Have you heard of corporate philanthropy? This practice brings benefits to society and also to the company. Knowing its advantages, large corporations have already introduced philanthropy into their organizational culture, helping to improve society.
In this post, we will explain:
- what corporate philanthropy is;
- how it helps an organization;
- present some cases of companies that apply it frequently.
Are you interested in the subject? Then keep reading the post!
What is corporate philanthropy?
To better understand what is corporate philanthropy, the first step is to assimilate what philanthropy means.
The word, of Greek origin, means deep love for humanity. Today, understanding this concept includes voluntary donation to a person or group, which promotes social improvement.
It is generally seen as a financial donation, but also includes dedication of time to help someone else.
Corporate philanthropy can be understood as the participation of companies in causes aimed at the well-being of the community, through donations in cash or facilitating the participation of employees in community causes.
What is the difference between corporate philanthropy and social responsibility?
The concepts of philanthropy and social responsibility in companies are constantly confused.
While the philanthropy involves a strong moral sense and is based on an action without any type of planning or waiting for results, the social responsibility is based on actions aimed at:
- production and income distribution, always in search of promoting a better quality of life.
As a practical example, from the moment a company uses local labor or natural resources in its production processes, it has a responsibility for all of its surroundings.
Another important difference between the two concepts is that while the philanthropy offers immediate help in solving emergency problems, a social responsibility has long-term effects, with a focus on survival and sustainability.
What are the advantages of corporate philanthropy?
In addition to the help to society that companies experience when practicing philanthropy, the explosion of social media makes these initiatives better known to the general population.
Therefore, a well-structured corporate philanthropy strategy can bring several advantages, as consumers are more interested in organizations. who care about the environment in which they live.
In addition to increasing the value of the external corporate image, initiatives like these reinforce employer branding strategies.
Volunteering, when stimulated within the company, still encourages greater employee engagement.
For it to work, corporate philanthropy must have identification with the organizational culture, be motivating and not be limited to isolated action, extending over the long term.
Which companies are betting on corporate philanthropy?
Discover 5 companies that practice corporate philanthropy and how they do this work.
As soon as CEO Tim Cook took the lead at Apple, he organized a program to combine employee donations. The result was more than $ 25 million in donations from employees only, with more than $ 50 million going to charities.
In October 2014, the company reported the expansion of the corporate donations program in all countries in which it participates.
In addition, the volunteer grant program provided employees with $ 25 an hour for their respective organizations.
In the company's first year of operation, in 1983, Microsoft managed to raise about $ 17,000 for nonprofits. The company also donates equipment to other corporations in an effort to bring all organizations into the 21st century.
In addition, the company also offers a support program, in which nonprofits receive $ 25 an hour when Microsoft employees have volunteered for at least 4 hours.
Shell offers great support to the community, through long-term philanthropic relationships. The company has already donated an additional $ 24 million to the University of Texas, in addition to a program in which for each donation between $ 25 and $ 5500, the company also makes a donation in the same amount.
Pepsi tends to prioritize philanthropic causes related to food and beverages, such as:
- healthy lifestyle;
- access to clean water;
- Sustainable Agriculture;
- between others.
Among the company's corporate philanthropy programs are:
- volunteering in communities in Africa, India and Mexico;
- the construction of a water purification tower in China;
- the offer of free meals;
- support for sanitation initiatives.
Google has a number of corporate philanthropy options. With about 70 offices spread across more than 40 cities around the world, Google's philanthropic projects have a wide reach.
There are about 6,500 employees who volunteered for causes for around 80,000 hours, in all. In addition, $ 21 million was donated to more than 9,000 non-governmental organizations.
Google's philanthropic programs include:
- support for local communities;
- technology to help in education, among other initiatives.
Now that you know more about corporate philanthropy, how it benefits companies and some cases of large corporate initiatives, how about thinking about how your organization can help the community?
They can be punctual actions to help your neighborhood or less favored people, the important thing is that it be a positive action!
Defining the culture of a company and the actions it will support is also part of the range of actions related to people management, which need attention within your company.
Doing all this alone, can be a difficult mission to complete, so count on HR Consultant UK. We are a Human Resources platform that will transform the way your company manages people. Talk to an expert and find out how to reduce your HR costs by 30%.
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