Aarp
Case Report – AARP and AARP Services, A Multi-sector Approach to Social Change
Situation:
AARP was one of the largest, most well known nonprofit organizations in the United States. Its membership base exceeded 38 million individuals, by far the largest nonprofit membership base in the country (see AARP case pg.1). It developed activities in the commercial, charitable, and political arenas, and adopted a truly cross-sector approach to achieving its mission to “enhance the quality of life for all as we age.”(see AARP case pg.1) Social impact, member value, and revenue were its triple bottom line which was measured to progress against this mission. Social impact included objectives of financial security, health security, and livable communities that AARP believed would improve older Americans’ quality of life. Member value provided access to products, services, programs, and publications that were unique in the marketplace and would deliver economic value to members. Revenues were generated from a royalty on the sale of products by the providers and from membership fees, which were reinvested to fund the social impact and member value objectives (see AARP case pg.1). However, AARP felt it was underappreciated by the public, and received relatively little attention from journalists, thought leaders, and academics for its enterprising approach. Moreover, it also faced the public relations challenge which was the controversy over the fundamental principles of its cross-sector model. New competitors’ emerging was another important issue which would threat AARP’s business (see AARP case pg.2).
Problem Definition: 1. The controversy over the fundamental principles of its cross-sector model was challenged by the public. AARP’s effort to support the passage of Medicare Part D legislation by Congress in 2003 caused intense reaction by opponents. AARP Financial was launched to directly manage and market mutual funds and manage other AARP-endorsed financial products to
Situation:
AARP was one of the largest, most well known nonprofit organizations in the United States. Its membership base exceeded 38 million individuals, by far the largest nonprofit membership base in the country (see AARP case pg.1). It developed activities in the commercial, charitable, and political arenas, and adopted a truly cross-sector approach to achieving its mission to “enhance the quality of life for all as we age.”(see AARP case pg.1) Social impact, member value, and revenue were its triple bottom line which was measured to progress against this mission. Social impact included objectives of financial security, health security, and livable communities that AARP believed would improve older Americans’ quality of life. Member value provided access to products, services, programs, and publications that were unique in the marketplace and would deliver economic value to members. Revenues were generated from a royalty on the sale of products by the providers and from membership fees, which were reinvested to fund the social impact and member value objectives (see AARP case pg.1). However, AARP felt it was underappreciated by the public, and received relatively little attention from journalists, thought leaders, and academics for its enterprising approach. Moreover, it also faced the public relations challenge which was the controversy over the fundamental principles of its cross-sector model. New competitors’ emerging was another important issue which would threat AARP’s business (see AARP case pg.2).
Problem Definition: 1. The controversy over the fundamental principles of its cross-sector model was challenged by the public. AARP’s effort to support the passage of Medicare Part D legislation by Congress in 2003 caused intense reaction by opponents. AARP Financial was launched to directly manage and market mutual funds and manage other AARP-endorsed financial products to