The important direct benefits of philanthropic activities that
accrue to a business are goodwill in the neighborhood, good human
resources (literacy and health programs), good ecosystem capable of
bestowing renewable resources, building the source for raw material (like in
social forestry), partnership (networking of farmers), data support for
planning and management, etc. Indirect benefits to business are satisfaction
for the owners and executives, goodwill with government and society,
resource and synergy building for distant future, staying connected
with the outside environment, dispelling a feeling of guilt accumulating out
of prosperity, etc. While some philanthropic activities give direct
benefits, others give indirect benefits. Social forestry for paper companies,
health and literacy programs for labor-intensive manufacturing
companies, craft training for craft companies, awareness building and
information sharing for trading companies, watershed and resource conservation
programs for agri-business companies, etc., are the activities that give
direct benefits. Healthcare for the aged and disabled and tribes, literacy
programs for women in tribal areas, donations for rare surgeries for the
poor, donations for calamity-stricken communities, etc., are activities that
give indirect benefits. Philanthropic activities can be classified into
two categories, i.e., those with strategic importance (building network of
producers and buyers) and the others without strategic importance
(health programs for the old). The companies choose a mix of philanthropic
activities, both of strategic and non-strategic nature, and those that give
direct and indirect benefits. The sharp-headed management of
companies that spend on philanthropy as a strategy for their
future can be appreciated, since this approach is a
win-win mode with high pay-offs. Those who spend without strategic
orientation are actually in the lose-win mode. In the
lose-win mode, the company loses and community benefits, that too to
a moderate level. Corporate punchlines worldwide in a few of the
following handpicked examples reflect the current orientation towards
philanthropy. (Refer Exhibit I)
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