CHP 18-The Community and the Corporation

How could the relationship between a company and its communities be described?

An interaction of mutual interdependence. A business and the community each need something from the other

Aside from previous benefits of acting socially responsible, what is another reason businesses to participate in community involvement?

Communities does not have to accept businesses. Businesses needs to win the local support---otherwise they will not survive.

What does the term civic engagement mean?

Describes the active involvement of businesses and individuals in changing and improving communities.

What does the term social capital mean?

The norms and the networks that enable collective action

What dos the term community relations mean?

The organized involvement of business with the community.

what does the term offshoring mean?

The relocation of business processes to a different country. This began with blue-collar, factory jobs and has more recently effected white-collar jobs. It became particularly popular when tech jobs became cheaper to do overseas - thanks to high-speed data and the Internet.

What else could the term community refer to?

The term could also be referring to the range of groups that are affected by an organization's actions, whether or not they are in the immediate vicinity.

What does the term corporate giving mean?

The voluntary and unconditional transfer of cash or other assets by private firms for public purposes.

How does Europe compare to the United States in corporate philanthropy?

They have lagged behind because their tax breaks are less generous

what are some early examples of Corporate philanthropy?

U.S capitalists giving to museums, libraries, and universities.

What could comes of in-kind contributions tax wise?

Under U.S tax laws, if companies donate new goods, they may deduct their fair-market value within relevant limits

What does the term collaborative partnership mean?

Voluntary alliances among business, government, and civil society organizations that draw on the unique capabilities of each special, often social, objectives.

What is a community?

a company's area of business influence.

What does the term license to operate mean?

a right to do business.

How does a community help a business? .

businesses can receive financial support from the community. businesses also depend on the community for education, public services, (police and fire) and other things.

What are the three forms of corporate giving?

charitable donations (gifts of money), in-kind contributions (gifts of products or services), and volunteer employee services (gift of time)

What arena has collaborative partnerships been successful?

collaborative partnerships among business, government, and the communities have been particularly effective in education.

What is the Community Reinvestment Act?

passed in 1977, encourages depository institutions to help the needs of the communities in which they operate.

what does the term Plant Closures mean?

plant and business closures can have a dramatic impact on the community. What rights and responsibilities does the business have in relation to employee and community stakeholders? It is important for the firm to consider all options including potential diversification of the company.

what does the term reshoring mean?

returning of business processes to their original location; the costs often outweighed the benefits. We have begun to see more firms returning to their original locations as the middle class has grown in some of the traditional locations for offshoring. For instance, as wages have increased in India, it has become less profitable to have operations in India and some firms are returning to the US.

What does the term corporate foundations mean?

some large companies have established nonprofit corporate foundations to handle their charitable programs.

what does the term return on social investment mean?

the benefits that accrue to business and society.

What are the inputs for a return in social investment?

>Inputs: are the resources the companies provide. This can include cash, employee time, products and services. >Outputs: measures of the activities that took place---usually numerical counts of people and communities served >Impacts: represents the differences the program made; that is, the actual benefits that accrued to the people and communities served. .

How do you develop a community action plan?

>Know and understand the community and what it's needs are. >Assess the company's resources. >Design a community action program around the needs and resources available. >onitor performance of the program and make adjustments.

What are the types of communities?

>Site community: geographical >Fence-line community: immediate neighbors >virtual communities: following the company online >communities of interest: groups that share a common interest with company >employee community: people who work near the company

What do specialists in corporate philanthropy recommend to help companies get the most benefit from their contributions?

>draw on the unique assets and competencies of the business >Align priorities with employee interests >Align priorities with core values of the firm

What are the specific ways in which businesses and their community relations department have addressed critical concerns facing communities?

>economic development: AeroFrams coming in and creating jobs in New Jersey. >Housing: The Neighborhood Housing Services, the Habitat for Humanity. >Aid to minority, women, and disabled veteran-owned enterprises: AT&T operating with diversity programs. >Disaster, Terrorism, and War relief: Businesses donating to the Red Cross after hurricane Harvey

What do strategic contributions focus on?

>factor conditions >demand conditions >Context for strategy and rivalry >Related and supporting industries

Corporate Philanthropy--charitable giving or political influence?

According to an academic study, at least some companies' charitable giving is a strategy to gain political influence.

How do businesses help the community?

Businesses support the arts, schools, health care, and the disadvantaged, and other urgent civic needs

What does the term skill-based volunteerism mean?

Employee skills are matched with specialized needs. For example: the financial services firm fidelity paired its experts with the capital good fund

Where does the largest corporate contributions/corporate philanthropy go to?

Health and Human services.

What is community giving day?

It's a day dedicated to helping the community that all corporate businesses participate in.

What form has surpassed cash contributions?

in-kind contributions

What does the term strategic philanthropy mean?

this refers to the corporate giving that is linked directly or indirectly to business goals and objectives.

What is the responsibility of the community relations manager?

to interact with local citizens, develop community programs, manage donations of goods and services, work with local governments and encourage employee volunteerism.