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Welcome to class of Corporate Philanthropy in Emerging Markets Dr. Satyendra Singh University of Winnipeg Canada www.uwi

Welcome to class of Corporate Philanthropy in Emerging Markets Dr. Satyendra Singh University of Winnipeg Canada www.uwinnipeg.ca/~ssingh5. Corporate Social Responsibilities: in Developing Countries/Emerging Markets. Level of Philanthropy. Philanthropy Do good by giving…

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Welcome to class of Corporate Philanthropy in Emerging Markets Dr. Satyendra Singh University of Winnipeg Canada www.uwi

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  1. Welcome to class ofCorporate Philanthropyin Emerging MarketsDr. Satyendra SinghUniversity of WinnipegCanadawww.uwinnipeg.ca/~ssingh5

  2. Corporate Social Responsibilities:in Developing Countries/Emerging Markets

  3. Level of Philanthropy • Philanthropy • Do good by giving… • Individual philanthropy • Need to save (EM), lack of trust, unstable government • Corporate philanthropy • …with the aim to develop • Business opportunities, Public relations, Employee morale, Brand image, Cause-related marketing campaign • Strategic philanthropy • …with the aim to combine social and economic benefits to develop distinct competitiveness

  4. Philanthropy: the Context • Philanthropy is in decline • Difficult to justify charitable (social) expenditure in terms of bottom-line (economic) benefits • Corporate philanthropy is unnecessary • No-win situation • Trade-off between the goals • Let employees donate themselves  tax rebate • Individual donor or corporate  same benefit • We need strategic philanthropy • Win-win situation • Context-focus giving Where to focus; how to contribute

  5. Top 5 Issues for Which Businesses Give

  6. Types of Corporate PhilanthropyExternal vs. Internal Unrelated ↑ PR, ↑demand Lacks credibility Grant 25% cash 75% R&D Consultancy Worst of all Confused Board member wants it Eg., Sponsor an event Use own products Too little Not significant

  7. Strategic Philanthropy: Social and Economic

  8. The Logic of Giving With Giving $30m  Profit -$2m  Gave $28m  Profit After Giving $5.6m  (20% tax, ie ↓ tax bracket) $22.4m  Net Without Giving $30m  Profit -$9m  30% tax $21m  Net Even after giving $2m, firm saved 1.4m extra  ↑ dividends, EPS

  9. Where to Focus • Where social and economic benefitsnot in conflict • Contribute to society • E.g. trained educated and healthy labour, natural resources to produce high quality goods and services, preserving environment, waste management, pollution reduction, boosting social and economic conditions in EM • While being different and ↑ business performance • E.g. Computer company trains students, population • Travel companies train  restaurants, hotel, booking • Tour operator sponsors a heritage site, and thus has preferential access to the site for its tourists

  10. How to Contribute to Value Creation…

  11. How to Contribute to Value Creation • Selecting the best grantees • Urgent/overlooked problems, school dropout rates • Use the grantee’s performance to measure our performance • Signalling other funders • Train other funders, offer matching grants… • Improving the performance of grant recipients • Capital provider to engaged partner, learn from each other, ↑ effectiveness of organisations as well • Advancing knowledge • Set a new research agenda for public or govt policies • New wheat, rice variety, GMO

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