An Insight into the Opportunities, Challenges and Best Practices of Philanthropic Marketing

Abstract

Philanthropic Marketing is increasingly being integrated into firms’ corporate social responsibility strategies as a means of communicating sustainable business practices to consumers. While there is ample research on its effectiveness, challenges and best practices in Western capitalist countries, studies conducted in non-Western contexts are limited. Thus, a common misconception persists that developing countries lag far behind, when in fact corporate philanthropy has deep roots in Arab culture and Islam, predating the emergence of modern CSR as a subject of scholarly attention. This raises concerns that non- Western countries are being assessed based on frameworks and practices that have been tailored to Western contexts. This report will focus on philanthropic marketing in Saudi Arabia, as it is one of the fastest growing emerging economies. It will contribute to narrowing the literature gap by analyzing philanthropic marketing practices in light of Saudi Arabia’s distinctive social, cultural, economic, and political environment, and provide marketing practitioners with context-specific opportunities, challenges, and best practices for philanthropic marketing initiatives in the Kingdom. The results demonstrate that Saudi Arabia’s private and public sectors are actively engaging in CSR as the country pursues its strategic development plan, Vision 2030. The findings affirm that Saudi consumers value CSR practices and actively engage in philanthropic marketing initiatives. However, for cause-related marketing campaigns to be effective, unique cultural, religious, and political factors must be taken into account. Moreover, quantitative research is necessary to enhance the generalizability of findings and further research into specific industries, such as consumer goods, is essential.