Transparency Issues in Cause Marketing
- 1. Cause Marketing's Dirty Little Secret:TransparencyMike Lawrence, CRO & EVP | Alison DaSilva, EVP | July 14, 2010
- 2. AgendaWhy does transparency matter?
- 3. What does transparency mean?
- 4. Are you “cause”-ing confusion?
- 5. Roadmap to transparency?Why Does Transparency Matter
- 6. Why Does Transparency Matter?Lack of trust
- 10. Regulatory environmentExpectations Grow, Trust Declines91%of the public wants to see corporations involved in helping solve the problems our nation faces. Low TrustPublic perception that corporate reputation is either “not good” or “terrible” has skyrocketed since 2007 – with nearly 9 in 10giving it a poor rating. High Expectations2010 Public Strategies Trust Monitor2009 Harris Interactive 10th Annual Reputation Quotient
- 11. Cause ClutterAbout 80%of Fortune 250 companies have a branded cause program**Based on a 2010 evaluation conducted by Cone
- 12. U.S. Consumers Demand Details78%believe a partnership between a nonprofit and a company they trust makes a cause stand out45%believe companies are providing enough details about their cause marketing efforts67% are confused by the messages companies use to talk about their social and environmental commitments2010 Cone Nonprofit Marketing Trend Tracker2010 Cone Shared Responsibility Study
- 13. Everyone’s an Activist44% would buy or boycott a company’s products to help influence corporate social/environmental practices and initiatives2010 Cone Shared Responsibility Study
- 14. Regulatory EnvironmentIs Cause Next?“FTC to Fine Bloggers up to $11,000 for Not Disclosing Payments”- Mashable.com“Federal Trade Commission takes aim at deceptive green claims”- ConsumerReports.org“Sustainable” palm oil campaign banned by ASA- The Guardian
- 16. What Does Transparency Mean?Consumer Fraud Statutes:Name of Commercial Co-Venture
- 17. Name of charity
- 18. Percentage of money donated to charity
- 20. Statement of charitable purpose
- 21. Maximum amount of donation
- 22. Toll-free number for more information about the program and the charityBetter Business Bureau Standards:The actual or anticipated portion of the purchase price that will benefit the charity
- 23. The duration of the campaign
- 24. Any maximum or guaranteed minimum contribution amountState Reporting Requirements:Name of the charitable organization
- 25. Gross receipts collected pursuant to contract or agreement
- 26. Amounts paid to the charity to be utilized exclusively for the charitable purposes described in the solicitation
- 27. Amounts paid to the Commercial Co-Venturer and the professional solicitor
- 28. All additional expenses not otherwise statedThink Like A Consumer…Ask:“What exactly is supposed to happen when I buy this… …and how will I know it did?”
- 29. Spectrum of Transparency- Proud sponsor of…- Proud supporter of…- A percentage of this purchase…will be donated to save the whalesVague - $1 of every product, up to $500,000 of specially marked packages …will be donated to our nonprofit partner, The Pacific Whale Foundation- 50% of net profit- 50% of profit…will be donated to our nonprofit partnerPrecise
- 30. David Cause-Man’s Top Five Reasons Programs are Not Transparent…5We don’t want our competitors to realize our unit sales are so small my daughter sells more at her lemonade stand on our driveway…
- 31. David Cause-Man’s Top Five Reasons Programs are Not Transparent…5We don’t want our competitors to realize our unit sales are so small my daughter sells more at her lemonade stand on our driveway…4We already made the donation, but we want our customers to believe they did it with their purchases…
- 32. David Cause-Man’s Top Five Reasons Programs are Not Transparent…5We don’t want our competitors to realize our unit sales are so small my daughter sells more at her lemonade stand on our driveway…4We already made the donation, but we want our customers to believe they did it with their purchases…3The CMO blew our entire donation budget traveling to cause conferences, so we need consumer dollars to fund our brand halo (but we don’t want them to realize that)…
- 33. David Cause-Man’s Top Five Reasons Programs are Not Transparent…5We don’t want our competitors to realize our unit sales are so small my daughter sells more at her lemonade stand on our driveway…4We already made the donation, but we want our customers to believe they did it with their purchases…3The CMO blew our entire donation budget traveling to cause conferences, so we need consumer dollars to fund our brand halo (but we don’t want them to realize that)…2That TV ad we did with Tiger Woods as our cause spokesman cost 100 times what we’ll give in donations. All hell will break loose if that gets out!
- 34. David Cause-Man’s Top Five Reasons Programs are Not Transparent…5We don’t want our competitors to realize our unit sales are so small my daughter sells more at her lemonade stand on our driveway…4We already made the donation, but we want our customers to believe they did it with their purchases…3The CMO blew our entire donation budget traveling to cause conferences, so we need consumer dollars to fund our brand halo (but we don’t want them to realize that)…2That TV ad we did with Tiger Woods as our cause spokesman cost 100 times what we’ll give in donations. All hell will break loose if that gets out!1Our general counsel told us to plead the 5th amendment on this subject, but we can’t find enough space on the package to do it.
- 36. Ensure Point-of-Sale $$$ ClarityFour products request…“Join Us In Support” of the Jane Goodall Institute (JGI)
- 37. Ensure Point-of-Sale $$$ ClarityOn Pack: “Every purchase of this product helps the JGI…”On Web: “Proceeds from each sale support JGI…”
- 38. Ensure Point-of-Sale $$$ ClarityOutside Label: “The partnership joining Theo Chocolate and the JGI directly benefits farmers…”Inside Label: “Proceeds from the sale of this chocolate bar will…directly contribute to the JGI’s efforts…”
- 39. Ensure Point-of-Sale $$$ ClarityOutside Label: JGI logo but no details…Web: “The farms of the Kanyovu co-op surround the Gombe Stream National Park. One goal of JGI is to protect the Gombe from deforestation…”
- 40. Ensure Point-of-Sale $$$ Clarity“10% of Profits Donated to the Jane Goodall Institute”Box: 10% of profits to JGIWeb: No additional financial details of JGI donations
- 41. Ensure Point-of-Sale $$$ ClarityAllegro Coffee - $10,000-$20,000Theo Chocolate - $5,000-$10,000Late July Cookies - In-kindRishi Tea - ????
- 42. Ensure Point-of-Sale Consumer Action ClarityIcon reads: “Early detection saves lives”
- 43. Ensure Point-of-Sale Consumer Action Clarity
- 44. Ensure Point-of-Sale Consumer Action ClarityFront Panel Copy: “Barnum’s Animals is supporting WWF with a donation of $100,000.”Back Panel Copy: “Fashion icon Lily Pulitzer is proud to work with KRAFT FOODS and NABISCO BARNUM’S ANIMALS Crackers in support of our friends at World Wildlife Fund. Since 2007, Kraft Foods has contributed to tiger conservation in Sumatra by helping to support the Bukit BarisanSeletan Project program run by WWF. There are approximately 400 Sumatra tigers still in existence, with an estimated 60 tigers living in the Bukit BarisanSeletan National Park. In honor of 2010, the Year of the Tiger, BARNUM’S ANIMALS signature red boxes have been given a fashionable facelift by Lily Pulitzer, and NABISCO BARNUM’S ANIMALS Crackers will donate $100,000 to support WWF’s worldwide conservation efforts, including tiger conservation. The folks at World Wildlife Fund work tirelessly around the globe to protect endangered species and habitats. The tiger, listed as endangered, is the largest of all cats and considered one of the most majestic species on Earth. To learn more, visit lilypulitzer.com and worldwildlife.org/tigers.”
- 45. Communicate with Partners/Set Terms Up-Front“Charity’s Share From Shopping Raises Concern ““Unfortunately, just like Barneys shoppers, we’re in the dark as to how or if Barneys and the manufacturers will fulfill their commitment to donate a portion of the proceeds from these products to WWF.” - John Donoghue SVP, WWF
- 46. Communicate Beyond the Package?????“I visited my local White Castle… to buy the $10 White Castle onion-and-burger-scented candle to benefit Autism Speaks. I figured I'd be in for the major marketing treatment. Instead I got two counter people who had no idea what I was talking about and a manager who didn't know where the candles were.”- Ron DickerWriter, WalletPop.com????
- 47. Distinguish Endorsement vs. Logo “Lending”The Club's Corporate Financial Acceptance Policy says, in part, "The Club will not endorse products."
- 48. Expect to be Held Accountable for Results“The (Sierra) Club has refused to release financial details of its arrangement with Clorox to the public or its members, citing the terms of its contract with Clorox as well as its own rules.”“Sierra Club spokesperson Orli Cotel: ‘Our supporters can be assured that it is a significant contribution and is not restricted…’” – Fast Company, August 2008
- 49. Expect to be Held Accountable for ResultsGreen Works® Natural Cleaners and Sierra Club® Celebrate Two-Year Anniversary; Doubling of Natural Cleaning Category 2009 Sales Generate $645,000 Contribution, Bringing Total Contribution to More Than $1.1 MillionOAKLAND, Calif., (March 1, 2010) - The Green Works® natural cleaners brand today announced that it is giving $645,000 to Sierra Club® to support the organization's ongoing conservation efforts. The donation, based on 2009 calendar year sales, raises the Green Works® brand's two-year contribution total to more than $1.1 million.
- 50. Expect to be Held Accountable for Results
- 51. Expect to be Held Accountable for Results“We’ve picked out the top 5 questions…”Question #1:“How much money has been raised and where does it go?”
- 52. Expect to be Held Accountable for Results(RED) Campaign: No $$$ Breakout By Company
- 53. Expect to be Held Accountable for Results“(RED) works with the world’s best brands … and directs up to 50% of their gross profits to the Global Fund…”“As of December 2009, (RED) partnerships with American Express (U.K. only), Apple, Bugaboo, Converse, Dell, Gap, Emporio Armani, Hallmark, Starbucks and Nike and (RED) events have generated more than US$140 million for the Global Fund. (RED) money flows to four countries in Africa - Rwanda, Swaziland, Ghana and Lesotho.”Global Fund: No $$$ Breakout By Company
- 54. Expect to be Held Accountable for Results“Apple gives a portion of the purchase price to the Global Fund…”“…proceeds from every iPod nano sold go directly to the Global Fund...”“…direct up to 50 percent of gross profits from the sale of those products to the Global Fund…”Apple: No contribution update since 2006 news release promising to donate $10 per RED iPod sold
- 55. Expect to be Held Accountable for Results“With your help, we've already generated contributions equaling more than 14,000,000 days of medicine.”2009 Starbucks Global Responsibility Report: “Our cash and in‑kind contributions… including volunteer service, youth engagement, natural disaster relief, (RED)™, and other efforts – totaled more than $17 million."
- 58. Roadmap to TransparencyEngage Employees Training Materials
- 59. Source for More InformationDefine Partnership TermsCommunicate to Consumers On-pack
- 60. Online
- 61. In-store
- 62. Clear & Consistent
- 63. Timeframe
- 64. Contribution
- 65. How Activated
- 66. CapReport Impacts Amount Raised
- 68. Roadmap to TransparencyEngage Employees Training Materials
- 69. Source for More InformationDefine Partnership TermsCommunicate to Consumers On-pack
- 70. Online
- 71. In-store
- 72. Clear & Consistent
- 73. Timeframe
- 74. Contribution
- 75. How Activated
- 76. CapReport Impacts Amount Raised
- 78. Mike LawrenceChief Reputation Officer & [email protected]: @Mike_LawrenceAlison DaSilvaExecutive Vice [email protected]: @Alison_DaSilva www.coneinc.comwww.coneinc.com/whatdoyoustandfor