May 09, 2008
The End of Philanthropy?
While corporations award billions of philanthropic dollars each year, they need to do more to truly aid the world, says Marc Benioff, the chief executive officer of Salesforce.com, a software company.
“It’s a large amount, but the world’s problems go beyond what funding can fix. Too many corporate philanthropic efforts occur in isolation, with little relationship to their community, employees, or corporate missions,” he writes on The Huffington Post.
If businesses harness all their assets — workers, expertise, money, and products — for good causes, it could mean the “end of philanthropy,” he says.
“Together, companies can unite so that communities don’t have to wait for the generous gifts of the very wealthy. Together, we can create a model that is simple, sustainable, and successful. We call it “the power of us” and there’s room, reason, and benefits, for everyone,” he writes.
As an example, he writes, Salesforce.com follows the so-called 1/1/1 approach — pledging 1 percent of its shares to a foundation, donating 1 percent of its product to charities, and committing 1 percent of its employees’ work hours to volunteer service.
What do you think? Is a better approach to corporate giving needed? What do you think of the way Salesforce.com gives?
— Ian Wilhelm
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Hi Ian —
Corporations today are getting increasingly smarter about aligning their giving with core business objectives. Today the social contract demands that a corporation engages with society to earn its “license to operate.” Bringing as many corporate assets — $, employee knowledge, products and services, supply chain etc, into play along with a mindset of a longterm commitment to social issue engagement is becoming the norm. Sustainable approaches are necessary for the corporation and for society.
I like the innovation that Salesforce.com has brought to the marketplace. It may not become commonplace, but that concept challenges other companies to push the envelope.
— carol cone May 10, 09:14 PM #
In “Corporate Social Investing”, Curt Weeden established a template for corporate giving. He recognized the importance of corporations forming alliances with nonprofits to improve the communities in which they do business. Weeden promoted the concept that through social investing companies seek a return. That return can be at various levels. While some investments will impact the bottom line, the company’s overall push for success could include reputation building and brand loyalty.
Establishing strategic partnerships with nonprofits to impact our communities is like planting a seed which reaps benefits both today and tomorrow. The seed not only establishes brand loyalty for goods and services, but also new and existing employees.
As baby boomers retire, skill shortages will be more of an issue than the predicted labor shortages. Those corporations which have invested wisely in their communities will have an advantage in recruiting and retaining key employees. Community success, nonprofit success, and in turn corporate success are all tied to employment.
— Frank K. Simon, Jr. May 13, 09:50 AM #
If the for profit sector stopped externalizing costs, it would solve more problems than it could by social engineering.
— Chris Casqilho May 14, 05:18 AM #