CSR and service quality in nonprofit organizations: the case of a performing arts association

• The relationship between corporate social responsibility (CSR) and marketing performance has been widely investigated recently, but mostly in relation to for-profit companies. This paper highlights the importance of this topic for nonprofit organizations (NPOs). Focusing on an Italian NPO operating in the performing arts and entertainment industry, two empirical studies (a quantitative survey and a qualitative exploratory enquiry) prove the strategic relevance of CSR in nonprofit contexts. The results demonstrate that CSR can be considered an additional dimension of the customer perception of service quality in NPOs and reveal that customer perception of the social responsibility of the studied NPO is strongly linked to its institutional mission and to the modalities through which it pursues that mission.

Copyright © 2014 John Wiley & Sons, Ltd.     

The extent of excessive or insufficient fundraising among US arts organizations and the effect of organizational efficiency on donations to US arts organizations

• We estimate, for each nonprofit organization (NPO) in a sample of 606 US arts NPOs, whether the NPO's level of fundraising is ‘excessive,’ ‘insufficient,’ or neither, relative to the level that maximizes net donations. We find that the effect of a 1% increase in fundraising on net donations varies widely across the arts NPOs in our sample—from an increase in net donations of 8.91% of gross donations to a decrease of 3.82% of gross donations. Of the 100 NPOs in our sample with the highest donations, the estimated effect of a 1% increase in fundraising on net donations varies more narrowly—from an increase in net donations of 0.27% of gross donations to a decrease of 0.32% of gross donations. Of these 100 NPOs, we estimate that only 3 engaged in ‘excessive’ fundraising, but 83 engaged in ‘insufficient’ fundraising, and 14 did not engage in ‘excessive’ or ‘insufficient’ fundraising.We also provide evidence that reported organizational efficiency does not affect donations to arts NPOs. This finding may be useful to managers and directors of US arts NPOs who believe that organizational efficiency does impact donations and who, therefore, incorporate the effect on efficiency in their decisions to allocate resources across fundraising, administration, and program objectives.

Copyright © 2007 John Wiley & Sons, Ltd.     

Corporate giving in the Netherlands 1995-2003: exploring the amounts involved and the motivations for donating

• Corporate giving as an expression of corporate social responsibility (CSR) has been researched less than the more general theme of CSR. In addition, much of the research in this area focuses on countries with an Anglo cultural tradition.
• The study outlined in this paper offers a comprehensive longitudinal study of corporate giving in the Netherlands. An overview is provided of corporate giving in the Netherlands in the period from 1995 till 2003.
• The data are gathered by means of a biennial survey of Dutch companies as part of the ‘Giving in the Netherlands’ project. Based on these findings, recent developments in corporate giving can be sketched out.
• Moreover, literature on motives for corporate giving behavior is focused upon and applied in exploring Dutch managers' motivations for offering donations. Nonprofit organizations could use this knowledge to increase the efficiency of their fund raising.

Copyright © 2006 John Wiley & Sons, Ltd.     

Excessive,optimal, and insufficient fundraising among the Nonprofit Times 100

• Using a six-factor model of donations, we estimate the effect on net donations; i.e., donations less fundraising expenditures, of a one percent marginal increase in fundraising expenditures, for each sample nonprofit organization (NPO) from the Nonprofit Times 100 from 2000 to 2002. No prior study of U.S. NPOs estimates the effect of fundraising expense on net donations. We then use these estimates and what we argue is the correct benchmark, the ratio of fundraising expense to donations, to provide evidence, for each NPO, on whether the NPO's level of fundraising is ‘excessive,’ ‘optimal,’ or ‘insufficient,’ relative to the level that maximizes net donations. All prior studies using log-log models use what we suggest is an incorrect benchmark for evaluating NPO fundraising behavior.
• The estimated effect of a 1% increase in fundraising on net donations varies widely across NPOs in our sample—from an increase in net donations of 0.18% of gross donations to a decrease of 0.66% of gross donations. Of the 76 Nonprofit Times 100 NPOs with usable data in 2002, we estimate that 24 engaged in ‘excessive’ fundraising, 18 engaged in ‘insufficient’ fundraising, and 34 did not engage in ‘excessive’ or ‘insufficient’ fundraising; i.e., we could not reject the null hypothesis of ‘optimal’ levels of fundraising.

Copyright © 2006 John Wiley & Sons, Ltd.     

What do social marketing programmes reveal about social marketing? Evidence from South Asia

• Although social marketing is growing as a discipline, there are several social marketing programmes (SMPs) across the world which can guide us in achieving a better understanding of social marketing. In this paper, using a case study approach, we map the SMPs to the six Ps of marketing; and then attempt to provide key observations about the South Asian SMPs by critically reviewing and comparing them with the social marketing success stories of the USA. Important insights are provided on the variations in SMP strategies by the region and type of social issue. The role of partnership is important in making social marketing initiatives in developing countries effective and sustainable by providing support in manufacturing and distributing quality products at an affordable rate and in remote areas. We propose that the ‘Partnership P’ should be given equal importance as the classical four Ps of marketing mix. Moreover, the South Asian initiatives seem to be broader than those of the USA and therefore, perhaps there exist more learning opportunities for scholars from the experiences of South Asian social marketing initiatives. The social marketer should be cognizant of regional dissimilarities in terms of income, location, language, literacy, product requirement and culture, and these may be factored in the design and execution of future social marketing strategies. However, the limited number of case studies may restrict the generalisability of the findings and a further probing may be suggested with better coverage of diverse SMPs.

Copyright © 2012 John Wiley & Sons, Ltd.     

Exploring conspicuousness in the context of donation behaviour

• The study of donation behaviour has been significant in recent years as charitable organisations realise the value of marketing strategies in order for growth and survival. Consequently, in recent years the growing trend, to increase awareness of charities and generate much-needed funds, has been the sale of empathy ribbons and the like (e.g. red noses etc.). However, it is argued that the motivation behind the purchase of empathy ribbons is largely ostentatious rather than altruistic and, thus, is viewed under the broader umbrella of ‘conspicuous compassion’ (West, 2004). As such, this paper documents a conceptualization of monetary donation behaviour which we term ‘conspicuous donation behaviour’ and, in doing so, we provide a number of research propositions which pre-empt new avenues for future research.

Copyright © 2006 John Wiley & Sons, Ltd.     

The international volunteering market: market segments and competitive relations

• The number of nonprofit and social agencies relying on the help of volunteers has grown enormously in recent decades. This has lead to increased competition between these organisations for the limited resources available, and the growing adoption of what have traditionally been considered ‘commercial’ business techniques such as marketing. There have been calls for greater and more sophisticated use of ‘tried and tested’ marketing concepts such as competition, segmentation and positioning to help volunteering organisations manage this pressure effectively. This study shines the spotlight on individuals who volunteer for multiple types of organisations in an effort to determine which organisations are competing for the same volunteers. More specifically:
• Factor analyses are computed and four segments of volunteers are identified: ‘altruists’, ‘leisure volunteers’, ‘political volunteers’ and ‘church volunteers’;
• Positioning maps are constructed to illustrate the proximity of each organisation type in relation to key competitors; and
• Detailed profiles are provided for each segment to provide insight into the nature of the groupings.

Copyright © 2006 John Wiley & Sons, Ltd.     

Venture capitalists and entrepreneurs become venture philanthropists

• Non‐traditional charitable sources of revenue may be categorised as follows:
  • Venture philanthropy: Human resources and funding invested as donation in the charity by entrepreneurs, venture capitalists, trusts and corporations in search of a social return on their investment. It involves high engagement over many years with fixed milestones and tangible returns and exit achieved by developing alternative, sustainable income.
  • Commercial ventures: They seek a financial return on investment by creating a social enterprise operated by charities and their trading/holding companies alone or in partnership with the corporate sector, venture capitalists or investors to provide funding. Venture philanthropists may also ‘invest’ without establishing an equity position in the commercial enterprise. Any profits are re‐directed to mission‐related activity, although the business activity may or may not be mission related.
  • Social venture capital: It funds commercial ventures (as above) but may not seek a complete return on investment; instead the investor may off set some or all of the investment against social outcomes.
• Within the context of venture philanthropy, this paper demonstrates how charities, venture capitalists and entrepreneurs may work together in strategic alliances. It explores venture philanthropy from the perspective of venture capitalists and entrepreneurs, giving examples. Charities are shown how to prepare themselves to take advantage of these entrepreneurial opportunities.
• Although the emphasis in this paper is on venture philanthropy, the processes outlined may be used to help a charity take advantage of opportunities within the broader social entrepreneurial context. Successful venture capitalists and entrepreneurs have demonstrated the ability to turn outline business ideas into big results, frequently in highly competitive business environments.
• A common characteristic that appears to unite these individuals when they divert their interest toward social ventures is a desire to apply their business‐like approach, which includes planning processes, milestones and outcome measurement to their social venture activity.

Copyright © 2005 John Wiley & Sons, Ltd.     

Community fundraising 2.0—the future of fundraising in a networked society?

• Over recent years, individual donor fundraisers worldwide have seen the beginnings of a dramatic shift in the way that consumers react to mass fundraising communications, resulting in many of the ‘interruptive’ direct marketing approaches on which individual donor fundraising programmes are traditionally reliant delivering worse and worse returns. This paper examines how the growth of a networked society of increasingly sophisticated and independently informed consumers has contributed to this shift; illustrates how the rise of Web 2.0 has accelerated its impact and considers how individual donor fundraising may have to evolve to more effectively respond to this in the future.

Copyright © 2009 John Wiley & Sons, Ltd.     

How and why small to medium size enterprises (SMEs) engage with their communities: an Australian study

• While many studies address corporate philanthropy and corporate community involvement, limited work has been conducted internationally in small to medium businesses and even less has been elucidated about the Australian small business landscape.
• This article reports findings from qualitative research investigating giving to community causes by 52 small to medium size enterprises (SMEs) across Australia.
• Three key questions addressed in this article are: (1) why SMEs engage with community (2) how they engage with community and (3) obstacles they perceive in giving.
• Our findings suggest that SMEs have a preference to avoid cash gifts, prefer to support local causes and would benefit from the development of best practice giving guidelines and templates.

Copyright © 2006 John Wiley & Sons, Ltd.     

Can ‘market transformation’ lead to ‘sustainable business’? A critical appraisal of the UK's strategy for sustainable business

This paper traces the origins and development of the concept of ‘market transformation’, from its beginnings as a part of energy policy in the USA, to its subsequent development in the UK. It discusses whether it could become a strategic option for British business in pursuit of sustainable growth. Drawing together themes from the academic literature on marketing, consumer behaviour, business, and energy policy, together with data from national programmes, and British government sources, the paper argues that such an approach would be based on a twin false premise – that selling energy efficiency to consumers is in accordance with modern marketing thinking, and that it has much to do with achieving sustainable development. It concludes that while achieving sustainable development will certainly encompass the transformation of markets for many products, ‘market transformation’ itself cannot be seen as a key driver for change. Copyright © 2004 John Wiley & Sons, Ltd and ERP Environment.     

THE SOCIAL ROLE OF BUSINESS ENTERPRISE IN BRITAIN: AN AMERICAN PERSPECTIVE. PART II

In Part I of this paper,²it was suggested that a concern for the social responsibilities of large business enterprises had received far less explicit attention in Britain than it has in the United States. In the latter it has preoccupied corporate managers, business critics, scholars, trade unionists and the general public for more than a generation. My analysis of the reasons for the comparatively lower degree of British concern with the social role of business enterprise stressed the importance of the following seven factors:

• 1 There exists in Britain (relative to the United States) greater reliance on publicly owned enterprises about which the public policy debate concerning the social role of business institutions has been focused.
• 2 British acceptance of corporate size and market dominance is greater than in the United States.
• 3 A long-standing governmental involvement in economy and society has characterized Britain's political economy.
• 4 A pre-emption of societal leadership functions by non-business élites has occurred in Britain.
• 5 The impact of Britain's social structure has produced an informal Clite consensus regarding a limited social role for business.
• 6 There is a British tradition of according privacy to business and other social institutions.
• 7 There is a lesser degree of‘professionalism’ in management practice–both in terms of substance and style–in Britain when compared with the United States.

     

Initial evidence on whether use of professional fundraising services increases fundraising effectiveness

• We provide initial evidence on whether use of professional fundraising services by US nonprofit organizations (NPOs) increases the effectiveness of NPOs' fundraising efforts. To a well-tested model of organization-level donations, we add an interaction term that captures the impact that professional fundraising fees an NPO incurs has on the effectiveness of an NPOs' spending on fundraising in raising donations. We find that professional fundraising fees has a significant positive impact on the effectiveness of fundraising efforts in raising donations for NPOs in the full, education, and health samples, but no impact for NPOs in the arts and human services samples. For NPOs in the full sample and NPOs in the education sample, one quarter of the effect of fundraising on donations stems from the positive impact of professional fundraising services on the effectiveness of fundraising in raising donations. For NPOs in the health sample, one half of the effect of fundraising on donations stems from the positive impact of professional fundraising services on the effectiveness of fundraising in raising donations. These results suggest that professional fundraising services significantly enhance the effectiveness of fundraising for these types of NPOs. While the results of this study seem to confirm the decisions of managers of education and health NPOs to utilize professional fundraising services, the results also suggest that managers of arts and human services NPOs may want to reconsider using professional fundraising services, at least the types of services they currently purchase and the way they currently utilize such services.

Copyright © 2009 John Wiley & Sons, Ltd.     

Branding HIV/AIDS communication: the social marketing campaigns of MTV and Viacom

• Based on an ethnographic study of the production and reception of HIV/AIDS public service campaigns by MTV and Viacom, this paper examines the role of branding in HIV/AIDS education promotion. A main premise of the paper is that audiences for HIV/AIDS social marketing campaigns are now less addressed in terms of the classic HIV/AIDS prevention categories of ‘general public’ and ‘risk groups’ and are increasingly viewed as ‘market segments’ implicated in the campaigns in relation to the techniques of branding. Drawing on examples from research conducted amongst audiences in the North of England, the findings highlight the differing audience understandings of the branded consumer objects and icons of HIV awareness. Using a cultural materialist perspective, concerned with the relationship between the campaigns and social relations, this paper examines the process of corporate-sponsored HIV/AIDS campaigns. The findings underscore how social marketing campaigns are increasingly being related to as branded media objects and icons, closely tied to people's material experience and understandings of the aesthetics framing these branded objects and icons. The paper argues that identification and engagement with the campaigns is most evident amongst participants who shared the consumer values and the marketing discourses used by marketing managers and producers of the public service announcements.

Copyright © 2009 John Wiley & Sons, Ltd.     

The ethics of ‘going green’: the corporate social responsibility debate

A significant proportion of authors of green business texts proposes that managers should be the instigators and guardians of a societal change towards sustainable development. There is the notion of managerial duty towards the environment. This paper attempts to unravel the implications of this call for managerial eco‐heroism. The reason that this unravelling is important is that there is a growing body of evidence suggesting that win–win situations – the ‘low hanging fruit’ – are progressively becoming less apparent for many firms. This implies a conflict between profitability and environmental performance. This translates into a (perhaps familiar) scenario for business: one greener option is more expensive, and the financial gains associated with it are insufficient to justify it on the grounds of profitability – ‘going green’ then means losing potential profits. A neoclassical and a socio‐economic perspective are provided as foundations for managerial reasoning. Even though the corporate social responsibility debate is not resolved, it is nonetheless of importance, not least because environmentally proactive managers might intend to increase social well‐being but actually reduce it through their green decision‐making. Thus the real‐world applicability of the positions adopted by the opposing philosophical schools is analysed. Copyright © 1999 John Wiley & Sons, Ltd and ERP Environment.     

Understanding the decision-making processes for arts sponsorship

• Corporate support is a significant revenue stream for non-profit organisations, yet little is known of the actual decision paths companies take when making these decisions and what characterises these paths. This study seeks to develop a greater understanding of decision processes for companies considering sponsorship of the arts. A multiple-case study approach was taken, with participants from arts organisations and paired sponsoring companies, resulting in the finding of three decision paths: one characterised as high-level and intuitive, one as driven at a lower-level, and a third initially instigated by a third party. Analysis of these paths highlights the importance of existing relationships as well as a ‘fit’ between both parties. In addition, the company's orientation towards more commercial or philanthropic goals is found to be a key element determining the path taken, and the role of individual informed intuition is highlighted as crucial in moving decisions forward. This study extends knowledge in sponsorship and corporate philanthropy, into a decision making and arts sponsorship context. The findings also offer a useful perspective for non-profit arts managers as they pitch their event to the business sector.

Copyright © 2012 John Wiley & Sons, Ltd.     

A practical guide to corporate fundraising on a regional basis

Regional corporate fundraising has the potential to become a growth area as major companies move out of big cities and wish to become involved in supporting charities in the regions where they relocate. This paper gives ‘hands-on’ guidance to charities on the way to approach corporations; the importance of thorough research is stressed, as is the necessity for clear, professional proposals that point out the benefits to both charities and corporations. Much practical advice is given and many specific opportunities for fundraising are listed. Copyright © 1999 Henry Stewart Publications     

Global careers: a social capital paradox

Global careers, typically defined as involving multiple international relocations including various positions and assignments in several countries, have recently received increasing research attention. This interest is driven by a growing corporate need for managers who are able to deal with global integration and co-ordination in large multinational corporations. An important aspect of the competency of a global manager is his or her social capital, i.e. the network relationships he or she possesses. However, while the concept of social capital has been widely used in a number of research fields recently, it has received relatively little attention thus far in the IHRM context. This paper contributes to this research gap, and seeks to answer the empirical research question of how multiple international relocations affect the social capital of a manager. Our qualitative interviews of 20 Finnish MNC managers with global careers identified that such careers represent a ‘social capital paradox’. Global careers are characterized by a broad and diverse network of both internal and external ties. This breadth and diversity relate to (1) the managers' internal contact networks of weak ties (2) their internal support networks of strong ties and (3) their external networks of both strong and weak ties. These typical characteristics represent three major social capital paradoxes in the sense that they carry both significant social–capital-related benefits as well as potential risks.     

Pledger modelling: Help the Aged case study

• The recruitment of pledgers (as a proxy for potential legators) to charitable organisations plays a vital role in their continued success, and as a percentage of all fundraising income generated it can represent substantial proportions. However, of all the ‘donation asks’ made of supporters, asking for a legacy is the most difficult. Therefore, it is important that the target audience should be as well researched and highly targeted as possible.
• Help the Aged had reached the stage where decisions need to be made about its future marketing in order to protect longer-term income. The findings of this legacy targeting project were to feed into communication programmes, direct marketing, and the overall legacy marketing strategy.
• The key objective was to identify the best prospects to mail a legacy ask to, across the supporter database, with the likelihood that they are going to pledge as a result.
• It was found that whilst tailored data analysis comes at a price, the average value of a legacy justifies the cost of using sophisticated targeting tools. However, because of the pledge-to-legacy time lapse, there will always be issues with measuring any long-term return on investment (ROI). Nonetheless, pledgers have to be taken on their word for the purpose of testing (and subsequent rollouts). Pledge data should be tested and the outcomes should inform legacy marketing. However, as mentioned above, pledgers necessarily need to be taken on their word and therefore, formulating models based on the type and/or value of pledges is not recommended.

Copyright © 2005 John Wiley & Sons, Ltd.     

Decaf or double shot? The strength of franchisor control over HRM in coffee franchises

The franchise relationship presents a unique composition of autonomy and control. Franchisee autonomy is located somewhere between employed managers and independent business owners, while the franchisor regulates core processes such as marketing and product development. While heavy franchisor control over certain functions is customary and in fact integral to the franchise model, the delineation of HRM responsibilities in the franchise relationship is less clear. Using qualitative data from three Australian coffee chains, we examine the role of the corporate HR and the degree to which HRM activities are centralised, and develop a typology of franchisor HRM control. We find substantial variation between cases and demonstrate that it is the franchisor's strategic decision to prioritise brand protection or liability avoidance that ultimately determines whether their control over HRM can be described as ‘decaf’ weak or ‘double shot’ strength.