This article explores the development of the concept of strategic philanthropy that enables a company to meet business goals and social goals. It describes how philanthropy has shifted from a passive, unfocused activity to a well-considered strategic decision with far-reaching effects. Further, this article also outlines the factors to be borne in mind while designing a program of strategic philanthropy.

Philanthropy is becoming a norm among companies. This is evidenced through their involvement with charity organizations, employee volunteering, revival of social reporting, and rise in the number of organizations whose main objectives are to partner with businesses to develop strategies to become good corporate citizens.

Businesses are dependent on the wider environment for factors of production, a thriving market, and a competitive context. Similarly, the wider community is dependent on the business for job opportunities, infrastructure development, management expertise, and resources which are necessary to elevate and sustain a good quality of life. Hence, it makes business and communal sense for businesses and the community to partner with one another to achieve complex social and economic goals. Kramer & Porter (2002) categorize philanthropic programs based on their scope as follows:

Philanthropy, charity organizations, employee volunteering, revival of social reporting, organizations, wider environment, environment, competitive context, communal sense.