Consumers, CSR management

RESPONSIBLE MARKETING

Integrity, commitment and strict codes of practice are essential elements of cause-related marketing, according to Dominic Cadbury, Chairman of Cadbury Schweppes. Addressing the BITC AGM on December 7, he announced a new steering group to promote CRM, develop guidelines for good practice and research the benefits. His steering group includes representatives from BT, NatWest, GGT, Research International, Countrywide Communications and the Marketing Society. Contact Sue Adkins, BITC, on 0171 224 1600

DISTORTING COMPETITION

In a potential threat to cause-related marketing, the Office of Fair Trading has launched an enquiry into an endorsement by Age Concern of a particular funeral plan. Warning that competition is distorted if charities commend products which are not inherently superior, it is now developing a code of practice covering pre-paid funeral plans to prevent the offering of inducements to charities and other organisations in a position of trust such a nursing homes. Age Concern said the endorsement followed research that the product was good value and high quality. Contact Terry Larkin, OFT, on 0171 269 8901 or Hilary Franklin, Age Concern, on 0171 679 8000

BANKING ON POOR PEOPLE

The National Consumer Council has criticised the way people on low incomes are treated by banks and insurance companies. Published on December 5, Financial Services and Low Income Consumers reports the attitudes revealed in eight 'focus groups' run by MORI. Among the findings are that banks have lost their personal touch and insurance companies are slow to pay out claims. The NCC is calling for a free independent service of financial advice. Contact Melanie Wingfield, NCC, on 0171 730 3469

Comment

Business in the Community's attention to cause related marketing is all the more welcome for being overdue. This is an area of practice fraught with difficulty. Got wrong, it is little more than cynical exploitation, damaging both the charity and the brand. At its best, it is a real win-win-win. Good for the profile and bank balance of the cause, good for sales, and good for the reputation of the company too - helpful reinforcement of good practice in the environment, with employees and among the community.

The Office of Fair Trading's seemingly threatening intervention is in realitity a timely shot across the bows. Just as advertisers are increasingly called to account for over optimistic claims, so cause-related marketeers must be absolutely sure that charity endorsements are linked to objectively demonstrable factors, not the number of noughts on the cheque.

Corporate Citizenship Briefing, issue no: 26 - February, 1996