Abstract

Cause marketing involves a "cause-linked" promotion of a commercial product, with some part of that product's revenues being donated to the nonprofit engaged in that cause. Traditionally, much of cause marketing has been initiated and driven by the needs of the for-profit firm, with less attention directed to the needs of the nonprofit organization or its role in creating value for the partnership. This article offers a framework that considers the benefits and costs from both partners' perspectives, including monetary (first-order) as well as non-monetary (second-order) considerations. Using this framework, the article proposes a decision process aimed at enhancing the value for both partners in the relationship.