April 04, 2007
New Attention Focused on the Mix of Business and Philanthropy
Is increased coverage of the collision of business and “social good” by business magazines such as Forbes, The Economist, and Fast Company good for philanthropy?
Susan Herr, the author of Philanthromedia, says the answer to that question is a definitive yes.
Ms. Herr analyzed the April 9 edition of Forbes and found seven articles that talked about melding social good with turning a profit. Those seven articles accounted for about 20 percent of the magazine’s articles, she estimated.
While some in the nonprofit world argue such coverage puts too much of an emphasis on profit and less on traditional philanthropy, Ms. Herr says she believes it is indicative of a shifting mindset. An increasing number of people, she says, believe that they can make money while also trying to improve the world.
“I’m clear on the fact that my analysis will be faulted by those who believe this coverage is more about profit than good and, transitory or here to stay, is really not about making the world better,” she writes. “Such perspectives baffle me Who can rub her belly and pat her head at the same time? Given two options to make money, is it not possible that folks who have made a lot might select those that does both?”
(You can read more about the recent attention on philanthropy by magazines in the current issue of The Chronicle of Philanthropy.)
How should the news media handle covering the mix of social goals and business? What difference does it make to nonprofit groups? Click on the comments link just below this posting to share your thoughts.
Comments
Commenting is closed for this article.
Previous: Questions for Anti-Obesity Effort
Next: Taking Aim at the NCAA's Tax Status
I think that any discussion about the role of social values, rather than simply a pure focus on the bottom line, is a good sign for our sector. The risk, of course, is that these discussions are really just extensions of complex marketing programs aimed at “cause conscious consumers.”
However, the emergence of this trend comes at a time when a record number of people are working in the “social sector,” and at a time when we are seeing an unprecedented number of charities being created. The confluence of these trends cannot be pure happenstance: rather, I truly believe that our society is beginning to realize that a socially conscious business is actually a more sustainable enterprise that can achieve longer term success than a business that is purely focused on the financial returns.
Of course, discussions in Forbes are one thing. The true sign of change will be when shareholders begin to voice their opinions in favor of social objectives rather than short-term financial returns. I believe that we are yet a long way from that.
— Jeremy Gregg Apr 4, 11:23 PM #
As Arthur Brooks recognizes in his most recent book, there is a distinct difference in the way public charities need to appeal to donors of different generations. The younger generation of philanthropists want impact for their dollars. I believe they also want integration- life, business, and philanthropic activity can have dramatic overlap. Philanthropy needs to be “de-deified” so that it may be more acceptable and better integrated by everyday people. The notion that philanthropy consists of only high ticket fund raisers and black tie events needs to be shattered. Philanthropic suppport should be an everyday activity integrated with long term business plans and goals and the daily purchase of goods and services in one’s life. Integrating social goals and business makes great strides towards demystifying and “de-deifying” philanthropy.
— Donald Cummings (Blue Haven Capital) Apr 7, 09:30 AM #