Corporate Giving


One of the most visible ways in which businesses help communities is through gifts of money, property, and employee service. The corporate philanthropy or corporate giving demonstrates the commitment of businesses to assist the communities by supporting nonprofit organizations.

Some argue that corporate managers have no right to give away company money that does not belong to them. According to the line of reasoning, any income earned by the company should be either reinvested in the firm or distributed to the stockholders who are legal owners. The charitable contributions are one additional way in which companies link themselves to the broader interests of the community, thereby advancing and strengthening the company rather than weakening it.

Companies also help local communities through the substantial number of business donations that are not recorded as philanthropy because they are not pure giving. Routine gifts of products and services for local use often are recorded as advertising expenses; gifts of employee time for charity drives and similar purposes usually are not recorded; and the costs of soliciting and processing employee gifts, deductions usually are not recorded as corporate giving. Still, they add value to the local community of which the company is part.

Many large US companies have established nonprofit corporate foundations to handle their charitable programs. This permits them to administer contribution programs more uniformly and provides a central group of professionals that handles all grant requests. Foreign-owned corporations use foundations less frequently, although firms use highly sophisticated corporate foundations to conduct their charitable activities. As corporations expand to more foreign locations, pressures will grow to expand international corporate giving. Foundations, with their defined mission to benefit the community, can be a useful mechanism to help companies implement philanthropic programs that meet corporate social responsibility.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Public Relations (PR)


Public Relations is the management function that evaluates public attitudes, identifies the policies and procedures of an individual or an organization with the public interest, and executes a program of action to earn public understanding and acceptance. In other words a good public relations program has three steps:

  1. Listen to the public: Public relations starts with good marketing research (evaluates public attitudes).
  2. Develops policies and procedures that are in the public interest: One does not earn understanding by bombarding the public with propaganda; one earns understanding by having programs and practices in the public interest.
  3. Inform people of the fact that you are being responsive to their needs: It is not enough to simply have programs that are in the public interest. You have to tell the public about those programs so that they know you are being responsive.

Publicity is one of the major functions of the public relations department. Publicity is any information about an individual, a product, or an organization that is distributed to the public through the media and that is not paid for, or controlled by, the sponsor.

Other activities include:

  • Establishing contact with civic groups, consumer organizations, and other concerned citizens to learn their views of the organization, to answer their questions, and to provide information (or education).
  • Opening lines of communication with customers, suppliers, distributors, retailers, stockholders, government agencies, educators, and community leaders.
  • Conducting studies to find the economic, environmental, and social consequences of organizational practices and to learn how to make a more positive contribution to customers, stakeholders, and society.
  • Providing any assistance needed to adjust the goals, policies, practices, personnel policies, products, and programs of the organization to meet the needs of changing markets.
  • Assisting all members of the firm in developing effective programs of consumer information and education.
  • Sending speakers to schools, clubs, and other such groups to maintain an open dialogue with students and other socially active members of society.
  • Creating incentives for employees to participate in public-affairs activities such as raising funds for charitable groups.
  • Answering consumer and other complaints promptly and correcting whatever it was that caused the complint.
  • Training employees or volunteers to provide prompt, friendly, courteous, and helpful service to anyone who contacts the organization in person, by phone, or written correspondence.
  • Demonstrating to society the organization is listening, reacting, adjusting, and progressing in its attempt to satisfy its diverse publics.
  • Opening two-way communications with employees to generate favorable employee opinion and to motivate employees to speak well of the organization to others.

This is an incomplete description of all the activities and responsibilities of the PR people, but it at least gives some feeling for what they do.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

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