Published October 2005

Corporate citizenship
makes everyone a winner

What do Intel, Proctor & Gamble, IBM, Bank of America and Hewlett Packard have in common? They are all cited on both Fortunes’ Most Profitable Companies and Business Ethics’ Top U.S. Corporate Citizens lists.

Corporate citizenship, beyond being good for the community, is a sound marketing strategy. You don’t have to be a Fortune 500 Company to benefit from corporate giving. Potential gains include market visibility, goodwill, competitive advantage, and customer and employee loyalty. These all translate into a positive impact on your bottom line.

Barbara Earl, President of BETS Consulting, and a corporate positioning expert, says, “When customers make decisions about who they do business with, price is only part of the equation. They also want to feel good about who they buy from.”

According to the Cone/Roper Cause Trends Report, 76 percent of consumers indicate they would switch brands to one associated with a good cause, when price and quality are equal.

As with all marketing endeavors, those that are well planned deliver a better return on investment. The following are three key components of developing an effective program:

Mission alignment: Tying the program to your corporate mission and position will generate greater consumer recall and results. There should be a strong connection between the cause you support and your customers’ values.

In 2003, through its “TUMS Helps Put Out More Fires” campaign, TUMS donated 10 cents of every bottle sold to support fire departments throughout the United States. In addition to donating $238,000, TUMS enjoyed a 16 percent increase in sales volume.

Program focus: Develop a plan that defines your giving focus, e.g. education, health and human services, arts; then determine giving cycles and a budget. Define the structure of your program in terms of the time, treasure and talent you’ll contribute. In addition, focusing on one cause at a time will create a bigger impact.

During the planning process, evaluate the public relations potential of each strategy you consider. Some programs generate more buzz than others by virtue of their “news appeal.”

Cause selection: The most common question I hear is: “How do we choose from the countless requests we receive?” The answer is to develop a request for proposal (RFP) that communicates your giving guidelines. Your RFP should include a program overview, applicant requirements, submission and award dates, as well as the basis of award and contact information.

This approach absolves you of the “eany meany miny moe” method of choosing. It also makes it less painful to say “no” to applicants when you have pre-established, objective selection criteria.

Another success factor is management and employee participation. Corporate giving isn’t just about money or product. Rally the troops around the corporate cause through communications, events, volunteer activities and board representation. Feet on the street will add punch to your program.

The size of your company doesn’t matter; however, planning your alignment, focus and selection process up front will produce better results. Everybody wins with corporate citizenship — owners, employees and, of course, the community.

Andrew Ballard, president of Marketing Solutions Inc. in Edmonds, develops brand leadership strategies for businesses and teaches strategic marketing through Edmonds Community College. He can be reached at 425-672-7218 or online at www.mktg-solutions.com.

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