Cause Related

Marketing:
who cares wins
Sue Adkins, Director,

be credible, they need to integrate transparency

Business in the Community

and corporate social responsibility into every

aspect of their business.

The interdependence between business and

The focus of debates in the political and public

society has become increasingly evident to

arenas is also changing. In the UK, Europe and the

wider groups of stakeholders, from the dir-

USA over the last couple of years, governments, and

ectors in the boardroom to customers in the

associated organisations and think tanks have been

high street. At the same time, trust and rep-

focussing on such debates as obesity and advertising

utation are at the heart of the business agenda,

to children summoning in some cases, companies to

with corporate disasters like WorldCom, Tyco

give evidence on their approach and behaviour.

and Kmart et al serving to heighten this focus.

It has resulted in for instance, early day motions in

parliament and frenzied media debates. This has had

Global
protests
against
capitalism
generally and
against
companies
specifically
have become
part of
todays
landscape
50
50

Background

significant impact on the thinking; the approach and

Over the last five years or more there has been

the way businesses do business as, apart from

a trend towards the need for greater corporate

anything else, it directly impacts their bottom line.

transparency and reporting. This trend has gathered

Global protests against capitalism generally and

significant momentum, with governments and

against companies specifically have become part of

institutions around the world developing codes,

todays landscape. Consumers have become more

legislation, task forces and forums to take this

vocal, anti-globalisation and human and consumer

agenda forward.

rights protests have become increasingly more

The agenda not only encompasses corporate

common, and such activity has focused media,

reporting, governance, and transparency but also

government and consumer attention on the wider

corporate social responsibility, with the push for

issues of business ethics.

triple bottom line reporting. This refers to the

The social, legal, economic, political and tech-

requirements for economic, social and environmental

nological environment has changed. Internationally,

reporting, which is gathering increasing support

governments are exploring the role of companies

and pace around the world.

from a social and responsibility perspective, board-

In the UK, for instance, the Governments

rooms are focused on it and consumers expect it.

Operational Financial Review, which specifically

Whether or not a company has seriously considered

requires companies to report on their social and

Corporate Social Responsibility before, these new

environmental performance as part of their

realities mean they are forced to review their agenda

reporting, is due to come into effect in 2006.

and in turn their business and marketing strategies.

The Governments attention adds to the existing

What was once perhaps regarded as an interesting

pressure already being applied in the UK by the

approach for some companies is now a critical

Association of British Insurers and the National

strategy for many.

Association of Pension Funds, which also demand

Corporate Social Responsibility and its impor-

similar reporting and which between them control a

tance is now firmly on the business agenda and

significant part of the UK stock exchange.

is currently regarded both as a threat and an

Companies are therefore under pressure to

opportunity. Consumers have increasing power.

improve their reporting and at the same time build

They have the power of knowledge, the power of

their trust and reputation. In doing so and in order to

purchase, the power to protest and to boycott.

CSR: the business case

Importantly, however, they also have immense

fewer understood or appreciated the potential offered

potential and desire to be engaged, to believe, to

to their business through Cause Related Marketing.

support and to become advocates.

Over eight years ago therefore, Business in

Practically then, the question is: how do

the Community established the Cause Related

businesses build trust, enhance their reputation,

Marketing Campaign. The business environment has

ensure consumers understand their values and

changed considerably since then. Business in the

their corporate social responsibility principles and

Community has been the key provider of essential

develop towards consumer preference for their

research, resources, guidelines, information and

products and services rather than boycotting them?

education on Cause Related Marketing and cont-

In order to achieve this, Corporate Social Resp-

inues to engage more businesses in this innovative

onsibility has to be authentic and be made visible

area of marketing whilst also promoting best practice

to consumers and other stakeholders in order to be

in achieving mutual benefit.

credible. It needs to be applied and demonstrated.

Cause Related Marketing is one proven part of the

The facts and figures

portfolio that can help achieve this. Cause Related

According to the latest research,5 consumers in

Marketing can translate words and promises into

the UK are now purchasing a product associated

action and offers a win-win-win for business,

with a good cause every second. The awareness,

charities and good causes, and consumers.

understanding and call for more opportunities from

consumers is gathering pace as business and

Definition of Cause Related Marketing

charities also develop their understanding, adoption

Business in the Community1 defines Cause Related

and application.

Marketing as: A commercial activity by which

businesses and charities or good causes form a
partnership with each other to market an image,
product or service for mutual benefit.
The critical words within the definition are commercial, partnership, marketing and mutual benefit.
Cause Related Marketing is not philanthropy, nor is
it altruism; it is consumer-lead and market driven.2
Used correctly and efficiently, Cause Related
Marketing can also impact directly on the bottom line.
It provides potential to form a link between
business ethics, business basics, consumer
engagement and bottom line benefits, while also
benefiting the health and prosperity of the wider
community. To be successful from the business point
of view, however, Cause Related Marketing partnerships must be founded on, and be representative
of, the values of the business and be based on the
Key Principles of integrity, transparency, sincerity,

Corporate evidence
70% of CEOs report that they believe
Corporate Social Responsibility is an
essential issue to their business.
96% of Marketing and Community Affairs
Directors have said they appreciate the
benefits of Cause Related Marketing in
addressing both business and social
issues.
77% of Chief Executives, Marketing
Directors and Community Affairs Directors
believe Cause Related Marketing can
enhance corporate or brand reputation
72% of those who have carried out
Cause Related Marketing in the last year
report that the number of programmes
their business is involved in has
increased over the past five years

mutual respect, partnership and mutual benefit.3

Taken from the Business in the Community
Cause Related Marketing Guidelines, the Key

Source: Business in the Community Corporate

Survey III (2001) supported by Research
International ISBN 0 9480 6308

Principles have been developed through thorough

research. The Guidelines were designed in response

Research recently launched by Business in the

to a comprehensive programme of research into

Community surveying over 4,000 UK consumers

Cause Related Marketing and in developing the

and 2,000 USA consumers provides some com-

business case, exploring the business, charity and

pelling consumer insights. Brand Benefits 2003

consumer perspectives. The Guidelines aim to act

identifies the impact that Cause Related Marketing

as a vital tool for businesses and charities develop-

has on brand affinity, brand equity and on actual

ing or establishing programmes.

consumer perception, loyalty and buying behaviour.

When Business in the Community4 was set up

This unique piece of research is probably the most

over 20 years ago, Corporate Social Responsibility

holistic study ever carried out on Cause Related

was embraced by only a few companies and even

Marketing and the evidence is powerful.

CSR: the business case

Corporate
Social
Responsibility
and its
importance
is now firmly
on the
business
agenda and
is currently
regarded
both as a
threat and an
opportunity
51
51

indicating that the impact of Cause Related

Consumer evidence and support
98% of consumers in the UK and USA
are now aware of at least one Cause
Related Marketing programme.
83% of British consumers have
participated in at least one Cause
Related Marketing campaign as
compared to 73% in USA.
50% of consumers agreed that they
would feel more positively towards a
company, brand, product or service in
the future if they were involved in a
Cause Related Marketing programme,
an increase from 31% in 2001.
48% showed an actual change in
behaviour, reporting that they switched
brands, increased usage or tried or
enquired about new products.
68% of consumers are still calling for
more companies to be involved in Cause
Related Marketing Programmes
Source: Business in the Community Cause
Related Marketing Brand Benefits 2003

Marketing programmes continues to increase and

that as a marketing tool it is constantly evolving.
The benefits
Cause Related Marketing comes in many different
guises. When any aspect of marketing links with a
charity or good cause, this is Cause Related
Marketing.7 Cause Related Marketing can be
demonstrated through advertising, sales promotion,
sponsorship, direct marketing, loyalty marketing and
public relations, and many more aspects of
marketing. It works best for all when it is fully
integrated into the organisation and its functions,
ensuring it is thoroughly leveraged by all parties
to achieve maximum benefits.
The potential benefits are many and varied.
By making an organisations corporate social responsibility visible and indeed by demonstrating its
values and adding value to them in an authentic way
through Cause Related Marketing there is much to
be gained. These benefits include enhanced
reputation and image, increased trust, relationships
and loyalty, emotional engagement, awareness
and understanding. Cause Related Marketing can

Business in the Communitys Brand Benefits 2003

research goes on to explore the relationship between

also generate trial, increase volume and sales

amongst many other benefits.8

Cause Related Marketing brand affinity and therefore

brand equity across over 15 different organisations.

It works best
for all when
it is fully
integrated
into the
organisation
and its
functions,
ensuring it
is thoroughly
leveraged by
all parties
to achieve
maximum
benefits
52
52

Participation

In every case where the consumer is aware of a

In addition, Cause Related Marketing has shown

companys Cause Related Marketing, there is a

that it has developed customer and supplier relation-

significant impact on their drivers of affinity and

ships. The Cause Related Marketing Tracker 2002

therefore on their equity. The impact of affecting

highlighted that over half of the total amount raised

drivers of affinity will differ by each sector. To take

for charities and good causes was in fact leveraged

an example, for a water brand affinity is worth

through staff, customer and supplier fundraising

98 per cent of the brands equity, while for a credit

and support. This ranged from straight donations to

card affinity is worth about 55 per cent. Cause

participating in sponsored activities and buying

Related Marketing impact on affinity speaks for itself.

products whose purchase triggered donations.

The Business in the Community Cause Related

The Cause Related Marketing Tracker

Marketing Giving Now 2003 Survey and the Brand

In addition to understanding corporate and

Benefits 2003 highlighted the fact that consumers

consumer attitudes and actions in relation to Cause

are participating more and more in Cause

Related Marketing, Business in the Community has

Related Marketing.

also introduced The Cause Related Marketing

Tracker.6 This attempts to study and quantify

Sales Impact

the actual impact Cause Related Marketing

Cause Related Marketing also has a positive impact

programmes have had on society.

on sales. Apart from the impact on brand affinity and

Through just 60 Cause Related Marketing

therefore brand equity, through Brand Benefits 2003

programmes in 2001, only a small percentage

data from arguably the most sophisticated consumer

of those active in the marketplace, The Cause

loyalty card was mined.

Related Marketing Tracker identified that over

The findings were powerful and are demonstrated

33 million was raised for charities and good

through just one example of the Persil and Comic

causes. This figure increased considerably to

Relief Cause Related Marketing programme. At its

50.4 million through 81 programmes in 2002,

most basic level, this partnership took the form of a

CSR: the business case

purchase-triggered donation. The business case is

bottom line impact has already been indicated and

impressive. Sales of Unilevers brand Persil, the

this is increasingly being understood in terms

market leader, were up by 13 per cent during the

of Cause Related Marketings potential, relevance

campaign compared to the previous 12 weeks.

and importance.

Persils sales were also up by 19 per cent like-for-like

With 98 per cent awareness, 73-83 per cent

on the previous year. There was also an impact on

participation in the USA and UK respectively and

market share. While Persil was already market

with 68 per cent of consumers wanting more

leader in the automatic detergents market, its market

companies to be involved in Cause Related

share was up by three per cent during the Cause

Marketing, the call to action could not be louder!13

Related Marketing partnership compared to the

previous weeks.9

Case studies
In the UK and indeed around the world, Cause

Recruitment and retention

Related Marketing programmes have been

Cause Related Marketing does not only impact on

developed amongst businesses and charities of all

consumers. The business case for Cause Related

sizes, across all sectors. The evidence in the

Marketing is supported by the positive effects

UK suggests that the retail sector has taken this

it has on the bottom line, but also the human

strategy to heart, followed by the fast moving

resources of an organisation. Research undertaken

consumer goods (FMCG) utilities and finance.

by MORI showed that 87 per cent of employees

This would seem to be the pattern around the

agreed or strongly agreed that a company that

world. Retailers and FMCG manufacturers seem to

supports society and community is probably a

have been first to adopt this strategy and embed it,

good company to work for.

being first to market with their partnerships.

This is further evidenced by a Business in

Interestingly, small and medium sized enterprises

the Community report 10 supported by Research

(SMEs), are increasingly exploring Cause

International, which indicated that 76 per cent of

Related Marketing. The Cause Related Marketing

consumers agree that a company should encourage

Tracker 2002 found the number of SMEs reporting

its employees to get involved in its charity and

their Cause Related Marketing programmes doubled

community programmes. Furthermore, 73 per cent

in 2002.

agreed that they would be more loyal to an

The objectives, models and processes may

employer that supports communities, charities and

all vary considerably but, integrated and implem-

good causes. Evidence of a companys Cause

ented well, programmes have demonstrated

Related Marketing can motivate employees,

their potential to deliver vast and visible rewards to

build morale and generate pride. All of these can

all parties involved.

impact significantly on recruitment, loyalty and

retention; obviously key issues for a human

Computers for Schools

resources department.

One of the award-winning examples14 of successful

In the USA, similar evidence was found. Nine

Cause Related Marketing in the UK is the Tesco

out of ten employees whose organisation undertake

Computers for Schools programme. The simple

a Cause Related Marketing programme indicate

programme, based around a token redemption

they feel proud of their companys values. This is

scheme, has been running for over ten years and

compared to five out of ten of those whose

has over that time delivered an amazing 84 million

employers are not involved in Cause Related

worth of information communication equipment to

Marketing. The Cause Related Marketing Tracker

schools in Britain.

11

200212 also indicated that employees were inspired

In 2003 alone, 1,500 new schools took part and

to be involved in these programmes, with over

over 2,200 computers and more than 75,000 addition-

13 million worth and 65,000 hours of staff time

al items of computer-related equipment were given.

devoted to Cause Related Marketing programmes

The retailers extensive portfolio of programmes

in that year. Cause Related Marketing is therefore

clearly shows that Cause Related Marketing does

impacting business on many levels.

not have to be limited to one cause at a time, but

Tangibility in Corporate Social Responsibility is

of great importance to consumers. Cause Related

that whatever supported is done comprehensively

and professionally.

Marketing helps to make a companys Corporate

Tescos partnerships with Cancer Research UK

Social Responsibility visible, it demonstrates its

and its sponsorship of Race for Life and between

values and adds value to these values. The potential

Tesco Baby & Toddler club and childrens charity

CSR: the business case

The business
case for
Cause Related
Marketing
is supported
by the
positive
effects
it has on
the bottom
line, but
also the
human
resources
of an
organisation
53
53

ICAN are also distinguished. Whilst benefiting its

Small and Medium Enterprises

range of partners through these programmes, Tesco

Small and Medium Enterprises are increasingly

also builds reputation, image, loyalty relationships

adopting

and trust amongst it stakeholders and sees the

Craghoppers being one such example. A small,

impact in terms of customer footfall, spend at the till

specialist outdoor clothing manufacturer with

point and sales, thus demonstrating the win-win-win

50 employees, Craghoppers donates two per cent

that Cause Related Marketing can provide.

of trade sales from its Kiwi range of clothing to

Cause

Related

Marketing,

with

16

Cancer Research UK as part of the SunSmart

Drive towards a Cure

campaign. This campaign aims to raise awareness

Other leading examples of Cause Related Marketing

of the dangers of the sun and the importance of

in the UK include Fords Drive towards a Cure

protecting your skin and the clothing range is part

Cause Related Marketing partnership with

of the protection strategy. This ongoing partnership

Breakthrough Breast Cancer. The campaign has

provided over 19,000 in 2002. It is communicated

been fully integrated into the core marketing strate-

on point-of-sale material and through the man-

gies of the organisation.

ufacturers website, imparting the message as much

Since 2001, for every test-drive taken at any

as possible through their supply chain while at the

Ford Dealership during October (Breast Cancer

same time providing product differentiation and sales

awareness month), Ford has donated 20 to the

for the company.

charity. In 2003, Ford combined the launch of its

new Focus C-MAX with this promotion, but doubled

The international dimension

the donation to 40. Not only did this more than

As has already been illustrated, evidence suggests

double the target number of test drives, thus raising

that consumer support for Cause Related Marketing

more business for Ford ad funds for Breakthrough,

is reinforced and continually growing across the

but it also generated considerable PR activity and

world, too.

inclusion in national television advertising campaigns.

According to US statistics,17 Cause Related

This ensured both awareness of Fords new product

Marketing is worth nine per cent of all the US

and of Breakthrough Breast Cancer was raised.

sponsorship market. In Europe, levels of support

are similar. Cause Related Marketing is not just a

Breast Cancer Crusade

USA, UK or indeed even European strategy that is

Another award winning example, which is a global

being leveraged.

programme with national implementation, is the

Examples of successful programmes with a wide

Avon Breast Cancer Crusade. This began in UK in

variety of causes have been seen across the globe

Examples of
successful
programmes
with a wide
variety of
causes have
been seen
across the
globe from
Argentina
and Australia
to Brazil and
South Africa,
supporting
causes
ranging from
HIV and Aids,
older people,
poverty,
child abuse
to wildlife

response to womens concerns about breast cancer

from Argentina and Australia to Brazil and South

and is now one of the UKs most successful and

Africa, supporting causes ranging from HIV and Aids,

54

CSR: the business case

longest-established Cause Related Marketing

older people, poverty, child abuse to wildlife.

campaigns. 2002 marked its 10-year anniversary,

Between 65-80 per cent of Britons, Europeans

when 1.6 million was raised, bringing the UK

and Americans indicate that they would be inclined

total to 9.6 million.

to switch brands based on Cause Related

Kiss goodbye to Breast Cancer raised funds

Marketing 18 and this anticipated behaviour has

through sales of three special edition matching

translated into 73-83 per cent of the population

lipsticks and nail enamel, supported by a number

actually participating.19

of well-known celebrities. For every special edition

product bought for 5, a minimum of 2 was

The time is right

donated to Breakthrough Breast Cancer. Kiss pins

The business case and potential for Cause Related

were also sold on the high streets through the stores

Marketing is in no doubt and the time is right. The

of corporate supporters of Breakthrough.

inter-dependency between business and society

The campaign shows particular uniqueness

through its development to a world-wide crusade.

is increasingly understood at all levels in all markets

around the world.

What started in the UK, with the support of 160,000

There is a rising tide of expectation amongst

Avon Representatives, has grown into a global

consumers for companies to be honest, authentic,

campaign for Avon with over 50 countries running

responsible and act with integrity. Governments

crusade programmes. To date the fund has raised

globally are taking a keener interest in this area,

US$250 million and all funds are used for research,

particularly with the recent disasters of Enron, Tyco,

care, and education concerning breast cancer.15

Worldcom and many others. Some governments are

beginning to legislate in this area of social corporate

Conclusion

responsibility and others are simply encouraging and

In the final analysis, whilst there is an extremely

facilitating the debate.

strong business case for Cause Related Marketing,

In this environment it is essential for business

there is also a sound moral case. Business and the

to take its corporate social responsibility seriously

wider community are inextricably linked. Business

and in doing so, work on how best to bring their

needs to earn its licence to operate, have good staff

social responsibility and values to life in the various

and a thriving consumer base. Without healthy

market places.

communities, these will be in short supply and

Cause Related Marketing helps make companies

restrict the potential of the business. By investing in

Corporate Social Responsibility visible, and demon-

communities in which they operate; by authentically

strates its values while adding value to these

integrating their values, principles and social

values. Cause Related Marketing is based on mutual

responsibility through all aspects of the business,

benefit and plays directly into the lifestyle of todays

and by bringing these to life for the stakeholders in

consumer and therefore provides a valuable

the marketplace through Cause Related Marketing,

opportunity. Cause Related Marketing also provides

businesses not only build a healthy business, a

part of the solution to help address business, charity,

healthy employee base, and a healthy community

good causes, our community and societies needs.

but also a healthy society and thus a virtuous circle.

With 98 per cent of consumers in the USA and

the UK being aware of Cause Related Marketing,

Notes

background to the product or service and they want

11 Business in the Community is a unique movement in the UK of

700 member companies. Our purpose is to inspire, challenge,
engage and support business in continually improving its
positive impact on society.
12 Cause Related Marketing: Who Cares Wins, published by
Butterworth Heinemann ISBN 0 7506 4481 8
13 Business in the Community Cause Related Marketing
Guidelines (1998) ISBN 0 9480 6307 6
14 Business in the Community is a unique movement in the UK of
700 member companies. Our purpose is to inspire, challenge,
engage and support business in continually improving its
positive impact on society.
15 Business in the Community Cause Related Marketing Giving
Now 2003 survey quantitative research
16 Business in the Community Cause Related Marketing
Tracker 2002
17 Cause Related Marketing: Who Cares Wins, published by
Butterworth Heinemann ISBN 0 7506 4481 8
18 Cause Related Marketing: Who Cares Wins, published by
Butterworth Heinemann ISBN 0 7506 4481 8
19 Business in the Community Cause Related Marketing Brand
Benefits 2003
10 Business in the Community Corporate Survey III 2001
11 The Core/Roper 1999 Cause Related Marketing Trend Report
12 Business in the Community Cause Related Marketing Tracker
2002
13 Business in the Community Cause Related Marketing Brand
Benefits 2003
14 Business in the Community Cause Related Marketing Award
for Excellence winner 1998. For further details see
www.crm.org.uk1 Business in the Community Cause Related
Marketing Celebrating Success 2003
15 Business in the Community Cause Related Marketing Celebrating
& Success 2003. For further Case study examples see
16 www.crm.org.uk and Cause Related Marketing: Who Cares Wins
published by Butterworth Heinemann ISBN 0 7506 4481 8.
17 IEG Sponsorship Report
18 Cause Related Marketing: Who Cares Wins published by
Butterworth Heinemann ISBN 0 7506 4481 8
19 Business in the Community Brand Benefits 2003 supported
by Research International, Lightspeed and Dunnhumby
20 Business in the Community Cause Related Marketing
Brand Benefits 2003
21 Business in the Community Cause Related Marketing
Guidelines (1998) ISBN 0 9480 6307 6

to know exactly where their money is going.

About Business in the Community

and with between 73-83 per cent in the USA

and UK respectively participating in programmes,20
the potential for business, charity and good causes
and indeed for society as a whole is evident.
The Cause Related Marketing Guidelines
Cause Related Marketing must, however, come
with a health warning. Brands, be they business
or charity, take decades to build and only
moments to destroy. Cause Related Marketing
therefore has to be planned, implemented
and executed well, hence the Business in the
Community Cause Related Marketing Guidelines.21
Cause Related Marketing has to be done well if
it is to be successful and positively impact on
businesses and the charity and meet the
mutual objectives.
Getting the principles and processes behind
Cause Related Marketing right is crucial.
Consumers are time-poor, living in a fast-moving
media-orientated society, making them more
aware of business. They are increasingly media
and marketing savvy and in turn somewhat
sceptical. Consumers understand that you dont get
something for nothing and are therefore cynical if this
is suggested. Consumers want to understand the

The Key Principles of integrity, transparency,

sincerity, mutual respect, partnership and mutual
benefit are irrefutable. A business or charity ignores
them at their peril. Using the Guidelines and
exploring the examples provided in markets around
the world, the successful programme would show
these principles at their core.

The Cause Related Marketing Campaign at Business in

the Community runs a wide variety of events and offers
a range of advisory services and publications for anyone
considering or involved in Cause Related Marketing and
developing responsible marketing practices. Details on
these services, publications and case studies can be found
on www.crm.org.uk.
Sue Adkins Business in the Community 2004.
All rights reserved. ISBN 0 7506 4481 8

CSR: the business case

Cause Related
Marketing
has to be
done well if
it is to be
successful
and positively
impact on
businesses
and the
charity and
meet the
mutual
objectives
55