CHAPTER 14:

GIVING BACK
TO SOCIETY

INTRODUCTION

In this chapter we will discuss how private sector used it

resources to give back to society

Brief history of Corporate Philanthropy

How Corporate Philanthropy become Strategic and

Professional

Forms of Corporate Philanthropy

Examination of Employee Volunteering
Controversies of Corporate Philanthropy
Corporate Programs and Criticism

INTRODUCTION

In this chapter we will discuss how private sector used it

resources to give back to society

What is Philanthropy?
means "love of humanity" in the sense of caring,
nourishing, developing and enhancing "what it is to be
human" on both the benefactors and beneficiaries part.
The most conventional modern definition is "private
initiatives, for public good, focusing on quality of life".

OVERVIEW OF CORPORATE
PHILANTHROPY
19th
Century
-Coming of Industrial Revolution
-Many businessman were known for their
charitable giving and become important
philanthropist
-Charities and Church were the main provider
of welfare
-person with no family and strong religious
belief donate large sum of money.

OVERVIEW OF CORPORATE
PHILANTHROPY
It is believed that there is a relationship between the
interest of:

Business

Society

Which is highlighted by the statement of:

What is good for United States is good for General

Motors
- Charles Wilson, President of General Motors

OVERVIEW OF CORPORATE
PHILANTHROPY
th
took responsibility for the social welfare
20-Government
function.
Century

-charities become pioneers in developing solutions to problems

such as poverty, homelessness and addiction.

Recently Government start the privatization

of many welfare services.

OVERVIEW OF CORPORATE
PHILANTHROPY
Emerging because of 2nd World War corporation and restricted in involving

in social affairs.
to cut workplace abuses
to prioritize corporation actors before societies actors.

This situation changed in 1953. Which encouraged the

formation of many private foundation, to which donation are

channeled to wide variety of causes

Donations were often disconnected from business activities.

START OF STRATEGIC
PHILANTHROPY
What is strategic Philanthropy?

Strategic philanthropy is a unique and powerful way to

combine your company marketing goals with your desire to
increase the well-being of mankind.
Strategic philanthropy is a positioning that connects your
company with a not-for-profit organization or cause. In this way,
while you are being helpful and working for the common good
in your community, your business is receiving parallel benefits.

CAUSE OF STRATEGIC
PHILANTHROPY
The pressure on government to cut public sector spending has resulted in

demands for companies to assume a greater role in society

At the same time, shareholders are expecting higher returns in their

investment even though competition has increased.

THE OXYMORON OF STRATEGIC

PHILANTHROPY:
STATEGIC
Egoistic pursuit of self
interest

PHILATHROPY
Refer to the behavior
motivated by concern of
others and the society at
large.

Does it matter that business in not truly

philanthropic?

2 TYPES OF BEHAVIOR IN
STRATEGIC PHILANTHROPY:
1st is charitable giving that is expected to serve

dual role of advancing both societal and

business goal.

2nd is general mobilization of corporate

resources in support of charitable causes.

PATTERNS OF GIVING
BEHAVIOR
Newness in
Philanthropic
Activities

Level of
Managers
Discretion

Exposure to
public
scrutiny

Industry

Profitmotivated
expenses

Availability of
Resources

PHILANTHROPY AS
BUSINESS
The rise of strategic philanthropy has taken place in parallel to a more

business like and professional approach.

-more engaged form of philanthropy

Venture
Philanthropy
-based on the principle of venture capital investment that
offer organizations managerial and technical support in addition to
capital funding and loan.
Philanthropy may have developed into financial services offered by large

company and asset management company.

CASH AND IN-KIND

DONATION
CASH

PRODUCTS AND
OTHER GOODS

SETTING UP
OF
FOUNDATION

EMPLOYEE VOLUNTEERING
Employee Volunteering has become an increasingly popular way for business to

engage with their surrounding community.

In general it is a way to contribute in the community but it also benefit the company:

Building contact to local community

Enhancing reputation
Providing understanding of the external environment
Increase in employee morale
Team building
Reputation in the community
Increase in network
Feeling of giving something back

EMPLOYEE VOLUNTEERING
Reasons for volunteering includes both altruistic and egoistic desire.

FEW FACTS:
Women tends to volunteer than men
People 50 and above are more likely to volunteer
Volunteering is an opportunity to share core values
Direct contact on the community motivate in
volunteering.
Larger firms likelier to promote employee
volunteering and also organization in the field of
finance and public administration rather than
construction.