Marketing exchange theory: how it can inform community-business partnerships

Marketing research has somewhat overlooked strategic philanthropy by business yet not only has it burgeoned as a marketing practice but ‘the resources and outcomes associated with philanthropic efforts are similar to those sought within a marketing context’ (McAlister and Ferrell 2002). Strategic philanthropy contrasts markedly with traditional corporate giving, which has sought to make a social contribution usually by cash or in-kind donations without any clear expectation of a commercial return. Instead, strategic philanthropy seeks to benefit society as well as capitalise on its potential to increase business. Benefits that can accrue to business from its philanthropic activities include increased sales, higher customer loyalty, enhanced company reputation, and increased employee commitment and productivity (Business Council of Australia. and Centre for Corporate Public Affairs 2000). As strong potential exists to explore the value of marketing constructs and theories to better inform the management of strategic philanthropy (McAlister and Ferrell 2002), this paper considers the value of marketing exchange theory for an increasingly popular form of strategic philanthropy: the community-business partnership. It finds that this perspective is a helpful guide to selecting, managing and evaluating corporate community partnerships.