The Competitive Advantage Of Corporate Philanthropy
To competitively operate in an environment where even the basic social needs of the population are not met, it makes business sense to uplift the stakeholders that form part of the business environment. With approximately five and a half billion rand spent on philanthropic activities in 2010 alone, it is important that this spend translates into a competitive advantage for the company.The purpose of this study was to explore the concept of philanthropy as understood by companies. Further to that, the intention of the research was to understand how engaging stakeholders, utilising resources available and the intention of the giving by the key decision makers, contributed towards achieving the competitive advantage of the company.Qualitative research in the form of interviews with the key decision makers in the companies in respect of giving was used for data gathering, along with secondary data in sustainability reports to support findings.The research found that competitive advantage can be gained by using corporate philanthropy as a tool. The paper proposes a framework based on the core theories that can be referenced to assist decision makers in determining which areas needs to be improved, in order to raise the competitiveness of the company by means of corporate philanthropy.