Profit isn’t the only driver in business. Some companies find meaning by giving back to society or within their local communities. Their donations of time, talent, and treasure have a positive impact and foster a greater sense of purpose among employees and stakeholders.
While the majority of charitable dollars come from individual donors, the role of corporations in philanthropy is significant and growing. Companies such as Google, Microsoft, and Walmart have been leading the way, contributing to a range of causes, from education and healthcare to disaster relief.
Corporate Giving in the U.S.
In 2022, corporate giving in the United States increased to $21.08 billion, a 3.4% increase from the previous year.1 This growth is part of a larger trend in American philanthropy, which resulted in nearly $500 billion in donations last year. The sectors that received the most funding were religion, human services, education, and health.
In addition to financial contributions, many companies recognize the value of volunteerism as a form of corporate philanthropy. This approach fosters community engagement and teamwork among employees. Volunteer programs range from hands-on activities to skills-based services, where employees offer their professional expertise.
For example, Salesforce has a 1-1-1 model of philanthropy, which includes donating one percent of the company’s product sales, one percent of its equity, and one percent of employees’ time towards community service. The company encourages its employees to engage in volunteer activities and provides them with seven paid days off each year specifically for volunteering.
Similarly, Timberland offers its employees up to 40 hours of paid time off to volunteer. The company’s Path of Service program has resulted in thousands of hours of community service worldwide.
At General Electric (GE), employees can engage in various community service projects, from mentoring students in STEM (science, technology, engineering, and math) to participating in environmental clean-ups. The program not only benefits the communities where GE operates but also provides employees with leadership and skills development opportunities.
Ripple Effects
The impact of corporate philanthropy extends beyond immediate charitable acts; it has a ripple effect on local economies and communities. For example, supporting educational initiatives leads to a more skilled workforce, attracting more businesses to the area and boosting the local economy.
The Rockefeller Foundation, established in 1913 by John D. Rockefeller, is often cited as a model of corporate philanthropy. One of its most notable contributions was a program to eradicate hookworm, providing medical treatments and educating the public on sanitation. The Foundation is also widely known for supporting artists and funding historically Black colleges and universities.
Closer to home, Goodyear has been a cornerstone of local philanthropy. Its Better Future initiative focuses on STEM education. In 2019, the Goodyear Foundation donated $1.6 million to Akron Public Schools to create a STEM school. In 2022, employees engaged in volunteer projects and collection drives worldwide, logging more than 16,000 volunteer hours.
The Dark Side
Motivations to give back vary from company to company. While many businesses are driven by genuine altruism, others have used giving for other purposes. In addition to tax savings, philanthropy can be used as a strategic tool for enhancing brand image, attracting talent, and even opening new markets.
However, some companies engage in what is referred to as cause marketing, where the act of giving is closely tied to product sales or marketing goals. While this approach can be effective in raising funds for worthy causes, it can also backfire, leading to public skepticism and even tarnishing the company’s reputation.
In 2010, KFC partnered with Susan G. Komen breast cancer foundation, pledging to donate 50 cents of every pink bucket of fried chicken sold. While the campaign raised millions for research, it drew widespread criticism. Many pointed out the irony of a fast-food company, whose products are generally regarded as unhealthy, supporting a cancer charity. The campaign was seen as an attempt to improve KFC’s image rather than a genuine effort to contribute to a cause.
In 2014, Uber partnered with Goodwill on an Earth Day campaign, offering to pick up donated items free of charge. The campaign was criticized as a PR stunt to divert attention from the company’s labor practices and regulatory challenges rather than a genuine commitment to social responsibility.
Philanthropic Evolution
Social media and increased public scrutiny are holding companies to higher standards of transparency and accountability in their philanthropic activities. This is pushing corporations to be more thoughtful and strategic in their giving, leading to more meaningful and lasting impacts on society.
Companies are increasingly focused on impact giving, emphasizing the measurable outcomes of their contributions. This shift towards data-driven philanthropy allows companies to better align their giving strategies with their corporate goals, ensuring a more sustainable and effective approach to charity.
Corporate philanthropy remains a vital aspect of modern business. Giving not only benefits the recipients but also creates a cycle of positive change that can uplift entire communities.
On the following pages, we highlight local companies committed to charity as part of their corporate culture.
1. Charitable Giving Statistics, NPTrust. bit.ly/3R5E1Ji.
GBS Corp
Location
North Canton
Number of Employees
350
Do you have a formal or informal program?
Formal. Year of Giving Initiative (YOGI)
How many years have you run this program?
6 years
Describe your program.
Our program encourages employees to volunteer, donate, and support others.
Employees can:
gift vacation time to a fellow employee in four- or eight-hour increments,
volunteer up to 16 hours of regular work time to a charitable organization, and
contribute monetary donations to the YOGI committee, which disburses funds to selected charities.
What benefits does the program offer your company or employees?
The program promotes an environment of service, which is at the core of our mission and company philosophy. Our company, which is 100% employee-owned, recognizes the importance of enriching the lives of others and supporting coworkers, local communities, and nonprofit organizations. We believe giving employees the ability to support worthy causes enhances positivity and quality of life for everyone.
Clarity HR & AUI
Andrea Metz (Clarity HR), Mike Berube (AUI), Pastor Aaron Hymes (Breaking Chains Executive Director), Karen Nist (AUI), Alice Rhodes (AUI), and Misty Artnz (Clarity HR).
Location
Akron
Number of Employees
6 & 14
Do you have a formal or informal program?
Formal. Clarity Cares and AUI Gives Back
How many years have you run this program?
4 years and 49 years
Describe your program.
Clarity employees are encouraged to give back both during and after work hours. The employee with the most service hours receives a $1,000 donation to the charity of their choice. We also volunteer together at various organizations, such as the Summit County Humane Society, and as judges for the annual Goodwill Employee of Distinction luncheon.
AUI team members are on track to have more than 1,500 hours of community service this year. AUI supports the Soap Box Derby and Rebuilding Together of Northeast Ohio, among others.
What benefits does the program offer your company or employees?
We believe serving the community is just as important as doing business in the community. It is so important to us that community is one of our core values. Our employees enjoy connecting with our community beyond their work.
SACS Consulting & Investigative Services
Location
Akron
Number of Employees
80
Do you have a formal or informal program?
Informal. Silent Angels
How many years have you run this program?
20 years
Describe your program.
Silent Angels is an unpublicized program within SACS that dedicates some of the company’s profits as well as employees’ time to help those who are disadvantaged. This word-of-mouth endeavor focuses on helping people who are working hard but run into financial challenges. We also help veterans and wounded warriors. We’ve purchased beds for kids, appliances for families who experienced tragedies, and equipment for the handicapped. Our team has also actively worked with families to find and recover victims of human trafficking.
What benefits does the program offer your company or employees?
Helping others is at the heart of our company. We started the program in thanks and appreciation to God for the many blessings we receive. We volunteer and donate for only one reason—our hearts and spirituality direct us. Our employees embrace this philosophy, and we’ve been able to make a difference in quite a few people’s lives. When we see the smiles on people’s faces and sometimes share tears of joy with them, that is our biggest reward.
USI Insurance Services
Location
Downtown Cleveland, with more than 200 offices nationwide
Number of Employees
10,000+
Do you have a formal or informal program?
Formal. USI Gives Back
How many years have you run this program?
9 years
Describe your program.
The USI Gives Back program encourages employees to participate in volunteer opportunities during the month of August every year. Through this program, associates have volunteered their time and talents to support local food banks, homeless shelters, rescue missions, animal shelters, senior centers, women’s crisis centers, schools, zoos, parks, and beaches.
This year, the USI Cleveland Office participated in four events. Volunteers made boxed lunches for seniors and school children at the Greater Cleveland Food Bank, organized an Adopt-a-Beach cleanup at the Metro Parks Cleveland Lakefront Preserve for the Alliance for the Great Lakes, and stuffed the bus and packed backpacks for children for the United Way of Medina and St Malachi Catholic Church in Cleveland.
What benefits does the program offer your company or employees?
USI is proud of our deep community roots. Our associates are passionate about getting involved and creating a positive impact by helping those in need. Participating in the program empowers our team members to get out of the office and interact with each other while doing good for the communities we live in and serve. It’s a very satisfying way to give back.
