1. Welcome to class of Corporate Philanthropy in Emerging Markets by Dr
Welcome to class of Corporate Philanthropy in Emerging Markets by Dr. Satyendra Singh Professor, Marketing and International Business University of Winnipeg Canada

2. Corporate Social Responsibilities: in Developing Countries/Emerging Markets

3. Individual philanthropy Corporate philanthropy
Level of Philanthropy
Philanthropy
Do good by giving…
Individual philanthropy
Need to save (EM), lack of trust, unstable government
Corporate philanthropy
…with the aim to develop
Business opportunities, Public relations, Employee morale, Brand image, Cause-related marketing campaign
Strategic philanthropy
…with the aim to combine social and economic benefits to develop distinct competitiveness

4. Philanthropy: the Context
Philanthropy is in decline
Difficult to justify charitable (social) expenditure in terms of bottom-line (economic) benefits
Corporate philanthropy is unnecessary
No-win situation
Trade-off between the goals
Let employees donate themselves  tax rebate
Individual donor or corporate  same benefit
We need strategic philanthropy
Win-win situation
Context-focus giving  Where to focus; how to contribute

5. Top 5 Issues for Which Businesses Give

6. Types of Corporate Philanthropy External vs. Internal
Unrelated
↑ PR, ↑ demand
Lacks credibility
Grant
25% cash
75% R&D
Consultancy
Worst of all
Confused
Board member wants it
Eg., Sponsor an event
Use own products
Too little
Not significant

7. Strategic Philanthropy: Social and Economic

8. The Logic of Giving With Giving Without Giving $30m  Profit
-$2m  Gave
$28m  Profit After Giving
$5.6m  (20% tax, ie ↓ tax bracket)
$22.4m  Net
Without Giving
$30m  Profit
-$9m  30% tax
$21m  Net
Even after giving $2m, firm saved 1.4m extra  ↑ dividends, EPS

9. Where social and economic benefitsnot in conflict
Where to Focus
Where social and economic benefitsnot in conflict
Contribute to society
E.g. trained educated and healthy labour, natural resources to produce high quality goods and services, preserving environment, waste management, pollution reduction, boosting social and economic conditions in EM
While being different and ↑ business performance
E.g. Computer company trains students, population
Travel companies train  restaurants, hotel, booking
Tour operator sponsors a heritage site, and thus has preferential access to the site for its tourists

10. How to Contribute to Value Creation…

11. How to Contribute to Value Creation
Selecting the best grantees
Urgent/overlooked problems, school dropout rates
Use the grantee’s performance to measure our performance
Signalling other funders
Train other funders, offer matching grants…
Improving the performance of grant recipients
Capital provider to engaged partner, learn from each other, ↑ effectiveness of organisations as well
Advancing knowledge
Set a new research agenda for public or govt policies
New wheat, rice variety, GMO

12. The Chocolate company