Business Dictionary defines philanthropy as the “love of mankind.” With that said, philanthropy is thus governed by a sense of caring, nourishing, and enhancing the quality of life for human beings. In the modern usage of the term, philanthropy is mutually exclusive with business wherein private initiatives are geared towards the achievement of public good.
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| Image Source: keysforthelessfortunate.org |
Philanthropy started in ancient Greece. In the Middle Ages, the classical view of it as “love of mankind” disappeared but was rediscovered and revived during the Renaissance Period. In the 19th century, the notion of philanthropy was associated with “doing good” and providing foundations created by the titans of the industry. These foundations created by businessmen focused on the distinct causes, symptoms, and expressions of social problems. This marked the birth of philanthropy which is exclusively associated with foundations and grant-making.
While businessmen embraced philanthropy, running their business is a different field. Business is governed by profit and revenue, whereas philanthropy is about giving. Although business and philanthropy can be deemed different, many companies and industries are aware -- and are becoming increasingly aware -- of societal issues and problems, hence somewhat bridging the gap between these two fields.
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| Image Source: fastcompany.com |
The first response of companies to social issues is generally spurred by philanthropy, which is geared towards helping the less fortunate. However, as businesses tread deeper into the waters of philanthropy, they learn that it is not enough. This is where “shared value” comes in. In this sense, businesses take their resources and deploy them to social jobs in the hopes that they will somehow benefit from it. In a sense, philanthropy is cloaked in capitalism where businesses create economic value by creating societal value.
While the concept of shared value in business philanthropy can be seen in a negative light, there remains the fact that most of the movements and actions towards public good are initiated by private companies, individuals, and industry titans. While philanthropy can be seen as pseudo-marketing, there remains the fact that the most generous endowments which have created changes in the lives of the many came from the pockets and resources of industry leaders and players. Business and philanthropy can be opposites but both have been working in partnership, initiating and creating changes for the betterment of all. Margaret Mead, a distinguished anthropologist, intellectual, and scientist said, “Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it’s the only thing that ever has.”
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Read more about philanthropy and Alex von Furstenberg at this blog.
