Smart Giving Pays Off
Engaging the Issues

Smart Giving Pays Off
By Angela Kryhul
Marketing Magazine - Monday, February 21, 2005


I recently sat in on an informal discussion about how marketers interact with social issues and community organizations. The wide-ranging discussion veered from how to turn community programs into a core part of brand building, to the touchy question of how to be philanthropic without appearing to be opportunistic.

The discussion was made all the more lively by the intimate format. The gathering included 10 invited participants drawn from marketing organizations, academia, human resources and environmental activism. Different participants are invited each month as part of an ongoing "At the Table" series, the brainchild of Paul Klein and Joel Sears of Klein + Sears in Toronto, whose expertise lies in brand building and social issue marketing. This new-style salon is moderated by Rick Wolfe, who runs the consulting company PostStone in Toronto, and who encourages participants to speak out as informally as they would at their own kitchen tables.

People like the unpretentious format. Around the table the day I went were representatives of Ford, Bell Canada and retailer Mountain Equipment Co-op, as well as the activist group Environmental Defence Canada, among others.

Such diverse marketers share common issues when it comes to corporate citizenship. While giving is recognized as a cornerstone of most corporate cultures, marketers are trying to articulate the ratio of expenditures to brand goodwill.

So, how does community engagement get on the radar of both the CEO and the consumer? "What gets measured, gets done," insisted one participant, making the point that philanthropic activities need to be put on a performance review from the very start. That helps lay the groundwork for sustainability and, hopefully, means buy-in throughout the organization.

One important point made was that charity begins at home: If employees are disgruntled about pay or working conditions, they're likely to question their company's generosity, no matter how well meaning. By the same token, you can't suddenly graft philanthropy onto a corporation - it has to begin within and build from the ground up to appear genuine.

Many questions have been debated during these At the Table sessions, which began last November: How do you measure community investment? What is the social risk if a company does nothing? What is the risk in being associated with a cause that may engender controversy?

Connectedness between the brand and the community effort is all important. Everyone in the group easily recalled that Tim Hortons runs summer camps for kids, and that McDonalds - through Ronald McDonald Houses - helps the families of children undergoing hospital treatment. The questionable nutritional value of burgers and fries or sugary doughnuts doesn't appear to taint the warm feelings people have for the two marketers charitable efforts.

Yet many marketers pour millions into philanthropic programs that few consumers intuitively connect to their brands. One marketer said her company is "narrowing the focus and going deeper" in its efforts, another underlined the importance of the "Aha!" factor - consumers must make a natural connection between a marketer's image and its community involvement. A point often made in the discussions was that it's not necessarily a matter of companies pouring more money into their communities. The goal is to focus that investment so that consumers and employees feel they are making a real difference.

The topic is endlessly complex. It's ideal to have a sustainable strategy, but what happens when tragedies like the Sept. 11 terrorist attacks or the tsunami in Southeast Asia occur? How does a marketer leverage its activities without looking opportunistic?

Perceptions have certainly evolved since 9/11, when some marketers were hesitant to broadcast how generous they were to people in New York or to air travellers stranded in Atlantic Canada during the crisis. But things were different when, only a few days after the Dec. 26 tsunami, Canada News Wire was busily churning press releases on behalf of marketers anxious to publicize the donations they'd made. And most managed to strike the appropriate note of benevolence.

I'm not sure that marketers are trying to duplicate for their brands the intense passion consumers have for the social issues or charities they personally support. However, it's clear that corporate citizenship is in uncharted territory and the marketing bean counters will raise its status in direct relation to the measured.

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