Corporate philanthropy has been common for the last 50 years. After the mid 1990's companies started to align their philanthropy programs with the business interests. This results in a convergence of social and economic objectives: strategic corporate philanthropy. But what is the return on the contributions companies make in philanthropy? This thesis investigates the return on corporate philanthropy for companies, and how this return can be maximized. The literature on corporate philanthropy is discussed. In chapter 5 this theory is compared with the philanthropy program of Shell. It can be concluded that the philanthropy program of Shell corresponds to strategic corporate philanthropy as discussed in the theory. Return on philanthropy can be maximized when consumer loyalty, reputation and employee commitment are enhanced. Besides, cooperation with other organizations, international character and duration of the program influence the return on corporate philanthropy.
[...] As mentioned in section the philanthropic programs executed by Shell Group are subdivided over its subsidiaries and thus highly dependent on local influences Maximizing through employee commitment: theory and practice First, theory claims that to maximize return on corporate philanthropy, companies will need to focus on employee commitment. Employee commitment has been increased by involving employees in the philanthropic program. Companies do this by taking surveys, votes or rewarding employees for their volunteering efforts (Mullen, 1997). Shell's strategy confirms what is stated in literature. [...]
[...] Problem Statement: How do corporations maximize the return on corporate philanthropy? 6.2 Recommendations References 1. Introduction 1.1 Problem Indication Decades ago executives of companies realized that they had a responsibility to society beyond the production and distribution of goods and services. Companies started to make philanthropic efforts to fulfill their social responsibility to the community (Wood and Jones, 1995). These philanthropic efforts consisted of charitable donations in cash, time, or in-kind gifts. Within the area of corporate social responsibility, philanthropic efforts were the first, most altruistic indicators (Edmondson and Carroll, 1999). [...]
[...] This paragraph will answer the research question: How should companies maximize the return on corporate philanthropy? Maximizing the return on corporate philanthropy It can be concluded from section 3.2 that to maximize returns on corporate philanthropy, the returns on corporate philanthropy through consumer loyalty, company reputation and employee commitment will have to be maximized Maximizing returns through consumer loyalty As mentioned in section consumers value a company that is involved in philanthropy more than a company that is not. Therefore, it is of great importance that consumers are aware that the company is involved in philanthropy. [...]
[...] To understand corporate philanthropy, and how companies are involved in philanthropy nowadays, it is important to discuss how corporate philanthropy evolved in the past. This section discusses the evolution of corporate philanthropy. Smith (1994) and Svendsen (1998) have created a model to express the evolution of corporate philanthropy in the USA. This model indicates that during the 1960's and 1970's the public began to believe that companies should donate some of their profits to societal causes. As a consequence many large corporations set up foundations. [...]
[...] Moreover, Shell's reputation could be enhanced if Shell would commit itself to a specific good cause Problem Statement: How do corporations maximize the return on corporate philanthropy? By answering the research question the research problem can be solved. Theory is tested by practice (the case of Shell) and it can be concluded that there are similarities. Companies maximize the return on philanthropy first by involving their employees in the philanthropy program. This was already mentioned in theory, and emphasized by Shell. [...]
Online readingwith our online reader
Content validatedby our reading committee