Corporate Giving: An Increasingly Important and Complex Issue

427 Words2 Pages
Corporate Giving Corporate giving the contribution of profits to outside entities in the form of charitable gifts is an increasingly important and complex issues in the modern economy, with many organizations and comminutes dependent on such corporate giving yet with the legality and the ethicality of such gift very much in question. The publicly-owned corporation's profits ostensibly belong the that corporations shareholders, and according to some legal opinions this prevents the corporation from gifting these profits in a manner that does not lead to some benefit for the corporation/its shareholders, leaving individual shareholders to decide if and to whom they would wish to donate their profits. It can also be argued, however, that charitable giving is beneficial to the corporation in and of itself as it provides stronger community ties and a compelling brand identity for the corporation and promotes awareness of the company through favorable channels. Seen in this light, the question becomes whether or not a corporation is compelled to spend in the most efficient manner possible or if the spending of profits is fully within their purview as long as some benefit is achieved. Certainly, there are more cost effective ways to build and spread brand identity and awareness then through corporate giving almost any traditional marketing effort will likely have a greater dollar for dollar impact on brand recognition, market share, and other consumer-centered aspects of the
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