Corporate Philanthropy Programs


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Corporate Philanthropy Programs

  1. 1. Corporate Philanthropy Programs Corporate Philanthropy Programs Professor Hector R Rodriguez School of Business Mount Ida College Business, Society & Environment
  2. 2. <ul><li>Society </li></ul><ul><ul><li>The Corporation and Its Stakeholders </li></ul></ul><ul><ul><li>People for the Ethical Treatment of Animals </li></ul></ul><ul><ul><li>Corporate Citizenship </li></ul></ul><ul><ul><li>The Social Responsibility of Business </li></ul></ul><ul><ul><li>The Shareholder Primacy Norm </li></ul></ul><ul><ul><li>CSR, Citizenship and Sustainability Reporting </li></ul></ul><ul><ul><li>Responsible Investing </li></ul></ul><ul><ul><li>The Community and the Corporation </li></ul></ul><ul><ul><li>Taxation and Corporate Citizenship </li></ul></ul><ul><ul><li>Corporate Philanthropy Programs </li></ul></ul><ul><ul><li>Employees and the Corporation </li></ul></ul><ul><ul><li>Managing a Diverse Workforce </li></ul></ul><ul><li>Environment </li></ul><ul><ul><li>A Balanced Look at Climate Change </li></ul></ul><ul><ul><li>Non-anthropogenic Causes of Climate Change </li></ul></ul><ul><ul><li>Sulfates, Urban Warming and Permafrost </li></ul></ul><ul><ul><li>Conventional Energy </li></ul></ul><ul><ul><li>The Kyoto Protocol </li></ul></ul><ul><ul><li>Green Building </li></ul></ul><ul><ul><li>Green Information Technology </li></ul></ul><ul><ul><li>Transportation, Electric Vehicles and the Environment </li></ul></ul><ul><ul><li>Geo-Engineering </li></ul></ul><ul><ul><li>Carbon Capture and Storage </li></ul></ul><ul><ul><li>Renewable Energy </li></ul></ul><ul><ul><li>Solid, Toxic and Hazardous Waste </li></ul></ul><ul><ul><li>Forests, Paper and Carbon Sinks </li></ul></ul><ul><ul><li>Life Cycle Analysis </li></ul></ul><ul><ul><li>Water Use and Management </li></ul></ul><ul><ul><li>Water Pollution </li></ul></ul>Course Map – Topics Covered in Course
  3. 3. <ul><li>Important aspect of business-community relationship, involves corporate giving to non-profit organizations </li></ul><ul><li>Business is only one part of U.S. society’s generous giving patterns </li></ul><ul><ul><li>In 2005 $260 billion was given to religious, charitable and other non-profit organizations </li></ul></ul><ul><ul><li>Business was small, but important, percentage of overall giving (5%), remainder through individuals and private foundations </li></ul></ul>Corporate Philanthropy Programs Philanthropy in the US by source of gift.
  4. 4. <ul><li>Corporations can give directly or through establishing corporate foundations </li></ul><ul><li>U.S. tax rules since 1936 have allowed 10% of company’s before-tax income to go to educational, charitable, scientific and religious purposes </li></ul><ul><ul><li>Average yearly corporate giving is between 1 and 2% of pre-tax income </li></ul></ul><ul><ul><li>In selected companies and communities, firms give as much as 5% </li></ul></ul><ul><ul><li>Contributions as a percentage of pre-tax income </li></ul></ul>Corporate Philanthropy Programs
  5. 5. <ul><li>Charitable donations (cash) </li></ul><ul><li>In-kind contributions </li></ul><ul><ul><li>Donating products or services </li></ul></ul><ul><ul><li>Category now exceeds cash contributions </li></ul></ul><ul><li>Volunteerism </li></ul><ul><ul><li>Donations of employee time doing community work </li></ul></ul><ul><ul><li>Many companies sponsor and encourage volunteer activities </li></ul></ul><ul><ul><li>A small number of firms offer paid time off for volunteer community service </li></ul></ul>Forms of Corporate Giving Priorities in corporate giving
  6. 6. <ul><li>Strategic philanthropy </li></ul><ul><li>Corporate giving that is linked directly or indirectly to business goals and objectives. In this approach, both the company and society benefit from the gift. Is made directly from the company to community organizations, not through a foundation. </li></ul><ul><li>Increasingly popular approach to corporate giving </li></ul>Corporate Giving in Strategic Context
  7. 7. <ul><li>Areas in which corporate contributions are most likely to enhance a company’s competitiveness, according to Harvard Business Review study: </li></ul><ul><ul><li>Factor conditions - supply of trained workers, physical infrastructure, and natural resources </li></ul></ul><ul><ul><li>Demand conditions – affect demand for a product or service </li></ul></ul><ul><ul><li>Context for strategy and rivalry - designed to support policies that create a more productive competitive environment </li></ul></ul><ul><ul><li>Related and supporting industries - strengthen related sectors of the economy, may also help companies </li></ul></ul><ul><li>Let’s go back to a slide from “The Community and the Corporation…” </li></ul>Strategic Philanthropy
  8. 8. <ul><li>Corporate philanthropy should revolve around those areas where both parties can benefit. Should never be about “writing a check.” </li></ul>What They Want From Each Other
  9. 9. <ul><li>Draw on the unique assets and competencies of the business </li></ul><ul><li>Align priorities with employee interests </li></ul><ul><li>Align priorities with core values of the firm </li></ul><ul><li>Use hard-nosed business methods to assess the impact of gifts </li></ul>Strategies to Optimize Benefits from Contributions