In a roundabout way, the article in the url below makes the case for strategic CSR:
"Over half of companies increased their level of corporate giving from 2012 through 2014, and the data in the new Giving in Numbers report suggest self-interest is well served thereby."
Philanthropy is only justifiable, from an operations perspective, if it somehow meets the needs of some of the firm's key stakeholders. Whether that is matching the concerns or values of consumers, motivating employees, or furthering R&D, philanthropy can be justified when it creates value for stakeholders:
"Economist Milton Friedman once wrote that 'There is one and only one social responsibility of business–to use its resources and engage in activities designed to increase its profits.' The pattern of corporate giving is consistent with that green-eyeshade approach to social responsibility. More companies are giving to support education, especially STEM. … However, giving for disaster relief is down. An audience poll of 200 senior giving executives at the CECP Summit in May found 51% rethinking their donations for disaster relief, mainly because of the difficulty of making a business case."
Have a good weekend.
David
David Chandler & Bill Werther
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Corporate Philanthropy and Shareholder Value
By Gregory J. Millman
June 3, 2015
The Wall Street Journal – The Morning Risk Report
