Cause-Related Marketing is defined as a public association of a for-profit company with a nonprofit organization, with the intent to promote the company's product or service and to raise money for the nonprofit. Cause-Related Marketing is considered to be distinct from corporate philanthropy because the corporate dollars involved in Cause-Related Marketing are not direct gifts to a nonprofit organization.
Corporations are drawn to Cause-Related Marketing due to competition in the marketplace and the need to develop brand loyalty. A number of recent studies document that consumers carefully consider a company's reputation when making purchasing decisions and that a company's community involvement boosts employee morale and loyalty.