Editorial - How multinationals arrange their community programmes

This series of commentaries from the corporate sector testifies to a time of rapid change and rethinking in philanthropic approaches: in focus, geographical reach, process, even in the way business defines its role.

'Multi-local' seems to be the template for programme delivery for many multinationals, which are trying to create global branded philanthropic initiatives with variants that respond to local circumstances. Increasingly these programmes are delivered in partnership with non-profits, other foundations and aid agencies. The need to evaluate and control – to be more 'businesslike' – is causing some companies to enter into tighter, more close-ended agreements with their partners.

There is also an increasing trend among some multinationals, like IBM, to tie their philanthropy to issues important to their business and to emphasize initiatives that leverage the company’s products and expertise as opposed to cash alone. Several commentators point to the importance of employee involvement.

Although many appear to be reaching out more consciously to indigenous NGOs, others, discouraged by recent experience – as in Russia – are cutting back their support for local organizations.

While one commentator points to a trend among multinationals to professionalize the giving function and treat it as a business function, another, from a smaller Central European enterprise, says, 'Decisions are taken … by the company’s top managers and for purely philanthropic reasons. The company helps because it can.' It is gratifying to see the philanthropic impulse in our sector express itself in so many different ways, and to realize that in our attempts to address societal issues, globalization does not necessarily mean standardization.

Cornelia Higginson
Vice President, Philanthropic Program, American Express