Nine out of ten (89%) UK consumers say they purchased a product or service associated with a charity or cause in the last year. This compares to over a fifth of the public who regularly give time, and around a third of people who personally help raise money. The findings come in research published by Business in the Community on July 9, based on a survey of over one thousand people in the UK.
At the same time, BitC issued its first Cause related marketing tracker, which aims to quantify the benefits to charities and good causes from cause related marketing on an annual basis. Over £30 million was raised during 2001, including £4.2m contributed by staff, customers and suppliers, according to the first returns by companies. Tesco’s Computers for schools scheme was the biggest scheme in 2001, providing £7.5m worth of IT equipment for schools.
Not included in the total is the value of media exposure gained by the charities themselves. Unilever’s Persil partnership with Comic Relief generated over £3.3m worth of press coverage and advertising, while Help the Aged gained an equivalent advertising value of £3m from its partnership with Centrica. Contact Sue Adkins, BitC, on 020 7566 8696 (http://www.bitc.org.uk)
Values out in front
Nine out of ten (88%) companies are actively and voluntarily seeking to contribute to a better society and a cleaner environment, according to new research among 120 brand-based companies, issued by consultancy, Springpoint, and Marketing magazine on July 18. Three quarters (72%) believe CSR has a positive impact on the brand, though employees are judged to more likely to be influenced than any other audience. Contact Philippa Emery, Springpoint, on 020 7483 8500 (http://www.springpointgroup.com)
Partnership pre-nuptuals
Commercial partnerships are not the safest or most effective way of fundraising for charities, and traditional methods such as legacies or appeals carry less risk. The Charity Commission said on July 17 that a quarter of the suspected malpractice cases it investigated during 2001 involved promotional ventures and other commercial activities. Charities and commercial partnerships warns charities to draw up an ethical policy, to identify risks in advance and not to undersell their names. It also recommends a clear, written agreement binding on both sides, with measurable objectives. Contact Kevin Snow, Charity Commission, on 020 7674 2332 (http://www.charitycommission.gov.uk)
Code of practice
Also on July 17, the Institute of Fundraising issued a new code of practice, Charities working with business, which sets out standards and best practice for fundraising through commercial partnerships. The code covers conflicts of interest, measurement of success, and legal and tax points. Also included are case studies on selecting commercial partners. Contact Alison Lockyer-Webb, Institute of Fundraising, on 020 7627 3436 (http://www.institute-of-fundraising.org.uk)
Who’s the boss?
More than four out of ten (42%) British people found out something about a company that put them off buying its product or service in 2001, according to a report from Publicis published on May 19. The New Assertiveness finds that three out of ten members of the public felt deceived or cheated by a company that they had dealt with. More than six out of ten (65%) are more likely to complain to a company than three years ago. Lucy Purdy, Publicis, on 020 7935 4426 (http://www.publicis.co.uk)
in brief
Examples of successful cause related marketing campaigns and other best practices in CSR are being collected in Italy by a new CRM Observatory run by AC Nielsen, UPA and Sodalitas, the Milanbased responsible business agency. Contact Felice Manfrot, Sodalitas, on 00 39 2 8646 0236 (http://www.sodalitas.it)
Eight out of ten UK travellers are prepared to pay an extra £30 to £70 per fortnight to book a hotel with a responsible environmental attitude, according to a survey of 300 travellers published by the International Hotels Environment Initiative on July 17. Contact Janet Borgers, IHEI, on 020 7467 3622 (http://www.ihei.org)
Allied Domecq is including moderation messages to promote socially responsible drinking on the current advertising campaigns for two spirit products, Ballantine’s Whisky and Tia Lusso, launched in May and June respectively. Contact Jane Mussared, Allied Domecq, on 07880 783 532 (http://www.allieddomecq.com)
The Co-operative Insurance Society is making a cash donation to Macmillan Cancer Relief and ChildLine for every stakeholder pension it sells. Contact Carolyn Hicks, CIS, on 0161 837 4912 (http://www.cis.co.uk)
The Co-operative Bank has helped Amnesty International raise over £1m since 1993 through its Visa credit card, which is used by more than 25,000 people. The Bank donates £15 for every new account opened and 25p for every £100 spent. Contact Dave Smith, Co-op Bank, on 0161 829 5397 (http://www.cooperativebank.co.uk)
Tesco is pledging a £2 donation to the Cystic Fibrosis Trust for each old ink-jet cartridge that shoppers send in for recycling, making use of freepost envelopes available in store. Contact Fiona Mason, Tesco, on 01992 632222 (http://www.tesco.co.uk)
Comment
As we go to press, news comes of a group of employees from the charity, NCH action for children, protesting at a gift from employee fundraising at British Aerospace. BitC may have been encouraging business involvement for 20 years, but charity partnerships remain as controversial as ever. So the newly published good practice guidance is timely, and especially welcome as it effectively comes from the government, in the shape of the Charity Commission, and from charities themselves, through the Institute, formerly the ICFM. Companies are well advised to get hold of both and review their current practices – even if some people will always object to any commercial tie up, even a straight donation.
The risk of such protests is minimised if companies and those promoting CRM are careful in their claims. Good to see, therefore, the new ‘tracker’ is distinguishing (albeit only in the small print) between companies’ contributions and those of staff and customers. Good also that the benefits gained in terms of notional media coverage are not confused with the companies’ own contributions. As the tracker is developed, it needs to include measures of the real impact of CRM, in terms of better educated school children or senior citizens saved from hypothermia.
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