Cause marketing and social sustainability, Part 1 - A blog by Peter Korchnak

With the holiday shopping season nearing its holy climax, what better time to evaluate from the business perspective the viability of cause marketing for social sustainability. Does cause marketing work? How to get the most from it?

Cause or cause-related marketing is a company’s “marketing effort creating a public association with a social or charitable cause or organization to promote the company’s product/service and raise money for the cause or organization”.

Cause marketing may take several forms for the participating company, with the nonprofit partner earning money in a variety of direct or indirect ways:

• Advertising/PR - promoting the cause or strategic partnership
• Sponsorship - funding a program
• Licensing - paying to use the nonprofit partner’s brand
• Paid endorsement – paying to receive public endorsement or certification
• Commission - donating a percentage of revenues
• Affiliate marketing – compensating the nonprofit partner for funneled customers or sales
• Facilitated giving – asking customers to donate to the supported cause or nonprofit

Regardless of its form, cause marketing entails an exchange of promotion for money. For companies, cause marketing is a promotional effort.

Cause marketing has several potential benefits for the participating business:

• improved brand awareness and image
• media coverage and other public relations benefits
• public recognition
• alignment with causes customers support
• employee engagement
• talent attraction and retention
• resulting higher sales

If done right — and there are many pitfalls to execution — cause marketing is a winner for companies.

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