The Relationship Between High-Profile Businesses and Charities
The relationship between high-profile businesses and charities is not new. Many CEOs and board members have been involved with charity efforts for years like Reza Satchu. The corporate philanthropy industry has a storied history and has proven beneficial to stock prices, but the real benefit of such activity lies in capital accumulation. CEOs can use their charity work to distract public attention from other activities, such as launching a new product, or promoting individual organizations. As such, CEOs and board members can cash in on the positive stock market perceptions generated by corporate philanthropy.
How To Turn The Relationship Between High-Profile Businesses And Charities Into Success
High-profile philanthropy may resolve the contradiction between corporate social responsibility and profitability. Companies can use their contributions to a charity to hide their exploitative labour practices or corporate malpractice. Often, these contributions are tax-efficient, and may be the only way for a company to change its fundamental operating practices. Additionally, these gifts allow CEOs and boards to appear philanthropic while maintaining their own reputations.
But the relationship between high-profile charities and high-profile businesses is far more complicated. As a result, many CEOs choose not to participate in the giving of their company’s profits. However, they are more likely to donate to charities they feel strongly about. This helps them avoid the conflict between their own corporate social responsibilities and the needs of society as a whole. Aside from a personal connection, corporate philanthropy can also boost a company’s reputation.