Article 1 - Perils of Corporate Philanthropy

Article 2 - Soros Sees Global Need for Aid And Maps a Plan to Provide It    

Article 3 -The Dictionary Lady is Spreading the Word to South Carolina Kids

Article 4 - Cheap Talk:  Robert A. Kierlin is one of the most frugal CEO's around; We asked him why

Article 5 - Should Foundations Diversify Holdings

Article 6 - Hewlett Fund's Growing Role in Grant Making

    Today in the United States there are many companies and wealthy individuals who are donating considerable sums of their own money to various charities and funds.  There is little question as to whether the philanthropy is a good thing, however there is a debate over the motives of these actions.  Regardless of the motives, one sees more and more generosity towards organizations and funds, particularly since the September 11 tragedy.

    George Soros is an example of the good that can come from philanthropy.  He is a very wealthy individual, ranked No. 37 by Forbe's on its list of the world's richest people, and gives away about $500 million a year.  In an interview, Soros spoke of his many donations and the motives behind his generosity.  He feels a strong need to shorten the gap between the wealthy and poor and help provide to those who are not as fortunate as others.  However, it is extremely important for him that those who do donate money do it for the right reasons, not for publicity or a good public image.  Interestingly, he devised a plan which he thinks could solve this problem.  Soros wishes to create a fund in which all of the wealthy countries of the world contribute a sum of money based on their respective wealth.  The money would then be divided up, and the receiving governments would decide what to do with it.  According to Soros and many others, only charity which is given for purely altruistic reasons should exist.

    In an article written by Ronald Alsop for the Wall Street Journal, the other side of philanthropy which currently exists in the world today is discussed.  Alsop wrote about some of the true intentions of certain companies that do contribute money to charity and the public's opinion on this matter.  He described certain companies such as Verizon Communications and Phillip Morris Company who do donate money, but then spend money on advertising to inform the public of their actions.  Other companies such as Proctor and Gamble Company and Honda Motor Company who contribute a lot of money but do not put effort forth to inform the public of their generosity.  Through surveys conducted by the Reputation Institute, a New York research group, it was found that the public does not approve of the actions of companies like Verizon and Phillip Morris.  However, the problem is that without such actions the public is unaware of businesses philanthropy.  This would not normally be viewed as a problem, but it is true that consumers do consider companies' donations when making purchases, and those that find a way to inform the consumers of their actions hold an advantage over others.  

    It is evident that there is quite a bit of generosity among the companies and wealthy individuals of the country and world today.  The debate over whether companies or individuals should receive recognition for their contributions is a very complicated one that may never be resolved.  In my opinion I do not believe that companies should go out of their way to show the public of such actions.  However, I do not think it is unreasonable for companies to show their contributions on their website or through letters to investors.  This is because most people, including myself, do consider such generosity when spending their money.  The responsibility then falls on the consumer to do their own research and determine which companies do their share when it comes to social responsibility.  As an investor, I would actually be pleased to hear that the company is using corporate funds for such activities.  It is the responsibility of those people or groups who have more to give some of that to the less fortunate.  Furthermore, if a company can afford to spend funds on charity, as an investor I would feel confident that the company is stable financially.