Recently, Warren Buffett, the worlds second richest person, estimated to own $44 bn, announced to donate 85% of his wealth to the Bill & Melinda Gates Foundation. Buoyed by this gesture, Bill Gates said that this money will help the foundation to both deepen and accelerate its work. The Bill & Melinda Gates Foundation works to reduce inequities and improve lives around the world. In developing countries, it focuses on improving health, reducing extreme poverty, and increasing access to technology in public libraries. With 270 employees and an endowment of $29.2 bn, 70% of the Foundations grants generally go towards global welfare. No wonder then, the sincerity of their work has inspired Buffett to donate so handsomely to the Foundation. It is worth noting that Buffett also runs a foundation of his own for charity work. Both Gates and Buffett proclaim, their goal is to return the money to society. Google Inc. has created a $12 bn philanthropic arm to make the world a better place.
No
doubt, these acts of social responsibility at the individual and organizational
level consolidate society and perpetuate social well-being. And business organizations
being social institutions, contribute, directly or indirectly, to the general
welfare efforts undertaken by governments. This becomes all the more significant
given the fact that the governments have limited resources and expertise. Hence,
it is imperative that the private sector actively participates in alleviating
the sufferings of fellow human beings. The corporate sector, with the means to
solve acute social problems, comes to the help of society, as a part of its "social
responsibility", for the sector owes its financial success to society at
large and also to send across a message to the victims"We are there for you".
The chief executives champion pet causes through corporate philanthropy, which
helps tackle issues like illiteracy, drinking water problem, AIDS, unemployment,
disaster mitigation, etc. that governments worldwide cannot deal with properly
as they are handicapped due to inadequate funds/resources.
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