I took part in a forum on corporate philanthropy sponsored by Tochigi prefecture last week.
Participants and a guest speaker from Keidanren, an economic organisation, discussed how private companies, the government and non-profit organisations(NPO) can work together for local communities.
On the one hand, companies usually hold social slogans matching their visions.
A common way for businesses to support the development of local communities is to increase profits, which allows them to employ more local people and pay more tax.
On the other hand, NPOs are often charities and do not literally pursue profits.
The problem is that how for-profit companies and NPOs, both of which have different goals, can be linked. And, if they can, how will their cooperation will affect local communities?
While for-profit companies are keen on corporate philanthropy, NPOs want companies to know more about what they do. I found that this gap between the two sides is wide.
To narrow the gap, the local government set up a group as a coordinator. But little progress was made so far.
There is Cause-Related Marketing (CRM) in the United States. CRM is a type of marketing helping for-profit companies and NPOs work together for mutual benefit. The method of CRM is very similar to that of PR.. For example, if private companies start operating, they will give part of their earnings to charity.
Some people see CRM as just a means of selling products. But I do not share that view because of the fact that profits of businesses rise as a result of making social contributions.
To make propositions using advertising, however, has a potential to shift society. Consumers seem to recognise it. What is important to increase their satisfaction is to win their supports for corporate visions.
If part of the earnings are used in solving universal issues such as education and environment conservation, many people will have a sense of participation and try to transform society into a better place to live.
Every business is based on natural resources, exploiting and recycling them. To realise and understand that the owner of natural resources is the Earth makes people to share the same consciousness.
The obstacle lying ahead is how to put the three players together to cooperate in harmony.
I think that CRM is good in a sense that it can be a good way to tackle social problems. So I decided to support companies to take a CRM approach. ■
