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Page 18-1
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);
Page 18-2
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
Page 18-3
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?
Copyright © 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education
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
Copyright © 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
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
Page 18-6
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
Copyright © 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
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?
Copyright © 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
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?
