Management Chapter 18 Homework Page The Community And The Corporation Introduction Strong Relationship Benefits Both

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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

PREVIEW CASES

Vodaphone and

Whole Foods Markets and

Pfizer

Why do businesses as diverse as Vodafone, Whole Foods, and Pfizer 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, and

are their motivations always appropriate? This chapter explains why many companies

believe that being an involved citizen is part of their basic business mission. The chapter

Teaching Tip: Preview Cases

Instructors may wish to start the class with a quick (1:28 video) made

by Vodafone Foundation that sketches several philanthropic initiatives.

After showing the video, the instructor may ask:

What kinds of corporate giving did you notice?

An astute student will observe three kinds of giving (financial

contributions to projects like health care and education); employee

volunteerism (Vodafone team members helping after natural disasters);

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CHAPTER OUTLINE

I. THE BUSINESS-COMMUNITY RELATIONSHIP

A. The Business Case for Community Involvement

II. COMMUNITY RELATIONS

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

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

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

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D. Measuring the Return on Social Investment

IV. BUILDING COLLABORATIVE PARTNERSHIPS

GETTING STARTED

KEY LEARNING OBJECTIVES

LO 18-1: Defining a community, and understanding the interdependencies

between companies and the communities in which they operate.

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?

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LO 18-3: Knowing the major responsibilities of community relations managers.

Many corporations have established community relations departments and

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.

The development of collaborative partnerships has proven to be effective in

KEY TERMS

civic engagement

collaborative partnerships

community

prior written consent of McGraw-Hill Education.

in-kind contributions

license to operate

return on social investment

skills-based volunteerism

social capital

sector

http://foundationcenter.org Foundation Center

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DISCUSSION CASE:

SALESFORCE’S 1+1+1 INTEGRATED PHILANTHROPY MODEL

Discussion Questions

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?

2. What does integrated philanthropy mean, and how does it compare with the

philanthropic initiatives of other companies discussed in this chapter?

Teaching Tip: Discussion Case

The discussion case mentions that Salesforce was committed to

spreading its integrated model to other companies. A nonprofit called

Pledge 1% encouraged other companies to follow the Salesforce

prior written consent of McGraw-Hill Education.

3. Do you consider Salesforce’s various charitable initiatives to exemplify strategic

philanthropy, as defined in this chapter? Why or why not?

4. What are the benefits and risks to Salesforce of its approach to philanthropy?

5. If you were a corporate philanthropy manager for Salesforce, how would you

evaluate the impact of the company’s giving? What kinds of impacts would you

attempt to measure?

prior written consent of McGraw-Hill Education.

6. Would Salesforce’s philanthropic programs lead you to consider working for

this company, and why or why not?