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CHAPTER 18
THE COMMUNITY AND THE CORPORATION
INTRODUCTION
A strong relationship benefits both business and its community. Communities look to
businesses for civic leadership and for help in coping with local problems, while
businesses expect to be treated in fair and supportive ways by the community. As
companies expand their operations, they develop a wider set of community relationships.
Community relations programs, including corporate giving, are an important way for a
business to express its commitment to corporate citizenship.
PREVIEW CASES
Salesforce.com
ING
Whole Foods Markets
Why do businesses as diverse as Salesforce.com, ING, and Whole Foods Market, invest
in community organizations, projects and charities? Why do they contribute their money,
resources, and time to help others? What benefits do they gain from such activities?
What does it mean to be a good corporate neighbor? What is the business case for doing
so?
CHAPTER OUTLINE
I. THE BUSINESS-COMMUNITY RELATIONSHIP
A. The Business Case for Community Involvement
II. COMMUNITY RELATIONS
Teaching Tip: Introduction
These questions may be used to prompt student discussion of the value
of community relations activities to business, as a way of setting up the
theoretical discussion in the chapter.
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A. Economic Development
B. Housing
C. Aid to Minority, Women, and Disabled Veteran-Owned Enterprises
D. Disaster, Terrorism, and War Relief
III. CORPORATE GIVING
A. Forms of Corporate Giving
B. Priorities in Corporate Giving
C. Corporate Giving in a Strategic Context
D. Measuring the Return on Social Investment
Teaching Tip: Experiential Learning for Students
This chapter provides an opportunity to integrate experiential learning
into the business and society course. One idea that has been tried by
many faculty members is organizing a student project in the
community. Nonprofit groups often have volunteer needs that can be
integrated into a business and society course. For example, a class
might participate in a local housing renovation project (e.g., Habitat for
Humanity), a walk to raise money for a local social service or medical
charity, or a blood drive. Students should be tasked to talk with other
volunteers to learn about motivations, organizers, and expectations. For
some, the experience of actually doing a project in the community will
provide a powerful learning experience.
Teaching Tip: Economic Development
The Nightly Business Report (PBS) aired a segment on June 22, 2015,
“Farming in the City,” that profiled AeroFarms, a business described in
the chapter discussion of economic development. The segment
(running 2:49) is available at
www.youtube.com/watch?v=GoPwIAzpd-Y.
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GETTING STARTED
KEY LEARNING OBJECTIVES
LO 18-1: Defining a community, and understanding the interdependencies
between companies and the communities in which they operate.
problems and needs.
Teaching Tip: Exploring Partnerships
The need for new approaches to community needs has drawn many
companies and universities into partnerships. Students can be directed
to look at local community partnerships in several ways: the mayor’s
office is often a ready source of information, as is the local Chamber of
Commerce. Student assignment—including good term papers—can be
developed around the study of individual partnerships, partnerships
around selected social issues (e.g., education, drug prevention), or the
partnerships in which a single company or organization participates.
Individual partnerships: How were they formed? Motivation of key
actors? Governance and decision-making process? Key factors in
achieving effectiveness?
Social issue partnerships: Why are partnerships necessary to
address this issue? What organizations are involved in this
partnership? What is their rationale? Who represents these
organizations in doing the work of the partnerships? Are they
effective? Why or why not?
Single company: How many community-based partnerships does
this company participate in? Are there similar purposes or
motivations? What other organizations participate in these
partnerships?
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LO 18-4: Examining how different forms of corporate giving contribute to
building strong relationships between businesses and communities.
LO 18-5: Evaluating how companies can direct their giving strategically, to
further their own business objectives.
LO 18-6: Analyzing how collaborative partnerships between businesses and
communities can address today’s pressing social problems.
KEY TERMS
civic engagement
collaborative partnerships
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INTERNET RESOURCES
DISCUSSION CASE:
FIDELITY INVESTMENT’S PARTNERSHIP WITH CITIZEN SCHOOLS
1. What evidence do you see in this case of the three kinds of corporate
philanthropy discussed in this chapter: contributions of cash, in-kind products
or services, and employee time?
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2. What are the benefits and risks to Fidelity Investments of its partnership with
Citizen Schools?
benefits might include becoming a more attractive employer for community-minded
professionals and skill development opportunities for Fidelity employees. Risks
3. Do you consider Fidelity Investment’s partnership with Citizen Schools to be an
example of strategic philanthropy, as defined in this chapter? Why or why not?
Question 2, Fidelity benefited from the partnership through an enhanced reputation,
outreach to potential customers and employees, tax deductions, a strengthened ability
program were more likely to complete high school and enroll in college than those
who had not.
4. If you were a community relations manager for Fidelity Investments, how would
you evaluate the impact of this partnership? What kinds of impacts would you
attempt to measure, and why?
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3) Impacts represent the difference the program made, that is, the actual benefits that
in the response to Question 3, above.
communications skills.
A community relations manager at Fidelity could attempt to measure all four
elements in assessing the impact of this partnership.