Corporations as diverse as American Express Co., Target Corp. and Boston Market Corp. have a new mission – to donate a portion of their proceeds to schools, charities and other worthwhile causes.
The for-profit businesses have embraced “cause marketing” as a way to build better relationships with customers and communities they serve, and as a result, boost sales.
The Boston Market restaurant chain’s Time For Your School program in the three-state New York City region contributes up to 40 percent of sales from the approximately 20 stores to local schools, program manager Cassandra Edwards said.
Nationwide, the program has earned U.S. schools more than $275,000 this year, said Trey Hall, the company’s chief brand officer. He described the program as an opportunity for the Golden, Colo.-based chain to reacquaint consumers with its food and concept, “and hopefully get them into a routine of coming back to Boston Market.
“We would love for our sales to grow as a result of that,” Hall said.
In promoting individual products or their businesses as a whole, many companies recognize that they’re “not just in the business of selling products and services, but in the business of being a social citizen as well,” said Paul Kurnit, clinical professor of marketing at Pace University in New York City.
A number of companies have taken on specific causes to which they contribute not just money, but the skills of their employees, Kurnit said.
It’s a concept that’s antithetical to the mantra of the 1990s, when the prevailing belief was that corporations’ only obligation was to their shareholders.
Companies today still must keep their eye on the bottom line and be responsive to shareholders, Kurnit said. But a lot of them are integrating cause-related marketing and philanthropy as part of their overall business plan.
It’s a trend that’s likely to stick around, he said.
DeCicco Marketplace in New City, N.Y., donates 2 percent of sales from receipts that customers have stamped, with the proceeds usually going to schools and programs within the local school district. Check amounts can range from hundreds of dollars to about a thousand, DeCicco co-owner Frank DeCicco Jr. said.
“A lot of people are happy with it,” he said.
