Submitted by ianmacquillin on 29 January, 2008 - 17:51.
My girlfriend Sarah and I were doing our weekly shop at our local Sainsbury’s on Sunday. Now Sarah (Wheeler) works for an animal welfare charity (WSPA, where she is international head of leadership giving – cool job title!).
One of Sarah’s areas of interests – or rather concern – is that many companies are adopting the marketing messages of charities by promoting the feelgood factor of shopping with them rather than the products themselves.
Up until this weekend, Sarah’s paradigm example had been The Body Shop. The Body Shop has now been replaced by Sainsbury’s, where our local branch (and presumably all the others) had a huge pendant hanging from the ceiling announcing: “Our values make us different.”
(As an aside, it would be an interesting branding exercise to pick a member of Sainsbury’s staff at random and ask them what these values are and why they make Sainsbury’s different.)
Sainsbury’s is also running a press campaign and a full-page advert informed that, because Sainsbury’s free range Woodland Eggs were laid by hens that are free to roam in the woods, “this means a better life for the hens and a clearer conscience for you”.
Of course, organic food costs more, quite a lot more (I know that having just moved in with someone who works for WSPA). Although far from explicitly stated, Sainsbury’s values marketing is strongly implying that this price premium is worth paying, not because you get a better product, or because that product is better for you, but because:
a) you help to make the world a better place
b) you feel good about yourself.
Isn’t that the message fundraisers endeavour to communicate?
We all know average monthly donations are in the region of £10-12. In 2004, the sorely-missed Giving Campaign commissioned some market research by NOP among higher rate tax-payers – the “mass affluent” (www.givingcampaign.org.uk/images/uploaded/7%20-%20A%20Wealth%20of%20Oppo...). This found that people metaphorically put their monthly expenditure into three pots – one for fixed items such as bills and mortgage payments, one for variable regular outgoings such as housekeeping, and one for “purely discretionary” expenditure, which included charitable giving.
This last pot for discretionary expenditure was regularly squeezed by everything the ‘mass affluent’ had to do to maintain their lifestyles so that, seemingly paradoxically, they often felt they didn’t have much to give away. (It’s just a gut feeling but I reckon the ‘mass affluent’ are among the most likely to consider organic food part of their lifestyle.)
Now, out of which pot will people pay the organic food premium – shopping (monthly variable pot), or charity (discretionary pot)? I don’t think it is at all obvious that it will come from the ‘shopping’ pot, especially if what has convinced them to stump up this extra cost is a marketing message that is associated with charities.
Now factor this in. In 2003, Peter Halfpenny at Manchester University did some research on what people understand by ‘charitable giving’ (see Professional Fundraising, mid-March 2004). His conclusions were that many people lump together – conflate, in fact – all their expenditure that could be categorised as having an element of, as he described it, “meeting social commitments”. Alongside traditional charitable giving, this includes such ‘giving’ as buying the Big Issue, trade union subscriptions and even contributing to a colleague’s leaving present.
It is easy to see how buying organic food could fall under the category of ‘social commitment expenditure’. And if this expenditure comes out of the ‘charity pot’…well, we already know the money in that pot is being squeezed in all directions and you can’t spend the same money on two different things.
As Sarah said, if you are already doing your bit for animal welfare by shopping at Sainsbury’s, why would you also give to an animal welfare charity?
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Values marketing is not the same as CSR
Of course charities have to worry about whether companies' marketing messages are impacting on their donations. They would be acting irresponsibly if they didn't incorporate this potential threat into their SWOT analyses.
Mine and Sarah's point - as Howard has picked up on – was not to criticise companies per se and certainly not to make any comment about how fundraisers should manage their corporate and cause-related marketing partnerships. So our response, John, to your answer to Sarah's rhetorical question about why would people give to charity if they felt they had done their bit by shopping at Sainsbury's is: "Well, of course!" After all, that is job of a corporate fundraiser.
We're not even criticising companies for using these messages - merely highlighting the effect such marketing may have on donations, and I drew on the Giving Campaign's and Peter Halfpenny's research to give a plausible explanation of how that effect might come about.
However, I would make this point. However well-intentioned, however nobly-motivated, companies' advertising and marketing may be, it serves one purpose only - to get more people to buy their products. Although important for them, changing the world is a secondary objective.
The social values marketing currently practised by some companies is not Corporate Social Responsibility. Values marketing is not in itself a sign that the company is acting more responsibly; just that it is communicating that it is acting more responsibly. It is just marketing and it serves to give the company a competitive advantage over its rivals.
Now, what happens in a few years when such social values marketing is seen as a bit passé, or just doesn't work any more? I've no reason at all to doubt that Sainsbury's is totally and utterly genuine in its desire to improve farm standards, but in a year or two, the novelty of this will have worn off and it will no longer provide a productive marketing hook. Sainsbury's CSR and animal welfare best practice will remain; but its marketing will have moved on.
Charities on the other hand, will still be communicating the same core message but it may be harder to get it across and make it pay dividends because corporate marketing has used it for commercial ends and maybe changed people's attitudes in the way that Sarah, Howard and I (and many others, of course) fear.
It's something fundraisers should at least consider.
Ian
Damned if you do, damned if you don't
It's ironic that if companies act irresponsibly, they’re lambasted by charities. If, through that, they become more responsible, some charities then worry that they're impacting on donations instead of relishing the fact that their messages have started to get through and a change has taken place.
If that's the case, then it’s those charities that look to work collaboratively with the corporate sector that will do well as CSR fever takes a grip on the UK corporate sector. I doubt any charities will look for vaccine for this apparent rise in concern by companies for the world: “Hey you, take three of these a day to help you stop doing good!”
Looking just at animal welfare, The RSPCA does very nicely rewarding food producers with its Freedom Food kitemark...it gets a royalty for every product it adorns.
However, the corporate sector as a whole is not going to change the world's problems and it's the charity sectors' role to recognise and complement solid initiatives whilst also pointing out short-comings and providing long-term solutions for change. After all, every little helps - but a little doesn't help solve everything.
P.S. How many people that do the lottery even give a thought that a percentage is going to "good causes"?
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Companies can't win
You're right, John, that I seem to be criticising companies that have seemingly responded to charities' concerns and campaigns and changed their policies or practices. But I was criticising not the change but the way it is presented by some of these companies.
By all means companies can shout about why reducing packaging is good for that company's profits and market share, as well as its (and our) long-term survival, but don't imply with words, ideals, and imagery borrowed from charities that the business is anything other than it is.
Your comment about the lottery sums this up, I think. Does anyone think M&S and Tesco are charities? No, of course not, and they never will. Does anyone get a buzz out of the charitable impact of buying a lottery ticket? I don't believe they do. But, when faced with the next fundraising ask, will they not think - "no, charities get enough from the lottery, and I do my bit each week to help that with my hard-earned cash".
It's a subtle issue, and that's why I can appreciate Ian and Sarah's concern at the subtle imagery and messages being applied by some supermarkets and companies.
Green Awards
Well, it’s an interesting area that does warrant some research. Especially as The Sunday Times has already taken the initiative and launched The Best Green Companies Awards. So inundated have they been with entrants seeking a “Green Badge”, they’ve extended the deadline to enter until February 29th.
These Awards have been designed to “encourage, acknowledge and publicise businesses and other organisations, which are striving to improve their environmental performance.”
http://business.timesonline.co.uk/tol/business/related_reports/best_gree...
It’s a shame a charity didn’t lead on something like this. However, in my view, canny fundraisers should be making plans to contact the eventual winners now with a view to generating mutually rewarding relationships! For example, as B&Q chases the grey pound (they already had a good reputation amongst older staff and customers), it didn’t stop them entering into a HUGE partnership with Help the Aged. Indeed, I’m sure their commercial strategy influenced their choice of charity partner.
B&Q to target grey pound
http://www.thisismoney.co.uk/investing-and-markets/article.html?in_artic...
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P.S Sainbury's doesn't exactly rule the roost when it comes to chickens though does it?...still much more to be done!
Good company?
The clear corporate/charity partnerships that benefit a named charity with every purchase are fine. However, I share Ian and Sarah's concern that some companies are intentionally presenting themselves as agents of change using similar language and imagery as those used by charities.
Case in point - the Friends of the Earth-style campaign that M&S is running - "Plan A (because there is no Plan B)". Lovely to see a supermarket committing to these ideals and targets, but it irks me that it's borrowing the look and feel of campaigns run by FoE and co for the past 30 years.
Yes, shoppers *will* give to disaster appeals. But if after a few years of stumping up a little extra each week at Sainsbury's/Asda/Tesco/M&S etc for Fairtrade products, free-range organic eggs, cruelty-free soap, plus a Lottery ticket, I wouldn't be surprised if a lot of shoppers had the fuzzy sensation that they'd already been contributing to Oxfam, RSPB, FoE, when of course not a penny (bar one fifth of that Lottery ticket) was being donated to a charity?
Will that become the standard rejection for face-to-face fundraisers? "No thanks. I'm already a regular giver to your lot - I shop at Tesco".
Q: "As Sarah said, if you
Q: "As Sarah said, if you are already doing your bit for animal welfare by shopping at Sainsbury’s, why would you also give to an animal welfare charity?"
A: So that such charities can continue to campaign against the 000s of other organisations, and countries, that don't give a damn about animal welfare? No point in putting all your eggs in just one basket. For example, The British Red Cross made 3/4m out of people buying their favourite products at Tesco last year. However, should there be another disaster and those shoppers are asked to give I don't think many will think "Hang on a minute, what about that tin of beans I bought at Tesco last year? Don't tell me you've spent the five pence donation that generated already?"
Also, I'm sure that if WSPA analysed its donors' shopping habits it would find many shopped at Sainsbury's and the other biggies.
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