| BUSINESSWEEK ONLINE : DECEMBER 18, 2000 ISSUE | ||||||||
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| SOCIAL ISSUES
ONLINE EXTRA: TABLE: Companies and Causes: The Latest View of "Cause Marketing" Americans like the idea of companies getting involved in social causes, according to the latest research. But many remain skeptical whether firms are making good on their boasts about commitment to such issues. In recent years, many companies donating to charities and nonprofits have adopted an approach known as "strategic philanthropy," in which they try to use their contributions to advance corporate goals. An offshoot of this approach has been a movement toward "cause marketing," in which donors try to capitalize on sponsorship of a cause or group in their marketing efforts. For instance, a company might use a group's name in return for donating a portion of its sales to the organization. Here's how Americans feel about causes, companies ,and their employers' roles in fighting social problems, based on a study last year commissioned by Cone Inc., a Boston marketing firm that develops and implements cause programs. 1. How much responsibility should each group have for solving social problems? Notable: Those with lower household incomes were more likely to believe business has "a great deal" of responsibility for solving social problems. 2. What social problems should business be working hardest to solve? Three highest-rated: Quality of public education 33 % Crime 32 % Quality of the environment 30 % Three lowest-rated: Domestic abuse 9 % Alcohol abuse 7 % Animal rights 4 % Notable: Little difference between men and women on the three highest-rated social problems, but wider variation by gender for the three lowest-rated. 3. How acceptable is it for companies to use a cause or issue in their marketing? Very acceptable 29 % Somewhat acceptable 45 % Not very acceptable 6 % Not at all acceptable 6 % Notable: Among those deeming the practice "very acceptable," younger people were stronger supporters than older people. 4. If a company says it is helping a cause or issue by one of these methods, how believable is its commitment to solving the problem?
"Somewhat" "Not very"
or "very" or "not at all"
believable believable
Donating money through 79 % 18 %
foundation or non-profit
Donating a percentage of 74 % 23 %
sales or profits
Advertisements showing how the 69 % 27 %
company's efforts have made a
significant improvement in a
social problem
Creating programs to help 68 % 26 %
solve problems
Asking consumers to get involved 68 % 27 %
Allowing employees time off 64 % 32 %
to volunteer
Saying that the company 56 % 39 %
addresses social problems
through all company policies,
such as hiring, manufacturing,
marketing
Notable: Executives/professionals evidenced more skepticism than others. 5. How do you feel about cause-related marketing?
"Somewhat" "Somewhat"
or "strongly" or "strongly"
agree disagree
When a product or company 83 % 14 %
supports a cause I care about,
I have a more positive image of
the product or company
I like to see companies committed 77 % 15 %
to a specific cause over a long
period, rather than many causes
over short periods
Cause-related marketing is a good 66 % 24 %
way to help solve social problems
When a company supports a cause 66 % 29 %
I care about, I trust the company
more
Cause-related marketing should 61 % 30 %
be a standard company activity
I would pay more for a product if 54 % 42 %
it was associated with a cause I
care about
Notable: Among those who would pay more, those with moderate household incomes -- ranging from $30,000 to $50,000 -- felt the strongest. 6. How do you feel about your company and its social commitment?
"Somewhat" "Somewhat"
or "strongly" or "strongly"
agree disagree
I feel a strong sense of loyalty 73 % 18 %
to my company
I feel proud of my company's values 67 % 19 %
It's important to me that my company 63 % 25 %
measures success in social terms
as well as financial terms
It would be important for my company 61 % 27 %
to encourage employees to become
personally involved in the causes
or issues the company supports
My company is helping to make the 57 % 28 %
world a better place
I wish my company would do more 56 % 25 %
to support a social cause or issue
Notable: Among those backing social and financial measures of success, support skewed heavily by education, with the most educated feeling the most strongly. Source: In-person, in-home interviews with 1,996 men and women aged 18 and over, by Roper Starch Worldwide for Cone Inc. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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RELATED ITEMS Corporate Charity: Why It's Slowing CHART: Corporate Giving Has Grown...But It Hasn't Kept Pace with Profits ONLINE EXTRA: TABLE: Companies and Causes: The Latest View of "Cause Marketing" INTERACT E-Mail to Business Week Online | |||
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