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What Role Should Charity Play in Business?
Sir Richard Branson and the rest of our Board of Directors explain why giving back is an essential part of being an entrepreneur.
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Capitalism, as we've seen throughout history and are routinely reminded of, can be a tremendous force for social good -- creating jobs, lifting people out of poverty, even fueling democracies. On an individual level, businesses routinely give back to their local, national and global communities in a variety of charitable ways. It can be as simple as sponsoring the nearby Little League team or actually building charity into your business model, like TOMS Shoes, which donates a pair of shoes to children in developing nations for every pair the company sells at home.For some entrepreneurs, charity is as essential to their mission as profits, a responsibility that comes with starting and running a business. Others see their contribution in the form of providing jobs and helping the economy grow -- and choose to give back on their own time. And some, perhaps more cynical, see company-sponsored charity as nothing more than a publicity tactic designed to charm customers. To a certain extent, they're all right.
Our Board of Directors can certainly be considered a group of socially conscious entrepreneurs. Take Rob Dyrdek, who recently opened the doors to his "Fantasy Factory" for a charitable event called SK8 4 Life, which raised more than half a million dollars for underprivileged kids in Los Angeles. Or Sir Richard Branson, whose Virgin Group has an entire foundation -- Virgin Unite -- focused solely on philanthropic causes around the world.
So how focused should entrepreneurs be on charity? And how big a role -- if at all -- should it play in their businesses. We asked the Board of Directors.
Richard Branson
Founder and President, Virgin Group
"I think every single business should be a force of good -- or there's no point in really going into business. Every move you make in business can be a force for good, whether its creating jobs, and once you've made some money, you can then use your entrepreneurial skills to tackle some of the intractable problems in the world, whether it's youth homelessness in your own hometown, or whether its trying to sort out global warming or conflicts in the world. Anyone who's in a position to make a difference must try to make a difference."
Lexy Funk
Co-Founder and CEO, Brooklyn Industries
"In a highly developed capitalist economy with minimized governmental funding in certain sectors, charitable contributions by business owners or by businesses can fill the gap. But it is all based on wealth. If you haven't built wealth yet as an entrepreneur, the best way to be charitable is to build contributions into product. Many of our T-shirts are collaborations with non-profits where a percent of the proceeds go back to the organization. This way charity is carried through to the consumer and helps drive sales and ownership to the purchaser."
Clint Greenleaf
Founder and CEO, Greenleaf Book Group
"I'm a fan of charity in my business -- we donate to a number of worthy causes. But I'm not going to judge or suggest to anyone that they should do the same. I think charity is a very personal decision and isn't a business issue any more than your political views should be. Sure, some will judge you based on your choices, but that shouldn't be a major motivator for tying charity to your business or not. Focus on giving your clients value and make money with integrity, and the rest takes care of itself."
Warren Brown
Founder, CakeLove and Love Café
"We're all in one big community and it's very easy to lose sight of that given how we're always posited against one another. I think the fundraisers thrown for businesses in need are great and show the real heart of America."
Lawrence Gelburd
Lecturer, The Wharton School
"Generally, it is more credible if there is a clear relationship of the company's products and services to the charity's function. Screening the charity for legitimacy is important as well."
Gary Whitehill
Founder, The Relentless Foundation and New York Entrepreneur Week
"This is a very important, but rarely discussed, business model that creates true competitive advantage -- a hybrid between both for and non-profit organizations. Most businesses today view their revenue model in a linear fashion instead of from a multi-dimensional context. Integrating both organizational structures into the initial framework of a business allows the model to be leveraged exponentially. Each structure has different pros and cons built into it. But when combined together in the right way, with a clear and concise plan of implementation and execution, a business can achieve far more than as just one structure or the other."
Phil Town
Investor and Author of Rule #1 and Payback Time
"Charity starts at home. And should stay there. There is nothing so off-putting as businesses doing PR under the guise of charity work. Also, businesses usually have multiple owners. One shareholder's charity might be another shareholder's most hated scam. Don't subject your employees to your vision of the world with company money unless it's all yours anyway. And, by the way, let's repeal the income tax laws and make charitable giving a non-tax event so that rich people's gifts are not subsidized by the poor."
Julie Jumonville
Co-Founder and Chief Innovation Officer, UpSpring Baby
"Charity should play a role in any and every business. It can be as simple as giving one extra hour per week to your employees to volunteer at their charity of their choice, or following the TOMS Shoes model of one pair of shoes donated to children in need for every pair purchased. Regardless, if we all put in one hour per week, the world would be in a much better place -- and believe it or not, your employee productivity will improve because of this type of work culture."
Rob Adams
Director, Texas Venture Labs at the University of Texas
"I feel charity is something that corporations should commit to in the form of a portion of their profits. Businesses are profit-oriented and charities are not, so I feel there needs to be separation between them -- and it is up to the corporation if they want to support a charity."
Jennifer Hill
Chairwoman, Astia NYC Advisory Board
"Lead by example. Executives have a powerful opportunity to encourage and empower employees to play greater roles in the positive transformation of society. Offer a product or service that answers a pressing need (great reason to launch a company!). Do business with diverse, environmentally friendly and/or socially responsible businesses. Develop employee-matching donations programs. Schedule a team-building outing that supports a community service. Encourage and incentivize your employees to give back to the community on a regular basis. Inspire your team, suppliers, customers and community to do the same. This isn't just a benefit for the charity -- it makes good business sense, motivates employees and demonstrates the company's commitment to the community."
Comments (Page 1 of 1)
Giving Back - YES!
To have the opportunity to even embark in a small business is a blessing. Start early and share the wealth even if it is nothing more than your labor to give at first. You will feel so much better inside and be able to clear your mind so you can expend your creativity on your own business!
Robert Lux - Aequitas Enterprise and Design LLC
Sadly, our current head of government does not appear to believe in any of the benefits of capitalism. In fact, I believe that the leaders of the Russian government have more faith in capitalism than Obama and his administration. How ironic is that! In any event, if capitalism fails, or even fades, ALL of society will get hurt.I am an Air Force and seek ing someone .I need a woman who can love me back ...I also uploaded my hot photos on kissmilita ry.c omunder the name of IOIO555..It's the largest and best club for seek ing Army, Navy, Marines, Air Force, Police Force, and the admirers of those who wear the uniform.I just hope you don't mind me being a soldier ...Please Check it out!I'm serious
Well, Maybe.. but maybe it's their way to relieve their Guilt Feelings.. Since if they made so much in profits? Why not just either Pass it onto the stock Holders who funded their Company or , God Forbid? Reduce their Prices!
Take the Airlines... Please.... Should they be able to Charge $500 for a Business Ticket vs only $100 for the others? and has any charities had That much of a Impact? Seeing as they say, less than 20% doanted, actually gets to the people intended.. for the vast majority of Chairities..
And take the Salvation Army.. supporting the Poor.. Is it not true, To Give to a Beggar, Makes a Beggar? But to teach them to Fish and they can feed themselves for Life.. Just like Our Welfare system, It Rewards Women to Have Children! can you imagine that! For every Child you have on welfare, you getanother $3,500-$5,000 a yr! Wonder why they stay on welfare and have more Kids and many have several 'husbands'... so why aren't they required to go on "family Planning" or the Birth Control system ?
Well.....I have nothing left but still give. Not sure how I do it with no car, hardly any food, never buy myself clothing, do not go out for pleasure, lost my only child, do not own a home, and do not plan on getting any type of inheritance that is for sure, yet I still give. It does feel good but wonder when others will start giving to me such as the old saying is, "Give and you shall receive twice as much." Starting to wonder about that theory or if it just works for the rich. So Mr. Branson, out of respect, that is if you even bother reading this....what would you have to say to a person such as myself? Should I quit, give up, jump out of a window, just let my high IQ go, sleep all day instead or what? Sad when I have so many ideas to make money for myself yet no money to start and would guess many others are just like me or are they?
Help. Born in the U.S.A. work all my life. Help everyone kown I need help and everyone forgets. I have a $327.000 mortage and can't make the payments I need help this is the first time I ever ask for anything. I alone and scared. I can't tell anyone because of the shame I fell. I had open an open heart operation and 6 stents. My ex took out charge cards unbeknow to me. I am stuck. Need help need. I give what I can still to help others.Right know I have so much debt and Can't even afford to eat I live on cereal.
No one knows my age they think I am much younger. so, what good is it I have an idea for a business and don't know how it up and runnig and I can't becuse I am so broke
I am writing this with tears comming down my face because another day of just being alone and thinking. Leena
Helene...since you have a computer and are disabled you may want to check out this website: nticentral.org...it provides work at home jobs to the disabled. K....my son also died unexpectedly at 19. It's been 4 years now and I still cry daily for him. No one can ever know that pain unless they have experienced it. I worked at home the whole time my kids were little. I have worked as an employee for various companies. I post on these message boards a list of work at home jobs that is FREE for those looking for work to help others. Many people think it's a scam because I am posting. I am just trying to help others. There is a whole other world of jobs out there for those that work online and I am trying to open it up to them. BestTopJobs has a FREE list of hundreds of real work at home jobs offered by well known companies. These jobs DO NOT cost you money. These are employment positions. This is not a scam only help for those looking for work. You will have to add the ending to the link because I can't post full links.
Dear Sir Richard Branson, I am begging you to read this please It's not good to cry all the time. I really need HELP; This is the first time I as for somethin.
Leena
It is great the businesses assist charity as part of their promotion. What I object to is corporate black mail such as,any one not participating in united way chariies will not be eligable for promotion. Or , you are the nly one who hasn't donated to bosss church carnival, and if we get 100% boss gets an award and picture in paper. I refuse, and support only charities I believe in such as MDA. Same reason Iwill never join a union, they supports every thing I am against. Try to push me in and I will go to work for the competition or start my own business.
test to see if this is posted
I apologize for some of the comments made on this blog.
Helene....first of all if you are truly without an income I would advise you to seek the assistance of an attorney immediately, and apply for some type of assistance such as permanent disability, etc. With the assistance of an attorney you will be able to get this approved in a matter of one month, if you qualify. The attorney should be able to tell you upfront at the free meeting. If so, you should receive a rather large check in one month of time starting from the starting back date of your disability status, if any. The attorney, by law, is not allowed to charge but a small fee for his service which is deducted from the first receiving check. If you do not qualify for disability then ask about other income subsidies you may qualify for in lieu of. The receipt of a large check will only resolve your problems temporarily. Again, I strongly suggest you should start this process immediately.
RE: Your credit cards. If they have sincerely been abused without your permission you should simply report this in a timely manner to the authorites in your community. If the statute has expired I would still report it to the authorities only because this is highly against the law, and to have it recorded. If you can prove they have been abused then send a letter to each of the (3) credit reporting agencies stating such along with the circumstances surrounding the use of the cards. If you have credit card debt that is simply yours then you are living above your means. A credit counselor can help you with this situation by lowering your payments or advising other methods of resolution such as reorganization, possible bankruptcy on your entire situation, or bankruptcy on the 2nd or 3rd attached lines of credit of your residence.
You reported a $327k mortgage so it is safe to say that without income you need to seek the advise of an attorney ASAP! Ignoring this will not make it go away. Since you have also reported that you are broke without income, without food, I would also suggest that you seek out a friend or church member who can accompany you and help temporarily manage your affairs until you are past the current emotions you are experiencing.
Crying is simply the sign of either situational depression, feelings of being overwhelmed, mourning, or just feeling sorry for oneself. With the above mention you should seek a counselor who can sort this crisis out with you, possibly aiding in some anti-anxiety medication to temporarily get you past this.
You may have 100 ideas or only one....it doesn't matter. What matters right now is getting your life in order first. SHAME is only an affect that many experience during a crisis. This is not uncommon, and in fact we all experience this affect at one time or another during our lifetime. So EAT, PRAY, AND LOVE......but most of all help yourself right now so you might be able to put your idea into action.
I learned from the death of my only child (son) in 2001 that emotions are difficult to manage by yourself so you do need to ask for help but not on this computer nor from Mr. Branson. A computer cannot help you unless you are filing for assistance in some recommended programs. Might I also suggest that you check with your local HUD Private Voucher program to see if you qualify for assistance with help for your mortgage payments. If you truly have a lack of income that is below poverty level then this program will pay for at least 70% or more of your mtg. A $327k mtg. is a lot of money so I assume you have other rooms that might be of use to someone who can rent. That will also pay your mtg.
Again, a computer nor your looks are not important right now. If it is of any consolation I still cry daily from the loss of my son but it is a healthy mourning. I am not going to truly say what I am thinking but I hope this advice does help you or someone else on this blog. I sincerely wish you the best and GOOD LUCK!!
In response to Tim......your comments are valid, however, certain laws are in existence for some of the things you mentioned so I would advise you to seek an attorney who specializes in the area of prejudism against others, employment law, etc. given your COMPLAINTS.
I personally am not aware of MDA?? unless you are referring to Mothers Against Drunk Driving?? My method of contributing is by participating in speeches, etc. There are many other ways to give other than money. MONEY is not everything, however, I do admit it certainly takes the edge off. It would definitely enhance my endeavors.
Might want to try living in a tent without the comforts of the U.S. advantages we take for granted so often such as A/C, heat, food, shelter from the rain, clothing, medication, protection from being beaten or possibly raped, under age slavery, having the choice of joining a union, regulated pay, TV, computers, entertainment, bathroom facilities, healthy drinking water, and what could you add to this????
In 1997 I started a business with the hope of helping others while making myself sufficient. That was interrupted by an individual whose only thought was to make my life miserable, and it did. My business started mid year but had an actual income Y/E. The 2nd year it doubled, 3rd year tripled. During that entire time I also worked a second job to support the business so I would not have to take any draws. By my 5th year, many adverse events had occured, then in 2001, my only child (son) was killed. I have to say that is one of the largest wake up calls any individual can have during a lifetime. The plans for my business to start a Web presence never developed. The emotional and financial impact of not just the death of my son but also previous adverse events completely devestated my life with lack of support from anyone, both emotional as well as financially. During that time and even years later I am still learning of many ways to help others if only to give advise during a crisis in someone's life. Sometimes I even keep my mouth shut. Thereafter, I lost nearly all of my personal belongings due to forced sales, lost my business due to relocation, even lost my car due to a traffic accident that required surgery not covered by my then medical insurance.
Wanting to be in business and actually being in business are two different thoughts, ideas, experiences or even dreams. It is rewarding but it is also time consuming, not to mention YOU are responsible for everything that happens and no one else.
I actively ran a marathon training for the Leukemia Society during one year. Ironically I had to quit because my mother accidentally ran over my foot with her car. Thankfully the running had built up enough strong cartilage there was no damage whatsoever. I also like VitaminAngels.org which is for children in parts of the world who may not reach the age of five due to poor nutrition and vitamin A deficiency. It is about providing hope for a long healthy life that otherwise might not exist for those individuals.
I have also dedicated free time in the Mexican rural clinics who service mostly the extremely lower incomed bread winners of families. That was exhausting, rewarding, difficult, stressful, and I received no pay, nor did I even expect any. After seeing some of those I doubt anyone would have asked for payment.
As well I believe the Outreach International.org is wonderful program being utilized in the U.S. against hunger, however, it is also International.
It is very true true that one has to go into business for themself for the correct reasons such as being passionate about their service or product, and hopefully educated in the area of business or entrepreneurship. If one goes into business without these in place most will fail especially those who do not give back to their communities.
We all have a story but dreams, hopes, money, lack of, make us all very individual unique human beings. I personally applaud all of those mentioned directors for their hard work.
As an entrepreneur, giving back should just be part of the business plan, your total makeup. I'm funny because I truly adopt the philosophy to give sometimes till it hurts - at least makes you uncomfortable. This doesn't mean you tell everyone or brag about it or put your obligations that make your business run on the back-burner. When a company gives it should be something has been researched and is substantial - just not for the sake of saying you "give." There's an interesting line, but once you cross it and adopt into everything you do with your business that will mean as much as the revenue your aim to generate.
Elena Patrice - WebsitesGiveback.com
I am a stockholder. If a company I own part of gives to charity they are taking from me. This is like Obama's transfer of wealth.
I should be allowed to decide where MY profits go not the CEO.
Sadly, our current head of government does not appear to believe in any of the benefits of capitalism. In fact, I believe that the leaders of the Russian government have more faith in capitalism than Obama and his administration. How ironic is that! In any event, if capitalism fails, or even fades, ALL of society will get hurt.
Helene...since you have a computer and are disabled you may want to check out this website: nticentral.org...it provides work at home jobs to the disabled. K....my son also died unexpectedly at 19. It's been 4 years now and I still cry daily for him. No one can ever know that pain unless they have experienced it. I worked at home the whole time my kids were little. I have worked as an employee for various companies. I post on these message boards a list of work at home jobs that is FREE for those looking for work to help others. Many people think it's a scam because I am posting. I am just trying to help others. There is a whole other world of jobs out there for those that work online and I am trying to open it up to them. BestTopJobs has a FREE list of hundreds of real work at home jobs offered by well known companies. These jobs DO NOT cost you money. These are employment positions. This is not a scam only help for those looking for work. You will have to add the ending to the link because I can't post full links.
Sadly, some of these commenters who apparently hate the Presdient have very short memories. Bush and Cheney redefined wealth in America by giving all the money to the billionaires. They ruined the middle class tax base, which is America's foundation. Your small businesses are in jeopardy, not because of President Obama, but because Bush and Cheney ignored you for 8 long years, lied to you, and walked away giggling.
I am always suspicious of companies that have a lot of money to throw around on non-business activities. That means they are soaking me and their other customers so they can fund their social experiments, rather than letting the customers make those decisions. These companies are wannabe governments, taking others people money unnecessarily to promote themselves for what may be or not be useful purposes. At least these companies cannot take the money at gunpoint for no value returned. But I did notice many of the quotes were from non-business people or regulated monopolies like education.
So long as the business doesn't lean on employees (to participate), it's Ok by me... Allowing employees to donate their time (after work hours), is a good thing. Those employees deserve recognition, and the good will that they bring your business, will be worth thousands of times what little you invest (1 hour of "company time" and less than $150 to buy 2 plaques; one for them and one for the lobby).
Michael R. Sanders, Administrator
The Michael R. Sanders Living Trust
THE LAST 10YRS I HAVE HAD MY CHARITIES OF CHOICE...MOSTLY BATTERED WOMEN SHELTERS.I AN AN AUCTIONEER AND ESTATE SALE REP. I HAVE GIVEN BACK TO ALL PEOPLE. NOW, I AM IN NEED OF HELP. MY DAUGHTER DIED OF HEART FAILURE 31YRS AND LEFT A BEAUTIFUL SON 3YRS AND I AM FIGHTING AGAINST MY EX. ADOPTING HIM. MY EX IS AN ABUSER AND THE COUNTIES HERE IN TEXAS ARE ALL BEST FRIENDS, GOOD OLE' BOY SYSTEM. I WAS ABE TO SELL MY ESTATE AND RAISE SOME MONEY AND THE ATTORNEYS WERE THERE WITH THIER HANDS OUT BUT DID NOT HELP. I DID NOT KNOW YOU COULD LIE UNDER OATH AND THE TRUTH WAS ON MY SIDE. BIG NEW LESSON FOR ME TO LEARN. CHARTIES LIKE GOODWILL, SALVATION ARMY, FEED THE CHILDREN, ETC, YES YOU GET 20% OF THE INTAKE FOR THE PUBLIC AND THE CEO'S MAKE $200K TO $300K PER YEAR. ALL I NEED IS A FAMILY LAW ATTORNEY THAT COULD SHOW ME THE WAY TO FIGHT THIS. THE OBESSION MY EX HAS FOR THIS CHILD IS VERY NOT NORMAL. YOU MAY ASK ABOUT THE BIOLOGICAL FATHER....WELL, HE IS INCARSERATED FOR NON VIOLENT OFFENSE AND WILL BE OUT IN 3 MONTHS....HE HAS NEVER GIVEN UP HIS RIGHTS AND I SUPPORT HIM. HE MADE MISTAKES, HE HAS PAID THE PRICE AND WHAT HAPPENED TO REHABILATION? WE ALL MAKE MISTAKES AND HE IS PERFECT TO BEABLE TO RAISE HIS SON. MY DAUGHTER WOULD NEVER WANT HER SON NEAR OR AROUND HER DAD DUE TO SO MANY REASONS. I HAVE 2 OTHER GRANDSON'S THAT NEVER GOT THIS TIME OF ATTENTION FROM MY EX. THE REAL ISSUE IS HIS HATRED FOR ME AND THAT IS NOT IN THE BEST INTREST OF THE GRANDCHILD. HE HAS THE MONEY NOW AND HE IS ALL ABOUT CONTROL, STALKING, HARRISING, VERBAL ABUSE, SEXUAL CONDUCT UNBECOMING OF A CHRISTIAN, SLANDERER, EXTREME FOUL LANGUAGE, BUYS PEOPLE OFF AND LIES UNDER OATH. AS I KNOW IT A TEXAS WOMAN WOULD WALK ACROSS HOT COALS IN THE "COUNTRY OF TEXAS" TO TAKE CARE OF HER BLOOD RELATIVE. "JUSTICE" HAS LEFT THE COUNTRY OF TEXAS, UNITED STATES OF AMERICA. I NEED AN ATTORNY AD LEIDUM FOR MY GRANDSON, JUDGE SAYS "NO"...IT IS JUST A JOKE...CPS...ANOTHER JOKE....THEY ALL LIE UNDER OATH. I WILL SAY, FOR EVERYTING I AM TELLING YOU IS THE TRUTH AND I WOULD TAKE A BULLET OR POLOYGRAPH FOR EVERY WORD.
THE BEST INTERST OF MY GRANDSON IS ALL I CARE ABOUT. NO OTHER ISSUES OF ME AND MY EX SHOULD BE CONSIDERED. THANK YOU FOR READING. ANY SUGGESTIONS WOULD BE GRATEFUL. ALWAYS REMEMBER YOUR "MUSTARD SEED". THAT IS WHAT HAS GOTTEN ME THROUGH ALL THIS.