. And don’t think consumers will shop silently. Watch for a rise in consumer awareness and connection to films, games and advocacy groups, like Slave Free, Slavery Footprint and Phone Story, that push the issue.
· Experience Transparency: NGOs and corporations will take on new and surprising tactics to get their messages out. Watch for bold and innovative actions as leading organizations – or social media activists – open the curtain for consumers to examine supply chains. Think video feeds in factories, photos of assembly line employees purposefully left on every iPhone and living-wage products that knowingly promote a higher price.
· Fill in the Blank: What do you think will happen (or needs to happen) to drive product transparency forward in 2012? We’d love to learn more about the trends you’re seeing in the marketplace and your predictions for transparency in the future.
To learn more, check out a video clip from Cone Communications’ recent #whatsinyourstuff event with Dara O’Rourke, founder of the GOOD GUIDE; Theo Forbath, the VP of Innovation Strategy at Frog Design; Julie Wittes Schlack, SVP of Innovation and Design at Communispace; and Beth Holzman from Timberland.
Jillian Wilson-Martin is a Senior Account Supervisor in Cone Communications’ Cause Branding group.
Tags: HumanRights Tech
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Are You Listening?
From ponytails to braids, long locks to updo's, Barbie's hair often reflects the trends of the times. But, according to some consumers, there's one style the iconic doll is long overdue for: going bald. A new Facebook page "Beautiful and Bald Barbie: Let's see if we can get it made," has cropped up online, driven by two women affected by cancer. The group, now more than 87,000 "likes" strong, is asking toy maker Mattel to create a bald Barbie to support children with cancer and help them deal with situations when they or loved ones lose their hair. Although Mattel has yet to publicly enter the conversation, with media coverage from USA Today to Fox News, it's hard to imagine the brand will stay mum for long. This movement signals an important shift in cause branding. Today, empowered consumers are taking the reins and have no qualms letting companies know what issues they should support.

In recent years, company-sponsored voting campaigns have given consumers an increasingly powerful voice in how and where companies direct their cause marketing and philanthropy, yet ultimately, the company is still in control. But social media and grassroots organizations like Change.org are giving consumers an unprecedented voice in a company's responsibility efforts – and they won't hesitate to use it. According to Cone's 2011 Global CR Opportunity Study, 79 percent of Americans are willing to voice their opinions to a company about its corporate responsibility efforts. So listen up.
Despite this pressure, the activist consumer is not necessarily a thing to be feared. This trend presents companies with a unique opportunity to connect with consumers and address a cause on a level that is much more personal and meaningful than a pink ribbon on a package can ever hope to be. Being open to this kind of consumer feedback may spur innovation and help craft products that reflect the attitudes and concerns of today's consumers. The result is a new level of brand affinity – one that companies, consumers and causes can all embrace.
Tags: cause causemarketing consumer campaign Issues Activist
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10 Experts, 10 Predictions, 1 Year
Last month we looked back at the top trends of 2011, but now that the New Year is upon us, it's time to look forward to what 2012 has in store. We've convened the biggest and brightest minds in cause marketing, corporate responsibility, nonprofit marketing and volunteerism to share their top predictions, programs and issues for the New Year.
As for our perspective, we say look out for an influx of disruptive campaigns in 2012. The cause industry continues to mature, and with the flood of new campaigns in the market, companies and nonprofits must do more to make sure their cause stands out in the chatter. Companies will make bigger and braver commitments, support broader and bolder issues and increasingly go out on a limb all in the name of cause. We'll also see more companies support niche causes and partner with smaller, more nimble nonprofits for further differentiation. Let's shake things up this year!

Prediction
Joe Waters, Blogger, Selfishgiving.com; Co-Author, Cause Marketing for Dummies
"My one cause marketing prediction is that by the end of 2012, we'll finally have a mobile donation platform for smartphones that consumers will use for everyday giving. Text-to-give works for disasters, but there's no good vehicle for regular giving for mobile donors that has any momentum in the marketplace. That could change this coming year."
Joanne Fritz, Writer, About.com, Nonprofit & Charitable Orgs
"Donors will rebel against charity contests. Contests have peaked and will decline in participation. Charities are tired of competing, and supporters are sick of promoting companies."
Ryan Scott, CEO, Causecast
"2012 will see the rise of the employee activist. As 2011 saw the second coming of the consumer activist with powers heretofore inconceivable, the new year will bring the awakening of the most powerful brand ambassadors - the employees. This year employees will awaken to the opportunity they have to create real change inside the corporation and in their communities, simultaneously. Corporations will embrace the chance to help their employees to make that change."
Aman Singh, Editorial Director, CSRWire; CSR Blogger
"As CSR and sustainability continue to converge into ‘business excellence,' we will see a growing recognition within executive ranks to understand, recognize and leverage the value of a responsible and sustainable work culture. 2012 just might be the year when change management becomes institutionalized as a prerequisite for growth and profitability."
Casey Brennan, Marketing Manager, VolunteerMatch
"Companies will lead volunteer engagement: It's a known fact that individuals volunteer less during tough economic times. In addition, government budgets were cut, meaning there will be less government investment rallying citizens to volunteer. It will be companies who step in to encourage individuals and employees to volunteer - not just because they're trying to fill the void, but because it has a direct impact on the health of their business. Consumers want to see companies making authentic, sustainable efforts for the betterment of society, and there's no better way than helping others make a local impact. In addition, a well-run employee volunteer program positively contributes to staff recruitment, retention and productivity, helping individuals feel like they're having a positive impact on society through their place of employment."
Kate Olsen, Senior Manager, Partnerships at Network for Good
"In 2012, we are going to see a deeper integration of social business values into cause-related initiatives. Through social channels, business, culture and media collide at Web 2.0 speed, disrupting entrenched paradigms and elevating the voice of the individual. It's that voice (from both consumers and employees) that will keep companies transparent, authentic and impact-oriented – and ultimately shape the future of corporate-cause partnerships."
David Hessekiel, President, Cause Marketing Forum
"We will see a major giving back initiative capture the imagination of the country in 2012 and serve as a unifying force much as the LiveStrong bracelet did back in 2004."
Dipti Pratt, Marketing Director, Entrepreneurs Foundation
"Corporate Social Responsibility (CSR) will continue to become more completely integrated and visible throughout company operations. As companies continue to incorporate CSR into overall corporate operations, CSR professionals will have the opportunity to deepen the social impact of their CSR programs. In addition to greater social impact, companies will experience greater overall corporate and cultural benefits from their CSR programs. The increased focus on CSR will have a positive and meaningful impact on society, corporations and the employees of these corporations alike."
Katya Andresen, Chief Strategy Officer, Network for Good; Blogger, Katya's Non-Profit Marketing Blog
"We will see cause campaigns shift from a company-centric to consumer-centric perspective. Instead of campaigns that tread into self-congratulatory territory ('our company is so great because we support this cause'), we'll see a strong step toward campaigns that empower the consumer to effect social change with companies' support. The spotlight will be on the consumer rather than the corporation. Just as companies have had to shift from a broadcast to a relationship model in social media, they will do so in their cause marketing work as well. They know it's the best way to win over consumers and drive business objectives."
Program
Joe Waters, Blogger, Selfishgiving.com; Co-Author, Cause Marketing for Dummies
“The one cause marketing program to watch in 2012 will be online giving programs with e-tailers. Online checkout programs are just beginning to percolate (e.g., GoDaddy.com and Delivery.com). Expect one or more large e-tailers to join the space before the end of 2012. They'll raise millions!”
Joanne Fritz, Writer, About.com, Nonprofit & Charitable Orgs
“I'll be watching DonorsChoose. This organization just keeps getting better. Education is a crucial issue, people love connecting with specific projects, and it's a win-win for corporate partners.”
Ryan Scott, CEO, Causecast
“2012 will see the democratization of cause integration technology. This technology enables even small companies to realize the real bottom line benefits of engaging with causes. Specifically, they'll engage their consumers via cause marketing, their supply chains via CSR, and their employees via workforce giving and volunteering campaigns.”
Aman Singh, Editorial Director, CSRWire; CSR Blogger
“Patagonia’s Common Thread Initiative: Will it teach us conscious consumption?”
Casey Brennan, Marketing Manager, VolunteerMatch
“LinkedIn is working to bake the LinkedIn for Good program into everything it does – showing a commitment to authenticity that is worth watching. The program’s mission is to 'connect the talent and passion of professionals with opportunities to use their skills to make a positive impact on the world.' In 2011, LinkedIn rolled out a Volunteer/Causes field on professional profiles, showcasing the importance these attributes have on professional identity. LinkedIn is positioning itself as a catalyst for community involvement by promoting how its tools can be used for the greater good and building its program into the ethos of the organization. In 2012, we are sure to see further strides toward harnessing the power of its people and network for positive impact.”
Kate Olsen, Senior Manager, Partnerships at Network for Good
“I’ll be watching the evolution of cause marketing initiatives that genuinely reflect an underlying commitment to sustainability and responsibility. In 2011, companies such as Levi’s, Dell and Coke added a new dimension to their marketing through bold campaigns linked to social issues at the core of their sustainability strategies. I hope more companies step up with meaningful initiatives tied to fundamental CR values.”
David Hessekiel, President, Cause Marketing Forum
“Procter & Gamble will continue to impress with the breadth and depth of its corporate and brand-specific programs.”
Dipti Pratt, Marketing Director, Entrepreneurs Foundation
“Skills-based volunteering has been a growing focus area in CSR departments over the last few years. An interesting approach starting to take form is one that IBM has had in place since 2008, having employees visit and volunteer in emerging markets. The volunteers leverage their skills over the course of four weeks to focus on economic development projects in the countries they visit. In addition to the community benefit from these programs, participants also learn valuable leadership development skills. IBM’s program, the Corporate Service Corps, has sent over 1,200 participants on over 100 teams to more than 20 countries around the world. More information on IBM’s program can be found at http://www.ibm.com/ibm/responsibility/corporateservicecorps/index.html.”
Katya Andresen, Chief Strategy Officer, Network for Good; Blogger, Katya's Non-Profit Marketing Blog
“I’m going to be watching the model of nonprofit retail by for-profit retailers as a way to build brand inroads into communities. We’ve seen Panera start restaurants where you pay what you choose and profits go to charity. Then Nordstrom chose to open their first Manhattan store as the nonprofit Treasure & Bond. The result of these early experiments could be very influential in the future behavior of retailers and the lengths to which they will go to generate consumer goodwill.”
Issue
Joe Waters, Blogger, Selfishgiving.com; Co-Author, Cause Marketing for Dummies
“I'm not sure what social or environmental issue will be trending in the new year, but I am curious if cause marketing programs involving the troops will continue with the same fervor they did this past year. Now that the troops are home from Iraq, will consumer support for veterans programs wane despite the ongoing war in Afghanistan? Only time will tell.”
Joanne Fritz, Writer, About.com, Nonprofit & Charitable Orgs
“Economic inequality is the big issue for 2012. The gap between the rich and even the middle class resonates with a shockingly large number of people. Luxury products in the name of charity will be seen by consumers as heartless indulgence by the wealthy.”
Ryan Scott, CEO, Causecast
“I don't see a single trend but a shift in the relationship between corporations and the issues their stakeholders care about. 2012 will see a greater realization of the bottom line benefits from a corporation's genuine commitment to cause. Capitalism is not the enemy - it's an essential part of the solution. Employees and consumers want to feel good about what they are doing and the impact they are having on the world. They will support companies that make them feel that way - and abandon those that don't.”
Aman Singh, Editorial Director, CSRWire; CSR Blogger
“Jobs: Domestic unemployment and underemployment must take center stage in 2012 as a social issue for every organization. Economic empowerment is the only way to growth and stability. In 2012, corporations must retrain their minds – and balance sheets – to count the workforce as indispensable assets in their global performance.”
Casey Brennan, Marketing Manager, VolunteerMatch
“Economic development. With ongoing economic turmoil, the nation will continue to struggle to get people back to work and the economy stabilized. Companies may take a literal approach to economic development, as Starbucks has with its 'Create Jobs for USA'. Others will recognize the issue of economic development by supporting more local social services. In essence, there is a long road ahead to economic recovery, and we will all do our best to share in the fight toward stability, whether literally through cash needs, or by supporting organizations that serve the immediate needs of citizens hit by the downturn.”
Kate Olsen, Senior Manager, Partnerships at Network for Good
“The state of the economy will remain in the headlines for sure. Trust in institutions and one-size-fits-all answers will remain low, but grassroots, locally-driven solutions will provide hope. I’m encouraged that companies seem to be listening to organized individuals suggesting alternatives to business-as-usual. In the age of social media, these ideas have the power to spread and incite change. Just look at the impact of one Causes on Facebook user’s “Bank Transfer Day”: in response to new debit card fees, her post inspired 75,000 people to pledge to move their assets from large banks to credit unions.”
David Hessekiel, President, Cause Marketing Forum
“Creating jobs in the USA.”
Dipti Pratt, Marketing Director, Entrepreneurs Foundation
“Limited resources combined with an ever-expanding global population continue to impact and trouble citizens worldwide. Companies continue to explore how they can have real impact on the conservation and replenishment of world resources through their sustainability and CSR initiatives. In 2012, the conversations and innovation around how to do more with less will become more critical to corporations and CSR/sustainability executives. Particular emphasis will continue to be around water stewardship as companies work to identify how their own operations can contribute to water conservation efforts."
Katya Andresen, Chief Strategy Officer, Network for Good; Blogger, Katya's Non-Profit Marketing Blog
“In the words of political operatives, 'it’s the economy, stupid.' It’s going to dominate everything. People are hurting, they’re angry and they’re distrustful of government and companies. That situation will shape our politics, patterns of consumerism and philanthropy all year long.”
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