Repairing Reputations with Cause-related Marketing - Creating Positive Change for Financial Institutions

Teleseminar: Wednesday, August 26, 1–2:30 p.m. EDT

Public Relations Society of America - Financial Communications

Register now

Developing cause-related marketing initiatives is important for a financial institution seeking to increase brand awareness and regain trust.

Consumers are aware of organizations that support global concerns such as poverty, and increasingly influencing their buying decisions. Effectively integrating cause marketing can also help companies repair damaged reputations by donating resources and volunteer support to non-profit/NGO organizations. With current economic conditions, sponsorships of fundraising events are more important than ever and they are willing to negotiate these costs, as well as return on investment. Cause-related marketing is expected to reach $1.57 billion this year.

Why should a financial services firm use cause marketing to improve its reputation with its various stakeholders?

By getting involved in charitable causes and mobilizing employees, the company makes a positive impact in the communities it conducts business. This will translate into positive brand impact and strengthen stakeholder relationships such as shareholders, board of directors, employees, public officials and the general public.

You will learn:

• About corporate social responsibility and trends
• How to choose the right cause or nonprofit organization
• How to increase employee involvement
• How to leverage your sponsorship
• Best practices and approaches in cause marketing

PANELISTS:

Samantha Taylor - founder and principal, Reputation Dynamics
Steve Bumgarner - co-founder and co-principal, Capture Public Relations and Marketing
Dan Marks - chief marketing officer, First Horizon Bank

MODERATOR:

Keith Tolbert - marketing specialist, First Community Bank

TELESEMINAR: Wednesday, August 26, 1 — 2:30 p.m. EDT

PRSA Financial Communications Section Member $85
Member $190 / Non-Member $290

APR Accreditation Maintenance Credits Approved: 1.0

Click here to register!

On Campus from Broadway Theatre Project - Musical Theatre Arts Training Program

I am in my fourth year, on-site, supporting the Broadway Theatre Project's intensive musical theatre arts education program for high school and college kids. Today marks an exciting milestone in the history of BTP - the start of its first Festival where the parents of the students will be able to attend workshops and learn about the critical skills needed to succeed in the professional world of entertainment.

185 apprentices from 28 states, as well as Canada and American Samoa, will be performing in the Festival from July 30-August 1.

Numbers in the four festival performances have been directed and choreographed by members of the BTP faculty including Artistic Director Debra McWaters, So You Think You Can Dance - Ryan Kasprzak, Radio City Rockette - Kelly King, among others. Performances also include world premieres of workshops by Broadway Music Director David Loud and Broadway Composer Frank Wildhorn.

Frank Wildhorn’s number is from the upcoming show Bonnie & Clyde, which heads to La Jolla Playhouse in California and will then make its way to Broadway. Wildhorn also wrote the musical Wonderland, which had its world premiere workshop during the 2007 session of Broadway Theatre Project. David Loud’s numbers are from an upcoming concert of Kander and Ebb music called First You Dream that is heading to the Signature Theatre in Washington, D.C. this September.

Founded in 1991, Broadway Theatre Project is a prestigious musical theatre arts education program. For further information and to support this impressive program - http://www.broadwaytheatreproject.com/.

Sam

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RECESSION PROOF: Keeping Sustainability Development on Track

The trend continues to build momentum. Despite the state of our world economy, corporate social responsibility (CSR) increasingly dominates news headlines.

This shift toward greater social consciousness represents an important milestone in our history. It is aligning the interests of business and the public, as organizations and communities collaborate on 'Doing Good in Society'.

However, some major gaps still exist which need to be addressed. Trust and confidence in business is still at an all time low, as well as fragmented approaches being adopted toward properly integrating the CSR mandate with reputation management and performance.

Shame on You Financial Institutions

The recent bail-outs of several prominent financial services institutions have further compromised Americans’ confidence.

According to a recent survey by Harrison Group, 63% of wealthy Americans say they have lost faith in financial institutions.

Banks, mortgage companies and credit unions are being forced to do what’s right by revamping their pay/bonus structures, risk management systems, compliance and transparency policies - just to name a few.

While the financial crisis is forcing policy-makers to rethink an overhaul of (and in some cases, return to) market regulation and oversight to benefit the U.S. economy and mitigate risk, organizations continue to cut costs and are laying people off.

They are thinking short- and not long- term.

New ‘Era of Responsibility’ - Culture Shift for America

In parallel, Obama’s leadership comes at a time of change, hope and opportunity for America which can be further embraced via sustainability opportunities. This has further elevated the status of social consciousness within corporations and among the larger communities of stakeholders.This, in turn, will cause significant change in the business and policy environment requiring enhanced leadership from government, legislators, consumers and businesses. President Obama recently announced doling out roughly a half trillion dollars to include ‘green’ projects, from home weatherization to renewable energy.

Advancing community’s interests is becoming ingrained in our purchasing decisions as consumers are demanding that their favorite brands exercise a social consciousness that reflects their own. They are also being held accountable for their contributions to society and impact.

Wal-Mart: Role of Environmental Activist

Announced in The New York Times this week, Wal-Mart Stores affirms its mission to determine the social and environmental impact of every item it puts on its shelves including recruiting scholars, suppliers and environmental groups to help create an indexing system.

World Issues Cannot be Ignored

Water conservation, poverty, access to affordable health care, climate change and environmental issues continue to dominate top global concerns.

‘Checkbook’ philanthropy is a thing of the past, within in-kind products, services and expertise representing more than 60 percent of today’s corporate contributions. Cause alignment and philanthropy are increasingly being linked to value in the sustainability evolution.

However, more than 1.5 million nonprofits now are competing for scarce resources and attention from the public and private donors in the United States. Non-profit organizations are being forced to change the way they do business and address challenges such as leadership, vision and purpose differentiation.

Organizations must continue to embrace long-term sustainability and create more innovative strategies to protect business, improve stakeholder relationships and deeper community mobilization.

Some key long-term benefits for the CSR investment include:

• Regaining trust with customers, suppliers and business partners
• Reputation management and performance
• Opportunities to align and form stronger partnerships with fiscally healthy nonprofit/NGO organizations developing interesting community-driven initiatives in emerging markets around the world
• Motivating employees and attracting talent
• With advertising and sponsorships down, opportunities to create longer-term cause-related marketing programs that include grass-roots community education and awareness campaigns
• An opportunity to be holistic and less ‘silos’ by integrating programs and aligning throughout business and the supply chain
• Embracing Web 2.0 to mobilize and build stronger stakeholder relationships and community building initiatives

In Conclusion..

Our current economic crisis underscores the importance of building a truly sustainable economy for the long term – this not only requires leadership from government, but from for, not-for-profit organizations/NGOs, academia and consumers.

Social innovation, sustainable development, trust and transparency are the new currency for tomorrow’s companies success and effectively riding out this recession.

By Sam Taylor

NOT FOR PROFITS NEED YOU NOW - Narrowing the Divide Between our For and Not for Profit Companies-

In addition to the impact of the economy on for profit companies, the financial health of our nations non profit groups are rapidly deteriorating.

According to a survey of some 900 non profit leaders conducted by the Nonprofit Finance Fund, only 12 percent of those organizations expect to end the year with an operating surplus, compared with 40 percent who ended their most recent fiscal years with money on hand.

More than half of the respondents stated they need assistance communicating their financial difficulties to their boards and donors, underscoring a growing trend in the non profit world that government and the public ‘at large’ do not fully understand the important role they play addressing causes in need. This presents further challenges for stakeholder connections, mobilization and support to get ‘back on track.’

The non profit/NGO sector and heritage has been at disadvantage to the for profit sector due to society’s perceptions about growth restraints and use of dollars beyond anything other than directly to program and services expenditures. Meanwhile, the for profit sector is permitted to use all the tools of capitalism to advance the sale of its products and services to consumers, need for track record of earnings and increased revenues.

Paradigm Shift.

Not for profits are being forced to change the way they operate, eliminate silos and conduct business due to the growth of social responsibility and changing dynamics of philanthropic giving. Mere ‘check book’ philanthropy will no longer suffice, with 60 percent of corporate contributions now attributed to the donation of products, services, counsel and staff volunteering.

Now, our suffering charities need some tools of capitalism to survive and continue to fight for societies causes most in need such as poverty, health care and human rights. On a broader strategic platform:

• They need more strategic, integrated partnerships and policies to establish a social safety net for the world’s most vulnerable people. In addition to food and nutrition support for drought-ridden populations and displaced people, there is the urgent need for growing more food in food-deficit regions such as sub-Saharan Africa, Haiti and Afghanistan.
• Bridge the gaps in life-saving health care that address major diseases such as HIV/AIDS, TB and malaria.
• Advocate for long term sustainability by directing global public investments to renewable energy, energy efficiency and combating climate change.

In turn, corporations have the volunteers, resources, geographical scope, products and services to help them. Yet, a divide continues to prevail in the relationship between the for and not for profit/NGO sectors that needs to be addressed to support their mutual interests for ‘Doing Good in Society,’ impact and success.

Meanwhile, we are still bombarded with fund raisers, donor appeals and volunteer opportunities – and – we have scaled back on our giving, become more skeptical, want more accountability and demonstrated results for our contributions.

And, we need to be better educated about causes in need and selections to make.

Not for profits, not only need the money, but need our time and more strategic, longer-term partnerships.

Following are some guiding principles for both for and not for profit organizations to establish stronger and more sustainable partnerships:

Not for profits:

The new rules of the ‘Ask’: Understand the corporation’s social and environmental vision and mission. Aside from the $$, assess product and services contributions, as well as developing educational initiatives and co-branding opportunities.
‘Story telling’: Do a better job at forging deeper connections with key stakeholders by telling stories, showing the work and ‘harsh’ realities of causes in need.
Brand relevance: It is really important to differentiate especially when donations are down and fight for limited dollars at an all time high. Further clarify, articulate and justify your mission, on and offline.
Stakeholder empowerment: Make donors and volunteers feel inspired about the mission, programs and beneficiaries. Reward them with acknowledgement and impact of their contributions.
Web 2.0: Embrace the tools and technologies to build media and social communities. Need I say again, the Obama campaign raised the bar on social and community mobilization.

For profits:

Selecting the cause: Poll and understand what causes mean the most to your company and key stakeholders in the context of the business value proposition – especially employees and customers – and what they want you to advocate for on their behalf.
Choosing the non-profit: Review the CEO, management, board, operations, vision, impact and resource needs of their programs and services – in addition to and beyond the $$ contribution.
‘Show and Tell’: Research and understand the cause, visit and/or see the project, programs/services, staff and clients.
Mobilizing the community: Volunteering is on the rise and to be encouraged among employees. Ensure staff are educated, provide ‘on site’ support and percentage allocation – individual social responsibility is increasingly being assessed as part of job performance.
Sustainable program development: With sponsorships down, develop longer-term cause-related marketing opportunities that include grass-roots community education and awareness campaigns.
Don’t take all the credit. Non profit/NGO partners should be included and acknowledged in the partnership, along with progress and demonstrated results.

For and non profit/NGO’s have a unique opportunity to commit and be braver establishing compelling new partnerships that we need to pull us through this crisis, have a fairer, more transparent and sustainable future.

Sam Taylor

Sources: Nonprofit Finance Fund.

SUSTAINABLE DEVELOPMENT IS THE NEW CURRENCY OF TOMORROW

--The tragic events and incompetence of the last eight years of Bush Administration will drive a new direction--

“A major course correction will prevail under the new leadership of Barack Obama with sustainable development providing the foundation for hope, change and opportunity for our future generations,” according to Sam Taylor, Founder of Reputation Dynamics.

The reckless financial deregulation and fragmentation of our economic infrastructure has undermined Americans’ confidence and trust which has impacted ‘business as usual,’ role and sense of community - as we once knew it.

• A major part of the US recovery will be driven via a nationwide social, business and community rebuilding mobilization. Sustainable development and social responsibility will provide the basis for infrastructure redevelopment upon which to reinvigorate economic development and confidence.
• The financial crisis and resultant impact on reputation and business performance, is forcing companies to further embrace sustainable program development and integration throughout their organizations.
• While addressing climate change and environmental issues remain a priority, companies and individuals need to mitigate some fundamental global social and humanitarian issues – poverty, hunger and disease – in conjunction with Obama’s plans to retool the social contract with the poor, the uninsured and unemployed.
• Continue to redefine the case and impact for sustainable development among key stakeholders, ensuring the proper alignment and positioning of the value proposition in a fragmented economic environment.
• Enhance and leverage the increasingly more popular Web 2.0 tools and social networking platforms to enhance people connections, accountability and transparency.

Philanthropic Giving: It’s No Longer about Just Giving a Check

According to a recent LBG Research Institute survey, corporations’ anticipate no change or, in fact, an increase in charitable giving for 2009. Although 42% of corporations and 37% of corporate foundations surveyed say their charitable giving budgets will decrease in 2009, the Institute predicts that the overall decrease will be far less than the 12.1% drop in 2001 reported by Giving USA 2002.

In fact, 80 percent of corporations report that their giving will be more strategic next year, directed at causes in need, with greater impact and efficiency at work.

CAUSES FOR WHICH RESPONDENTS SAY THEY WILL INCREASE THEIR SUPPORT IN 2009

Environmental -- 24%
Basic Needs (food, clothing, shelter) -- 23%
Education/literacy -- 16%
Health -- 14%
Social Services -- 12%
Arts and Culture -- 4%

Conclusions for 2009:

• Step up to the New Rules of Reputation Management: Social innovation, sustainable development, trust and transparency are the new currency for tomorrow’s companies doing business.
• Evaluate and Measure Program Impact: Continue to assess current initiatives, stakeholder relationships and impact in the community. Use this platform to design and implement sustainable programs aligned with business objectives, as well as determine benchmarks for results measurement.
• Philanthropy is an Integral Part of Doing Business: CEOs and their companies need to continue to invest strongly in their communities, responding to the growing expectations of employees, customers and other stakeholders.
• Unleash the Power of NGOs for Greater Good: Align more aggressively with non-profit social actors – NGOs, (UN Agencies, development agencies). Companies have a timely opportunity to collaborate with some competent NGOs who are already in the trenches addressing key causes such as poverty, food and shelter.
• Stakeholder Mobilization and Impact: Continue to harness the power of key stakeholders and their opinions, embrace them in community mobilization, growing influence and power of social networking platforms.

To be sure, our economy and ongoing disturbing worldwide events are unnerving, but finding solutions to these problems will entail greater support, creative innovation, and collaboration from businesses, government, NGOs/non-profits, community and academia.

Under our new administration, never will our current generation be more challenged and yet can prevail in the face of adversity and respective individual contribution(s) to ensure the course direction that the Obama administration so urgently represents.

By Sam Taylor.

Source: LBG Research Institute

SUSTAINABILITY PARADIGM SHIFT – PEOPLE AND ‘CONNECTIONS’

Despite the economic turmoil, invigorating the global economy by advancing sustainable business practices was top of the agenda at last month’s Business for Social Responsibility (BSR) Conference.

The conference convened representatives from NGOs, academia, government and global leaders from corporations such as GE Capital, IKEA and Levi Strauss & Co, among others.

In fact, a "BSR/Cone 2008 Corporate Responsibility in a New World Survey" of 424 conference participants uncovered that more than two-thirds of the business leaders say that more responsible business practices could have lessened, or even prevented, the current economic downturn.

In parallel, the historic presidential election comes at a time of change, hope and opportunity for America which can be further embraced via sustainability opportunities.

This, in turn, will cause significant change in the business and policy environment requiring enhanced leadership from government, legislators, consumers and businesses. President-elect Obama recently announced intensifying his work on a stimulus plan that would dole out roughly a half trillion dollars to include ‘green’ projects, from home weatherization to renewable energy.

Water conservation, human rights, access to affordable healthcare, climate change and environmental issues continue to dominate top global concerns. Cause alignment and philanthropy are increasingly being linked to value in the sustainability evolution.

We cannot afford to delay or ignore pressing world issues…

The United Nations estimates that by 2025, two-thirds of the world’s population will face periodic and often severe water shortages.

In the midst of jolting world events, continued cost-cutting and job losses, corporations are taking a renewed approach to sustainability and embracing the opportunities as they consider it the right thing to do.

In particular, they are reaffirming their commitment by ensuring proper integration of their programs and alignment throughout their business and operations, including:

• Supply chain
• Transparancy and accountability
• Community – global to local
• Public policy/advocacy
• Employee performance

‘Back to the People’

Meanwhile, a cultural paradigm shift is also taking place. Companies and the ‘public at large’ are seeking deeper and more meaningful connections, embracing community spirit and giving as a way to demonstrate concern and individual action.

In a low trust environment, driving sustainability and its success is routed in its people, connections and regaining their confidence.

Sustainability is advancing to another level by which to engage deeper connections with key stakeholders and address social problems they most care about - particularly human rights and social justice issues.

Opportunities for America’s Volunteer Sector

In conjunction with this paradigm shift, the role and need for volunteers in America is at an all time high and poised for future growth.

According to the Volunteering in America report released by the Corporation for National and Community Service, nearly 61 million Americans volunteered in their communities in 2007 giving 8.1 billion hours of service worth more than $158 billion to America’s communities.

Community service has never been stronger, as businesses are forced to commit to their sustainability programs, colleges adopt service-learning, and our new political leaders embrace citizen service.

Establishing volunteering programs and opportunities is a powerful way to empower and motivate employees/consumers.

GE Capital: CEO, Jeffrey Immelt, reiterated that ‘while responsibility programs need to be strategic and a long term commitment towards being competitive and generating profit, it is critical to run a company with trust, proper compliance, regulation and transparency. In order to achieve this, it is critical to engage people, align with culture and values.’

Some key conclusions:

• Regain Trust and Confidence: Restore trust in the private sector by a demonstrated commitment to sustainability and help the business community regain the trust of consumers and investors – for the long term
• Commitment to Causes: Gain consensus on what causes mean the most to key stakeholders and continued focus on addressing key issues such as energy, human rights and disease
• Embrace Community Spirit: Above and beyond the trend of matching employee’s charitable giving, embrace volunteering to motivate and empower employees
• Re-evaluate Philanthropic Activities: As the year-end approaches, assess charitable contributions, accountability and impact in the community. Consider causes that can be supported deep in the communities, beyond ‘giving a check’ and aligned with stakeholders

And most importantly……………..

Stay on track

In a spiraling economy, companies and their non-profit/NGO partners need stay on the sustainability track, advance responsible business and social practices to protect and make our world a better place.

By Samantha Taylor.

Resources:
-The BSR/Cone survey fact sheet can be located at

www.bsr.org/files/BSR_Cone_2008_Survey.pdf
-The Volunteering in America report can be located at www.VolunteeringInAmerica.gov.

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LESSONS TO BE LEARNED FROM THE FINANCIAL CRISIS: IMPACT ON SUSTAINABILITY

With tumultuous financial markets, a terrifying real estate crisis, and the U.S. Presidential election dominating the news, trust and confidence is now at an all time low – especially among consumers and investors.

While the financial crisis is forcing policy-makers to rethink an overhaul of (and in some cases, return to) market regulation and oversight to benefit the U.S. economy and mitigate risk, businesses are cutting costs and laying people off.

It's rough out there. Peoples’ life savings are evaporating as they watch the very executives who engineered this crisis walk way with Golden Parachutes. Government and Corporate America can no longer ignore the grass roots movement of everyday citizens rejecting the hypocrisies of our existing structure. Ignoring health care, the environment, and education can no longer be accepted.

While we don’t know how long this economic fallout will endure, we can be certain that at the end a new social consciousness will prevail. The public at large is realizing that government and corporations have not been effectively self-policing.

Who Will Watch the Watchers Themselves?

Another key lesson to be learned from the recent failure of several prominent financial institutions is the realization that organizations still fail to embrace the power of practicing corporate responsibility (CR).

The Wall Street crisis is fundamentally changing the way society views sustainability and it is an opportunity for businesses to reshape the sustainability agenda to their advantage.

Meanwhile, social, economic and environmental concerns still rest on the frontlines and are not to be overlooked in the context of new crises that will continue to emerge today and tomorrow. In particular, global climate change remains a permanent threat and Africans’ life spans continue to decline owing largely to AIDS, 60% of whose worldwide victims are African. Not to mention the increasing number of people in the US infected and impacted by HIV/AIDS.

Never has there been a greater ‘Call to Action’ and opportunity for businesses to re-examine their sustainability agendas, maintain a long term focus and continue to realize the benefits amidst the current economic and political changes.

They need to reflect the interests of those who have stakes in their business and realize the consequences of overlooking them. For example:

Investors: Where art thou profit?
Employees: Need to be empowered and motivated
Taxpayers: Who will now foot the bill for the bailouts
Community Power: Build, connect and align with key relationships – globally and locally
Customers: Expect transparency and accountability to support and demonstrate their favorite brands/products responsible business and social practices

Specifically:

• Businesses must continue to address key sustainability issues like energy, climate change, disease and human rights concerns
• Boost their voluntary and philanthropic efforts top-to-bottom and with participation from their employees
• Maintain their reputations and boost trust by key stakeholders – especially consumers and investors
• Embrace new tools and technologies that can assist businesses to establish connected communities, better focus their philanthropic activities for employee opportunity and motivation
• As the giving season approaches, gain consensus from stakeholders about causes in need, align cause-related marketing and charitable contributions
• Collaborate and establish partnerships with fiscally healthy non-profits/NGOs that that have the necessary resources and depth of knowledge to develop community-driven campaigns

CEOs need to stop worrying about the next quarterly report, their own compensation packages and spend more time creating a culture of responsible practices and conduct.

In conclusion, navigating this crisis effectively underscores the importance of building a truly sustainable economy for the long term – that not only requires leadership from government, but from businesses, consumers and ‘society at large.’

More later....

Sam Taylor

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Resources:

Online giving and community building- www.ammado.com