Porter urges gulf companies to be strategic in their corporate social responsibility programmes
World’s leading business strategist to share his ideas on charitable work in times of economic crisis, live and in person in Bahrain
Corporate donations have fallen substantially in recent years because there is so little alignment between current giving practices and corporate objectives, according to the world’s leading business strategist, Professor Michael E Porter.
According to Professor Porter, public companies have a responsibility to shareholders, and ''doing the right thing'' is no longer a sufficient rationale for corporate giving or a sufficient guide to how corporations can truly benefit society. Demonstrating the business value of investing in the community will increase corporate giving, not diminish it.
The world’s undisputed expert on global competitiveness will make his first ever public presentation in Bahrain on January 26. Professor Porter is the fifth thought leader to be brought to the Kingdom by international event organisers Global Leaders.
During the full-day session, he will deliver his strategy on corporate social responsibility in times of global economic crisis.
Increasingly, philanthropy is used as a form of public relations or advertising, promoting a company's image through high-profile sponsorships. But there is a more truly strategic way to think about philanthropy, he says.
Porter believes that Gulf companies can use their charitable efforts to improve their competitive context - the quality of the business environment in the locations where they operate.
He says: “Using philanthropy to enhance competitive context aligns social and economic goals and improves a company's long-term business prospects. It enables a company to give money but also leverage its capabilities and relationships in support of charitable causes.
“By aligning charity and strategy, corporations don’t only give money - they donate distinctive capabilities. And that can result in greater social good even as it strengthens a company’s competitive edge.”
Porter admits that taking this new approach requires fundamental changes in the way companies approach their contribution programmes.
“Adopting a context-focused approach requires a far more disciplined approach than is prevalent today. But it can make a company's philanthropic activities far more effective.
“There are many different needs in our society and many different types of donors and institutions seeking to address them, including individuals, foundations, and government. Where can corporations use their giving most effectively to tackle social problems and achieve broad social impact?”
The answer, he says, is in areas related to their businesses where they have expertise, contacts, and skilled employees who allow them to add value beyond the money.
“Unfortunately, corporations cannot solve every social problem. One of the most distinctive contributions of corporate philanthropy is to boost employment opportunities and create the conditions for healthy local and national economies. Here corporate philanthropy offers a more sustainable answer to the plight of the homeless man or hungry child, not just more charity.”
Governments and corporations around the world have turned to Professor Porter for his perspective on economic development, competitiveness, corporate strategy, and corporate social responsibility.
He chairs the Global Competitiveness Report, an annual ranking of the competitiveness and growth prospects of more than 120 countries published by the World Economic Forum. His work is taught at almost every business school in the world.
Professor Michael E. Porter will present Winning Competitive Strategies for Today’s Changing Marketplace, live and in person at the Diplomat Radisson SAS Hotel on January 26, 2009. For more details of the event, go to www.globalleadersevents.com/porter. Confirmed partners for the event to date include: Bahrain Tribune, Al Ayam, Business Intelligence Middle East, BIBF, BSTD, knowledgenetwork, and Gulf Financial Insider.
