POSIT IVE PARTNERSHIPS

A GUIDE FOR BUILDING BRAND – NONPROFIT PARTNERSH IPS

OUR COMMITMENTS

WATER STEWARDSHIPOur goal is to return to communities and nature an amount of water equal to what we use in our beverages and their production.

PACKAGINGOur goal is to advance a packaging framework in which our packaging is no longer seen as waste, but as a valuable resource for future use.

CLIMATEOur goal is to grow the business, not the carbon in our manufacturing operations. Improve the energy efficiency and reduce emission of greenhouse gases in cold drink equipment.

WORKPLACEWe foster open environments, as diverse as the markets we serve, where workplace rights are respected and people are inspired to be the best they can be.

COMMUNITYWe are a global company with local roots in every community where we do business. We are committed to the needs of our communities with wide ranging programs.

BEVERAGE BENEFITSOur goal is to quench every thirst and every need. Provide and tailor beverages for every lifestyle, life stage and occasion based on individual needs. Offer quality products you can trust all the time.

ACTIVE LIVINGOur goal is to help people lead active, healthy lives by offering a wide variety of beverages, our focus on information and education, and our support of physical activity.

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L IVE POSIT IVELY IS OUR COMMITMENT TO REDESIGNING THE WAY WE WORK AND L IVE SO THAT SUSTAINABIL ITY IS PART OF EVERYTHING WE DO. FOREVER.

OUR SUSTAINABILITY JOURNEY REQUIRES THAT WE WORK IN NEW WAYS WITH BUSINESS AND COMMUNITY PARTNERS. THIS GUIDE PROVIDES EASY STEPS FOR IDENTIFYING AND DEVELOPING BRAND PARTNERSHIPS WITH NONPROFIT ORGANIZATIONS.

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At its most basic level, a nonprofit is simply an organization that does not distribute its surplus funds / profits to owners or shareholders, but instead uses them to help pursue its organizational goals, typically, nonprofits are public charities, working for the public good. They come in various shapes and sizes: from the local animal shelter to international aid groups, to schools and hospitals to private foundations. Their work can take many forms from grant making to policy and advocacy to implementation of efforts with the community. There are many different names for a nonprofit: nongovernmental organizations, NGO, foundation, charity, trust, community-based organization, etc. Since, in many countries, nonprofits are exempt from paying taxes, the legal definitions may change from country to country.

NONPROFIT 101

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Nonprofit organizations play a critical role in addressing human, social and environmental challenges. As brands begin to engage consumers on their sustainability efforts, nonprofits will play a particularly important role in ensuring authenticity by providing a credible brand halo, lending expertise on a given topic, receiving funds, and implementing work in the community.

+ Credibility: Working with a well respected nonprofit can provide credibility and help reassure consumers that a brand’s sustainability efforts are credible.

+ Expertise: Nonprofits understand the situation in the community and know where help is most needed. In addition, they have the scientific or programmatic expertise to help build authentic communications.

+ Fund Recipient: A brand’s sustainability program may include providing and mobilizing funding to address a human, social or environmental challenge. Nonprofits are often set-up to receive donations, report back to donors and comply with local rules and regulations.

+ Implementation: Nonprofits are responsible for the actual implementation of many (but not all) sustainability projects. For example, Coca-Cola’s support to bring clean water to schools in Africa, is implemented through support of several nonprofit partners, such as CARE International.

THE ROLE OF NONPROFITS FOR BRANDS

AS COCA-COLA BRANDS BEGIN TO ENGAGE CONSUMERS AROUND SUSTAINABIL ITY THROUGH L IVE POSITIVELY, NONPROFITS LEND BRANDS OVERALL AUTHENTICITY WHILE THE BRAND HELPS TO AMPLIFY AWARENESS AND RESOURCES FOR THE NONPROFIT’S WORK.

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When engaging on a partnership, it is important to understand what a non-profit will expect from a brand. Partnering with a brand on a sustainability program or promotion can help a nonprofit amplify awareness, membership and resources for their organization and its work. + Awareness: Brand may provide

reach to important target audiences for a nonprofit seeking to increase awareness of a sustainability issue or of their work and brand.

+ Membership: Nonprofits are often seeking to create more members and ambassadors for their work. Partnering with a consumer brand is a way to build direct relationships with its consumer. Brands may help generate members with previously untapped audiences like teens.

+ Resources: Most nonprofits rely on private, charitable support for their work. Nonprofits often engage with brands as a fundraising tactic (e.g. through cause-related marketing). In addition to financial resources, brands can provide in-kind support (product donation, marketing support, staff ).

THE ROLE OF BRANDS FOR NONPROFITS

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THE THREE STEP PROCESS IN DEVELOPING A NONPROFIT PARTNERSHIP

IDENTIFY A SPECIFIC PROJECT

DECIDE ON TYPE OF PARTNERSHIP

SELECT AN APPROPRIATE NONPROFIT PARTNER

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Not every brand-nonprofit partnership is a cause-marketing promotion. In fact, there are various forms these partnerships can take. For brand marketers, key partnership types include:

Cause MarketingCause-marketing generally refers to the strategy of linking a brand to an issue or cause. Often, this includes a transaction-based promotional effort in which the brand contributes a percentage of sales from a product to a cause.

SponsorshipBrands can provide sponsorship to a specific event held by a nonprofit. In addition to financial resources, brands can donate in-kind goods.

CertificationCertification is arrangement in which the nonprofit organiza-tion recognizes that a product or service of a brand complies

with certain established standards (e.g. Fair Trade).

Grant MakingA grant making relationship is one in which the Company(corporate giving program or through a company-established foundation) makes a philan-thropic contribution in support of a nonprofit organization. Grant making relationships are primarily reserved for the Company or Foundation as they do not include a marketing or consumer connection.

LicensingA licensing agreement is one in which the nonprofit allows its information or knowledge to be used for a fee or an agreement in which a nonprofit’s name is attached to a product.

Message PromotionA message promotion is a relationship in which a nonprofit organization works

with a company or media outlet to promote a public service announcement (PSA).

Employee Involvement Nonprofit partners can be structured in a way to focus on harnessing employees talent and financial resources for the nonprofit. This can take the shape of employee volunteer programs, workplace giving campaigns, employee-driven contributions models, matching gifts, secondments etc.

Operations / Social Enterprise Nonprofits and brands can work together on activities that improve the company’s core business operations, such as building unique supply or distribution channels, by working in partnership with a nonprofit, which also receives something of value in return.

DECIDE ON TYPE OF PARTNERSHIP

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SELECT AN APPROPRIATE NONPROFIT PARTNER

Not all nonprofits are created equal. Brands must think strategically when selecting a nonprofit to work with on a given program. Selecting the right partner is key to ensuring authenticity and generating an emotional response from consumers. There are several key criteria a brand should consider when identifying a partner.

Connection to the brandIs there a natural connection between nonprofit and consumer brand? Are there shared values, a similar target demographic, etc?

Existing PartnerPartnerships can be difficult and time-consuming to build. While it is not a pre-requisite, brands may wish to work with an existing company partner. Nonprofit Brand EquityA brand’s communication on

its sustainability efforts can be simplified by partnering with a well-known and respected nonprofit as consumers will have a basic understanding and appreciation for its work.

Implementation CapabilityBrands should scrutinize the organization’s work to see if they are perceived as effective and delivering on their promise.

Administrative / Fiduciary Brands should consider whether or not the nonprofit is well organized and have the systems in place to meet their fiduciary and reporting requirements.

AssetsA nonprofit may have significant assets that can be leveraged for brand communications. These include their membership base, publications and marketing materials, access to key spokespeople, etc.

A HELPFUL EXERCISE IN IDENTIFYING AND SELECTING A NON-PROFIT PARTNER IS TO REVIEW SEVERAL PARTNERS AGAINST THE ABOVE CRITERIA, USING A 0-5 RATING SYSTEM AND AVERAGING SCORES.

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A brand-nonprofit partner-ship may also support or focus on a specific project or activity of that partner. Key criteria include to selecting a project or focus area include:

IdentifiableCan the project easily be identi- fied and communicated about?

MeaningfulDoes the project support the issue in a meaningful, authentic and sustainable way?

IDENTIFY A SPECIF IC PROJECT

Reinforce FocusIs the program linked to the overall company sustainability agenda? Does it help to drive authentic trust in this work?

Linkage to BrandDoes the project align with the brand objectives? Can it be potentially a branded program — making it iconic and memorable?

Participatory & InspiringCan consumers, employees, customers and others participate? Can the brand participate beyond writing a check?

KEY READING FOR POSITIVE PARTNERSHIPS

CO

MM

ON

INTER

EST, C

OM

MO

N G

OO

D

Creating Value Through

Business and Social Sector Partnership

shirley sagaw

a and eli segal H

arvard Business School Press

THE FO

RTUN

E AT THE B

OTTO

M O

F THE P

YRA

MID

REVISED

AN

D U

PDATED

, 5TH A

NN

IVERSA

RY EDITIO

NEradicating Poverty Through Profit

c.k. prahalad

Wharton School Publishing

FORCES FOR

GOOD

The Six Practices of High-Impact Nonprofits

leslie crutchfield

and healther

mcleod granth

Wiley, John & Sons

THE C

OLLA

BO

RA

TION

CH

ALLEN

GE

How

Nonprofits and

Business Succeed Through Strategic A

lliances

james austin

Jossey-Bass Publishers

GOOD

TO GREAT

AND THE

SOCIAL

SECTORS

A Monograph

to Accompany

Good to Great

jim collins

HarperCollins

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