By Sarat Pratapchandran

Corporate philanthropy and social responsibility are vital components in today’s business landscape. As companies navigate an increasingly polarized environment, they must stay true to their core values. At the same time, they must tackle the needs of their communities.

Embracing Core Values

Organizations should avoid polarizing buzzwords when engaging in corporate philanthropy. Instead, they should focus on leveraging their unique competencies and aligning their efforts with their enduring principles.

Human-Centric Approach

Global experts advocate for a human-centric approach to corporate societal responsibility. Jeff Hoffman, the Acting ESG Center Leader at The Conference Board, is a notable advocate. This involves asking how companies can uplift individuals within their communities. Although this perspective seems unexciting to some, it underscores the importance of genuine engagement over mere profit motives.

Strategic Stakeholder Management

Corporate philanthropy leaders must focus on strategic stakeholder management rather than solely prioritizing shareholder value. Mass layoffs driven by shareholder concerns can have detrimental effects on the economy and various stakeholders. In a polarized world, proactive stakeholder management is crucial for maintaining stability and fulfilling social missions.

Shared Value Principle

The principle of “shared value,” coined by Michael Porter, emphasizes that generating profit and employing capitalism are not inherently wrong. Instead, they can drive innovation, increase productivity, and improve living standards. Corporate leaders should refine the intended use of concepts like Diversity Equity and Inclusion (DEI). They should remember the original intention behind Employee Resource Groups. DEI has aimed to unify the workforce rather than divide it.

Corporate philanthropy and social responsibility are not just about immediate gains. They involve sustaining communities. Ensuring the future generations’ ability to thrive is also important. Revisiting classic definitions of sustainability and their relationship to corporate philanthropy is important.

While in college, the Brundtland Commission (1987) taught me that sustainability means meeting the needs of the present generation without compromising the ability of future generations to meet their own needs. This definition can profoundly impact corporate initiatives today.

As businesses confront the challenge of balancing profit with purpose, those who skillfully navigate through turbulence will endure. Those who succumb to excuses and uncertainty will falter. Corporate philanthropy and social responsibility stay essential in fostering a more fair and sustainable world.

Businesses should focus on core values. They should avoid exploiting our resources for the sake of buzzwords. They should also not be swayed by polarized political motives. Are we prepared to undertake this challenge, or will we succumb to excuses of chaos and uncertainty?

Those who skillfully navigate through turbulence will survive; the rest will fall into the abyss of uncertainty.

References

Brundtland Commission . (1987). World Commission on Environment and Development. Our common future. Oxford University Press.

Friedman, M. (1970, September 13). The social responsibility of business is to increase its profits. New York Times Magazine.

Porter, M. & Kramer, M. (2002). The competitive advantage of corporate philanthropy. Harvard Business Review.

What should corporate philanthropy look like in 2025? https://www.conference-board.org/podcasts/c-suite-perspectives/What-Should-Corporate-Philanthropy-Look-Like-in-2025