COLUMN: "Giving" to increase profits

From Yoni Slonim's, "Taking My Turn At Bat," Fall '97 From Yoni Slonim's, "Taking My Turn At Bat," Fall '97 The holiday season often brings out the best in people, even in big business. Around this time of year many large corporations organize charities to give to the needy. Since 1993, American Express has run a campaign called "Charge Against Hunger". This program donates three cents from every purchase on American Express credit cards during the months of November and December to an organization called "Share Our Strength." The organization then distributes the money as it sees fit, to "anti-hunger and anti-poverty efforts," according to a Share Our Strength representative. The idea behind American Express' campaign seems like a good one. But, it is the execution and their likely ulterior motive in this campaign that gets to me. American Express has heavily advertised their effort through the use of a black and white commercial introduced by Yoko Ono while "Imagine" plays in the background. The commercial also uses disturbing images of poor people to invoke sympathy from viewers. What remains unseen to most viewers, is a small note at the bottom of the advertisement stating there is a cap of five million dollars on the amount of money American Express will donate to this effort. When I spoke to an American Express representative he told me -- almost a chuckle -- they always meet this amount. Of course they do! Five million dollars is really not that much money to a large company like American Express which, by Fortune's calculations, has annual net profits over 1.5 billion dollars. However, I am not deriding them for the amount of money they give, anything is beneficial. In the end, American Express knows they will donate five million dollars to Share Our Strength so what is the need for the heavy advertising? Why does American Express spend approximately five million dollars on this campaign, at least judging by the number of times I have seen this commercial? What point does this advertising serve after they have raised the maximum amount of money? It serves as a vehicle to enhance the image of the company and more importantly when consumers step up to the counter during Christmas time we will choose our American Express card over the other cards since we think we can do something "good". In reality though, by choosing to use an American Express card, one is not donating any more money to charity than if one chose any other card. American Express ultimately uses the images of people in need to fulfill their own. American Express has come up with the ultimate marketing strategy, for who can resist a child in need? Yes, American Express ultimately gives money to people in need, but, is that the only issue? It is understood that most companies expect something in return for their good deeds, the least of which is a good image. Even the "Share Our Strength" representative I spoke to recognizes theirs is a "mutually beneficial relationship." However, is it too much to ask that if businesses wish to publicize their kind acts that they do so with a little moral restraint? It is quite alarming that large companies have no problem spending more money on advertising for a charity campaign than the actual money given to the poor. It is even more disturbing they use pictures of poor people to further their bottom line. As members of the free market economy there is something we can do to challenge such offensive efforts without jeopardizing any of the money going to Share Our Strength. One can voice their displeasure with American Express by not using their card and making sure to tell them why. Not using the American Express card doesn't hurt the charities for two reasons. First of all, the "Charge Against Hunger" campaign only runs from November to December. Second, even if every person at Penn didn't use their American Express card during their campaign, American Express would still reach their maximum donation quite easily. There are companies -- such as AT&T; which through the "AT&T; Foundation" donates 50 million dollars a year, without much fanfare, to non-profit organizations -- that do use their enormous power to give back to the community at large. In the end we, the consumers, are the suckers. We enjoy taking the easy way out by "giving" without losing. Instead, the next time you go shopping and see the black & white images of people in need, rather than taking out your American Express card, take out your checkbook and make a donation to Share Our Strength. At least you know the money will get there, and you can get the real satisfaction of truly giving.