Donation. Sponsorship. Or perhaps cause-related marketing?

If you haven’t heard about the Chiara Ferragni case, you’ve either managed to avoid the news and social media—or influencers simply don’t interest you. But even if you haven’t followed the story closely, this example offers valuable insights, especially for anyone working in communications, brand responsibility, or corporate communications.

When it comes to corporate responsibility, one poorly framed narrative can have far-reaching consequences—reputational, financial, and even legal.

Quick Recap – What Happened?

Chiara Ferragni, one of the world’s most famous influencers, partnered with Italian company Balocco to launch a limited-edition holiday Pandoro cake featuring her logo. The product was sold at nearly triple the regular price, with messaging suggesting that proceeds from sales would be donated to a children’s hospital in Turin.

However, the key issue was this: the donation had already been made and was not linked to sales. The campaign, however, communicated the opposite—that proceeds from every cake sold would go towards treating children.

Donation, Sponsorship, or Cause-Related Marketing?

In Croatia, the Humanitarian Aid Act defines strict rules for donation campaigns, yet confusion remains. When is it a donation? When is it sponsorship? And where does the company’s responsibility end—and the agency’s advisory role begin?

Donation

A donation is a philanthropic act. By law, it cannot involve an expected return or benefit. There is no “if–then” logic. A company donates because it wants to help—not because it seeks visibility.

Sponsorship

In sponsorship, the rules are clear—a company invests, and the organisation provides visibility in return. The agreement defines what is given and what is received.

Cause-Related Marketing

This is where things get sensitive. It’s a collaboration that ties a product or service promotion to a social cause. Often used in CSR communication, it carries weight because it operates not only with money, but with the audience’s emotions. That’s why transparent communication is essential.

The Role of the Agency – Adviser, Not Executor

Communication agencies often act as intermediaries between clients and the organisations receiving donations. But their job isn’t just to “write a press release.” When it comes to corporate responsibility, the agency must:

  • Raise a flag when the term “donation” is used in a commercial context
  • Suggest alternative framing if there is any exchange of value
  • Insist on transparency at every stage of the campaign

If the message isn’t truthful, the reputational risk quickly outweighs any benefit the campaign was meant to deliver.

Where Did Chiara Ferragni Go Wrong?

The main issue wasn’t intent—it was a lack of transparent communication. Although the donation to the hospital was real, the public was led to believe that the amount depended on product sales.

That opened the door to public mistrust, media backlash, and eventually legal consequences. Ferragni agreed to pay a substantial fine and issued a public apology. But the damage was done.

In her own words:

“Even if the goal is good, if you don’t have control over the communication, misunderstandings can happen easily.”

Who Is Responsible – The Influencer, the Brand, or Everyone Involved?

While Ferragni faced the headlines, the company carried equal—if not greater—responsibility. As the manufacturer, Balocco had a duty to ensure the communication was accurate and clear. The agency involved also shared responsibility if it failed to recognise the issue in time.

In such cases, everyone must understand a basic rule:
If you use social sensitivity for promotion, your communication must be 100% accurate.

When emotion enters the story—especially when children are involved—the public does not forgive mistakes easily.

Corporate Responsibility Isn’t a Trend – It’s a Standard

The Ferragni–Balocco case isn’t just a lesson about influencers; it’s a lesson in how companies (mis)communicate responsibility and how vital professional communication experts truly are.

Next time we define a campaign involving donation, sponsorship, or cause-related marketing, we should ask ourselves:

  • Is the communication completely clear?
  • Is it legally compliant?
  • And most importantly—is it honest?

Audiences know what feels true. And corporate responsibility, above all, is about honouring the trust your audience has placed in you.