In the June 2008 issue of Inc. Magazine, there’s a short article about corporate giving that paints a somewhat unflattering view of privately held American companies. While the numbers are impressive, the article points to the rationale as to why companies give and draws the conclusion that the companies, at least the ones they spoke to, have less than altruistic reasons for their charitable giving.
So, let’s start with the numbers from the Grant Thornton International Business Report survey:
94% of US respondents said they donate to community groups or charitable causes
65% of companies in other countries reported doing the same82% of US businesses actively participated in community service projects
55% of companies in other countries reported having done so
But, those numbers tell a different tale when the companies were asked why they participated in these activities. Both US and non-US companies stated the main reason for their activities was to promote recruitment and retention. That fact alone would make the survey results somewhat disappointing but it was the last finding of the study mentioned in the article that truly paints a less-than altruistic picture, at least according to the author.
21% of US companies said their efforts were motivated by “saving the earth”?
40% of companies worldwide reported “saving the earth” as a major motivator for their gifts of time and money
It would seem that those two numbers lead to the conclusion that Americans are less interested in doing good, again, at least to the author. He goes on to paint a somewhat cynical view of these numbers and closes the article with a quotation of “Why not do this?”
Personally, I strongly disagree with the conclusions made here. Let’s think about this a bit more objectively. You own a company that makes blankets and you provide blankets every year to the local homeless shelter. If someone walked up to that company owner and asked him or her why they were donating those blankets, what are the chances they are going to tell you it’s because they want to “save the world”??
One of the most loving and biggest charitable events that I have ever been a part of is the annual Raul Jimenez Thanksgiving Day Dinner in San Antonio, TX. Every year, the Jimenez family feeds tens of thousands of Texans a Thanksgiving dinner with all the fixings. Local bands perform and thousands of volunteers, like myself, come for the days of preparation, the day-long event, or just for a few hours to help feed the crowds of poor, lonely, or anyone else who might not have a place to go on the holiday. Trust me, “saving the world” is not part of what motivates that family to continue an event that truly shows how thankful they are for their good fortune.
I am disappointed by the results of the study and the implied conclusion that if a charitable gift is not motivated by “saving the world” it is somehow less of a gift. What that study failed to recognize is the millions, if not billions, of dollars and hours of time given by American companies, both large and small, that are given for much more personal and pure reasons than “saving the world”.
The problem with most surveys is that they, by their nature, have only a few choices for respondents to pick from. The Jimenez dinner was a gift given to the people of San Antonio by a local businessman wishing to share his success with his community. He had no illusions of saving the world.
The subtitle of the piece is “U.S. companies are by far bigger givers than their global counterparts. Yet they’re not particularly interested in doing good.”
So very sad, that in order to do good in 2008, one must be part of the cliche; as saving the world has truly become an almost meaningless phrase. The author seems to tie the whole article to the cynical view that what giving is done by US companies is driven to a huge extent by the marketability of their social responsibility and converting it into sales and that they don’t particularly care about the people or organizations they are helping.
Whether their reasons are pure, as the Jimenez family’s are, or purely for recruitment and retention, does it really matter why people are doing good things for others in the long run?
Since when does the donation of money and/or time have to be related to “saving the world” to be worthwhile?
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You can take whatever you wish from such numbers … in my view, all they reveal is the writers bias.
There is no wrong reason for ‘doing good’. When I put a few dollars in a contribution box, it’s not to save the world … it’s to fix a smaller problem that is part of the larger whole. If I claim the tax deduction that goes with it, does that somehow negate the contribution?
I think not. So how is it different if the corporate ‘do-good’ dollar also purchases positive advertising?
Hi Bill,
What most dismayed me about this article was the idea that if a company’s rationale for donating was not somehow related to saving the world or within the Al Gore global warming agendas that the gifts somehow mattered less.
I do have mixed feelings on the credit that companies and individuals seek for their good works. Many in my family would argue with you that tax deductions do lessen the gift. I’m somewhat on the fence on that one – though I think getting $3-5 credit for donating a pair of used underpants is ridiculous.
The entire aspect of the greater good seemed beyond the writer’s view. This was obviously a piece with an agenda and the fact that so many companies are sharing their success seems conveniently overlooked.
I deal mainly with smaller businesses and many cottage industries. Crafters as a whole are very in tune with the needs of others and many donate portions of their earnings to charities like their local humane society, domestic abuse groups and Meals on Wheels. None of those donations would fit the ‘saving the world’ concept, but all would certainly be for the greater good of the community.
In the long run, I’d much rather see a company “buy” advertising by helping people than through a splashy marketing campaign.
I admit that I would be more likely to do business with Target than Wal*Mart due to the continual support of the communities where their stores are located. For Target, community is truly part of their culture; for Wally World it is definitely only a marketing ploy.
Thanks for visiting my blog and thanks for the comment.
Michele