Rising to the 21st century’s biggest challenge
The Times, April 2008
The Virgin Earth Challenge is a $25 million global science and technology prize. Virgin set it up with Al Gore last year, just at the time the Intergovernmental Panel on Climate Change reported. It effectively supplements the considerable action Virgin is taking within its business to address climate change.
Virgin’s sponsorship of this prize is strategically sensible. The company is using all the mechanisms available to it to tackle the biggest issues it faces and build a message around its commitment to doing so. The fact 53% of concerned consumers think it is the airline doing the most to tackle environmental issues, over twice as many as BA, its closest rival, suggests this gamut of activity is paying off.
Compare this with corporate sponsorship of the Olympic Games. For most companies the Games will sit at arm’s length from all the other activity they will be conducting to address the particular social and environmental issues that they face. And, noble as the principles of the Games are, the event is always going to beyond the company’s control. A point aptly demonstrated by the 67% of consumers say they think commercial sponsors should withdraw this year as a result of China’s human rights records.
This is illustrative of a broad change in the role of sponsorship and other ancillary corporate activity in the 21st century business mix. Leading companies are increasingly moving to bring together all the tools they have at their disposal to help build their brand and reputation. And ensure they are all working to deliver the same over-riding message.
The 20th Century model of sponsoring an event, or the arts, or investing in the community in a general way and hoping to get value through positive association is evolving fast. Companies are moving to actively develop and deliver their own vehicles, which are directly related to their business and their issues, and which say something powerful about them and just what they can do. And which - unlike the government of China - they can control.
