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Are Those Companies’ Charitable Proceeds Actually Going to Charity?

Are Those Companies’ Charitable Proceeds Actually Going to Charity?

Seeing pink? It’s not just you, so don’t call your ophthalmologist. Check the calendar instead: it’s October, which means that cause marketing is going full blast on the gridiron, in the grocery stores and pretty much everywhere else you can imagine. Now that pink has become indelibly associated with breast cancer, every company wants to get in on the action when it comes to presenting itself as a responsible, generous member of the community, which means it’s pinkwashing time.

What exactly is cause marketing, where did it come from and is there a way we could use it for good? The tangled history of cause marketing is actually quite fascinating, and some of it may surprise you.

Prior to the late 20th century, corporations felt no particular obligation to their communities. While some provided benefits to workers as a matter of course or became involved in community projects, as a whole, the corporate world wasn’t exactly known for its philanthropy or responsibility.

That started to change in the 1980s, when consumers began putting pressure on companies large and small to give back to their communities and behave more ethically. That meant sourcing supplies with more care, minimizing pollution, getting involved with charitable causes and being directly involved in their communities, or facing tough consequences like shareholder activism, boycotts and more.

So companies started to change the way they did business. In 1975, corporations donated approximately $1 billion. 34 years later, that number had skyrocketed to $14.5 billion (still only 5% of total charitable giving). Some corporations took (and still do) a wide approach, giving to a broad range of organizations and causes. Others took on a “strategic” angle to corporate philanthropy, choosing to focus their funds and expertise on a narrower range of causes in order to give more: tech companies offering free equipment and training to schools, for example.

At the same time, though, a curious phenomenon began to emerge. As members of the public demanded more corporate philanthropy and accountability for it, marketing departments started to get more heavily involved. While initially their goals might have been to prepare statements for annual reports about where all the company’s charitable donations were going, marketing departments recognized that they also had, so to speak, public relations gold in the form of charitable donations.

Thus, cause marketing was born. Companies started manufacturing products with notes about their charitable giving, and also set about boldly linking charitable causes with their products. Breast cancer is one of the most obvious examples: consumers are encouraged to buy given products with promises that some proceeds go to breast cancer research and treatment, although they rarely stop to audit where that money is really going and how it’s being used.

Pink ribbons and decorations have become ubiquitous in October as companies essentially enter a battle of market positioning where what’s important is being known as charitable, and encouraging consumers to buy products through charitable branding — even if proceeds of sales don’t actually go to charity, or if those products actually cause cancer.

Breast cancer isn’t the only charity used for cause marketing, though; companies tend to prefer charities with a strong existing infrastructure (thus products co-branded with the American Heart Association, for example) or a simple charity appeal (offering to donate coats to homeless shelters for coats purchased in the winter months).

Corporate philanthropy can certainly help provide vital funding and support to charities, but cause marketing is much more complex. Fundamentally, it’s about moving more products off the shelves, not the accompanying charities, and it’s been furthered by consumer demands for more corporate responsibility. Consumers can help strike a balance by making sure they know where their money is going and how it will be used before they buy — and holding companies accountable when they abuse cause marketing. They can also challenge companies to put their money where their marketing department is, and actually support the causes they claim to be benefiting with the sales of their products.

Breast Cancer Action’s “Think Before You Pink” campaign targets cause marketing, exposing abuses while at the same time promoting real-world action people can take on breast cancer issues. As the campaign’s tagline suggests, sometimes it’s a good idea to put down the pink ribbon and call the local cancer resource center to see if they need in-kind donations, people who can keep patients company or help them with errands, or other assistance.

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Photo credit: DixieBelleCupcakeCafe

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72 comments

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6:19PM PST on Nov 16, 2013

Longer term, let’s obviate charity and win justice for all. Help it happen at www.progress.org. Thanks.

10:59PM PST on Nov 12, 2013

Thanks for this information.

5:39PM PST on Nov 4, 2013

i'm a 15 year breast cancer survive and i definite "think before i pink". many individduals, groups, companies and manufactuers have "pink" products, but the proceeds don't reach the places of need. i volunteer time, donate funds and raise money for the organizations that i know (through research) contribute at least 60 percent of the funds to the cause. if you want to help a cause, donate your time (most cancer or health organizations need drivers who can take folks to appointments). i even check products; cancer is/was no joke and I don't want to put anything in or on my body to do it further harm. please, think before you pink (red, blue, purple, orange, etc.).

12:54AM PST on Nov 4, 2013

Thanks for sharing.

8:04PM PST on Nov 3, 2013

ty

3:56AM PST on Nov 3, 2013

Good info,thanks.

4:50AM PDT on Nov 2, 2013

LOL Makes you wonder, doesn't it?

5:35PM PDT on Nov 1, 2013

read, thanks

2:45PM PDT on Nov 1, 2013

Most charities cannot be trusted to use the balk of the money for the cause they claim the money is intended for. It does take a considerable amount of money to run a charitable organization. However just how much are the charitable heads allowed to make, is the question here? The answer, we all expect is, a fair amount for their work, but not hundreds of thousands or millions per year!

11:55PM PDT on Oct 31, 2013

Thanks for this article....moral is ...watch where you put your money.

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