E3, Ch 16: Community Stakeholders, Corporate Philanthropy Flashcards
corporate citizenship
a company’s contribution to either the immediate community in which it operates, or society
Drucker’s 2 Guidelines of CSR
First social responsibility of organizations is to eliminate negative impact to society caused by the business’s existence/actions, or minimize this impact
Second social responsibility is to solve social problems – and, make problem-solving into a business if possible
2 conflicting points on Community Involvement
- CSR would argue that making a profit and addressing social problems
are not mutually exclusive - employees (another major stakeholder) receive satisfaction from community involvement
A business exists because of the ______; so, to be a good ______ ______, they should give back.
community
corporate citizen
employee grant stipends
when a company offers grants to employees to then donate to a nonprofit of their choice
corporate sponsorships
ex. “Become a Zoo Atlanta Partner”
volunteer initiatives
partner employees with specialized skills with nonprofits to provide added support or expertise (sabbatical)
community grants
make community grants available for nonprofits to apply for; tend to be a win-win situation
Ex. Delta Foundation awards $3mil to Middle GSU’s Aviation School
community volunteer programs
pillar of CSR encouraging employees to volunteer their time and give back to their community’s initiatives
paid release time and/or company-wide day of service
employees paid to take time off work to volunteer
skills-based pro bono service
ex. Tax accountants volunteer to help seniors complete tax returns
benefits of volunteerism to the employee (4)
- improve morale and meaningfulness of work
- develops teamwork and leadership skills
- mental and physical health
- builds relationships and loyalty
benefits of volunteerism to the corporation (3)
- builds company reputation
- improves employee retention and attraction
- develops employee skills
benefits of volunteerism to the community (4)
- addresses community needs
- saves community resources
- builds pool of future volunteers
- builds awareness of community needs
Business Stake in Community; Businesses can support their local community by… (3)
- sourcing from local businesses (ex. publix)
- joining public policy debates/lobbying
- serving on business-govt committees (ex. US chamber of commerce)
philanthrophy
desire to promote welfare of others, expressed especially by the generous donation of money to good causes
corporate philanthropy
business giving in support of society
strategic philanthropy
new approach where philanthropic effort benefits both society and the business
Milton Friedman: The Opposing View (Capitalism and Freedom, 1962) – few trends could so thoroughly undermine the very foundations of our free society as the….
….acceptance by corporate officials of a social responsibility than to make as much money for their shareholders as possible
Research shows that philanthropic efforts today… (2)
- prioritize advancing social, racial, environmental justice and equity
- want to see specific and measurable impact
Corporate Philanthropy: most corporate donations go toward… (4)
- health and human services (why? Shift from reliance on government toward private sector)
- education
- civic and community activities
- culture and the arts
cause-related marketing
a direct link of a firm’s product → specified charity; includes each time a consumer buys a product, a donation is given to a charity
(ex. Ben & Jerry’s “Empower Mint” ice cream alongside a campaign to educate consumers about ID laws impacting low-income voters)
cause branding
business partners with non-profit to address a certain cause; non-profit receives a boost in donations and business receives a stronger brand
There is a call for transparency; currently companies _____ need to disclose direct donations.
Proponents say the money belongs to shareholders so….
However, some fear that disclosure….
do NOT
they should make the decision, NOT managers donating to favorite charities
would result in fewer donations & reveal company strategy
