The end of philanthropy
Anti-globalists around the world are convinced that globalization is
destroying the native cultures, economies and environments of the poor and
underrepresented. Sadly, this view is supported by numerous examples of
companies acting without a sense of corporate responsibility. In a business
culture that values shareholder profit above all else, the typical global
corporation is completely disenfranchised from the communities in which it
operates.
It was not always this way. Local companies used to serve local
communities, and the value they produced stayed in the community. As firms
prospered and expanded, stakeholders throughout the community benefited.
The system was hardly perfect, but it was far more equitable than in our
era of global corporations.
The questions facing today's corporate leaders are not easy to answer. How
can we develop a model that integrates a commitment to all our
stakeholders, not solely our shareholders? How do we bridge the digital
divide between the "haves" and "have-nots," those that "can" and the
"can-nots"? And how can we accomplish this while preserving the concept and
the economic benefits of a global corporation?
The problem is that corporate acts of goodwill typically occur in
isolation, separate from the forces that created them, and are the
exception rather than the rule. We must develop a new architecture for
globalization--with full awareness of the constraints of the current
system--that makes "doing good" an integral part of doing business and
herald what some have called the end of philanthropy.
The integrated corporation
The integrated corporation not only creates value for its traditional
shareholders, but just as importantly, plays a vital role in supporting
local and global communities by using diverse resources unavailable to
smaller, local companies. Creating value within the community is an
integral piece of the socially engaged corporation's goals.
Four areas are immediately apparent: corporate value, corporate profits and
products, corporate time, and government influence. Accordingly, four
models have emerged:
� Place a percentage of corporate equity into a public charity.
� Return a percentage of profits to the global communities served.
� Encourage employees to dedicate a percentage of their time for community
service activities.
� Use government influence to positively affect policies for global
communities.
Research verifies that companies can make a major difference with
relatively small investments. Alan Hassenfeld, chief executive of Hasbro,
has pioneered many of the concepts of the integrated corporation with a
goal to have 1 percent of corporate time dedicated to local community
service. Employees have four hours of paid time-off a month to volunteer
with children and simply log on to the company's Web site, where nonprofit
agencies list their needs. We must develop a new architecture for
globalization--with full awareness of the constraints of the current
system--that makes "doing good" an integral part of doing business.
In 1992, Timberland, one of the largest outdoor-clothing companies, created
its Path of Service program through which each employee dedicates 16 hours
of paid service to his or her community. This fully integrated project has
resulted in more than 200,000 hours of service through more than 200
social-service agencies in communities spanning 30 states and 18 foreign
countries.
Merck, one of the world's most successful pharmaceutical companies, decided
several years ago to donate to African villages the drug Mectizan, used to
control river blindness. Working with the World Health Organization, the
World Bank, dozens of NGOs and local ministries, Merck provides a valuable
resource to more than 25 million people annually.
Ben and Jerry's, the popular ice-cream maker, has taken the idea of
integrated service furthest of all by fully integrating philanthropy into
its products, marketing and human-resource practices. The company donates
7.5 percent of its pretax earnings and has a director of social mission
development to oversee corporate grants. It also supports the Ben & Jerry's
Foundation and employee community-action teams. No other company has such
an explicit program for donating profits and time.
As U.N. Secretary-General Kofi Annan has said, "Those who have the power
and means, governments and businesses, must show that economics, properly
applied, and profits, wisely invested, can bring social benefits within
reach not only for the few, but for the many and eventually for all."
While we will be able to witness the benefit of programs like these on
society, we should also be conscious of the effect it will have on the
companies providing the service. Employees seeking greater levels of
fulfillment in their own lives will have to look no further than their
workplace. As corporate leaders, we can come forward and use our leadership
skills for a higher purpose: to fully integrate our global companies into
the systems of which we are a part.
http://news.com.com/2010-1071-982074.html?tag=fd_nc_1
You corparado criminals can weasel around and give back some of your ill
gotten gains but when the states shields are down,nothing will save you
from the people armed.
