Why an increasing number of companies are adopting 'cause marketing'

This is quite an exciting report from JWTIntelligence, looking at the fundamental changes in ‘social good’ behavior of companies, their reasons and the expectations of customers with regards of the social behavior of their providers. The report distinguishes 4 main trends:

• "The End of Goodwashing: Cynical and savvy, today’s consumers expect greater accountability from nonprofits as well as brands involved in cause marketing—e.g., exactly where the money is going and what impact it’s having. More transparency will mean more focus on effecting real change and less “goodwashing.”
• The Rise of Shared Value: Rather than simply doling out checks to good causes, some corporations are starting to shift their business models, integrating social issues into their core strategies. The aim is to create shared value, a concept that reflects the growing belief that generating a profit and achieving social progress are not mutually exclusive goals. By reconsidering products and target demographics, forging partnerships with local groups and improving productivity in the value chain, companies can become a force for positive change while enhancing their long-term competitiveness.
• Creative Urban Renewal: Human environments will become increasingly important as the global population becomes more urbanized over the next few decades and cities boom. Brands will become key partners in enabling creative strategies for urban renewal—improving local environments, adding beauty or helping to bring communities together.
• Ripping a Page From the For-Profit Playbook: Nonprofit organizations are increasingly adopting for-profit tactics, fusing social consciousness with business acumen and focusing on achieving visible change. The shift from blanket or black-hole benevolence to targeted giving and venture philanthropy places more emphasis on cause and effect, measurable results and return on investment."

The report provides a multitude of examples of how companies are dealing with this. On top of that, the surveys done for this study show some interesting –though expected- differences between generations on a number of topics:

(source: JWTIntelligence trend report, September)

The report is available for free (after registration) on the JWTIntelligence website (look for 'social good' in the right column)

I couldn’t help to compare this to the ‘megatrend influences on Shared Value’ graphic I built some months ago. Apparently there are plenty of similarities and common viewpoints, so I’m delighted to see my gutfeel past the test of the more scientific research of JWT!