WK 5 Strategic Philanthropy for Organizations Term Paper

WK 5 Strategic Philanthropy for Organizations - Term Paper Example Strategic Philanthropy refers to the practice of organizations in which they channel their charitable activities towards specific course that is expected to benefit their organizational objectives. In this course, philanthropy is a means used by different firms to benefit other organizations while advancing their business interests at the same time. Strategic philanthropy is associated with organizations and not individuals thus executed by the top management of organizations such as the board of directors and several departments. Philanthropy plays an important role in developing and retaining customer loyalty. According to Fioravante (2010), eighty percent of Americans are more loyal to an organization that contribute towards course that they have interest. Moreover, Valor (2007), survey demonstrated that most consumers have greater trust for companies that are associated with certain kind of social activities that give back to community. Increased customer loyalty have indirect benefits such as increased customer satisfaction, increased productivity and quality, employee commitment, profitability and reduced legal and regulatory interventions. For example, GTE greatest concerns are technology and literacy; hence the organization through its foundation distributed $30 million in 1999 (Debbie & Ferrell, 2002). Strategic philanthropy target customers’ concerns and interests in provision of resources that aim at building trust. As stated by Valor (2007), enhancing trust and acceptability among the consumers can be achieved through developing strong consumer loyalty thus gaining competitive advantage. Coca-cola has always linked its operating practices and resources with the stakeholders concerns. For example, the company has channeled not only its resources but also expertise to environmental issues. According to Debbie & Ferrell (2002), the company has provided expertise and financial support to organizations that