Cause-related marketing: a powerful tool for ESG communications
Cause-related marketing is a powerful strategy for businesses to align their marketing efforts with environmental, social, and governance (ESG) principles. By incorporating social and environmental causes into their marketing campaigns, companies can effectively communicate their commitment to sustainability and social responsibility.
What is cause-related marketing?
Cause-related marketing refers to the practice of collaborating with non-profit organisations or supporting social and environmental causes to promote a product or service while simultaneously making a positive impact. It is closely related to ESG communications as it allows companies to demonstrate their commitment to responsible business practices and sustainability goals. By integrating cause-related marketing into their overall communication strategy, businesses can convey a clear message about their ESG values to stakeholders and the wider public.
Benefits of cause-related marketing
Cause-related marketing can be a great channel in the sustainable marketing mix, and here is why.
Enhanced reputation
Cause-related marketing can significantly enhance a company's reputation by showcasing its dedication to social and environmental causes, leading to increased brand trust and loyalty.
Better bottom line
Consumers are more likely to support companies that align with their values. Cause-related marketing can attract and retain customers, thus positively impacting a company's bottom line.
Brand alignment
Well-executed cause-related marketing initiatives align with a company's brand values, enhancing brand identity and differentiation.
Positive public reception
Meaningful cause-related marketing campaigns resonate with the public, generating positive word-of-mouth, media attention, and social media engagement.
10 ideas for cause-related marketing, with examples
Sustainable product development: Companies can develop eco-friendly products and donate a portion of sales to environmental organisations. Patagonia's "1% for the Planet" campaign exemplifies this, with the company donating 1% of its sales to environmental causes.
Skills-based volunteering: Companies can encourage their employees to volunteer their skills and expertise to support non-profit organisations, creating a positive impact while showcasing their employees' dedication. IBM's Corporate Service Corps initiative demonstrates this approach.
Consumer education: Educating consumers about sustainability and promoting behaviour change can be an effective cause-related marketing strategy. Unilever's "Dove Self-Esteem Project" focuses on promoting body positivity and self-esteem among young people.
Renewable energy partnerships: Collaborating with renewable energy providers to transition to clean energy sources can be a powerful cause-related marketing initiative. Google's commitment to being carbon-neutral is an example of this approach.
Sustainable packaging: Implementing sustainable packaging solutions and raising awareness about the importance of reducing waste can be an impactful cause-related marketing strategy. Method's "Ocean Plastic" initiative, utilising recycled ocean plastic in their packaging, is a successful example.
Social impact programs: Companies can create programs that address social issues such as poverty, education, or healthcare, positively impacting communities. TOMS Shoes' "One for One" campaign, where a pair of shoes is donated for every pair purchased, demonstrates this concept.
Employee matching programs: Offering employee donation matching programs encourages employees to contribute to non-profit organisations, amplifying the impact of their charitable efforts. Microsoft's Employee Giving Program is a notable example.
Environmental restoration initiatives: Collaborating with environmental organisations for reforestation or ocean clean-up initiatives demonstrates a company's commitment to environmental sustainability. The partnership between Adidas and Parley for the Oceans, focusing on turning ocean plastic into sportswear, showcases this approach.
Cause-related events: Hosting or sponsoring events that raise awareness and funds for social or environmental causes can engage the public and strengthen brand reputation. Red Bull's "Wings for Life World Run" is a successful example.
Cause-related social media campaigns: Leveraging social media platforms to raise awareness, drive engagement, and encourage user-generated content around social or environmental issues. The Ice Bucket Challenge by the ALS Association gained significant attention and donations.
Key risks of cause-related marketing
While cause-related marketing can bring numerous benefits, there are risks that should be considered.
Greenwashing
Misleading or insincere cause-related marketing can lead to reputational damage if the public perceives it as greenwashing, undermining trust in the company.
Non-profits losing the ‘watchdog’ status
Non-profit organisations may risk losing their status as independent watchdogs if they become financially dependent on corporate entities. Maintaining transparency and independence is crucial to mitigate this risk.
Key steps to running a cause-marketing campaign
Identify the Cause: Choose a cause that aligns with your company's values and resonates with your target audience.
Partner with Non-profit Organisations: Collaborate with credible non-profit organisations that have expertise and credibility in the chosen cause area.
Develop a Clear Message: Craft a compelling message that effectively communicates the cause, the partnership, and the intended impact.
Integrate Cause into Marketing Channels: Incorporate the cause-related messaging into various marketing channels, such as advertising, social media, packaging, and public relations.
Measure and Communicate Impact: Track and communicate the impact achieved through the cause-related marketing initiative to reinforce transparency and accountability.
Best practices for promoting sustainability through cause-related marketing
Authenticity
Ensure the cause-related initiatives are aligned with the company's values and genuinely contribute to positive change.
Relevance
Choose causes that are relevant to the company's industry, expertise, or stakeholder concerns to enhance credibility and impact.
Sincerity
Be transparent about the intentions and outcomes of the cause-related marketing campaign to build trust with stakeholders.
Long-term commitment
Demonstrate long-term commitment to the cause by consistently supporting it beyond short-term marketing campaigns.
Collaboration and co-creation
Involve stakeholders, including employees, customers, and non-profit partners, in the design and implementation of cause-related initiatives to foster engagement and shared ownership.
Conclusion
Cause-related marketing serves as a powerful tool for ESG communications, allowing companies to communicate their commitment to sustainability and social responsibility. By implementing well-designed cause-related marketing campaigns, companies can enhance their reputation, increase earnings, and align their brand with values that resonate with customers. However, it is essential to navigate potential risks and follow best practices to ensure authenticity, relevance, and sincerity in promoting sustainability through cause-related marketing initiatives.
