Altruism is working its way into businesses at an increasing rate as organizations realize the value – and the competitive edge — that social responsibility provides. Do good and do well.
According to a study by market research firm IEG, American companies plan to spend over a billion dollars on cause-related marketing in 2006, 20 percent more than last year.
What does this mean? More and more companies are discovering that cause marketing is good business. From large multinationals to small family-owned companies, the business community is finding that doing good and doing well are not mutually exclusive.
It may seem a strange marriage to many – raw capitalism and goodwill. But the fact is, it works. And it works well. Survey after survey has shown that an organization’s affiliation with a social cause directly impacts consumer buying decisions. And in an increasingly competitive world, this is no small advantage.
In fact, for organizations looking to tap into the well of social responsibility, identifying programs that reflect the values of the organization while also serving a greater good should be part of both their business plan and marketing strategy.
A word often used in the corporate world to describe the benefits of mergers and agreements is “synergies.” The same word could be used to describe what happens when organizations pair with philanthropic organizations whose goals mesh with their own. And these organizations know that these types of partnerships provide greater benefit than a simple donation.
Strategic marketing and communications agencies help organizations identify the causes that align with their values, mission and goals; programs that have the potential to bring an added depth to an organization – and align their cause to their brand.
And enormous amounts of goodwill can be generated within one’s internal and external communities, which encompass staff, vendors and customers. When the right pairing of cause and organization occurs, the benefits reach far beyond the borders of the company. The benefits can, in fact, reach into every corner of an organization – and far beyond. As a result of a successful social program, employees are often able to feel not only more personally invested in the organization, but a stronger sense of pride in what they are doing.
Companies large and small spend vast amounts of capital and resources searching for ways to improve their brand, products and services, as well as their productivity and efficiency, in the race to stay relevant and competitive.
A successful, socially responsible program, promoted by an integrated marketing campaign, influences factors such as employee morale – which oftentimes can be difficult to measure, can nonetheless have a huge impact on a company’s success.
It is not uncommon for organizations to donate significant amounts of funds to a broad range of charities and causes – but the lack of cohesiveness, holistic purpose and relevance to the donor organization can weaken the impact of the efforts. Not to mention that the impact on an organization’s target consumer audience could be lost. Part of the objective – earning goodwill among one’s target audiences – hinges upon identifying a cause that resonates.
It’s safe to say that high profile corporate scandals in recent years (think Enron) has done a lot to erode consumer trust. Thinking and acting in a socially responsible manner offers a way for businesses to regain some of this trust. It should go without saying that a company needs to “walk the walk” with respect to the principles they espouse.
For local organizations looking to ally themselves with a socially responsible cause, a myriad of opportunities exist in Baltimore, as well as throughout the state. But before making a choice, look closely at your values, mission and target audience. And consider consulting an expert, one who can provide an objective view of your organization, to help guide your decision and craft a marketing campaign that will best serve your investment. Marketing of the initiative, internally and externally, will help ensure success.
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Steven Kostant is Planit’s executive creative strategist, and has led numerous social marketing campaigns, national as well as global in scope.
