Corporate Relations
Guiding Principles
for Voluntary Health Agencies
in Corporate Relationships
I. Why are Relationships Between
Voluntary Health Agencies and
Corporations Appropriate?
Voluntary Health Agencies (VHAs)
consider first and foremost their mission and serving their
constituents in all decisions, including whether to enter
into a relationship with a for-profit entity. In many cases,
activities that fulfill a VHA's mission cannot be accomplished
as well alone as they can be through collaboration and alliances
among like-minded organizations. It is for this reason that
VHAs have increasingly sought to forge appropriate and productive
collaborative relationships with corporations and/or others.
Corporate involvement in the
mission of not-for-profit organizations has taken many forms
over the years. Corporations have made outright grants to
charities. They have underwritten the cost of established
programs and developing programs. They have enabled not-for-profit
organizations to conduct fundraising programs of various kinds.
These traditional forms of corporate gifts have historically
been extensions of a company's own commitment to philanthropy
and have not been directly related to the company's marketing
endeavors. More recently, corporate relationships have closer
connections to the commercial activities of the company, such
as establishment of its corporate image, and marketing of
its products and services. Companies are increasingly basing
decisions regarding relationships with not-for-profit organizations
on whether these relationships support business goals. This
creates significant opportunity for not-for-profit organizations
to enhance their ability to accomplish their mission in areas
where the interests of the not-for-profit and for-profit organizations
overlap. However, these relationships should be entered into
thoughtfully, with careful consideration given to possible
unintended effects, especially regarding the organization's
relationship with the public.
The need arises, therefore,
for voluntary health organizations to establish guidelines
that help them take full advantage of these new opportunities,
but that also serve as safeguards against any possible negative
impact these corporate relationships might have on the VHA's
public image and integrity, whether real or perceived.
For these reasons, the appropriate
rationale for engaging in corporate relationships must be
to:
- Increase the dissemination of health information and
education to the public using the additional resources
provided by the corporate partner that would not otherwise
be available to the VHA.
- Leverage the VHA's resources by employing corporate
resources to help develop, produce and implement VHA mission-related
programs, materials, and activities.
- Offer the VHA new means of raising funds and increasing
public awareness, which are the indispensable fuel for
its mission-related activities.
- Increase the overall capacity of the VHA to fulfill
its mission.
II. Why Should VHA Industry Guiding Principles be Developed
for Corporate Relationships?
VHAs fill gaps in service to people
who have, or are at risk of developing, chronic diseases and/or
disabilities, primarily through the generous support of volunteers
and the donating public. They improve health by providing
patient and family services, community services, public and
professional education, medical research support, and health-related
advocacy. For VHAs to remain viable and to fulfill this critical
need, public trust is absolutely essential. Relationships
between VHAs and corporations must be constructed so as to
enhance and never to detract from this integrity and credibility.
Damage to the credibility of any single VHA, resulting from
less than scrupulous practices or inappropriate corporate
relationships, can negatively impact the faith of the donating
public and the public credibility of VHAs in general. Because
of this, the National Health Council seeks to establish a
common set of Guiding Principles for Corporate Relationships
to which all its member VHAs will adhere.
This common set of principles for VHA members will:
Enable the public to better understand the
purpose of corporate relationships and appreciate the diligence
that is exercised to ensure that the public's trust and
faith are not violated by these relationships.
Inform corporations of the standards and
practices under which VHAs will consider collaborating and
forming corporate relationships.
Establish that health claims resulting from
a corporate relationship must be accurate and beneficial
to intended audiences.
Assist VHAs with limited budgets and resources
to learn from the experience of other VHAs and have a solid
foundation from which to establish their own corporate relationships.
III. What Is a Corporate Relationship?
There are a variety of corporate
relationships that are typical of most VHAs' efforts to work
with and gain support from corporations. Some relationships
involve a monetary exchange; some involve in-kind services;
and others are educational and awareness-building in nature.
All such relationships are entered into in order to support
and advance the mission of the VHA.
The definitions that
follow are to help define the nature of these relationships
and enable the public to better understand the terminology:
Sponsorships:
The corporation provides financial or in-kind support for
a specific VHA activity or program, which could support
education, research, awareness, and/or fundraising. In return,
the VHA publicly recognizes the support of the corporation
and/or product.
Health message promotions:
VHA gives a corporation the right to use its name, logo
or message in the corporation's product advertising, promotional
or educational materials.
Licensing: VHA licenses
a company to develop, produce, market and/or distribute
a mission-related product that is marketed as a VHA brand
product, e.g., VHA brand cookbooks, books, videos and other
mission-related educational materials.
Certification: VHA certifies
or recognizes that a particular product or service of a
company complies with or satisfies an applicable or relevant
VHA standard or criteria; this is distinct from an explicit
endorsement or recommendation to buy a particular brand
product or service.
Strategic alliance: A mutually
beneficial relationship between a VHA and a corporation.
Typically, the VHA helps supply a health education message
or service that is delivered through a company delivery
system to better serve people with the particular health
interest or condition. It is often a collaborative effort
to improve the health information or service provided to
the individual. It may not necessarily involve a monetary
exchange.
Cause Marketing:
This generally implies that a donation to the VHA or cause
by a corporation is triggered with the purchase of a product
that is "marketed" to the public to benefit the
VHA, most commonly based on sales during a specific period.
The definitions above describe
the basic types of corporate relationships but are not necessarily
separate and distinct. There may be overlap, and hybrid
arrangements can exist.
IV. What Should be the Guiding
Principles for Corporate Relationships?
Public Stewardship
Mission-related benefit: Corporate
relationships must have a meaningful VHA mission-related
benefit to the general public or particular constituencies
of the VHA.
Independence: While VHAs accept
financial support and other benefits from corporations,
the VHA will always exercise independent judgment in all
its decision-making.
Consumer Communications: Materials
from the corporation or VHA directed to the public will
contain accurate and non-deceptive terms or statements such
that a reasonable individual will understand the nature
and extent of the corporate relationship.
Disclosure: The VHA will disclose
the financial benefits it receives from a corporate relationship
when a purchase by a consumer causes a donation to be made
to the VHA.
Endorsement: The VHA will
make it clear to a reasonable consumer if the VHA is endorsing
a product and, in such case, whether it is endorsing a specific
feature or attribute of the product or the product's efficacy.
Special scrutiny, including regulatory guidelines, must
be applied when prescription and over-the-counter drugs
and devices are involved to avoid unintended endorsement,
suggestion of product superiority, or bias for or against
a specific product.
Exclusivity: In general, there
will not be exclusive arrangements in promotions or certifications,
although exclusivity is acceptable for sponsorships and
licensed products. Regarding corporate promotions or certifications,
exclusivity may be granted to a corporation or product for
a particular activity for a specified time period if there
is sufficient benefit to the VHA and public, and there is
no prohibition against the VHA engaging in different types
of activities with competing corporations/products.
Consistency: A VHA will not
enter into a relationship with a product or corporation
that is inconsistent with the VHA's principles, public positions,
policies or standards.
Privacy: Each VHA shall have
written guidelines that will protect the privacy of individuals
that participate in its corporate relations activities and/or
programs.
Organizational Stewardship
Policies: The VHA will have
Board-approved written policies for corporate relationships,
including procedures for review and approval of corporate
relationships, and ongoing review and evaluation of such
relationships.
Compliance: The VHA will have
a mechanism to assure compliance with its corporate relations
policy by state/local divisions of the VHA as well as by
the national component.
Advance Review and Approval:
Any use of the VHA name, logo and identifying marks in a
corporate relationship must be reviewed and approved by
the VHA in writing in advance of their use, including in
statements, advertising or other materials from the corporation.
Usage of the VHA's name/logo and identifying marks shall
be specified in addition to the period of usage. A VHA shall
not allow its name/logo or identifying marks to be used
in any promotion or advertisement that names and compares
competing products unless the VHA has determined the superiority
of the product with which it is associating and can substantiate
its superiority.
Written Agreement: The VHA will have a
written agreement between the VHA and corporation prior
to implementation of the corporate relationship.
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