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HF5415.K62462012 658.8’02—dc23 2012004742 PrintedintheUnitedStatesofAmerica. 10987654321 Contents Acknowledgments v I Introduction 1 1 Good Intentions Aren’t Enough: Why Some Marketing and Corporate Social Initiatives Fail and Others Succeed 3 2 Six Social Initiatives for Doing Well by Doing Good 21 II Marketing Driven Initiatives: Growing Sales and Engaging Customers 47 3 Cause Promotion: Persuading Consumers to Join Your Company in a Good Cause 49 4 Cause-Related Marketing: Making Contributions to Causes Based on Product Sales and Consumer Actions 82 5 Corporate Social Marketing: Supporting Behavior Change Campaigns 111 III Corporate-Driven Initiatives: Expressing and Advancing Your Company’s Values and Objectives 139 6 Corporate Philanthropy: Making a Direct Contribution to a Cause 141 7 Community Volunteering: Employees Donating Their Time and Talents 158 iii iv Contents 8 Socially Responsible Business Practices: Changing How You Conduct Business to Achieve Social Outcomes 177 IV Offense and Defense 197 9 Offense: Choosing a Social Problem to Alleviate 199 10 Offense:SelectingaSocialInitiativetoSupporttheCause 206 11 Offense: Developing Social Initiative Programs 211 12 Offense: Evaluating Efforts 217 13 Summary of Best Practices 223 14 No Good Deed Goes Unpunished: Dealing with Cynics and Critics 228 V For Nonprofits and Public Sector Agencies Only 237 15 A Marketing Approach to Winning Corporate Funding and Support for Social Initiatives: Ten Recommendations 239 Notes 253 Index 277 Acknowledgments The authors want to acknowledge the following people for sharing their stories and perspectives regarding marketing and corporate social initia- tives,andinmanycasestakingthetimeandefforttocompletesurveys,confer with other colleagues and partners involved in these initiatives, research historicalfiles,andproofcopy.Wethankyou. Allstate:KateHollcraft,EmilyPukala AvonProducts:SusanArnot-Heaney BestBuy:KellyGroehler TheBostonBeerCompany:MichelleSullivan CauseConsulting:MarkFeldman,RisaSherman ChipotleMexicanGrill:ChrisArnold Church&DwightCo.:StaceyFeldman Clorox:DavidKellis Coca-Cola:AprilJordan ComicRelief:Anne-CecileBerthier CorporateCulture:JohnDrummond,DaveThomas ConeCommunications:CraigBida,WhitneyDailey,AlisonDaSilva,Sarah Kerkian ConAgraFoods:KoriReed DoGood,MakeMoney:LauraProbst Edelman:CarolCone,AmyKalfus,AnnClark Energizer:HarrietBlickenstaff(Blick+StaffCommunications) Farmers Insurance: Charles Browning, Roger Daniel, Doris Dunn, Josh Krupp FedEx:JuliaChicoski,PhilipBlackett FoodNetwork:KatieIlch,KirstinKnezevich,LeahLesko,IrikaSlavin GeneralMills:BeritMorse,ZackRuderman v vi Acknowledgments IBM:StanLitow Johnson&Johnson:AndreaHigham KraftFoods:StephenChriss Levi:SarahYoung,SarahAnderson MacmillanCancerSupport:KatyaBorowski,FrancescaInsole Macy’s:HollyThomas MarchofDimes:ChadRoyal-Pascoe Marks&Spencer:RichardGillies MarsPetcareUS:LisaCampbell,MelissaMartellotti MironConstruction:KristenNaimoli MSLGROUPAmericas:AnneErhard MontereyBayAquarium:KenPeterson Nike:JillZanger,TessaSayers OneSight:GregHare ParkandCompany:ParkHowell,HollyLim Patagonia:MarkShimahara,BillKlyn PearsonFoundation:MarkNieker Pepsico:AndreaCanabal,AnamariaIrazabal PetSmartCharities:SusanaDellaMaddalena Pfizer:RayKerins,JenniferKokell,PeterZhang PhillipsWyattKnowlton:LisaWyattKnowlton Procter&Gamble:CarolineBozonet,NadaDugas,JulyUng Recharge:DougBamford SaidBusinessSchool,UniversityofOxford:LindaScott Sainsbury’sSupermarkets:JatSahota SeattleChildren’sHospital:LauraTufts SellenConstruction:ToddLee,DaveScalzo ShareOurStrength:TheresaBurton,ChristyFelling,CatherinePuzo Starbucks:BenPackard,AnnaKakos,BethBaggaley SubaruofAmerica:BrianJohnson SUBWAY:CindyCarrasquilla,LesWinograd Target:SarahBakken,LizBrennhofer,LayshaWard TELUS:JillSchnarr,TrishaTambellini TOMSShoes:AllieDominguez U.S.Fish&Wildlife:JoeStarinchak UNICEF:LauraDeSantis V/Line:LindaBrennan WesternUnion:TalyaBosch WholeFoods:AshleyHawkins,CarrieBrownstein I Introduction Acommitment to doing the right thing is no guarantee of winning in the marketplace, but over the past 30 years numerous compa- nies have demonstrated that you can simultane- ously build a better world and the bottom line. Experience has also shown that creating suc- cessfulmarketingandcorporatesocialinitiatives requires intelligence, commitment, and finesse. Whether you work for a Fortune 500 giant or astart-up,generatingfinancialprofitsandsocial dividends is a delicate balancing act. For many businesspeople, it proves to be among the most satisfyingchaptersoftheirprofessionallives. If you are reading this introduction, there is a good chance you work in a company’s department of community relations, corporate communications, publicaffairs,publicrelations, environmental stewardship, corporate respon- sibility, or corporate citizenship. Or you may be a marketing manager or a product manager, have responsibility for some aspect of corporate philanthropy, or run a corporate foundation. It is also quite possible that you work in a public 1 2 GoodWorks! relations,marketing,orpublicaffairsagencyandthatyourclientsarelooking to you for advice on marketing and corporate social initiatives. You may be thefounderofanewbusinessortheCEOofalarge,complexenterprise. If you are like others in any of these roles, it is also quite possible that youfeelchallengedandpulledbythedemandsandexpectationssurrounding thebuzzforcorporatesocialresponsibility.Youmaybedecidingwhatsocial issuesandcausestosupport(andwhichonestoreject).Youmaybescreening potentialcausepartnersanddeterminingtheshapeofyourfinancial,organi- zational,andcontractualrelationshipswiththem.Youmaybestretchedbythe demandsofsellingyourideasinternally,settingappealingyetrealisticexpec- tationsforoutcomes,andbuildingcross-functionalsupporttobringprograms to life. Or perhaps you are currently facing questions about what happened withallthemoneyandresources thatwentintolastseason’sprograms. If any of these challenges sound familiar, we have written this book for you. Dozens of your colleagues in firms around the world such as Allstate, Johnson & Johnson, Levi Strauss & Co., Marks & Spencer, Patagonia, PepsiCo,Starbucks,Subaru,TELUS,andTOMShavetakentimetosharetheir stories and their recommendations for how to do the most good for your companyaswellasforacause. Years of experience and months of research have strengthened our belief thatdoingwellbydoinggood ismorethan justacatchyphrase. Corporations thatapplyrigortocreatingeffectivemarketingandcorporatesocialinitiatives canhelpbuildabetterworldandenhancetheirbottomline. Even though this book has been written primarily for those working on behalfoffor-profitcorporations,itcanalsobenefitthoseinnonprofitorgani- zationsandpublicsectoragenciesseekingcorporatesupportandpartnersto realize their missions. It offers a unique opportunity for you to gain insight intoacorporation’swantsandneedsandpreparesyoutodecidewhichcom- paniestoapproachandhowtoapproachthem.Thefinalchapter,writtenjust foryou,presentsrecommendationsthatwillincreaseyourchancesofforging successfulcross-sectoralliances. Ouraspirationforthisbookisthatitwillbetterpreparecorporatemanagers and staff to choose the most appropriate issues, best partners, and highest potential initiatives. We want it to help you engender internal enthusiasm for your recommendations and inspire you to develop programs worthy of futurecasestudies.And,perhapsmostimportant,wehopeitwillincreasethe chancesthatyourfinalreportonwhathappenedwillfeatureincrediblygood newsforyourcompanyandyourcause.
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