Consumers’ expectations from corporate philanthropy are more important now than ever. But many respondents to a McKinsey global survey say their firms aren’t meeting social goals or stakeholder expectations very effectively. Companies that are doing well are taking a more strategic approach.
Corporate philanthropy can be an effective tool for companies that are trying to meet consumers’ rising expectations of the role businesses should play in society, say respondents to the survey. The survey also suggests, however, that companies aren’t using that tool as well as they should. Executives doubt that their philanthropy programmes fully meet their social goals or stakeholders’ expectations for them.
About one-fifth of the respondents say their corporate philanthropy efforts are very or extremely effective at meeting social goals and stakeholder expectations. Their companies take a somewhat different approach than others do: their programmes are more likely to address social and political trends relevant to the business and to be influenced by community and business needs. Executives at these companies expect their programmes to become more global and say that efforts are more likely to involve collaboration with other companies. Finally, these companies are much likelier than others to say they are achieving any business goals they have set, in addition to social goals.
A small group of respondents say their companies are reaching beyond traditional corporate goals for philanthropy programmes such as enhancing the company’s reputation or brand—to pursue more concrete business goals, such as gaining information on potential markets.
A McKinsey survey
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