alleryStart learning →What makes giving strategic rather than traditional?
AThe amount given rises every financial year
BDonations target communities where the firm operates
CDonations are made only in the form of cash
DDonations are announced only after year end
Answer & Solution
Correct answer: B. Donations target communities where the firm operates
1. Strategic giving ties philanthropy and corporate social responsibility efforts closely to the mission or goals of the company.
2. It also targets donations to the communities where the company does business.
3. The shift is therefore about focus, not about the size of the cheque.
4. Restricting gifts to cash would narrow philanthropy, which also covers products and volunteering.
5. The timing of an announcement has nothing to do with whether giving is strategic.
6. Rising totals alone would still leave giving scattered across unrelated causes.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 2 "Making Ethical Decisions and Managing a Socially Responsible Business", section 2.5 Changes in Corporate Philanthropy_
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