September 12th, 2010
12:04 PM GMT
Every year, companies spend billions of dollars on good causes. But in this challenging economy, corporate giving is taking on a new level of importance.
"Cause Marketing" is a term coined in the 1980s. But today, it's becoming a popular method for companies to get through tough times, and build their brands.
We are accustomed to big companies like Pepsi and Nike getting behind global causes, but smaller businesses can get in on the action as well.
I profiled a small company, Guy Harvey Inc., that reports record revenues in 2008/2009, at the height of the recession, and management credits Cause Marketing with the success.
A pioneer in this field, Harvey says the cause started as an authentic desire to save the world’s oceans, and became a business strategy much later on.
"Sometimes you need to have money to do the good," says Harvey, "and I feel good to be in this position now, to have the influence to really make a difference."
Carol Cone, an expert on marketing and the author of "Breakthrough Nonprofit Branding" says companies spent more than $9 billion in 2001 on charitable causes. The challenge, she says, his ensuring they meet their business objectives at the same time.
According to Cone, recent surveys show six out of 10 consumers say they are more loyal to a company that backs a cause. Social media is an important factor in the success of cause marketing. Cone says, "By word of mouth and social media, consumers can find out what a company truly stands for. Consumers want to be in control, they want to feel empowered to be good, so this really resonates."
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