Page 47 - Marketing Management

24 PART 1 UNDERSTANDING MARKETING MANAGEMENT

TABLE 1.2 Corporate Social Initiatives

Type Description Example
Corporate social Supporting behavior change McDonald’s promotion of a statewide childhood immunization
marketing campaigns campaign in Oklahoma
Cause marketing Promoting social issues through efforts such as McDonald’s sponsorship of Forest (a gorilla) at Sydney’s Zoo—a
sponsorships, licensing agreements, 10-year sponsorship commitment, aimed at preserving this
and advertising endangered species
Cause-related Donating a percentage of revenues to a specific McDonald’s earmarking of $1 for Ronald McDonald Children’s
marketing cause based on the revenue occurring during the Charities from the sale of every Big Mac and pizza sold
announced period of support on McHappy Day
Corporate philanthropy Making gifts of money, goods, or time to help McDonald’s contributions to Ronald McDonald House Charities
nonprofit organizations, groups, or individuals
Corporate community Providing in-kind or volunteer services in the McDonald’s catering meals for firefighters in the December 1997
involvement community bushfires in Australia
Socially responsible Adapting and conducting business practices McDonald’s requirement that suppliers increase the amount
business practices that protect the environment and human of living space for laying hens on factory farms
and animal rights

Source: Philip Kotler and Nancy Lee, Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause (Hoboken, NJ: Wiley, 2004). Copyright © 2005 by Philip Kotler and Nancy Lee.
Used by permission of John Wiley & Sons, Inc.

offer electronic recycling programs, for instance, often providing
consumers with prepaid postage to return old items. Retailers such
as Office Depot, Best Buy, and AT&T offer similar programs in their
stores.
Table 1.2 displays some different types of corporate social
initiatives, illustrated by McDonald’s. 52
As goods become more commoditized, and consumers grow
more socially conscious, some companies—including The Body
Shop, Timberland, and Patagonia—incorporate social responsibil-
ity as a way to differentiate themselves from competitors, build
consumer preference, and achieve notable sales and profit gains.
When they founded Ben & Jerry’s, Ben Cohen and Jerry Greenfield
embraced the performance marketing concept by dividing the
traditional financial bottom line into a “double bottom line” that
also measured the environmental impact of their products and
processes. That later expanded into a “triple bottom line,” to repre-
sent the social impacts, negative and positive, of the firm’s entire
Ben & Jerry’s “triple bottom line” range of business activities. 53
business philosophy is based on
monitoring the environmental and
social effects of its actions in addi- Stonyfield Farm Social responsibility has been at the core of Stonyfield
Stonyfield hormones, pesticides, and fertilizers. After calculating the amount of energy used to run its
tion to the profits from the sale of Farm—makers of all-natural organic yogurts—from the start. Stonyfield’s suppliers
its products. Farm eschew the productivity practices of agribusiness, including the use of antibiotics, growth
plant, Stonyfield decided to make an equivalent investment in environmental projects such
as reforestation and wind farms. The company dropped plastic lids on its yogurt, saving
about a million pounds of plastic a year, and added on-package messages about global warming, the
perils of hormones, and genetically modified foods. It makes low-fat versions of its products, and adds
cultures or dietary supplements to help the immune system fight off illness. The attitudes and beliefs
Stonyfield adopted have not hurt its financial performance as it has become the number-three yogurt
brand in the United States. 54