Discuss some of the benefits of strategic philanthropy and why you feel it’s important for businesses to engage in this.
Strategic philanthropy can be defined as the process of donating money in ways that are proven by research to help alleviate a problem. It can also be defined as the process of donating money in ways that will help to promote a cause that is in line with a firm’s business interests. The importance and benefits of strategic philanthropy are connected to these two definitions.
First, donating money in ways that are proven to help is important and beneficial because it is more likely to actually bring about the results that are desired. If a firm donates money in these ways, it is more likely to do some good than if it just gives money in a haphazard way. This is better for the people the firm is trying to help because it is more likely to improve their lot in life.
Second, donating money to promote a cause that is in line with a firm’s interests is important because it shows that the firm is practicing corporate social responsibility. This is likely to build good will for the firm and allow it to “do well while doing good.” For example, if a firm that makes rock climbing equipment donates money to preserve wilderness, it can gain credibility with its customers because it is promoting a cause that is important to them as well.