Corporate Philanthropy Essay

IntroductionIn an increasingly competitive global environment, businesses are challenged with demands for profitability and responsibility. To create value for all stakeholders, corporate leaders meet these demands with integrated strategic philanthropic programs. More and more companies encourage and embrace greater collaboration and cooperation between corporations and communities.I. The competitive advantage of corporate philanthropyIn this first part, we will demonstrate that usually businesses that fill to employ corporate freehanded pose benefit in galore(postnominal) different ways from their actions. * First, these businesses could increase their reputation amongst the general public, and also begin to attract new consumers to their business as well. * Secondly, businesses that choose to help out their communities could increase their employee retention rates signifi apprizetly as well. Happy employees will increase their productivity levels. * Thirdly, when companies op t to engage in this giving activity their stockholders begin to build a level of confidence in the business.TRANSITIONIn addition to customers behavior vis--vis different philanthropy programs or CSR in general, it was also been proved that philanthropy inside a company increases the employees motivation and thus their commitment and productivityA. Corporate philanthropy boosts employee moraleOne of the most important components of corporate philanthropy is to provide avenues/means for employees to be personally involved in a companys commitment to social responsibility. It is widely understood that supporting local causes is a good way for a business to develop a positive image and reinforce its relationships with customers. In the process, it can also boost morale among employees. * According to experts employees who have a favorable impression of their companys philanthropic program are four generation more likely to be truly loyal employees than those who do not, and are five quantifys more likely to remain with their employer. * They concluded that philanthropy is decidedly a factor in how employees evaluate their employers. In all, employees whose companies participate in good corporate social responsibility and philanthropy reported feelings of pride in their workplace, a sense of belonging as part of a family, and admiration for the good deeds their company accomplished.* Corporate philanthropy programs also present many opportunities for team building that would not normally occur during a typical day in the office. Employees are able to partner together and work in team environments outside of their direct work groups. People from different departments or offices, who typically wouldnt see each other during a workday, can table service a meal, volunteer in a classroom or help build a home, side-by-side. This labors a greater sense of camaraderie. Concretely, to encourage employees participation in corporate philanthropy, experts advices busines ses to implement some practices Involve employees in community outreach decisions many companies create committees to make decisions about contributions or company volunteer activities Start a matching gifts program this allows your company to add to employees donations designated for nonprofit organizations. It can encourage charitable giving while showing appreciation for employees. Encourage volunteerism. Many stack want to volunteer, but cant find time in their lives to do it. Participating in employer-sponsored programs allows employees the opportunity to volunteer.. Some businesses provide paid time off for employees to devote time to a nonprofit, while others structure an annual company-sponsored employee volunteer day or series of ongoing events.B. Corporate philanthropy builds shareholder valueAccording to the Harvard Business case on coporate philanthrophy, Professor Friedman said that business executives who speak of the social responsibilities of corporations are prea ching pure and unadulterated socialism. He claimed that corporate executives must have only one objective- to make money as much money as possible-and that spending corporate funds to promote social goals detracts from the bottom line. However, according to William C. Steere, Jr, Chairman of the Board Emeritus Pfizer Inc, corporate philanthropy also enhances shareholder value. Pfizer, Inc. is an American multinational pharmaceutical corporation headquartered in New York City. It is the worlds largest pharmaceutical company by revenues. Pfizer develops and produces medicines and vaccines.