Thursday, December 13, 2012

Is Cause Marketing or Consumption Philanthropy a Good Thing?

In an ever-changing world of business ethics and consumerism, some social innovation experts question the value of cause marketing.
Cause Marketing: Taking Charity to the Bank - Kongsky (http://www.freedigitalphotos.net/images/Money_g61-Piggy_Bank_p27119.html)
Kongsky
Many business organizations looking for a way to make a profit, while still making a contribution to social causes, have jumped on the cause marketing bandwagon. Cause marketing, also called consumption philanthropy by some social change leaders at Victoria University, makes it easy for a consumer to participate in charitable causes by simply buying a product that he or she would purchase anyway.

What is Cause Marketing?

Cause marketing means linking a percentage of the revenue from product sales to a charitable cause. If you have ever been shopping and noticed pink ribbon logos for funding breast cancer research on products such as yogurt or cereal, that is cause marketing in action. If you pass up a cheaper product of equal quality to buy the product supporting a cause, the cause marketing worked.

True philanthropy can be described as a company giving or helping the community just for the sake of doing the right thing -- the feel-good factor. Consumption philanthropy, on the other hand, means a company is still doing the right thing but also hopes to profit from the endeavor by marketing the cause -- the feel-good factor plus a profit.

Cause Marketing and Consumer Perspective

Cause marketing works because it lets a consumer feel like a part of something important, even if the only thing that really happened was someone bought a container of yogurt he or she would have purchased anyway.

Products representing ethical standards or humanitarian movements can develop as a hindrance for ethical behavior. Professors Nina Mazar and Chen-Bo Zhong of the University of Toronto cite studies showing that consumers exposed to green products sometimes behave unethically after purchasing green products. While the study mainly refers to the purchase of green products, it appears consumers feel their duty to the greater good has been fulfilled by purchasing 'ethical products' and then follow up by acting unethically.

Cause Marketing and Charities

Linking a cause to a product can be a double-edged sword for a charitable organization. Consumers sometimes view the money spent on products linked to charities as a total contribution, reducing the amount donated outright. While some charities win big by collaborating with retail products, not all come out ahead.

While each individual has to determine the value of cause marketing on a personal level, it can be argued that any effort to help people in need, the environment, or medical research is a good thing. It can also be argued that it is a good thing to evaluate the motivation as well as the final result of a cause marketing campaign.

Copyright Laure Justice

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