The Importance Of Corporate Philanthropy

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Recently, promoting human welfare and increasing positive impacts on society have been accepted as core of business operations by most companies. This kind of corporate activities are included in Corporate Social Responsibility model. In increasingly competitive world organizations and companies face with the demand for profitability and responsibility. Thereby, they use some strategic philanthropic actions for meeting this demand. These actions are gathered under the idea of Corporate Philanthropy which is the foremost part of Corporate Social Responsibility model, created for both the corporation’s benefit and welfare of society. Philanthropy in its original meaning defines part of voluntary actions with the sole aim of benefiting others,…show more content…
Klaus M. Leisinger and Karin Schmitt are two of these writers, who successfully describe the importance of Corporate Philanthropy and its potential effects on society in their article “Corporate Responsibility and Corporate Philanthropy”. In the article “Corporate Responsibility and Corporate Philanthropy”, Klaus M. Leisinger and Karin Schmitt successfully identifies the idea of Corporate Philanthropy. In their opinion, corporate actions like Corporate Philanthropy leads to economic growth which ultimately triggers and promotes the social welfare. They mainly focus on the issue of spread poverty all over the world and highlights the importance level of this problem by naming it as “greatest social challenge of our time”. In the opinion of author this is quite big issue, requiring a great attention and commitment of national governments, international community, business and civil societies of their share of resources, skills and sustainable solutions. For the author, national governance and administrators doing their best with the allotment of resources accessible to them is the very primary responsibility…show more content…
The foremost thing in the article was that they mostly gave examples and definitions for each term that can be not understandable for any reader. For instance, explanations and definitions of the essential words - corporate philanthropy, strategic corporate philanthropy, and strategic social investment – were quite effectively given. The very apparent factor in introduction of the terms is that even author could compare them in order to be enough comprehensible. For example, authors define corporate philanthropy as “need-oriented” model and then in the explanation of strategic corporate philanthropy, using the same term to differ second from first. This strengthens the meaning of article so that it looks more convincing and understandable. Moreover, usage of proper philanthropy form examples for each model clarifies the term more visibly, so that it creates the accurate notion about them separately. For example, medicine donation for fighting with leprosy is given as an example for corporate philanthropy. According to definition of this term from article, corporate philanthropy does not require any return investment, and from the example it is apparent for the reader that there cannot be expected profit besides from this
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