Question

Topic: Student Questions

Is Cause-related Marketing, An Ethical Activity?

Posted by Anonymous on 6/4/2005 at 6:49 AM ET 250 Points
"The number of organisations engaged in cause-related marketing (CRM) appears to be growing. CRM seeks to link charities and social causes e.g. Breast Cancer with commercial organisations, such as Target, to produce a positive outcome for both parties.

Much is written about the "good" that can come from there are some ethical concerns that need to be addressed." From: Marketing Management 555 Cutin University 2005.

"Are joint promotions, employing cause-related marketing, an ethical marketing activity?"
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RESPONSES

  • Posted by Chris Blackman on 6/6/2005 at 7:10 PM Accepted
    Depends on the precise execution.

    If the Lung Cancer Foundation was sponsored by a levy on tobacco sales, would that be ethical? Sounds "iffy" - but it's exactly what the Government does when it taxes cigarettes and then uses consolidated taxation revenue to fund cancer research and public health.

    If Target gives the breast cancer foundation 5% of the value of every bra sold during a promotion, is that ethical? Doesn't sound like a problem to me, but how does someone who has had a mastectomy feel?

    Have you tried listing various possible executions and arguing the ethical/unethical case from either end?

    Hope this helps.
  • Posted by Peter (henna gaijin) on 6/6/2005 at 10:38 PM Accepted
    Even just in general, do companies that use CRM deserve to benefit from any good will gained from the charity, even thought they are doing little for that charity?
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