An effective marketing and public relations campaign, often running into millions of dollars, can skim funds from any company's coffers. But fiscally wise, as well as business savvy, PR firms and the clients they represent think about the bottom line in a far different way today: Many are becoming champions of civic and community causes, all in the name of corporate philanthropy.
In 1996, firms who provide pro bono services and bankroll health-awareness and other good-for-society campaigns, are no longer just part of a trend: They're part of a groundswell --a new wave of PR and marketing maneuvers if you will -- that, for instance, landed the American Red Cross a $5.7 million contribution from Burger King [BKP] after the Los Angeles earthquake, according to the recently released "Giving by Industry: A Reference Guide to the New Corporate Philanthropy 1996-1997 Edition," authored by Craig Smith and published by Capitol Publications Inc.
But large corporations like Burger King aren't the only ones with do-good deeds on their agendas. Public relations firms such as Edelman Worldwide and Hill & Knowlton are also signing their fair share of checks earmarked for public causes.
Hill & Knowlton spends over $1 million annually in supporting community causes and providing pro bono services, according to Thomas Hoog, president of the company's U.S. operations. In one of its recent efforts, the firm helped in promoting, for free, activities surrounding the on-tour AIDS Quilt, Hoog added.
But even though employees of Hill & Knowlton are encouraged to take part in philanthropic activities and to do some kind of civic/volunteer work, Hoog said the company has been fairly quiet about publicizing staffers' involvements and hasn't regularly sought publicity.
Michael Morley, deputy chairman worldwide of Edelman Public Relations, said that although most companies aren't patting themselves on the back, "it's important for any company to give back to society. It's especially important for public relations companies because it's how we stay in touch with the community and become fully-rounded professionals."
But Morley also pointed out that Edelman, along with pushing in-house civic involvements, recommends to its clients, many of them Fortune 500 companies, to take part in philanthropic efforts. "The idea of corporate philanthropy has been around this entire century, but the mid-'80s led to a change in companies' philosophies on the bottom line. There wasn't only a focus on the fiscal but on the moral and many companies realized this was a way to market their image," said Patricia Hurley of Cone Communications in Boston.
Case in point: Reebok [RBK] racked up a public relations coup in its efforts to appeal to kids. The athletic shoes and sporting goods company saw the late '80s as an ideal time to respond to political events to market to teenage consumers while triggering positive PR, Hurley said.
After Cone and Yankelovich Partners Inc. headed market research for Reebok, the company used survey results to tap demographic/generational perceptions that tipped them off to civic/human rights concerns teens cared about so that Reebok wouldn't only promote its brand but position itself as a caring corporation.
Divvying out millions of dollars, Reebok sponsored Human Rights Now concerts held worldwide as part of Amnesty International-related events and achieved its goal: It found a way to buddy up to hardto-reach teens by using "cause-related marketing," a catch-all that was coined in 1983 when American Express [AXP] pumped up its image by contributing a percentage of customers' credit card fees to restoring the Statue of Liberty.
And a Cone/Roper/Starch Worldwide Inc. survey points to how cause-related marketing can massage a corporation's image while underscoring the ways it helps --through funding and support -- to remedy social problems. In fact, 64 percent of consumers said they believed that civic-related activities should be a part of a company's standard activities.
Philanthropic pioneers today include companies such as Hallmark [HALL], the Bank of Boston [BKB], AT&T [T] and the Pacific Telesis Group [PAC]. Pacific Telesis, for example, hasn't only been targeted in its approach, but cutting-edge and timely --the company is helping schools in California provide students with Internet access.
Hurley cautioned, however, that it's wise for companies to think long and hard about the civic causes they support so that their efforts are seen as sincere and not calculating. "It would probably seem strange if Exxon [XON] suddenly came out as a champion of nature and people would probably wonder then," she said. "The importance is that you convey that sincerity."
The report can be purchased for $198 by calling 800/655-5597.
(Hill & Knowlton, Thomas Hoog, 212/885-0300; Edelman, Michael Morley, 212/704-8138; Cone, Patricia Hurley, 617/720-0131; Craig Smith, 206/329-0422)
The PR Benefits of Philanthropy
1. The cause supports your company's image.
2. The cause supports marketing goals --for instance, it leads to
new campaigns.
3. The focus can be multi-generational.
4. Your efforts can emphasize today's "family values" and push-for-
better-education trends by giving you links to home and school.
5. It can help you foster relationships with government representatives.
6. It can help your company explore R&D (research and development) projects and to test applications.