David Packard, co-founder of Hewlett Packard, is one of the first businessmen who argued that the fundamental purpose of a corporation is to make a contribution.
“I think a lot of people assume less true that a company stands only for profit. Although profit is an important result of the establishment of a company, we need to think more deeply and find the real reason for our existence. A group of people get together and exist as an institution so that they are able to accomplish something collectively that they could not accomplish when working alone. They were able to do something meaningful. They make a contribution to society. ”
The company is also increasingly making their contributions through charitable donations and their strategic involvement with community projects. Timberland Boot Company’s commitment to charity City Year, a nonprofit organization that gathers young people from all backgrounds for a year of full-time community service, began to turn into a larger partnership when company executives met with co-founder of City Year. “The meeting is important,” said Ken Freitas, vice president of marketing for Timberland.
He added that, because for the first time we realized that there was more than usual charitable contributions here. There is a real connection. Similarities between what every company wants to do and how each company plans to achieve its vision is very surprising. ”
Both companies develop a partnership on an ongoing basis. Timberland sponsoring events City Year and Timberland employees voluntarily working for City Year projects. These staff feel very proud of the partnership with City Year and feel that both the employee and the company is making a positive contribution to society.
Muhammad Yunus, founder of Grameen Bank, pioneered a new kind of community banks that offer loan in a very small amount to small enterprises in Bangladesh without requiring the presence of a loan guarantee. Each borrower must be a member of a group of 5 other borrowers, creating pressure between friends of individuals who are members of the group as a whole did not disappoint with negligence.
The vast majority of borrowers are women and omission rate is lower than the traditional banking system. This micro-loans have helped thousands of small businesses to continue to operate in poor rural areas. Jonah recognize those main concern in life is to make a contribution to society and who may choose to work in a nonprofit organization.
“They are very committed to making a difference in this world. They are motivated by social goals. They want to give you a better chance in life to others. They want to achieve the goal through the creation / support sustainable business. Their efforts may or may not be able to make a profit but they are not like other businesses may suffer losses. They create a new business class business that could be described as ‘no loss’. ”
Companies must generate a profit in order to justify the use of capital and to prove their efficacy and efficiency but the fundamental objective of any company is to make a contribution. Companies are increasingly often use the profits to make a greater contribution to the community through charitable donations. This charitable activity can develop into a significant strategic partnership involving the two companies on many levels. Employees can get the high satisfaction of knowing that the company they contribute to the community through partnerships and the opportunity to get involved personally. People are more and more talented young people who choose to work for companies that can demonstrate that they make a contribution.