Introduction
In recent years, there has been an increasing focus on the role of business in society. The idea has arisen due to the global financial crisis, which has led to the loss of faith in traditional institutions such as government and banks. In addition, there are a growing number of social and environmental issues that governments worldwide are struggling to solve. As a result, giving back to the community has been seen as a cornerstone of successful businesses. One way in which businesses can fulfill their social responsibility is through philanthropy. This term is defined as the voluntary giving of money, time, or skills to charitable organizations. It can take many forms, from corporate giving programs to employee volunteer initiatives. Some companies may also start their foundations to support causes they care about or sponsor charitable events (Gautier & Pache, 2015). There are several reasons why philanthropy is seen as a socially responsible business activity. It helps promote job creation and social justice, allows the government to achieve its agenda, increases economic growth, improves the community’s living standards, and reduces environmental degradation. This paper will evaluate philanthropy as a socially responsible business activity, using global and local examples to illustrate the points made.
Discussion
The major benefit of philanthropy in social responsibility is that it helps businesses promote job creation. They do this by providing opportunities for employees to get involved in passionate causes. This aspect can help create a sense of purpose and belonging for employees and team morale and improve customer service (Kim et al., 2020). For example, Walmart is the world’s largest retailer and one of the world’s biggest philanthropists. The company has a long history of giving back, and it has donated billions of dollars to causes all over the world. Walmart’s philanthropic efforts are focused on three main areas: hunger relief, sustainability, and opportunity. The company’s hunger relief programs have helped provide millions of meals to needy people, and its sustainability initiatives have helped reduce its environmental impact. Through its opportunity programs, Walmart has helped create thousands of jobs and provide training and development opportunities for its employees, increasing productivity by 13% (Toni & Vlassopoulos, 2015). Consequently, it has been a powerful marketing tool that has helped build employee knowledge leading to an overall boost in production and repeat purchases.
Furthermore, giving back to the community can help businesses promote social justice for the less privileged. One way is by helping to raise awareness about social justice issues and the needs of the less privileged through educational programs, public awareness campaigns, and other outreach efforts. Additionally, philanthropy can help provide resources and support to individuals and communities facing discrimination, such as those from different races and sexes. It can include financial assistance to legal support (Alam & Islam, 2021). Amazon is an example of a global e-commerce company that strongly commits to giving back to the local community. The company has a long history of philanthropy, and it has donated billions of dollars to causes all over the world. Amazon’s philanthropic efforts are focused on three main areas: education, the environment, and social justice. The company’s education initiatives have helped provide access to education for millions of people around the world.
Moreover, through its social justice programs, Amazon has helped support causes like racial equality and lesbian, gay, bisexual, transgender, and queer (LGBTQ) rights. It has done this by donating money to organizations that support these causes. Amazon has also created a Diversity and Inclusion fund to help support these causes. For this reason, the company has been able to up its game in social justice performance with that of Google (Randazo, 2020). Therefore, customers have become loyal to the company’s products leading to increased profits.
According to Erfurth & Ridge (2021), philanthropy can also help businesses address social problems that governments are struggling to solve. It does this by providing funding initiatives such as economic development, promoting education, and reducing environmental degradation. For example, International Business Machines Corporation (IBM) is a global technology company and one of the world’s biggest philanthropists. The company’s philanthropic efforts are focused on three main areas: education, economic development, and the environment. The education initiatives of IBM initiatives have helped provide access to education for millions worldwide. The company offers an IBM Global Scholars program which provides full tuition for undergraduate and graduate students from underserved communities.Additionally, IBM provides internships, apprenticeships, and other opportunities for students to gain skills and experience in the technology field. The program helps such students get self-employed, reducing poverty (Curzon et al., 2019). Hence, it has been a major step in poverty reduction, something that various governments have been unable to do effectively due to a lack of enough resources.
Equally important, the art can help spur economic development in a country. This feature is enhanced by funding initiatives that create jobs, foster entrepreneurship, and spur innovation (Cuypers et al., 2016). For instance, Google is an American multinational technology company that strongly commits to giving back to the local community. The company has had a long history of philanthropy since the 1990s and has donated millions of dollars to causes worldwide. Google’s philanthropic efforts are focused on three main areas: education, economic opportunity, and the environment. Its economic opportunity programs have helped create jobs and spur economic growth in developing countries (Finkle, 2012). It does this by supporting organizations that provide access to technology, education, and training. This aspect helps to create opportunities for people to gain the skills they need to be successful in the workforce.
Additionally, Google’s philanthropy helps to support initiatives that provide internet access and connectivity to underserved communities. For example, Google has a program called ‘Google for Nonprofits’, including Google Analytics and Google Ad Grants, which provides free access to its products and services for organizations working to make a difference in the world (Gautier & Pache, 2015). Thus, it is a great resource that helps to close the digital divide and ensures that everyone has the opportunity to participate in the global economy.
Similarly, philanthropy helps bring societal change and improve the community’s standards. There are a few ways that companies build social capital and value through philanthropy. One way is by donating money to causes that are important to the company or its employees. For example, many companies will donate money to charities that support causes such as the environment or medical research. Another way companies build social capital and value through philanthropy is by volunteering their time and resources to help community organizations in areas such as food drives or sports (Barma, 2017). One good example is the Walt Disney Company, the world’s largest media and entertainment conglomerate. It has a long history of philanthropy and promoting social value. Disney has given over $1 billion to charities worldwide, including children’s hospitals, education programs, and environmental conservation efforts (Wisneski, 2020). The company also promotes social value through its theme parks and resorts. Disney’s theme parks are family-friendly and promote imagination and creativity. The company’s resorts are also designed to be accessible and welcoming to all guests (Barma, 2017). Doing these things can show its commitment to making the world a better place, which can help them build positive relationships with its employees, customers, and other stakeholders.
Finally, businesses can promote social health and reduce environmental pollution through corporate philanthropy. The reason is that it can show that they are caring and responsible organizations. Coca-Cola is another global company with a long history of philanthropy. The company’s philanthropic efforts are focused on three main areas: water stewardship, active, healthy living, and community recycling. Coca-Cola has helped provide clean water to millions worldwide through its water stewardship program. Its active, healthy living initiatives have helped promote physical activity and healthy eating habits (Gertner & Rifkin, 2018).
Additionally, through its community recycling program, Coca-Cola has helped recycle billions of bottles and cans. (Goswami et al., 2019). Therefore, it has helped to build its reputation as a socially responsible business in reducing environmental degradation.
However, philanthropy is not without its challenges. It can be difficult to find the right cause to support and even more difficult to measure the impact of a company’s giving. There is also the risk that a company’s philanthropic efforts will be seen as nothing more than a marketing gimmick (Du, 2015). In order to avoid these challenges, it is important to approach philanthropy with a strategic mindset. Businesses should ensure that their philanthropic activities are aligned with their core values and business objectives. They should also measure the impact of their giving so that they can continue to improve philanthropic efforts over time (Masulis et al., 2015). When done correctly, philanthropy can be a powerful tool for businesses to create positive change in a country and in the world at large.
Conclusion
Giving back to the community is a cornerstone of successful businesses. It builds goodwill, helps to address social problems, builds relationships with stakeholders, develops a competitive advantage, improves employee engagement, attracts new customers, and builds a positive brand image Philanthropy plays an important role in our society. Furthermore, it helps fund important research and programs that improve the lives of people in need and build bridges between people of different backgrounds and experiences. However, understanding the best course of action in giving is often difficult. Therefore, organizations should develop a philanthropic strategy that aligns with the organization’s mission and goals.
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