Giving Compass' Take:

• Entrepreneur magazine takes a look at corporate-driven philanthropy and examines whether motivation really makes a difference: What's good for the bottom line can also be good for the world.

• Should we care if businesses do good for public relations purposes, as long as their methods are effective? Maybe not — but they also need to be held accountable if words are not met with action.

• Here's another article that explains why we should stop confusing Corporate Social Responsibility with purpose.


Do businesses give back because they care, or because it helps their business grow? And if the answer is the latter, should it matter?

Let’s say a company participates in a beach cleanup for selfish reasons — so they can look good on social media. The beach still got cleaned, right? Their not-so-noble reason for action still helped the environment. Should that business not perform deeds like these because their motive is not entirely altruistic?

If an entrepreneur or CEO wants to give money to a nonprofit to increase their name recognition or gain positive exposure, I say, so be it. Giving back is a great way to garner media attention. CEOs are running for-profit companies with defined objectives. It is simply good business to try to get as much value possible from charitable acts. If giving back leads to positive exposure, which in turn drives revenue, that company will have even more means to donate to charitable causes moving forward.

Dan Price, CEO of Gravity Payments, cut his own pay to energize his staff with a $70,000 minimum salary for every employee. Some thought it was a selfless endeavor that spoke to the broader issue of a national minimum wage increase. Others thought it was a stunt to gain exposure for his company.

There’s no doubt it lead to a barrage of interviews and media coverage, so much so that the company probably saved money on advertising costs. The publicity also helped Price land new clients and attract new hires. But Price’s good deed should not be tarnished because people speculate about his motives. Companies don’t need to be martyrs. It is okay — or better yet, smart — to give back in ways that drive business objectives.

Read the full article about the motivations behind corporate giving by Brian Jones at Entrepreneur.