Is Corporate Charity Really Charity?

"Strategic philanthropy" This is not new to corporations. This is something that has been going on for a while. It is when the purpose of a corpoartion in giving charity is to boost sales and company credibility. So is this really considered to be charity then? I believe that the charity that a company gives is just another way for the company to advertise. The charity given is another way for the company to have another in on the marketing scheme. Although their are alternative motives in corporate charity, it is also nice to know that the company does help when help is needed. But don't be fooled into thinking that the company is doing it completely out of the kindness of their hearts. Nothing is free in life and corporations have done their math to make sure that the charity that is given will be paid back through the theory that "Charity Pays." Corporate Charity

1 comment:

Dr. Tufte said...

-1 on Liz's post for grammatical errors.

I guess you could call "strategic philanthropy" an investment in goodwill.

I have no doubt that some of this is done with an eye towards the bottom line, but I also wonder how much of it reflects an agency problem in firms.