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.

 

Nature of Business Market


Like final consumers, an organization purchases products to fill needs. However, its primary need—meeting the demands of its own customers—is similar from organization to organization. A manufacturer buys raw materials to create the company’s product, while a wholesaler or retailer buys products to resell. Companies also buy services from other businesses. Institutional purchases such as government agencies and nonprofit organizations buy things to meet the needs of their constituents.

 Business buying decisions, while handled by individuals, occur in the context of formal organizations. Environmental, organizational, and interpersonal factors are among the many influences in B2B markets. Budget, cost, and profit considerations all play parts in business buying decisions. In addition, the organizational buying process typically involves complex interactions among many people. An organization’s goals must also be considered in the organizational buying process.

 The B2B market is diverse. Transactions can range from orders as small as a box of paper clips or copy machine toner for a home-based business to deals as large as thousands of parts for an automobile manufacturer or massive turbine generators for an electric power plant. Businesses are also big purchasers of services, such as telecommunications, computer consulting, and transportation services. Four major categories define the business market: 1) the commercial market, 2) trade industries, 3) government organizations, and 4) institutions.

 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

Strategic Planning Process


The process is orderly, deliberative, and participative and has following ten steps:

  1. Initiate and agree upon a strategic planning process.
  2. Identify organizational mandates.
  3. Clarify organizational mission and values.
  4. Assess the organization’s external and internal environments to identify strengths, weaknesses, opportunities, and threats.
  5. Identify the strategic issues facing the organization.
  6. Formulate strategies to manage these issues.
  7. Review and adopt the strategic plan.
  8. Establish an effective organizational vision.
  9. Develop an effective implementation process.
  10. Reassess strategies and the strategic planning process

These steps should lead to actions, results, and evaluation. It must be emphasized that action, results, and evaluative judgments should emerge at each step in the process. In other words, implementation and evaluation should not wait until the “end” of the process but should be an integral and ongoing part of it.

The process is applicable to public and nonprofit organizations, boundary-crossing services, inter-organizational networks, and communities. The only general requirements are a dominant coalition that is willing to sponsor and follow the process and a process champion who is willing to push it.

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