College Voices
The Problem With Corporate Philanthropy
Earlier this year, Amazon was met with rightfully harsh criticism about working conditions their employees face.
According to a statement by Spain’s Communist Party, Amazon implemented long-working hours, eliminated bonuses and protection from diseases, and created an anti-union environment.
Thousands of people around the world showed solidarity to Amazon workers by boycotting the company during Prime day, from July 16-18. Amazon workers in the United States also spoke out about the working conditions they face.
On September 13th, Jeff Bezo’s announced his philanthropic vision. He launched a $2 billion-dollar fund to help low-income families, known as the “Bezos Day One Fund.” Yet, many Amazon workers receive inadequate pay and work in unsafe and toxic working conditions around the world.
Shouldn’t Jeff Bezo’s excessive amount of money instead go to his workers? Shouldn’t he instead increase pay, invest in safer working conditions, and make benefits more accessible to all employees at Amazon?
Many corporations have utopian philanthropic visions. They donate an excessive amount of money to causes while their workers continuously suffer.
Corporate philanthropy seems good on the surface. It makes a business seem ethical and compassionate. The reality of it is that it’s completely strategic and self-serving.
Michael E. Porter, a Harvard Business School professor, wrote in an article that
“philanthropy is used as a form of public relations or advertising, promoting a company’s image or brand through cause-related marketing or other high-profile sponsorships.”
According to many capitalists, such as Milton Friedman, the only social responsibility of corporations is to make profits. Is corporate philanthropy just another way to make profit?
In a brief from the Center for Effective Philanthropy (CEP), there is a competitive advantage for philanthropy. This type of societal engagement received positive recognition from stakeholders and the investor communities. Corporate philanthropy is also a way to promote their brand and shape how people view the corporation.
It is a way to attract customers and future employees.
In a Global CSR study, consumers have a more positive image of a corporation if they engage in volunteerism.
Around 90% of people are more likely to trust and support companies that aid social and environmental causes. Also, donations can offer tax advantages if organizations are listed as 501(c)(3).
Should we, as consumers, take corporate philanthropy seriously? Should we embrace a corporation when they support social or environmental causes?
Considering the damage corporations cause to low-income communities, small business, and the environment, we shouldn’t. What’s instead important is to remember that it is often strategic and self-serving. It is just a smart business move.
By: Trevor Falsey
