Global corporate philanthropy: a strategic framework

Abstract

Over the past decade, corporate philanthropy has undergone two fundamental transformations – strategic refocusing and globalization. Faced with scarcer resources and downsizing, leading firms have redefined philanthropy by tying it directly to corporate strategies and business units. Philanthropy is now seen as a component of long‐term competitiveness, rather than a short‐term image builder and sales generator. Internationally it can not only enhance and unify a global image, but also help open emerging markets through much‐needed social programmes. This high potential is unfortunately matched by an equally high risk. Global philanthropy can represent an ethical minefield, owing to extreme difficulties in monitoring subsidiary operations. In order to address this issue, presents a dual strategic framework for multinationals and their non‐profit counterparts. Adopts a stepwise approach, starting with a mission review and moving to a partner screening process, an internal audit and action plan, followed by actual programme development and performance monitoring. Despite the complexity of global corporate/non‐profit alliances, this strategic approach can minimize ethical and financial risks and give both entities a powerful competitive edge.

The relationship between corporate social responsibility and shareholder value: an empirical test of the risk management hypothesis

“…CSR activity and shareholder value easily map onto observable variables, and we assert that a defensible link between CSR activity and goodwill has been established both theoretically (Gardberg and Fombrun, 2006;Godfrey, 2005) and empirically (Turban and Greening, 1997;Simon, 1995;Van Herpen et al, 2003;Williams and Barrett, 2000). The mens rea attribution process remains as an unobserved, and most likely unobservable, variable (Godfrey and Hill, 1995); unobservable because it is intrapsychic and may be a tacit or semiconscious process (Gladwell, 2005;Winter, 1987).…”

“…When such signals are received and accepted by external stakeholders, firms accrue positive attributions or moral capital (Simon, 1995;Van Herpen, Pennings, and Meulenberg, 2003) to the extent these outsiders see the firm engaging in activities they deem socially or morally desirable (Godfrey, 2005).…”

The Impact of Ethical Concerns on Fashion Consumerism: A Review

“…Consumers, it seems, have become increasingly interested in accessing reliable information about the background of the products they buy as they seek to align their purchase behavior with their ethical convictions (Alexander and Nicholls 2006;Boulstridge and Carrigan 2000). Furthermore, increasingly consumers are showing a greater level of concern with firms' supply chain activities demanding greater transparency and honest communication by firms in order to be more thorough and informed about their decisions (Simon 1995).…”

Unethical Practices of Advertising in Bangladesh: A Case Study on Some Selective Products

“…An earlier study by (Dragon International, 1991; Simon, 1995) has highlighted some important issues in the ethical purchase behavior of consumers [16] [36].…”