Corporate Philanthropy and Consumerism

Jenna BartakCOMM 219: Visual Communication

Thesis:

Corporate philanthropy is a consumer-driven activity is part of a a strategic plan to manipulate consumers’ purchases through cause-related marketing while instilling a sense of self-actualization and altruism through their participation.

Components of my Paper

Corporate’s reasoning for participating in philanthropyConsumers’ reasoning for participating in corporate philanthropyCorporate Manipulation ins Consumer Philanthropy

Corporate’s Reasoning for Philanthropy

Corporate philanthropy, cause-related marketing (CRM) and corporate social responsibility (CSM)

Emerged in the mid- 1980’s and began as short term 1-2 month promotions and has evolved into long term commitments

The main reasonings behind CRM are to build the reputation of the brand, increase profits, develop employee loyalty, and to construct an image of a good corporate citizen

Occasionally, the reason of altruism is the case

Corporate’s Reasoning for Philanthropy

The issue with corporate philanthropy is that it is no longer the simple means of donating money towards a cause. It has become a form of PR to promote a company’s long-term image through CRM

PR consultant, Jennifer Mullen, suggested that CRM campaigns have the potential to save a company’s reputation should the company be brought in negative light stemming from a social crisis.

Corporate’s Reasoning for Philanthropy

CEOs may engage in corporate philanthropy for one of two reasons: Strategic or altruistic

Strategic philanthropy is when the CEO uses corporate giving as an integral part of the form’s strategy. This usually used to enhance the financial performance of the organization. Political aspects also play a part; CEOs may feel like they need to impressed influential stockholders

Altruistic philanthropy deals less with the company and more so on the intent to make society a better place, regardless if the company profits or not.

Corporate’s Reasoning for Philanthropy

Marketing professionals explicitly states that selling a product should be the first and foremost strategy of CRM, rather than altruistic activity.

Philanthropy is often the most cost-effective way to improve a company's competitive context by enabling companies to leverage their resources along with the infrastructure of non-profits

Consumers’ Reasoning for Philanthropy

The customer is the underlying force behind American corporate CRM. Therefore, the customer's reasoning behind such purchase must be taken into account.

Consumers’ Reasoning for Philanthropy

Debra Goldman (1997) states that Americans are enthusiastic givers because “charity is like consumption in reverse.”

rather than receiving a tangible item, consumers acquire the “warm fuzzies” evoked by participating in a charitable activity.

Consumers’ Reasoning for Philanthropy

The act of giving also stems from the desire to display certain qualities about oneself.

For example,a consumer can display the types of values they want to be seen promoting by participating in certain CRM promotions and belonging to certain organizations.

Corporate Manipulation in Consumer Philanthropy

CRM is a response to the consumer’s desires to gain self-actualization through consumerism by justifying a purchase because it is a philanthropic duty.

This is done by first building credibility within the eyes of the consumer and then packaging generosity to a specific item using strategic elements and engaging the audience through persuasive advertising.

Basically, CRM is used to determine what is considered a generous and civic minded citizen through the underlying message that the “key to solve America social problems lies in corporate philanthropy, personal generosity, and proper consumption.”