Modern-Day Strategic Corporate Philanthropy

“In almost any gift-giving situation, there is some expectation of return, whether is it a tax deduction, a named building, or an enhanced reputation. That’s why anonymous gift giving is so rare. Giving always occurs within a social context that makes a gift reciprocal in nature. Perhaps corporations that give with some expectation of return are only being more strategic and explicit than predecessors who gave with equal expectations but said less about it – or who gave without planning. For a gift to be genuinely altruistic in nature, that is, for it to demonstrate other-centered love, it must have benefit to the recipient as its primary motive and purpose, but not necessarily its only motivation or purpose. Therefore, strategic or “smart” giving may be regarded as ethical.”

From: Media Ethics: Cases and Moral Reasoning. Christians, Clifford. 2001.

The quote above simply suggests that corporations, like a vast majority of individuals today, naturally expect something in return for gift giving. Corporations that give donations or any other types of gifts to benefit an organization or cause, automatically expect some sort of reciprocation for their contribution. This quote also suggests that corporations that give gifts should not only be unselfishly concerned/devoted to the recipient’s cause, but should also give to genuinely benefit the recipient’s main purpose. If this is the case, then the gift giving can be regarded as strategic, as well as ethical.

Personally, I agree with everything this quote says, and believe that it’s a smart business move for corporations to strategically plan out gift giving expecting something in return. By implementing this strategy into philanthropy, corporations can not only benefit the recipient, but benefit themselves as well. These beneficial aspects include enhancing corporate image, increasing brand awareness, improving government/media relations, and maintaining a positive reputation through the eyes of key publics. Also, many corporations use philanthropy to demonstrate involvement and dedication to the community, and to prove their manifestation of social responsibility. The true question this quote brings to light in regards to corporate philanthropy is what constitutes strategic gift giving, and what doesn’t? Below are three excellent examples of corporations that exhibit social responsibility and strategically give.

• Home Depot Foundation and Habitat for Humanity International have partnered up and created a five-year, $30 million program to help build sustainable, energy-efficient homes for low-income families. Home Depot donates building materials from their stores to the Habitat’s volunteers, who then use these materials to build homes for underprivileged families. By doing this, Home Depot Foundation is being strategic because they are not only helping benefit the Habitat’s primary purpose (building homes), but also using their own products to do so. Because these donated products are “green,” Home Depot is letting people know that they are a caring, eco-friendly corporation involved in helping to better the community. This gives people the impression that they are compassionate and devoted to positive change, which in turn enables people to trust and buy Home Depot’s products. The following video briefly explains the partnership, and talks about the Home Depot Foundation’s Award of Excellence in Affordable Housing Built Responsibility.

• Exxon/Mobil, the well-known oil/gas company uses a tiger as their logo, and has donated millions in previous years for the protection and conservation of Asian tigers and their environment. This program, known as the Save The Tiger Fund has directly helped wild tigers, but also led to cooperation between the company and government agencies, businesses, and Asian citizens. While conserving, protecting, and restoring the Asian tiger population they are also investing in major Asian river systems and vegetated land, which has directly impacted the lives of people as well. The rivers have provided citizens with an easy mode of transportation and clean drinking water, while the vegetated land has helped conserve carbon. This establishes the fact that the corporation implements strategic philanthropy into its business plan because it shows a dedication to helping the environment as a whole. This strategic giving allows people in the U.S. and abroad to associate Exxon/Mobil as a friendly, environmentally conscious company involved in positive change.

• The Coca-Cola Foundation partners up with numerous organizations around the globe as an effort to fund and support initiatives, programs, and projects that will positively affect community needs and priorities. The Foundation focuses its community support on water stewardship, healthy and active lifestyles, community recycling, and education. They even have an online application for individuals to request charitable contributions and community support that directly align with the Foundation’s overall community investment priorities. By doing this, they are being strategic because they are letting people have a say in which causes receive donations. This tells people that the Foundation truly cares about them and the communities they live in.

For more information about charitable giving as a strategy, please click on the following links:

• Corporate Philanthropy Benefits.
• Charitable Giving at Major Corporations.
• Getting Started in Corporate Philanthropy.
• Most Charitable Corporations (2007).

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