3
Nestle chairman says philanthropy misuses funds
Nestle SA Chairman Peter Brabeck-Letmathe isn't too keen on corporate philanthropy because it misuses shareholders' money.
From Bloomberg:
"I'm personally very much against corporate philanthropy," Brabeck said in a television interview in London. "You shouldn't do good with money which doesn't belong to you. What you do with your own money, this is absolutely fine." Nestle's strategy in corporate and social responsibility focuses on areas that are key to its own business strategy and that boost shareholder value as well as helping society, 65- year-old Brabeck said.
Brabeck-Letmathe said the government, business and civic groups should take the lead on philanthropy. The Switzerland-based company said its main areas of action include boosting productivity, reducing use of water and creating products that are more nutritious.
Follow our coverage on all things food here.
It has long been an accepted fact of corporate business that "doing good and getting credit for it" is a lynch pin of corporate public relations. The extension of this doing "pr good" into the area of corporate philanthropy is an extension of the basic advertising and marketing strategy of a company.
Corporate shareholders' dollars used in this way are no different than those paid for ads, public relations campaigns, or any other marketing program. In the US, less than 4% of philanthropic contributions come from corporations. We fund raisers always advise our clients and agencies against expending a disproportionate amount of resources on corporate money. Large corporations being philanthropically generous is an illusion.
Peter Brabeck is very insightful and correct in his thoughts. One of the sad things is that many affluent people do not seem to have the understanding of how much good they could do... The greatest charitable giving involves giving without expecting anything in return whether it is $ or effort. Think Mother Thersa who gave all including her love for the poor!!! The joy of giving is one of the greatest Joys for everyone.
