1) Transactional programs: Classic exchange based donation. Contribution given to a social cause per sold
unit.
Example: Mars supporting Special Olympics
2) Message promotion programs: Monetary or non monetary transaction is given by the company to the
cause promoted.
Example: Barnes & Noble Anti-Defamation League “Close the book on hate”
3) Licensing programs: Licensing a non-profit organization’s logo for an imprantur in a certain product; a
percentage of the transactions are given to said organization.
Example: Visa and World Wide Fund
Practices related with social responsibility
1) Issue focused programs: Businesses partner with non-profit groups affiliated with a selected issue,
which supports the corporation’s image.
Example: Liz Clairborne’s Family Violence Prevention Fund
2) Business activity programs: Building awareness of a corporation’s ethical practices.
Examples: Kraft Foods’ “fair-trade” coffee brand
3) Target focused programs: Programs that aid a particular group, often the company’s core market
segment.
Example: Taco Bell’s sponsorship of Boys and Girls clubs of America
CRM benefits
1) Bottom line: Profitable well designed campaigns.
2) Brand building: Selecting causes with the consumers’ affinity
translates into brand memorability.
3) Corporate reputation enhancement: Heightened respect for the company.
4) Goodwill generation: Goodwill can prevente long-term damage.
5) Employee morale improvement: Employees feel satistfaction and
pride from helping a worthy cause.
6) NPOs’ funding: Increased financial resources.
7) NPOs’ exposure: Greater exposure than they would achieve on their own.
8) Non-financial resources to NPOs: Marketing talent and Business acumen.
Ethical Issues
1) Marriage of strange bedfellows: Public service for corporate benefit.
2) Walking the fine line: Advocacy or exploitation.
3) Transparency and honesty: Discussing openly all elements of this campaign.
For society: Consumers get to help
the less fortunate in a convenient
way. Consumers can be caring
citizens in their ordinary routines.
Elevation of consciousness about
the needs of fellow humans.
Injecting social and personal
meaning into the marketplace.
Increased awareness of social
problems.
For the company: CRM can
contribute to a more
compassionate marketplace.
Humanizing a transaction.
Encouraging social
responsibility. Consumers
reward corpotations that are
ethical actors.
Less favorable implications
For society: CRM may distort
the pattern of giving.
Consumers get used to giving
in exchange for something.
Relieving givers of any true
authorship for their conduct.
For the company: Giving
fatigue from the consumers.
Cause selection may be
selected over others, despite
equal or greater need or
merit.
Suggestions
1) Involve top management: To ensure enduring commitment and
culture transformation inside the company. 2) Carefully pair cause and
company: Focus on target market to choose a cause. 3) Thoghtfully
develop the creative execution: Achieving multiple objectives, genuine
regard and authenticity. 4) Use a code of CRM ethics: Avoid abuse or
misrepresentation.