Cause Marketing

Some miscellaneous items from the world of cause-related marketing, and corporate philanthropy. Economy Slowing Philanthropic Giving by Small Business A survey of small businesses , published by The Chronicle of Philanthropy and sponsored by Advanta, finds them enthusiastic for charitable giving, but retrenching in the slowing economy. Small business… companies with fewer than 500 employees… is the most vibrant chunk of the U.S. economy employing about half the nation’s workforce. In the survey of small business 66 percent who donate through the company, donate cash, 51 percent volunteer, 41 percent give services and 39 percent make in-kind donations. The economy has affected the mood of small business when it comes to philanthropy. Sixty percent say the economic turmoil has negatively affected their charitable giving. Thirty-eight percent say they’ve given less this year, 47 percent say their philanthropy has held steady and 14 percent say they’ve given more. mGive Donates TV Commerci...

Recently both the Chicago Tribune and the Chronicle of Philanthropy (registration required for both) have published stories critical of cause-related marketing. The Tribune article, by Blythe Bernhard (free here ), came at the end of October, National Breast Cancer Awareness Month in the States. She mentions products that carry a breast cancer cause-theme: KitchenAid, tweezers, Serta mattresses, Quilted Northern toilet tissue (illustration is from October 2005), and others. And, she makes it clear that these promotions can be effective at moving product off the shelves. But she also derides a promotion by 3M in 2004. The company spent $500,000 putting up a 7-story pink ribbon, made of Post-It notes, in New York City's Times Square. 3M also made a $300,000 donation to a breast cancer charity. The implication is that all $800,000 should have all gone to a worthy charity rather than frittering away 5/8ths of it on a cheap publicity stunt. If it was my charity I'd want all $800,0...