Corporate Philanthropy Model

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,

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 for human development. Continuingly, Klaus M. Leisinger and Karin Schmitt open the importance of the term “good governance” by highlighting it with the word “single most important factor for human development”. Transparency in policy, responsiveness to priority needs, accountability for the policies, independent and judicial system, as well as institutional pluralism and participation of the people in all decisions impacting their lives, for instance, are considered part of the good governance. Developing the article, Klaus M. Leisinger and Karin Schmitt give apparent definitions for corporate

As they mentioned with the help of Corporate Philanthropy they do not only increase the reputation, they also give this support to the workers of company. How it happens is that if the labors see the increasing responsibility of their workplace towards the society, they accept the same regard to themselves as well, which results in proud and higher motivation of employees. This, in its own place as a whole, triggers higher productivity. At the same time with internal motivation, the other essential result is about reputation of the company. People can trust to those companies which try to take care of others and do not even try to deceive any single person. For example, donating medicine, in the article, was depicted one of the best ways of corporate philanthropy. This action firstly shows up the concern of company for their citizens which is the very good example for reputational image and trust of people. Secondly they give chance to buyers to try this medicine, so that later this positive idea pushes people further to buy this product almost after realizing the