Whither Good Works

The global economic recession has precipitated enormous changes in the way business conducts itself. One of the more unfortunate consequences has been a retrenchment by corporations on their good works, philanthropy and volunteerism.

To be sure, fiscal prudence dictates that companies must put their own financial homes in order before extending helping hands to others. Few major corporations are so flush with hard cash that they can continue to operate at the same pre-recessionary levels.

And yet, amidst this crisis, there are those companies that continue to contribute to society and mankind in ways that are nothing short of admirable. Pfizer's Patient Assistance programs come to mind as reflecting the kind of help big corporations need to provide to those in need. As does Johnson & Johnson's Access to Medicines programs that gave away 2.3 million units of medicine to over 300,000 people across the globe. In the mega-buck world of pharmaceuticals and medicine, these are two companies that appear to be leading the way on what it means to be good corporate citizens.

There are other examples out there across the industrial landscape. My recommendation is that we continue to look for the good works that companies are doing, if for no other reason than it makes the world better and makes us all stand a bit stronger. For the cynics out there who say this is meaningless corporate blather, I suggest you visit the dusty streets of Yaounde, Cameroon or the crowded slums outside Lusaka, Zambia for a firsthand view of the impact of free medicine on the life of those who are in need.

Establish a Development Fund

"I believe that Silicon Valley is truly a place of excellence and the impact of this tiny community on the world is completely disproportionate to its size. We are the undisputed leaders of technological change. But with our abundance of talent and resources, we also have the opportunity to be the pioneers of social change and, ultimately, this may be our greatest contribution."

Jeff Skoll, businessman, founder, The Skoll Foundation


A few years ago, a pioneering company decided to start a capital fund that would help new companies, small firms and disadvantaged companies get into business and grow.

The thought was that these new companies eventually would become dedicated contractors and suppliers to the big company—a sure way to help them grow large enough to compete with others. It is a model that has worked well in several industries like auto dealerships and fast-food franchising.

Although this is not really philanthropy, more companies should consider using this approach as a way to make a meaningful contribution to society. A development fund can be established to support or advance any number of charitable and philanthropic endeavors, in addition to those with a commercial basis.

The societal impact of financing a business and subsequently providing a ready source of contract opportunities cannot be understated; it promotes economic development, growth and employment for new entrants and at the same time increases the tax revenue base of local cities and counties.

These are all good things.

(c) Adonis E. Hoffman, 2008.

Lead the Way in Philanthropy

"There is a natural law, a Divine law that obliges you and me to relieve the suffering, the distressed and the destitute. . . The practice of charity will bind us... will bind all men in one great brotherhood."

Conrad Hilton, founder, Hilton Hotels


Corporate philanthropy is a good thing and there can never be too much of a good thing. Today, we find a handful of companies at the top of the chart in corporate philanthropy, while many more companies barely register.

The wonderful thing about philanthropy is that it has a multiplier effect. When your company makes a contribution to a worthy organization, event or program, it strengthens the capacity of the recipient to deliver the benefits it promises.

But philanthropy is not without some controversy. There are some who believe that the role of business is to provide better goods and services at better prices so that consumers can have better lives. Philanthropy, they assert, is better left to foundations and individuals rather than to corporations.

I disagree. There are many ways to give to charity—money, in-kind donations, product giveaways, volunteerism, loaning executives and other opportunities to make a difference. As a business leader, you can develop a wide range of strategies that will position your company in the forefront of corporate philanthropy. Your reputation will be enhanced.

(c) Adonis E. Hoffman, 2008.