ST.

SCHOLASTICA’S ACADEMY
Tabunok, Talisay City, Cebu SY: 2020 – 2021

THE ADVANTAGES OF CAUSE MARKETING

A POSITION PAPER

SUBMITTED TO:

MS. LEA B. RABAYA

EAPP Teacher

SUBMITTED BY:

Bacarisas, Shera Mae A.

Carillo, Mauren Mae S.

Puspus, Iris Claire V.

(Gr. 12 – St. Elfleda)

 April 21, 2021

THE ADVANTAGES OF CAUSE MARKETING

By: Bacarisas, Shera Mae A., Carrillo, Mauren Mae
S., Puspus, Iris Claire V.

As the population is exponentially growing, businesses are also starting to

congest the corporate world leading to fierce competition between businesses.

With the help of technological advancement and high-quality manpower,

businesses continue to find and create innovative ways to market their products

and services. According to Chia Yan Min, an Economics Correspondent

“Population: More people, bigger market, more options”. A bigger market is to

more options resulting to the demand of an effective business tactic and one of

that is

“Cause Marketing”. Cause marketing, the so-called commercial co-ventures or

cause-related marketing, refers to the marketing relationship of a profitable

business and a non-profit organization for mutual benefit in the way of marketing

the service as well as product linked to the social cause or other charitable

causes (UKEssays, 2018). Although this kind of marketing strategy is for a good

cause, criticisms will always intervene deeming it as a “controversial issue”.

Furthermore, using cause marketing as a business tactic may result in positive or

negative outcomes. Is cause marketing effective as a business tactic or will it be

adverse to the well-being of society? Henceforth, the use of cause marketing as

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a business tactic should be normalized as it will promote the brand’s image,

increase product sales and help the community.

There are some oppositional points of using cause marketing as a business

tactic but the advantages outweigh those possibilities if the company will do “their

research and stand behind the causes they choose to back in an authentic,

welladvised way” (Lesher). One of the bright sides of implementing cause

marketing is that it will promote the company or brand's image. According to a

Forbes article,

“brand marketers spend a lot of time understanding what their brand stands for

and how it is perceived by consumers. Cause marketing can add richness to the

brand story and help customers connect with the brand in new ways. In addition,

cause marketing can help companies distinguish themselves from their

competition” (Wozniak, 2017). By partnering with a charity, the company is

essentially molding its brand image to correlate to the cause the charity supports.

Ultimately, the charity becomes part of the company’s image profile. The same

could be said for the reverse; the values on which the partnering company was

founded now becomes some of the values of the nonprofit organization (Albert,

2014). For example, Proctor and Gamble’s sponsorship with the Special

Olympics makes them appear to be caring and family-oriented since their target

market is families (Mizerski). In this case, an applied cause-related strategy has

been beneficial in developing a corporate personality.

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Aside from the fact that cause marketing promotes the brand’s image, it also

increases production sales through moral obligation. People tend to make

decisions based on their emotions and feelings related to their personal morals

and values. A study showed that consumers act upon moral emotions deriving

from guilt or gratitude and that people are more willing to donate their time for

volunteering because of the feeling of guilt for not being able to donate money

and vice-versa (Kim). A cause that usually pulls at the heartstrings of one person

comes directly from what they value most. In return, this increases sales and

boosts support for the charity. In addition to an increase in motivation to buy

more based on moral obligation, there’s this term called “willingness to pay”.

"Willingness to pay" refers to the overall amount of money that people are willing

to spend in order to obtain a specific good. Customers' ability to pay for a well-

publicized cause-related product is greater than what they would pay for a

comparable noncause-related product. Customers' willingness to pay would

improve if businesses better clarify how the selling of their product would

positively contribute back to the community, according to statistics (Koschate-

Fisher). Concerning the sense of responsibility, people naturally feel better about

themselves if they think they are helping to change society, and they are willing

to pay more to achieve this feeling.

Similar to consumers’ willingness to pay for cause-related goods, businesses with

a cause-related marketing strategy see a rise in production revenue even through

difficult economic times. During a recession, people prefer to cut back on

personal purchases that they deem excessive, but they also believe it is their

4
responsibility to support charitable causes. For example, amid the recession, a

study conducted in Ireland found that over half of people will donate to a charity,

and about 16% will volunteer for a nonprofit organization (Healy). Companies that

have adopted and conducted a cause-related marketing strategy will remain

successful even in times of economic distress, reducing their chance of

bankruptcy, according to this study.

Marketing for cause or cause marketing has a big impact on the world, especially

now that we are facing climate change. With the help of the companies that

advocates eco-friendliness and environmental awareness to the public, it

encourages consumers to show sympathy and eventually leads to helping the

community. Sustainability is also critically important to today’s consumers and 92

percent of people have a more positive view of companies that care about the

environment (Flis, 2021). If we aim to save the world, we should start within

ourselves. People's power equalizes powerful people, and by supporting brands

that promote sustainability and sharing it with other people, it could create a

riffling effect that may lead to the betterment of the environment. 96% of people

feel their actions, such as donating, recycling, or buying ethically, can make a

difference, and over half believe that they can make a big difference (Townsend,

2019). While it might seem self-evident, a cause-related marketing campaign

benefits the community by donating funds to a charitable organization. The

cause-based group can carry out plans to improve the lives of people in the city

as it receives more money from corporate partnerships. Vanhamme, for example,

said that even with the smallest amount of money contributed by businesses,

5
charities can do more than they had expected (Vanhamme). It is because of the

income and support provided by corporate partnerships that changes can be

made through initiatives that favor worthy causes. Without charities and

philanthropies, social issues and concerns that the government could not fix will

go unaddressed. Another way that a cause-related marketing strategy benefits

the community is through spreading awareness for benefitting causes. Since

companies use the charity as a tool to market and advertise their products, the

reverse of charities using the products as a marketing device also applies. For

example, Fuhu collaborated with NASCAR driver Landon Casill to sponsor the

nabi Inspire, Fuhu's kid-friendly tablet. Casill will donate 5% of his prize money,

and Fuhu will balance each of his donations to raise awareness for Autism

Spectrum Disorder (Ryu). As Casill travels across the country for his races, he

raises awareness of not only the commodity but also the cause. As previously

said, as people have a better understanding of how donation money is used, they

are more likely to purchase the product while still supporting the charity's cause

which involved money. Money is helpful and necessary, but often time and

expertise can be just as valuable. In fact, 64% of consumers surveyed (PDF)

about cause marketing say contributing money alone isn’t enough; brands should

integrate social good directly into their business. It’s not all about raising funds,

but raising awareness too (Smith, 2016).

Though the goal of a cause-related marketing strategy could be distorted in

hopes of advancing the company, the cause is still benefiting even at the

smallest degree (Albert, 2014). In conclusion, it is a win-win situation as it

6
provides an opportunity to improve the lives of the community through the mutual

benefit of nonprofit and for-profit organizations.

WEBLIOGRAPHY

Albert, P. (2014). Effectiveness of a Cause-Related Marketing Strategy.

WordPress, Retrieved April 19, 2021, from
https://paigealbert.wordpress.com/2014/05/09/effectiveness-of-a-
causerelated-marketing-strategy-essay-4/?fbclid=IwAR1hwRjHlJa-
KUmZp_S6CfH7Vyr2xff0wVNDQ8m5qznyMCPkvyu9HTkRxNQ

BNI Staff (2017). The Benefits of Cause Marketing on Your Business. BNI,
Retrieved April 19, 2021, from
https://www.bni.com/the-latest/blognews/the-benefits-of-cause-
marketing-on-your-
business?fbclid=IwAR0EjeWXDwXbIv1patcIv_l6ZlogKx3P9pPq0sKULs
MOdL20ZD04TmZf95w

Flis, S. (2020). The Rise of Cause Marketing. Business 2 Community, Retrieved

April 19, 2021, from,
https://www.business2community.com/socialbusiness/the-rise-of-cause-
marketing-
02286159?fbclid=IwAR3HimG2yYjQ-
gSOL0CN_xVsdrr3dBgCtE_OLodTzqlsxDIsDkEeUAnRf4

7
Lesher, R. (n.d). The Pros and Cons of Cause Marketing. Volume 9, Retrieved
April 19, 2021, from, https://www.v9digital.com/insights/cause-
marketingpros-cons/

Min, C.Y. (2015). Population: More people, bigger market, more options. The
Straits Time, Retrieved April 19, 2021, from,
https://www.straitstimes.com/business/economy/population-morepeople-
bigger-market-more-options

Smith, K. (2016). The Complete Guide to Cause Marketing. Brandwatch,

Retrieved April 19, 2021, from, https://www.brandwatch.com/blog/cause-
marketing/

Townsend, S. (2018). 88% Of Consumers Want You To Help Them Make A

Difference. Forbes, Retrieved April 19, 2021, from
https://www.forbes.com/sites/solitairetownsend/2018/11/21/
consumerswant-you-to-help-them-make-a
difference/?sh=3c11608b6954&fbclid=IwAR3iHNRVMk_jQ2Dv3TnFRco
46hawlRgcK81uDDNn0_5YY-S-c1v2Dpt3s6I

UKEssays (2018). Evaluation Of Cause Marketing Marketing Essay. Retrieved

April 19, 2021, from,
https://www.ukessays.com/essays/marketing/evaluation-of-
causemarketing-marketing-essay.php?vref=1

Wozniak, K. (2017). How Cause Marketing Can Boost Your Brand. Forbes,
Retrieved April 19, 2021, from,
https://www.forbes.com/sites/forbescommunicationscouncil/2017/10/25/h
ow-cause-marketing-can-boost-your-brand/?sh=6925dadf7712

8
 ST.

SCHOLASTICA’S ACADEMY
Tabunok, Talisay City, Cebu SY: 2020 – 2021

THE SHORTCOMINGS OF CAUSE MARKETING

9
 A POSITION PAPER

SUBMITTED TO:

MS. LEA B. RABAYA

EAPP Teacher

SUBMITTED BY:

Cañeda, Izabelle Bianca B. Hesalta,

Frances Nicole M.

Mabuyo, Demitri C.

(Gr. 12 – St. Elfleda)

April 21, 2021

THE SHORTCOMINGS OF CAUSE MARKETING

By: Cañeda, Izabelle Bianca B., Hesalta, Frances
Nicole M., Mabuyo, Demitri C.

An increasing number of businesses are forming strategic relationships

with charitable organizations to meet particular corporate goals (Westberg, 2004).

Cause-related marketing is one example of such a partnership. The precise

definition of this strategy is subject to debate; however, cause marketing is a

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marketing strategy whereby the firm contributes, financial or otherwise, to a

nonprofit organization(s) contingent upon the customer engaging in a

revenueproviding exchange that satisfies business and individual objectives. This

strategy may include additional elements such as sponsorship, sales promotion,

cobranding, and employee involvement (Varadarajan and Menon, 1988).

Nowadays, it is common and often flattering for businesses to participate in and

promote the fundraising activities of charitable organizations. Companies now

use causerelated ads not only to boost revenue, but also to enhance their brand

value and credibility, as well as to attract the loyalty of people while deciding

which brand to help. However, there are still numerous shortcomings that the

concept of cause marketing entails. Is cause marketing effective as a business

tactic or will it be averse to the well-being of society? Thereafter, the use of cause

marketing as a business tactic should be not normalized as it could harm the

company’s reputation and credibility; it is very costly, and it promotes

consumption philanthropy.

The opposition might say that cause marketing revolves around profiting a

charitable cause, however, people still need to be wary of the disadvantages that

cause marketing manifests (Gregory, 2010). Some disadvantages in cause

marketing are wrong decisions made by the company in partnering with a

nonprofitable organization or business. With different views and objectives, profit

and non-profit organizations may kick off disputes or long-term conflicts between

two parties (Ali Shaw, 2020). The partnership may or may not destroy your

company’s reputation, depending on the circumstances. Besides, it can be a big

11
scandal and disaster if the non-profit organization you’re supporting is somehow

doing illegal business or ruining its reputation. For this reason, your company is

at high risk of being dragged along and can rather bring a big misfortune to the

business. A charity that has been damaged will undoubtedly drag your company

along with it.

Under the media’s scrutiny, your company can be labeled as someone who

authorizes and approves the illegal actions or wrongdoings of your partner. One

example situation can be the partnership between Kentucky Fried Chicken (KFC)

and the Susan G. Komen breast cancer research foundation. It was during 2010

when the fast-food retailer, KFC launched a new initiative (together with Susan

G. Komen) to support breast cancer research by promoting and introducing a

new product which was called “Buckets for The Cure”. Though it brought a lot of

money, it was profoundly ridiculed by the media and the public eye since fried

chicken is not the healthiest menu choice and can lead to obesity (Fitness, 2010).

Also, to breast cancer research, fried chickens seemed antithetical.

Cause marketing helps in increasing product sales, yet it comes with a

price that is very costly since investments are paid and you’ll never know whether

it’s running for you or against you. It can be expensive depending on the situation

it entails. The result of Patagonia’s bizarre cause marketing, which is Brand

Loyalty has been beloved by its customers, especially the outdoorsy ones. Driven

by their environmental passion and charity works, Patagonia has donated a

whopping $10 million to charities and were breaking record for it (Werner, 2019).

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 Cause marketing, deftly serves two masters, generating income for

businesses and raising funds for charities. However, cause marketing promotes

consumption philanthropy, which has short-term advantages that outweigh its

long-term costs. Individualizing solutions to collective issues, replacing virtuous

behavior with mindless purchasing, and hiding how markets produce many social

problems in the first place are all examples of hidden costs. As a result,

consumption philanthropy is unfit to effect real social change. Consumption

philanthropy seems like the ideal solution to many of the problems our society

faces today. It allows charities to raise much-needed funds and to educate

consumers. It helps corporations increase their profits, bolster their reputations,

and distinguish their brands. And it lets consumers feel that they are making a

difference in the world. On the surface, all seems rosy. Yet lurking beneath this

rosy surface are some disturbing consequences of combining consumption and

philanthropy. I do not mean the often-cited risks of cause marketing, which

include misalignment between the charity and the corporate sponsor, wasted

resources, customer cynicism, or tainted images of charity. Most critiques of

consumption philanthropy focus on these pesky problems of execution without

questioning its basic underlying assumption—that consumption philanthropy, if

done well, would do good for all. Consumption philanthropy individualizes

solutions to collective social problems, distracting our attention and resources

away from the neediest causes, the most effective interventions, and the act of

critical questioning itself. It devalues the moral core of philanthropy by making

virtuous action easy and thoughtless. And it obscures the links between markets

13
—their firms, products, and services—and the negative impacts they can have on

human well-being. For these reasons, consumption philanthropy compromises

the potential for charity to better society (Eikenberry, 2009).

While many business entities and customers believe that using a

causerelated approach for various areas of business is generally advantageous

there are a few aspects to consider before implementing such a strategy. Cause

marketing can trigger the risk of the bad reputation of your own business due to

illegal activities and wrongdoings that were brought upon your business partners,

non-profitable organizations to be exact. What causes this can be the different

viewpoints or objectives of two business partners or organizations, giving rise to

long-term conflicts between the two. Cause marketing can be very expensive and

costly. Though it can increase product sales, the costs for investment and

advertisement are not favorable. Lastly, cause marketing promotes consumption

philanthropy, which has short-term advantages that outweigh its long-term costs.

In conclusion, cause marketing should not be normalized by businesses

and companies since it is pernicious to the people in the scope of the business

and to the business itself.

WEBLIOGRAPHY

Ali Shaw, A. (2020). What is Cause Marketing? – Pros, Examples & How-To
Guide. Marketing Tutor, Retrieved April 19, 2021, from
https://www.marketingtutor.net/what-is-cause-
marketing/?fbclid=IwAR1nzylDwiIYsbkFP4By7vKfFONbDnDbzN1ospHJ
c_Vz1IYURG7qPLECRUk

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Eikenberry, A. (2009). The Hidden Costs of Cause Marketing. Stanford Social
Innovation Review, Retrieved April 19, 2021, from
https://ssir.org/articles/entry/the_hidden_costs_of_cause_marketing?fbcli
d=IwAR1p9qH7IckCJeA7B4mep8hddMNsZLzQNcOIZzyFMN7P2ygxoA
peZL8sGWA#

Fitness. (2010). KFC's Buckets For The Cure: Cool or Not?. Popsugar, Retrieved
April 19, 2021, from https://www.popsugar.com/fitness/KFC-Sells-Pink-
Buckets-Fried-Chicken-Breast-Cancer-Research-
8207592?fbclid=IwAR2i0CaEgXBQpmWwn0o0d1lV4xqieIIjM3Vy2J0kNl
JAdWv8X94WxIRdD2A

Fritz, J. (2021). What Every Nonprofit Should Know About Cause Marketing. The
Balance Small Business, Retrieved April 19, 2021, from
https://www.thebalancesmb.com/what-every-nonprofit-should-
knowabout-cause-marketing-2502005

Marie S. (2014). Cause Marketing Gone Wrong. Alley Watch, Retrieved April 20,
2021, from: https://www.alleywatch.com/2013/12/cause-marketing-
gonewrong/

Sherman, E. (2014). The pros and cons of cause marketing. National Center for
the Middle Market, Retrieved April 19, 2021, from
https://www.middlemarketcenter.org/expert-perspectives/the-pros-
andcons-of-cause-
marketing?fbclid=IwAR082mcoevII8Ii4fR7sbWLt1zPsQITTbLvbQwmses
zV0dtf4ZTO5JAAOoc

Tsui, J. (2020). The Negative Effects of Corporate Greenwashing. Sea Going

Green, Retrieved April 19, 2021, from
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corporategreenwashing?
fbclid=IwAR21wvjCY1RnQLMoI4PQZ4r5YA4FZVtXL7MlXhvY6SyTE4yd
8qSlQX7Z6E

Werner, S. (2019). Why do brands invest in cause marketing strategies?.

Causely Blog Retrieved April 19, 2021, from
https://www.causely.com/blog/whydo-brands-invest-in-cause-marketing-
strategies

Westberg, K. (2004). The Impact of Cause-Related Marketing on Consumer

Attitude to the Brand and Purchase Intention: A Comparison with
Sponsorship and Sales Promotion. Research Repository, Retrieved April
15
21, 2021, from https://research-
repository.griffith.edu.au/bitstream/handle/10072/366195/02Whole.pdf?s
equence=1s

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