Competitive Advantage of Corporate Philanthropy
THE COMPETITIVE ADVANTAGE OF CORPORATE PHILANTHROPY
Every company’s main objective is to earn profit. Companies should increase their capacity to support certain projects and activities other than their ordinary business operations. Some companies perform activities that promote social and environmental development. These activities are referred as philanthropic activities.
Philanthropy is the act of promoting what is human or a state of being productive of benefit to humans. Some believe that doing philanthropic activities decreases the benefits to be received by the stockholders in the short run but it will probably result to a positive outcome. Companies often perform these activities as a strategy to improve their company’s image in public. Even though companies engage in these activities as a part of their strategy, the important part is that the society or the local community benefits from these philanthropic acts of the companies.
WHERE TO FOCUS Companies engaged in philanthropic activities usually perform philanthropic acts in the local community wherein they are operating. These activities help the improvement of the society which can also affect the individuals in the society.
Although companies will spend amounts of money, it will surely result to a benefit. Companies can also benefit by employing individuals from local communities. This strategy will increase the competitive context of the company.
INFLUENCING COMPETITIVE CONTEXT
There are four elements of context that companies have been influenced through philanthropy in ways that have improved their long-term economic prospects.
The first element is the conditions of the factor. Philanthropy can influence the areas in achieving high levels of productivity. Charitable giving is an example of a factor condition. There is an economic and social benefit through this. Philanthropic initiatives can also improve the local quality of life, programs in the community, local economy and the
Every company’s main objective is to earn profit. Companies should increase their capacity to support certain projects and activities other than their ordinary business operations. Some companies perform activities that promote social and environmental development. These activities are referred as philanthropic activities.
Philanthropy is the act of promoting what is human or a state of being productive of benefit to humans. Some believe that doing philanthropic activities decreases the benefits to be received by the stockholders in the short run but it will probably result to a positive outcome. Companies often perform these activities as a strategy to improve their company’s image in public. Even though companies engage in these activities as a part of their strategy, the important part is that the society or the local community benefits from these philanthropic acts of the companies.
WHERE TO FOCUS Companies engaged in philanthropic activities usually perform philanthropic acts in the local community wherein they are operating. These activities help the improvement of the society which can also affect the individuals in the society.
Although companies will spend amounts of money, it will surely result to a benefit. Companies can also benefit by employing individuals from local communities. This strategy will increase the competitive context of the company.
INFLUENCING COMPETITIVE CONTEXT
There are four elements of context that companies have been influenced through philanthropy in ways that have improved their long-term economic prospects.
The first element is the conditions of the factor. Philanthropy can influence the areas in achieving high levels of productivity. Charitable giving is an example of a factor condition. There is an economic and social benefit through this. Philanthropic initiatives can also improve the local quality of life, programs in the community, local economy and the