November 24, 2005 | Read Time: 2 minutes
In a survey of 350 chief executives who lead fast-growing businesses, 73 percent said they were involved in corporate philanthropy, even though less than a third of those leaders said that charitable giving was important to their companies’ growth.
More than half (55 percent) of the executives said they did not consider charitable activities a factor in helping their businesses grow, while just 29 percent viewed philanthropy as somewhat important in that respect, according to PricewaterhouseCoopers, which conducted the survey. But the business leaders saw many other benefits to be gained from philanthropic involvement, particularly in recruiting employees.
Fifty-six percent cited philanthropy as a way to attract and retain staff members who share their companies’ values, while 54 percent said that charitable giving enabled them to make connections with other business leaders.
Nearly half (47 percent) agreed that philanthropy was a good way to motivate employees, and 27 percent saw it as an opportunity to win new business contracts and keep their current clients.
The majority of businesses surveyed, which had $5-million to $150-million in revenue and were identified in the news media as fast growing, focused their giving on local charities.
The most common charitable activities included giving employees time off to volunteer (45 percent); donating to health-related charities (34 percent); awarding scholarships or other education prizes (32 percent); and sponsoring local athletic teams or events (32 percent).
“Many of these CEO’s are doing more than just writing checks,” Kevin Roach, a tax partner for PricewaterhouseCoopers, said in the report. “Nearly half are giving employees time to participate in charitable causes, and by so doing they are very visibly showcasing their company’s values and social responsibility.”
Forty-two percent of executives said they expected their company’s philanthropic activities to increase over the next two years, while only 1 percent predicted a drop in civic involvement. Approximately 11 percent were thinking seriously about establishing a charitable foundation or donor-advised fund.
But despite their interest in philanthropy, only 5 percent of those polled said they sought professional advice for their giving, and just 15 percent said they had a formal plan. More than a third (36 percent) said they participated in charitable activities on an “ad hoc” basis.
The report can be viewed free online at http://www.barometersurveys.com.
