Amex Case Study
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American Express, a pioneer in cause-related marketing, has a philanthropic mission that supports nonprofits in cultural heritage, leadership development, and community service. Following the 9/11 attacks, the company faced challenges but responded with significant cash grants and a disaster relief fund while also questioning its ability to maintain corporate philanthropy amid economic downturns. A SWOT analysis reveals strengths in community engagement and immediate response, weaknesses in funding sustainability, opportunities in public support for 9/11 relief, and threats from economic uncertainties.
Amex Case Study
- 1. Community Relations: American Express Alyssa Pridgen
- 2. Background on AMEX One of the earliest users of cause-related marketing 1984 promotion for Statue of Liberty renovation RED campaign in 2006 Members Project in 2007
- 3. Philanthropy Mission Statement Supports nonprofits that are involved with preserving cultural heritage, developing new leaders, and encouraging community service where our employees and customers live and work Grants and Partnerships National Trust for Historic Preservation World Monuments Fund National Arts Strategies in DC English Heritage in London International Rescue Committee in New York American Red Cross Disaster Relief Fund
- 4. Situation Analysis: 9/11 Attack AMEX’s headquarters were in Three World Financial Center, which was located directly opposite to the World Trade Center and suffered considerable damage More than 4,000 AMEX employees were in Lower Manhattan during the attacks. Eleven lost their lives.
- 5. Situation Analysis (cont.) In months leading up to attack, AMEX’s stock was plunging and company had major layoffs Question: Can AMEX continue its commitment to corporate philanthropy after an economic downturn and attack on the company?
- 6. Strategy/ Tactics Immediate response: Cash Grants of $250,000 each to the Red Cross and September 11 Fund on September 13th Gave $1 million to the families of the employees who were lost in the attack Set aside $1 million to create and administer a disaster relief fund Employee rally at Madison Square Garden Added 9/11 relief groups to list of eligible charities to its Membership Rewards program
- 7. SWOT: Strengths Draws in service-oriented employees and customers Immediate response --> genuine Improve public image Network and reputation in the community “ When it mattered most, American Express employees acted instinctively to help their customers, colleagues, neighbors and community”
- 8. SWOT: Weaknesses Running out of money? Contributes to too many different organizations No cohesiveness Too diversified
- 9. SWOT: Opportunities Public opinion Focus on 9/11 relief funds
- 10. SWOT: Threats Economic climate Uncertainty Business interruptions Relocation costs Organizations depend on them “ If something else happens, are those deep pockets still going to be there?” Tarnished image?