The benefits of being perceived to be socially responsible
are varied and many. Understandably brands want to be
perceived as socially responsible. Being associated with a good
cause is a quick way for a brand to begin the tag of being seen
as ‘socially responsible’. This shows the brand to be responsible
and caring and these are indeed good qualities for a brand to
have. While some brands are inspired by a genuine sense of
social responsibility many brands look at the image of being
socially responsible as helping in building brand stature. The
conscious employment of resources by a brand to aid charitable
causes in order to develop image, associations and identity
benefits is called cause related branding.
There are 5 main reasons why brands associate with charitable
causes other than from a socially responsible perspective:
1. Builds brand preference: Marketing sense states and some
research studies confirm, that ceteris paribus, consumers would
prefer buying a brand that is associated with a good cause than
from other brands.
2. Justifies a premium: Consumers often do not mind paying a
premium for a brand that is known to be generous to a wellknown
charity as consumers feel that the brand deserves the
premium. The knowledge that a part of the money paid to a
brand is going to a good cause adds to the positive emotional
component of the brand.
3. Reduces negative connotations associated with the brand:
Liquor and tobacco brands often associate themselves with
causes as a means of negating a part of the disrepute associated
with their industry.
4. Provides the brand with desirable values: Brands that are
seen to possess a very commercial and greedy image may wish
to develop a softer image by showing a softer nicer side by
donating to charitable organizations.
5. Useful for raising money: Brands that plan to approach the
money market for raising money from the public often show the
warm side of their personality by publicly supporting charitable
causes. Investors who are not doing extensive research on the
brand may invest because they believe a brand with good
intentions can be trusted.
As is obvious from the advantages mentioned above, cause
related branding has a lot to offer brands and therefore this route
is being used by many brands. There are several successful
examples cause related branding working wonders for brands it
must be understood that a poorly developed cause strategy will
lead to no little or no benefits for the brand. The days when a
brand could merely tie up with a well-known charity and earn
brownie points are over and the intricacies involved in making
cause related branding work are worthy of careful consideration.
In branding, adopting a strategic perspective is critical. In cause
related branding it becomes even more critical as the process of
establishing an association with a cause takes significant
investment of time, effort and money. Reaping the benefits of
the association takes time and delinking from a cause can have
strong negative repercussions for a brand and the involvement of
the highest echelons of management need to be involved in
decisions involving cause related branding.
There are three levels of decisions that brands need to look at
and the implications of each category of decisions is to be
understood before planning for any kind of cause related
branding:
1. Deciding the category: There are a wide range of categories
of causes ranging from care of deprived children to restoration of
dignity of seniors. Categories are wide and can encompass a wide
range of sub categories. Within the cause category of care for
senior citizens there are sub categories addressing issues such as
care for abandoned elders, medical treatment of senior citizens,
etc. It is important to choose the right kind of category and sub
category as a prelude to deciding a relevant issue to back within
this category.
2. Deciding the specific issue: Categories of causes comprise
of different issues. Issues are specific such as programs to aid
restoration of dignity of senior citizens that feel deprived of
dignity following their old age. Focusing on specific issues is
important for brands as it helps fine-tune the values that flow
from the association.
3. Deciding the specific institutions: Unless the brand is willing
to create a trust that handles the responsibilities of the cause it
will have to depend on institutions to run the operational aspects
involved in the execution of cause related activities. Aligning with
an institution that caters to a specific cause can provide a brand
with strong associations however there are times when brands
need to ensure that they are not overshadowed by charities that
are stronger brands than their sponsors.
These are some of the aspects that need to be studied before a
brand decides to associate with a charitable cause.
1. What is the relevance of the cause to the brand’s consumer
segment?: Association with a charitable cause does not
immediately mean that consumers will immediately hold the
brand in high esteem. Consumers must find the cause relevant to
their value system before the brand receives any approbation.
For example: Not all consumers may be equally supportive of a
cause that looks at providing food and shelter to
immigrants/refugees. These consumers may be more supportive
of causes that benefit their countrymen.
2. How different is it?: Many people are inured to causes and
even associations with a good cause like Cancer Care may
neither draw much attention to the brand or to the cause nor
would the association be very memorable. Finding a cause that is
relevant and yet different would help in enhancing the
memorability of the brand and cause. For example: A trust that
looks after veteran entertainers suffering from terminal diseases
can be seen as a worthy cause to support as it appreciates
people who once entertained and gave others happiness.
3. Can the cause be owned?: It is normally difficult to own a
cause, as this would require immense investment of resources. A
niche cause like the one mentioned in the above example may
not require huge investments and may not see many other
brands supporting this cause. The task of guarding the cause
associations may not be very tough nor may the cost of running
such a trust be very high.
4. Will it hold enduring relevance with this segment?: Some
causes are contextual. These causes appear to touch a sensitive
chord with consumers and then suddenly seem to lose their
appeal. Often charities in India catering to cyclone victims
suddenly find their support waning in the wake of a fresh new
tragedy in a different part of the country. Public sympathy often
veers towards the more current tragedies.
5. How will the relationship be positioned?: The nature of the
brand’s relationship with the cause can influence consumer
perceptions of the brand. A brand that extends it relationship
beyond the financial support to also provide investments of time
and talent would most likely stand to gain greater credibility from
the relationship than would a brand that only provides money.
Brands that appear to only offer financial support may be seen as
'forced' or 'insincere' and this could in some cases prove
counterproductive.
6. Controversial issues: Brands need to be careful while
handling causes associated with controversial issues. For
example: A 'euthanasia' support foundation campaigning for
change in legislation towards euthanasia may be seen by some
as a worthy cause but association with this cause may lead to the
brand supporting it being embroiled in controversy at some stage
of its association if public opinion suffers from the occasional
mood swing. While some brands court controversy through shortterm
associations with controversial causes this could be risky as
well as counter productive as the issue could turn ugly and taint
the brand or it could grow far bigger than the brand.
Cause related branding works best when it is driven by the core
values of the brand. Like anything else that is forced, cause
related branding could prove counterproductive if it is not a
'natural' facet of the brand. When it is not 'natural' to the brand
then the cause related activities are de-prioritized and lose focus
often with corresponding effect on the brand.
In an increasingly cynical world, the value of genuinely sensitive
acts is extremely high. There are several cries for brands to show
greater responsibility and to share a small part of their wealth
with the less privileged. The current economic strife created by
schizophrenic brands that show dissonance between their
different actions has led to lower levels of consumer belief in
brands. Cause related branding performed with genuine intent
can help restore consumer trust and build brand equity.