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.

 

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Roles, Prestige, and Organization Value


A role is a part or a function performed by a person in a particular position or situation. With most roles that are associated certain expectations of behavior. For example, we expect anyone who is a company president to behave differently from a junior employee, or the foreman to behave differently from the workers, or the coach differently from the player. Thus, it is that if we know someone’s role (which is often indicated by his job title or assignment), we can make some reasonable predictions about some of his behavior, even though we do not know the person. If a particular person behaves differently than is generally expected of someone in his role, uneasy feelings, often negative, frequently result.

 In a given organization, various roles have to be performed, and each of them is likely to carry a certain prestige, the amount of which will depend on the importance of that role to the achievement of goals and on preconceived expectations of the role. For example, we expect the role of president to be more important that that of general manager, and more prestige is accorded to the president. The roles and prestige of individuals and groups are useful to note because they help influence behavior and interrelationships in significant ways. Think how role expectations might affect a general manager as he deals with the president, a shop foreman, a worker, and his secretary. If you think his behavior might differ, why do you think so?

 You can predict rather easily the prestige accorded certain individuals and groups and the roles they perform. Think for a moment how both things and space serve as status symbols in a business organization. Observation of such symbols help indentify the relative value assigned both individuals and groups.

 By noting the resources, things, and space allocated to work groups and people, and the nature and conditions of their work, and by considering these factors in the context of the total organization, we can often get good understandings of both their relative status in the organization and some of the factors influencing them. In addition, such observations indicating something about the values of the organization. By noticing the quantity and quality of various facilities and people, and by observing the things and help high-status people have (and low status people do and do not have), you can make reasonable deductions about the values of the organization. For example, you can tell something about the college that has a large new library and no stadium as compared with one that has a large stadium and a small library.

 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, Line of Sight