As corporate philanthropy becomes more important to corporations and their employees, companies are paying more attention to where their corporate dollars flow, according to a report released this month by The Conference Board.
According to the New York-based research organization, in a recent survey of North American businesses, 77 percent say aligning more closely with business needs is the single most critical factor affecting their corporation's giving. Nearly as many (72 percent) say management's top priority for company giving is the cause's relationship to the firm's broader corporate citizenship agenda.
One outcome of this growing alignment of corporate giving and corporate needs is the growing globalization of charitable donations, the report adds.
"These survey results confirm what we've been hearing from our member companies," says Carolyn Cavicchio, senior research associate for global corporate citizenship at The Conference Board. "Companies are recognizing that their giving portfolios are not in alignment with the increasingly global nature of their businesses, and they're beginning to shift dollars into countries outside the U.S. This will have a significant impact on U.S.-based nonprofit organizations."
Indeed, instituting global giving was mentioned most frequently by respondents as the biggest single issue their employers were facing in 2007. The size of a company's presence in a foreign market had the biggest impact on international giving priorities, followed by humanitarian needs and the opportunity for business growth in those markets, the report says.
Asia, and particularly China, seems to be the biggest winner, the report adds.
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