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Corporate Members of Center for Corporate Citizenship at Boston College Provide $110 Million in Financial Support to Tsunami Relief
Corporate Members of Center for Corporate Citizenship at Boston College Provide $110 Million in Financial Support to Tsunami Relief
Published 01-24-05
Submitted by Center for Corporate Citizenship
"This is the most extensive corporate response to an international humanitarian disaster and only second to the support companies provided following 9/11," said Bradley K. Googins, Executive Director of The Center. "The tsunami victims needed companies to respond and their employees expected it and so they followed suit."
The financial contributions to the tsunami relief efforts by corporate members of The Center range from $1,500 to $10,000,000, with the median $500,000. Pfizer and Coca-Cola Company have each committed $10,000,000 in financial support as well as in-kind goods.
To view the details of many of these corporate activities go to The Center's web site. For an updated list of the financial donations from its corporate members, The Center.
In an on-line survey of corporate members of The Center conducted Jan. 7-14 some 84 percent of respondents said their company has made a financial contribution to the relief effort. The 101 companies responding to the survey represented about one-third of total membership of the Boston College-based research center. The companies responding to the survey represented mostly large corporations with 88 percent reporting more than $1 billion in annual revenue and 95 percent employing 1,000 or more people.
The principle reasons for giving, as cited by the companies, were the expectations of employees and the humanitarian imperative. "Companies are being extremely responsive to employees who are making individual contributions and expect the same from their employer," said Googins.
Many of large global companies with operations, subsidiaries and suppliers in the region also cited business-related interests as motivation to respond. Companies with business interests in the region also reported a commitment to long-term recovery efforts, with some already reporting multi-year financial commitments.
Some 81 percent of companies reported they are supporting a matching gifts program for employees. General Electric reports in the month since the tsunami some 19,117 employees in more than 48 countries have contributed $3.3 million which the company will match. Companies reported how they are supporting other employee efforts:
81% matching gifts
17% volunteer support/Dollars for Doers
13.5% release time
5.6% leave of absence
Employees from many global companies began volunteering in the region immediately following the earthquake and tsunami including:
The survey showed that companies are funding their relief efforts from a variety of areas throughout the business. Sources of contributions:
36% Foundation
33% Community Relations
30% Corporate Relations
6.8% Public Relations
4.5% Communications
3.4% Marketing
40% Other
Greatest challenges cited by businesses:
The results of the survey were shared with companies during a web-based TeleConvening organized by The Center for Corporate Citizenship at Boston College. During this event corporate executives shared best practices and challenges related to responding to the crisis. Companies participating in this event disclaimed concerns that future philanthropic giving will be impacted. The 50 companies responding to a question on how tsunami giving will affect other philanthropic plans during the next 12 months companies reported:
74% no affect
14% future giving will be affected
12% unsure
The companies also identified the primary motivators for providing financial support as:
92% Employee expectation
34% It's the right thing to do
34% CEO decision
16% Strategic business reasons
2% Shareholder expectation
Managing the public relations aspect of the corporate response was cited as challenge by many companies. Some 43 percent of companies polled during the TeleConvening said their company engaged in no public relations activities regarding their response to the disaster. Responding to the question "How did you conduct public relations efforts regarding your response to this disaster?" companies said:
43% Did not actively promote
24% Same as usual
24% More visible
8% Less visible
The Center for Corporate Citizenship at Boston College is a membership-based research organization committed to helping businesses leverage their social, economic and human assets for the good of society. The Center works with its 350 member companies to help them define, plan and operationalize their corporate citizenship. For more information visit www.bc.edu/corporatecitizenship.
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