Business and philanthropy: Their unlikely yet good partnership

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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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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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.

Cradling greatness: Brown University and her philanthropists

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As with its sister universities in the Ivy League circuit, Brown University has produced countless graduates who have become very successful in their professional lives. Many of these graduates went on to found their own companies; some became high-ranking officials in large corporations, making a name for themselves.

However, man should not keep these successes to himself. To quote Andrew Carnegie, “Surplus wealth is a sacred trust which its possessor is bound to administer in his lifetime for the good of the community.” Any man who has acquired a substantial amount of wealth in his lifetime has the inherent social responsibility to help out to the less fortunate. This is the philosophy of philanthropy: the blessed should not just count their blessings—they should give part of their blessings away to really make them count.

The following sons of Brown University have chosen to lead a life of altruism, treading the selfless path of philanthropy for the benefit of mankind:

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1. John D. Rockefeller Jr. (class of 1897) After founding Standard Oil 1870, Rockefeller went on to become the first American to be worth more than a billion dollars. He became an active philanthropist, supporting many causes and doling out as much as $550 million in his lifetime.

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2. Sidney E. Frank (class of 1942). After making a name for himself as a highly successful entrepreneur by creating “Grey Goose vodka” and distributing other premium liquor brands such as Jägermeister, Frank turned to Rockefeller Philanthropy Advisors to put together a plan for a foundation that would forever cement his legacy. In 2005, he donated $12 million to The Norwich Free Academy and $120 million to Brown University.

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3. Ted Turner (class of 1960). He is widely known as the founder of CNN. As a philanthropist, Turner is widely known for donating $1 billion to support the UN, eventually creating the United Nations Foundation, a public charity that aims to broaden support for the UN.

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4. Alex von Furstenberg (class of 1993). Representing the younger Brown generation, von Furstenberg is a business maven who has built a formidable career in the opportunistic investment industry. He is also the secretary of the Diller – Von Furstenberg Family Foundation, an organization that has committed more than $30 million in grants to a broad spectrum of nonprofit institutions since its inception in 1999.

Alex von Furstenberg is a proud alumnus of Brown University. For updates, visit his official website.

Corporate philanthropy: The benefits of giving back

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There are many companies that sponsor charitable causes, but what drives them to do so? Does sponsoring charitable causes really benefit companies as well?

Investing in philanthropic efforts may sound like a waste of company budget, but many businessmen, such as Alex von Furstenberg, believe that it is a worthwhile cause and that getting involved in charity work does not only make employees feel better, but also allows the company to build personal connections with them.

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These personal connections are important in building employee loyalty and productivity. By being involved in philanthropy, the company shows that it cares about other people. This is especially important in larger companies, where most employees are more likely to feel that they are just looked upon as workers instead of as actual human beings—these are the people who earn a lot and like their job but dislike the way their company treats them.

Business philanthropy can also be beneficial to a company’s bottom line. Customers are more likely to buy from a company that supports a charitable organization, increasing brand loyalty. Helping out a cause also enhances a company’s credibility and image, and promotes and educates the public about its products and services, creating product awareness and visibility, therefore increasing sales.

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Visit the Diller-von Furstenberg Family Foundation website for more details.