Community Relations and Strategic Philanthropy
0Purpose and Perspective
In this chapter, we explore community stakeholders and how organizations deal with stakeholder
needs through philanthropic initiatives. We explore the relationship with communities and the
economic, legal, ethical, and philanthropic responsibilities that must be addressed by business.
We also demonstrate how companies can link strategic philanthropy with economic, legal, and
ethical concerns for the benefit of all stakeholders.
as those members of society who are aware of, concerned, or in
some way affected by the operations and output of an organization. Because
community is difficult to define and delineate, it does not always receive the same
level of acceptance as other stakeholders.
Through employment opportunities, economic development, and financial
contributions for education, health, the arts, and recreational activities, a firm may
neighbor of choice
, an organization that builds and sustains trust with the
The relationship between a business and the community should be symbiotic. 0
A business may support educational opportunities in the community because the
owners feel it is the right thing to do, but it also helps develop the human
resources and consumer skills necessary to operate the business.
Companies may invest in
, the organizational function dedicated
to building and maintaining relationships and trust with the community.0
Today, community relations activities have achieved greater prominence and
responsibility within most companies.
Important community relations issues include education, job training and
development, health care, crime, and substance abuse.
In a diverse society, there is no general agreement as to what constitutes the ideal
model of responsibility to the community.0
Therefore, the community relations function should work with various
internal and external constituents to understand community needs and
develop community mission statements.
0Responsibilities to the Community0
Business is absolutely vital to a community from an economic perspective.0
A new company not only brings jobs but also new technology, related
businesses, improvements to infrastructure, and other positive factors.
Interactions with suppliers and other vendors also stimulate the economy.
Furthermore, there is often a contagion effect when one business moves
into an area. By virtue of its prestige or business relationships, such a move
can signal to other firms that the area is a viable and attractive place for
others to locate.