Cause-related marketing: who cares wins 671
Cause-related marketing in context
Over the last five years, the context in which
cause-related marketing is operating today in
terms of the social, legal, economic, political
and technological developments has developed
enormously. Together, these factors impact on
the development of business strategies includ-
ing marketing.
The symbiotic relationship between busi-
ness and society is increasingly evident. It has
manifested itself in many ways, from local
dissatisfaction to global protests. With the
public (social) unrest comes business (and
economic) unrest. The nature of this symbiotic
relationship and shared destiny is brought
starkly into focus by the socio-economic and
political events of recent years.
Around the world we are witnessing the
drawing back of the state and the process of
deregulation, trade liberalization and the rapid
internationalizing of markets. As state funding
reduces across the globe, a gap is developing
between society’s needs and the government’s
or the state’s ability to provide for them. In such
an environment, businesses have become an
increasingly powerful force within society and
consumers recognize this. With global mergers
and acquisitions, their economic power is enor-
mous. The revenue of some companies far
exceeds the GDP of many nations (Roddick,
2001):
The 200 biggest corporations in the world
control 28 per cent of the world economic
activity but employ less than 0.25 per cent of
the global workforce.
The wealth of the world’s 84 richest people is
bigger than the GDP of China with 1.3 billion
people.
The world’s richest 20 per cent received 82.7
per cent of the total world income compared
to the poorest 20 per cent, who received 1.4
per cent. These figures have not changed since
1992.
With such significant economic power and
influence in society, business has a profound
influence on the lives of individuals and com-
munities around the world. With this role
comes responsibilities. These responsibilities
are increasingly recognized by consumers and
acknowledged by business. This in turn
impacts on the marketing of the business.Large corporations play an ever increasing role
in the global economy and so have a greater
impact on global society. People in the dual role
as consumers and citizens will expect com-
panies to use their power and influence widely
and to meet their needs more effectively. Cause
related marketing is one part of the portfolio of
ways that companies can use/respond to these
demands, enabling the companies to contribute
to the development of the societies in which
they operate, as well as enabling them to build
long term benefits for brands.
Jerry Wright, Senior Strategist,
Unilever (Adkins, 1999a, Chapter 4)From a legislative point of view, the context has
also developed considerably and has a knock-
on effect on the marketing and communication
of a business. The Turnbull Report and the
recent pensions act in the UK, for example, both
focus business attention on the risks and indeed
the rewards associated with effective manage-
ment of environmental and social issues. This
not only serves to change the context for
business generally and in turn for marketing,
but also serves to build the momentum and
interest in these aspects of the business. Social
reporting and business ethics are now firmly on
the radar screens for every business. They
cannot fail to be. This can of course be regarded
as a threat or an opportunity. Consumers, after
all, have the power of knowledge, the power to
purchase, the power to protest and the power
to boycott. They also have the potential to be
engaged, to believe and to become advocates.
Consumers have shown themselves to be
increasingly restless and vociferous, and are
prepared to demonstrate their displeasure with
corporate behaviour. Which came first, the