The document discusses the importance of transparency in cause marketing. It notes that lack of transparency can lead to consumer distrust and confusion over how purchases support charitable causes. The document defines what transparency means according to consumer protection laws and better business standards. It provides examples of cause marketing campaigns that lack clarity and transparency. Finally, it offers a roadmap for cause marketers to provide transparency, including defining partnership terms, clearly communicating contributions to consumers, and reporting impact metrics.

1. Cause Marketing's Dirty Little Secret: Transparency Mike Lawrence, CRO & EVP | Alison DaSilva, EVP | July 14, 2010

3. What does transparency mean?

4. Are you “cause”-ing confusion?

7. Cause clutter

8. Consumers demand details

9. Everyone’s an activist

11. Cause Clutter About 80%of Fortune 250 companies have a branded cause program* *Based on a 2010 evaluation conducted by Cone

12. U.S. Consumers Demand Details 78%believe a partnership between a nonprofit and a company they trust makes a cause stand out 45%believe companies are providing enough details about their cause marketing efforts 67% are confused by the messages companies use to talk about their social and environmental commitments 2010 Cone Nonprofit Marketing Trend Tracker 2010 Cone Shared Responsibility Study

13. Everyone’s an Activist 44% would buy or boycott a company’s products to help influence corporate social/environmental practices and initiatives 2010 Cone Shared Responsibility Study

14. Regulatory Environment Is Cause Next? “FTC to Fine Bloggers up to $11,000 for Not Disclosing Payments” - Mashable.com “Federal Trade Commission takes aim at deceptive green claims” - ConsumerReports.org “Sustainable” palm oil campaign banned by ASA - The Guardian

15. ? What Does Transparency Mean

17. Name of charity

18. Percentage of money donated to charity

19. Timeframe for promotion

20. Statement of charitable purpose

21. Maximum amount of donation

23. The duration of the campaign

25. Gross receipts collected pursuant to contract or agreement

26. Amounts paid to the charity to be utilized exclusively for the charitable purposes described in the solicitation

27. Amounts paid to the Commercial Co-Venturer and the professional solicitor

29. Spectrum of Transparency - Proud sponsor of… - Proud supporter of… - A percentage of this purchase …will be donated to save the whales Vague - $1 of every product, up to $500,000 of specially marked packages …will be donated to our nonprofit partner, The Pacific Whale Foundation - 50% of net profit - 50% of profit …will be donated to our nonprofit partner Precise

30. David Cause-Man’s Top Five Reasons Programs are Not Transparent… 5 We don’t want our competitors to realize our unit sales are so small my daughter sells more at her lemonade stand on our driveway…

31. David Cause-Man’s Top Five Reasons Programs are Not Transparent… 5 We don’t want our competitors to realize our unit sales are so small my daughter sells more at her lemonade stand on our driveway… 4 We already made the donation, but we want our customers to believe they did it with their purchases…

32. David Cause-Man’s Top Five Reasons Programs are Not Transparent… 5 We don’t want our competitors to realize our unit sales are so small my daughter sells more at her lemonade stand on our driveway… 4 We already made the donation, but we want our customers to believe they did it with their purchases… 3 The CMO blew our entire donation budget traveling to cause conferences, so we need consumer dollars to fund our brand halo (but we don’t want them to realize that)…

33. David Cause-Man’s Top Five Reasons Programs are Not Transparent… 5 We don’t want our competitors to realize our unit sales are so small my daughter sells more at her lemonade stand on our driveway… 4 We already made the donation, but we want our customers to believe they did it with their purchases… 3 The CMO blew our entire donation budget traveling to cause conferences, so we need consumer dollars to fund our brand halo (but we don’t want them to realize that)… 2 That TV ad we did with Tiger Woods as our cause spokesman cost 100 times what we’ll give in donations. All hell will break loose if that gets out!

34. David Cause-Man’s Top Five Reasons Programs are Not Transparent… 5 We don’t want our competitors to realize our unit sales are so small my daughter sells more at her lemonade stand on our driveway… 4 We already made the donation, but we want our customers to believe they did it with their purchases… 3 The CMO blew our entire donation budget traveling to cause conferences, so we need consumer dollars to fund our brand halo (but we don’t want them to realize that)… 2 That TV ad we did with Tiger Woods as our cause spokesman cost 100 times what we’ll give in donations. All hell will break loose if that gets out! 1 Our general counsel told us to plead the 5th amendment on this subject, but we can’t find enough space on the package to do it.

35. ? Are You “Cause”-ing Confusion

36. Ensure Point-of-Sale $$$ Clarity Four products request… “Join Us In Support” of the Jane Goodall Institute (JGI)

37. Ensure Point-of-Sale $$$ Clarity On Pack: “Every purchase of this product helps the JGI…” On Web: “Proceeds from each sale support JGI…”

38. Ensure Point-of-Sale $$$ Clarity Outside Label: “The partnership joining Theo Chocolate and the JGI directly benefits farmers…” Inside Label: “Proceeds from the sale of this chocolate bar will…directly contribute to the JGI’s efforts…”

39. Ensure Point-of-Sale $$$ Clarity Outside Label: JGI logo but no details… Web: “The farms of the Kanyovu co-op surround the Gombe Stream National Park. One goal of JGI is to protect the Gombe from deforestation…”

40. Ensure Point-of-Sale $$$ Clarity “10% of Profits Donated to the Jane Goodall Institute” Box: 10% of profits to JGI Web: No additional financial details of JGI donations

41. Ensure Point-of-Sale $$$ Clarity Allegro Coffee - $10,000-$20,000 Theo Chocolate - $5,000-$10,000 Late July Cookies - In-kind Rishi Tea - ????

42. Ensure Point-of-Sale Consumer Action Clarity Icon reads: “Early detection saves lives”

43. Ensure Point-of-Sale Consumer Action Clarity

44. Ensure Point-of-Sale Consumer Action Clarity Front Panel Copy: “Barnum’s Animals is supporting WWF with a donation of $100,000.” Back Panel Copy: “Fashion icon Lily Pulitzer is proud to work with KRAFT FOODS and NABISCO BARNUM’S ANIMALS Crackers in support of our friends at World Wildlife Fund. Since 2007, Kraft Foods has contributed to tiger conservation in Sumatra by helping to support the Bukit BarisanSeletan Project program run by WWF. There are approximately 400 Sumatra tigers still in existence, with an estimated 60 tigers living in the Bukit BarisanSeletan National Park. In honor of 2010, the Year of the Tiger, BARNUM’S ANIMALS signature red boxes have been given a fashionable facelift by Lily Pulitzer, and NABISCO BARNUM’S ANIMALS Crackers will donate $100,000 to support WWF’s worldwide conservation efforts, including tiger conservation. The folks at World Wildlife Fund work tirelessly around the globe to protect endangered species and habitats. The tiger, listed as endangered, is the largest of all cats and considered one of the most majestic species on Earth. To learn more, visit lilypulitzer.com and worldwildlife.org/tigers.”

45. Communicate with Partners/Set Terms Up-Front “Charity’s Share From Shopping Raises Concern “ “Unfortunately, just like Barneys shoppers, we’re in the dark as to how or if Barneys and the manufacturers will fulfill their commitment to donate a portion of the proceeds from these products to WWF.” - John Donoghue SVP, WWF

46. Communicate Beyond the Package ? ? ? ? ? “I visited my local White Castle… to buy the $10 White Castle onion-and-burger-scented candle to benefit Autism Speaks. I figured I'd be in for the major marketing treatment. Instead I got two counter people who had no idea what I was talking about and a manager who didn't know where the candles were.” - Ron Dicker Writer, WalletPop.com ? ? ? ?

47. Distinguish Endorsement vs. Logo “Lending” The Club's Corporate Financial Acceptance Policy says, in part, "The Club will not endorse products."

48. Expect to be Held Accountable for Results “The (Sierra) Club has refused to release financial details of its arrangement with Clorox to the public or its members, citing the terms of its contract with Clorox as well as its own rules.” “Sierra Club spokesperson Orli Cotel: ‘Our supporters can be assured that it is a significant contribution and is not restricted…’” – Fast Company, August 2008

49. Expect to be Held Accountable for Results Green Works® Natural Cleaners and Sierra Club® Celebrate Two-Year Anniversary; Doubling of Natural Cleaning Category 2009 Sales Generate $645,000 Contribution, Bringing Total Contribution to More Than $1.1 Million OAKLAND, Calif., (March 1, 2010) - The Green Works® natural cleaners brand today announced that it is giving $645,000 to Sierra Club® to support the organization's ongoing conservation efforts. The donation, based on 2009 calendar year sales, raises the Green Works® brand's two-year contribution total to more than $1.1 million.

50. Expect to be Held Accountable for Results

51. Expect to be Held Accountable for Results “We’ve picked out the top 5 questions…” Question #1: “How much money has been raised and where does it go?”

52. Expect to be Held Accountable for Results (RED) Campaign: No $$$ Breakout By Company

53. Expect to be Held Accountable for Results “(RED) works with the world’s best brands … and directs up to 50% of their gross profits to the Global Fund…” “As of December 2009, (RED) partnerships with American Express (U.K. only), Apple, Bugaboo, Converse, Dell, Gap, Emporio Armani, Hallmark, Starbucks and Nike and (RED) events have generated more than US$140 million for the Global Fund. (RED) money flows to four countries in Africa - Rwanda, Swaziland, Ghana and Lesotho.” Global Fund: No $$$ Breakout By Company

54. Expect to be Held Accountable for Results “Apple gives a portion of the purchase price to the Global Fund…” “…proceeds from every iPod nano sold go directly to the Global Fund...” “…direct up to 50 percent of gross profits from the sale of those products to the Global Fund…” Apple: No contribution update since 2006 news release promising to donate $10 per RED iPod sold

55. Expect to be Held Accountable for Results “With your help, we've already generated contributions equaling more than 14,000,000 days of medicine.” 2009 Starbucks Global Responsibility Report: “Our cash and in‑kind contributions… including volunteer service, youth engagement, natural disaster relief, (RED)™, and other efforts – totaled more than $17 million."

56. Roadmap to Transparency

57. Roadmap to Transparency Start

60. Online

61. In-store

62. Clear & Consistent

63. Timeframe

64. Contribution

65. How Activated

67. People HelpedStart

70. Online

71. In-store

72. Clear & Consistent

73. Timeframe

74. Contribution

75. How Activated

77. People HelpedStart

78. Mike Lawrence Chief Reputation Officer & EVP MLawrence@coneinc.com 617-939-8328 Twitter: @Mike_Lawrence Alison DaSilva Executive Vice President ADaSilva@coneinc.com 617-939-8360 Twitter: @Alison_DaSilva www.coneinc.com www.coneinc.com/whatdoyoustandfor