In 1983, American Express raised over $1.7 million for the renovation and development of Statue of Liberty and Ellis Island Foundation. The company made a one-cent donation to the Statue of Liberty every time someone used its charge card and the number of new card holders soon grew by 45%, and card usage increased by 28%. They coined the phrase "cause-related marketing" to describe this campaign. Cause-Related Marketing, or CRM as it is known, is the coming together of a non profit organization and a commercial company in an effort to raise funds and awareness for a cause while building the sales and image of the commercial partner. There is a two-fold advantage to this - you can expand your business and give back to the community at the same time.

This trend in marketing really took off in the eighties. Championing a cause makes good business sense. Today's consumers want to know what your business stands for. Nothing builds brand loyalty among today's increasingly hard-to-please consumers more than a company's proven commitment to a worthy cause. Most consumers want to feel good about what they are spending their money on, and would rather do business with a company that believes in something beyond mere profits.
Not only does cause-related marketing gain a company loyal customers, it also increases the commitment of employees. How is that? Read on.
Do good, feel good factor – Most people want to do good and help those more unfortunate than themselves. As a company, you can target the emotional bond consumers have with a particular cause by aligning your company with it. This will result in increased immediate purchases as well as ongoing brand loyalty. For example, Target's "Take Charge of Education" program has donated more than $120 million to America’s schools since it was launched in 1997, and at the same time has built a loyal customer base for the brand.
Feeling is believing – Employees today are not just looking at their paychecks; they also want to work for companies that are considered to be socially responsible and ethical. Nearly 90% employees report strong loyalty to companies that support a cause, as compared to 65% at those that don’t.
When a company participates in cause-related marketing programs, it enhances its public perception as a good corporate citizen, and also improves employee recruitment and retention rates!

Since the eighties, there has been a fundamental shift in the way the world’s leading companies use cause-related marketing to position their organizations and brands. They have succeeded in turning their support for a cause into long-term brand equity. Companies such as Avon, The Home Depot and Target have proven that social commitments can be fundamentally connected to the way one conducts business.