Social and economical reasons for business community involvement

  | April 2010  Posted in Business   |   1 Comment   

What was once considered good PR, or window dressing for community relations is no longer a choice. Consumers, employees and society expect corporate Social Responsibility (CSR) from most if not all corporations.  This has driven companies to become more involved either in supporting their own causes or causes that support rehabilitating the environment, which they are destroying.  What does a company do to engage in the community or corporate philanthropy?

• Supporting local charities
• “Going Green”
• Establishing their own charities
• Promoting employee volunteer programs
• Campaigning for a good cause
• Education funding programs
• ETC…

Companies that are involved in their community and that promote corporate philanthropy likely have some personal agendas.  Their agenda could be for tax exceptions/credits, positive brand image, increased government funding or to draw the attention of a quality workforce. One example, all over the printers in the school library you will see notes that say something like these printers print on both sides of the page; your teachers have been informed CGC is going green!  When I first saw this I had the thought, good they are saving paper.  My second thought, they are saving money or getting more government money by implementing a “green” campus!

CSR according to Friedman is to increase its profits (The Social…).  And by increasing its profits it can have a positive and negative impact on the community and economy.  In Reason magazine I found an article written by John Mackey CEO of Whole Foods in response to Friedmans previously motioned article.  In Mackey’s attempts to sound like a none self-serving philanthropist he points out that when he and his employees get involved in the community they target communities that are more likely to encompass the demographics of their target market.  Therefore, drawing more people to his stores through promoting his brand at charity events and community activities (Rethinking…).

Social and economical reasons for a company to get involved…(textbook 156)

• Community
• Competitors
• Advocacy Groups
• Stockholders/Investors
• Customers
• Employees
• Events/Crises
• Government
• Request for philanthropy
• Financial
• Social
• Environmental

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