crisan moraru corporate foundations - facade or strategic involvement
TRANSCRIPT
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Corporate FoundationsA Facade or a True Strategic Decision for Social Involvement?
An Analysis of Corporative Foundations Projects Based on TheirOnline Communication
Dr. Camelia Crisan
National University of Political Studies and Public Administration
Email: [email protected]
Tel: +40 213180881 / Fax:+40 213117148
Steliana Moraru
National University of Political Studies and Public Administration
Email: [email protected]
Tel: +40767013078
Abstract
Social pressure on companies is increasingly growing from stakeholder groups and from society as a whole. The
Green Revolution started by Rachel Carson in the 70s in the United States has been amplified by several additional
social movements, up to the point in which a new, more responsible attitude of companies towards communities,
consumers and society as a whole has become not only a voluntary decision, but an obligation (Crisan, 2008). While
for most companies such an attitude is still a bet, many enlightened firms have started playing a role in promoting the
transformation towards a new business model (de Woot, 2009). Companies that have adopted corporate social
responsibility (CSR) as a core value frequently define themselves as corporate citizensand view their social roles
accordingly. Our previous research in Romania has demonstrated that most companies are in fact adopting CSR as a
form of managerial technique, part of the managerial stage of learning CSR (Crisan, Reveiu and Andrusenco, 2011).
For this reason, we believe that companies set up corporate foundationsas a means of doing good to doing well, to
show their civic engagement. The question that our paper aims to answer is whether or not in Romania such responses
are based on a true commitment related to a companys taking social responsibility values seriously, or simply a
faade for image and marketing purposes. As Starbuck and Nystrom (2006, 203) point out Facades aboundBecause
managers construct facades to deceive targeted people and institutions, facades mirror the norms and expectations
relevant to these targets
mailto:[email protected]:[email protected]:[email protected]:[email protected] -
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Our paper focuses first on the need of companies to produce facades. As Starbuck and Nystrom (2006, 202) assert
managers of business organizations can and do benefit by appearing to conform to ideologies that their environments
prefer. The same type of normativebehaviour from companies is suggested by other authors Freeman, Harrison and
Wicks (2007), Clarke (1998/ 2004), Philips (2003) or Blair (1995/2004), though starting from the point of
view that corporations have a duty to society. The main producers of facades in a company are its top managers.
Facades are a way of promoting a certain image in front of the public and shareholders, and subsequently a way of
gaining financial benefits. Facades can be built in terms of work processes (e.g. some systems to ensure relevant
stakeholders that the managers care about their future), in terms of structures (structures that seem to be in fashion at
some point in time), and in terms of pronouncements (statements to customers) (Starbuck and Nystrom, 2006, 203).
Therefore, we assume that philanthropic engagements and civic duty display may be in the wrong hands,a mere
corporate faadeunless they are implemented in a certain manner, which we will explain below.
Could corporate foundations be facades for other managerial purposes?
Several authors believe that corporations can use their charitable efforts to improve their competitive context
especially in the communities where they operate, thus pursuing a context focused strategy (Porter and Kramer, 2003,
31). Such endeavours need be made not only as cash donations, but also to contribute with resources that the company
has at hand, in order to help solving pressing matters and produce social benefits. In this way, corporations are
encouraged to pursue goals related to charitable giving which exceed their business areas. As a result, they may not be
deemed as solely interested by their charitable deductions which, in turn, can affect their image and reputation. There
is no inherent contradiction between improving competitive context and making a sincere1commitment to bettering
society (Porter and Kramer, 2003,59). This point of view deserves a little expansion. While for all corporations
channelling a part of their money through their philanthropic organizations is a means to an end, and they are sincere
in willing to contribute to the betterment of the society, for some this is an end in itself. And we refer here to fiscal
matters - the money companies donate to their charitable arm is exempted from taxation.
Smith (2003) argues that when companies join forces with their philanthropic arm, they develop strategies that, in the
end, provide a powerful competitive edge. The contributions a corporation can make for a good society is not only in
cash, but also in providing to philanthropic organizations with managerial skills, competent human resources and
marketing skills. Smith (2003, 163) offers examples of several corporations of interest for the topic addressed in the
1Text emphasized to point out an idea of the authors
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current paper, being the corporate foundation set out by AT&T which has pursued a Janus type strategy with one
face towards supporting business goals and the other towards solving pressing matters of society. Authors have seen
many examples around the world where companies set out foundations or became engaged in philanthropy after the
point at which their image was seriously tarnished by events affecting their credibility (Bishop and Green, 2008, 179).
One of the famous cases of a reputation comeback and improving the economic situation of impoverished
individuals is that of Royal Dutch Shell, which after the incidents from Nigeria, created the Shell Foundation, and its
paramount endeavour is considered to be the Microfinance Trust for poor Africans. Of course, Shell benefits from
this success. An increase in small and medium enterprises in Africa could improve supply chains for the companys
African operations, making it easier to do business, which is good for long term profitability. (Bishop and Green,
2008, 181).
The points of view presented above do not convey a definite answer probably some actions or some corporate
foundations could be a faade for business interests. We believe that this is a possibility, especially in those cases
where we see projects or activities in which the sole beneficiary of the results is the corporation itself (its notoriety, its
image) or the corporative foundation.
A taxonomy allowing companies a more universal understanding of what could be their best approach to philanthropy
is proposed by Kasper and Fulton (2006), who believes that the principles for action for corporate foundations could
range between more independent and more integrated corporate business models and non-responsive to proactive in
terms of approach. Thus, the taxonomy includes the following typologies:
The Good Citizen is the situation wherein corporate foundations fund almost any proposal from the non-profit
sector, within financial limits, and without any connection to business goals.
In the case of Leveraged Philanthropy companies allow the use of their resources, but not necessarily for pursuing
strategic business goals. Special aid in case of emergency situations is one example of this type of philanthropy.
The third type described by Kasper and Fulton (2006) is the Issue Driven Philanthropy, wherein organizations have
a clear strategic approach on what issues they will tackle and what results they are expecting. In this respect, they are
using their core competencies, although the domain of intervention is not necessary the corporations area of activity.
The last category, the one in which authors deem the hardest to describe is the one of Aligned Philanthropy. This is
the one wherein the interests of the corporation intersect with the areas of investment for the foundations activities.
The top of this category is represented by The Corporate Social Enterprise, which is exceeding the borders of
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business and entering the realm of socially responsible business strategy. It is the model presented above by the Shell
Foundation or by the Graemen Bank from Bangladesh.
The important fact about this taxonomy, as the authors remind us, is that there is not necessarily a receipt for success.
Simply put, the best option is usually situationaldepending on the circumstances of each corporation. However, one
should take into account a few variables: economic realities, perception of trust in business, regulatory scrutiny, social
expectations related to the business role, and unfamiliar risks (Kasper and Fulton, 2006). Each of the categories
mentioned above could be described as closer or more distant to the idea of faade mimicking the social interest of
the corporation, but being in reality a form of avoiding taxation or green-washing.
For this reason, in the opinion of the authors of this paper, one would need to take into account the impact the projects
of the corporate foundations produce, on the environment and on the society where the corporation is operating. We
are proposing a new taxonomy considering that philanthropy is only one arm of the corporate social responsibility
(Carroll and Buchholtz, 2006), but also one that has the idea of sustainable development in mind (Hopkins, 2007).
Companies in this model would be planning for a better, efficient and more profitable future.
As a result, whatever the term used to refer to CSR be it corporate responsibility, social performance, corporate
citizenship or corporate governancethe responsibility of business has become central to the agendas of corporations,
governments, supranational organizations, civil society groups and non-governmental organizations (NGOs), and
community-based organizations (CBOs) (Moreno and Capriotti, 2009). Moreover, as was noted above, a large number
of companies develop their own corporate foundations. The company-sponsored foundation often maintains close ties
with the donor company, but it is a separate, legal organization, sometimes with its own endowment, and is subject to
the same rules and regulations as other private foundations. Having a strategic approach to CSR means that
corporations have to embed it with their business strategy. These principles apply also to the corporate foundation and
their programs. By integrating the mission of the corporate foundation with its business strategy, a company can
become a source of opportunity, innovation, and derive competitive advantages. This means that CSR activities can
ultimately be much more than costs, constraints, or charitable deeds (Porter and Kramer, 2006, 78).
In this way, the actions of corporative foundations could be closer or further distanced from the idea of a faade by
taking into account the two criteria adapted after Kasper and Fulton (2006): (a) the foundations activity is, or not, in
line with the businesss objectives e.g. a mobile phone company is affecting the health of people due to phones
SAR emissions, so the corporate foundation invests in the area of health, (b) the corporate foundation is actively
investing in projects aimed at finding alternatives for business products / services and their effects, which are
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potentially harming for society and/or environment versus those which are proactively promoting new business, new
opportunities of growth and wellbeinge.g. a fast food chain is investing in projects related to organic farming or for
the education and development of local farm suppliers. In other words, in our opinion, a strategic approach of a
corporations foundation is closely linked to sustainable growth and / or with alleviating the negative effects of
activities undertaken by the mother company. To that end we would like to add another point, which is legitimized in
our view by the very idea of corporations having a social responsibility (c) how the results and/or impact of the
foundations activities affect the companys direct stakeholders.
As a result, we have created a simple matrix, where the results of an analysis can be readily judged based on a Lickert
type scale (5very much, 4much, 3 - somewhat, 2little, 1- very little).
Table 1. Matrix for judging the faade potential of projects implemented by corporate foundations
Criteria/Scale
of fulfilling the
criteria
The activity / project isin line with businesssobjectives.
Project is funded to findalternatives to potential harmfulbusinesss products/ services.
The results and/or impact of theproject affect the companysdirect stakeholders.
Project 1 X x X
Considering the above, our contention is that if a corporate foundation acts in a strategic manner, implementing with
integrity the companys philanthropic vision, the involvement of the company in the society is true, or sincere.
Otherwise, corporation foundations are mere forms of building facades for better reputation. As a result, projects
scoring low in the above categories will place a certain foundation closer or further to it being a faade. A full line of
very little will mean that a foundation is only an acting faade for business interests, while a full very much line
would mean that a foundation possesses a strategic approach. In between, the matrix will have several degrees and
only an interpretation taking into account the reality of each organization will allow for a clear diagnosis. Our
contention is that in terms of evaluating the discrepancies between what a company and its philanthropic arm are
saying and doing, this is a consistent starting point.
Online communication of corporate foundations
Presently, online communication is part of everyday life, motivating companies, governments, institutions and people
to become more and more interested in the impact and the role of this type of communication and interaction.
Organizations use instruments such as websites, blogs, forums, social media, instant messaging, chat rooms,
applications etc., in order to communicate about their products and activities and to receive direct feedback from their
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stakeholders. For the digital natives,2online communication is a natural way to develop interpersonal relations and
their network. The rise of social media has offered an instrument that instantly connects people, places, ideas,
concepts, and products; and empowers each person to express and interact directly. Online communication has a
higher impact on the way consumer communication change and influenced the marketplace, enabling both people and
companies to directly address each other, and to magnify the role of the consumer in addressing the company. As
stated in annual report The State of Social Media(2007), technology is redefining the role of the citizen endowing
the individual with more responsibility and command over how he or she consumes informationand that new role is
only beginning to be understood.
When we talk about corporate social responsibility (CSR), the communication absorbs the social branding generated
in the social media. Bhattacharya and Sen (2001) suggest that communicating about CSR activities does not imply a
positive approach towards the company. But the same authors (Bhattacharya and Sen, 2004) argue that CSR leads to
customer loyalty and positive post-purchase outcomes. Moreover, communication about CSR builds brand equity
(Hoeffler and Keller, 2002) and helps organisations to be perceived more positively and with greater trust by
stakeholders (Swaen and Vanhamme, 2004, cited by Jahdi and Acikdilli, 2009). The new digital environments
(social networks, blogs, video platforms, micro-blogging, geolocation in mobile marketing, etc.) favor the
business orientation based on relations (the client-first philosophy), the generation of social branding, the
segmentation and personalization of messages, the evangelization of the brand through subscription and
viral marketing, and the launching of an experiential marketing that generates customer engagement (Ros-
Diego and Castello-Martinez, 2012).
The theme of CSR is an issue that has been debated within companies for several years and it was initially used as a
good argument of marketing in corporate communications and brand values (Benavides, 2010). On the other hand,
Ros-Diego, V. and Castello-Martinez, A. (2012), affirm that companies are becoming aware of the importance of
including the social media in their communication strategies in order to get closer to their consumers and increase
their visibility on the Internet. For many companies, the Internet has become the best way to personalize their
message, to interact with the target audience, and to meet the expectations of their customers. The importance of the
Internet has grown to such extent that online actions constitute an essential part in the communication strategy of the
brand.
2Digital nativesmillennials (born between 1978-1993) who since birth have been exposed to the Internet and to a constant
stream of digital technologies
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But the importance of being present online does not consist only in brand communication; it is also an important tool
in addressing corporate social responsibility programs. Far more than being a responsible company, a corporation has
to communicate its approach to stakeholders, and online communication is a facilitator for making any initiative
known worldwide. In the case of corporate foundations, online communication is even more of an asset in gaining
legitimacy and the confidence of the public (Moreno and Capriotti, 2009). Yet despite the potential of the online
communications for the corporate foundations, very few studies have specifically considered the importance of
corporate web sites for the communication of CSR issues (Moreno and Capriotti, 2009). An organization needs to
highlight responsible actions in its communication, not only to generate a positive return for the brand, but also to
disseminate good practices and contribute to the promotion of CSR.
Online communication of Romanian corporate foundations
According to Mediascope Europe (2012), 7.2 million Romanians are using the internet and 93% of them have used a
personal or professional social media site. At the same time, 51% of Romanian internet users believe that the way a
brand communicates online is important. Romanian NGOs use social media for promoting their projects and activities,
with organizations like Save the Children having 298.772 fans and UNICEF Romania having 102.305 fans on
Facebook.
Also, in Romania, the CSR approach has gained recognition at a national level and many corporations learn how to get
involved in the community and have a consolidated strategy regarding their social programs. There are several
corporations that implement their CSR activity through corporate foundations. Most of them have their own websites
and social media channels, where the organizations state their mission, activities and grant making processes. Some
publish reports about the previous years activities and have a dedicated page about the latest news, although not all
have updated information about their activities. Online communication is also used as a tool for engaging and
informing stakeholders, considering the numbers above where more than one third of Romanias population uses the
internet.
Our research objective for this paper was to determine whether the activities / projects implemented by the corporate
foundations are, in fact, supporting the strategic endeavours of their parent companies or if they are a mere faade with
little or no connection to the core business.
Our methodological approach consisted of analysing the projects implemented by the corporate foundations as they
have been presented in the online communications of corporate foundations, (Fieseler,Fleck andMeckel,2010, Ros-
Diego and Castell-Martnez, 2012).
http://link.springer.com/search?facet-author=%22Christian+Fieseler%22http://link.springer.com/search?facet-author=%22Matthes+Fleck%22http://link.springer.com/search?facet-author=%22Miriam+Meckel%22http://link.springer.com/search?facet-author=%22Miriam+Meckel%22http://link.springer.com/search?facet-author=%22Matthes+Fleck%22http://link.springer.com/search?facet-author=%22Christian+Fieseler%22 -
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Phases of the research:
1. Analysing the online communication of corporate foundations in quantity terms;2. Conducting a content analysis, comparing the objectives stated by the corporations and their philanthropic
arms;
3.
Identifying all activities and projects presented online by the corporate foundations;
4. Describing in key terms each of them;5. Evaluating each one according to the matrix presented in Table 1.
The target group of our research has been foundations with a presence of at least 5 years in Romania, while the time
frame for the programs and projects analysis stretched from 2010 to 2013. As a result, we have focused on:
Vodafone Foundation, Sensiblu Foundation and Ronald McDonald Foundation.
1. The Vodafone FoundationInitially known as the Sirois Foundation (established in 1998), the Vodafone Romania Foundation received its
current name in 2005, being the first Romanian corporate foundation. Vodafone Foundation was involved in over 300
social programs, together with its nongovernmental partners and invested over 5 million euros in different activities.
Vodafone Foundation is part of Vodafone Group Foundation, with 24 branches worldwide. Its financial resources are
divided into an annual budget provided by Vodafone Romania and the annual giving of Vodafone Group Foundation.
Moreover, Vodafone has established an Open Fund, encouraging employees to donate for the charity activities of the
Foundation. As a company, Vodafones operational objectives are: drive operational performance, support and invest
in innovation and creativity, develop local business environment, offer the best communication solutions for the
mobile communication consumer, offer community support.
2. Sensiblu FoundationThe Sensiblu Foundation was established in 2002, being an A&D Pharma initiative. The foundation was involved in
supporting women and children, victims of domestic violence, implementing awareness campaigns, programs and
public events. A&D Pharma offers financial support in addition to donation campaigns ran by the foundation (2 %
campaign or individual donations). A&D Pharmas strategic objectives are: offer a unique and full range of services
on the distribution, marketing, sales, pharmaceutical retail and medical services segments, health care and education,
preventing domestic violence and promoting human rights, social involvement towards companys employees.
3. Ronald McDonald Childrens Charities of Romania (RMCC)
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This is a corporate foundation established in 1998, by McDonalds Romania, aiming to help disadvantaged children in
Romania. The Foundation works towards implementing campaigns and programs helping orphanages, children
hospitals and charities. Financial support comes entirely from McDonalds Romania. Additionally, the Foundation runs
different fund-raising campaigns. McDonald's corporate objectives are: to offer the best customer experience, stay
committed to employees, operate the business ethically, give back to community, grow the business profitably .
Quantity remarks
Vodafone Foundation has its own website www.fundatia-vodafone.ro and Facebook brand page
http://www.facebook.com/FundatiaVodafone,with more 16,200 likes and 200 people talking about it. The page was
created in May, 2010. According to facebrands.ro, the Foundations Facebook page ranks number l1804, out of 20713
monitored Romanian pages. In the non-profit category, they rank 14 out of 395. The Foundation also provides
information about their activity on their own Youtube channel: http://www.youtube.com/user/fundatiavodafone.The
average number of views is 150 per video. Vodafone Foundation provides a full activity report (2011) on their
website.
Sensiblu Foundation has its own site http://www.fundatiasensiblu.ro/, Facebook brand page
http://www.facebook.com/Fundatia.Sensiblu.pagina.prieteni?fref=ts (founded in June, 2012- 4,646 likes and 27
people talking about this, most popular group age is 25-34 years old, most popular city is Bucharest). The foundation
communicates from time to time on their Twitter accounthttps://twitter.com/FundatiaSSB,with 200 followers and
provides blog posts: http://www.fundatiasensiblu.ro/RO_Blog.html (last post 2010). The Foundation has a Youtube
channel, established in 2011, providing 2 videos, with 546 viewers. On their website, Sensiblu Foundation provides
activity reports (the most recent from 2008).
RMCC does not have a site, but it has a page incorporated in the company s sitehttp://mcdonalds.ro/pages/lumea-
mcdonalds/caritate. Also, there is no local Facebook page, only the global Facebook page
http://www.facebook.com/rmhcglobal?fref=ts.A recent activity report (2012) is available.
As we can determine from studying their online presence, these foundations do acknowledge the importance of
communicating their activities, but the rate of user engagement is medium to low. Studying the posts and information
provided, these foundations write mainly about their own initiatives and their partners. They also provide links to
different publications and articles about their activities. While Sensiblu Foundation provides only own photos,
Vodafone Foundation allows users to tag the Foundation in different photos. Moreover, Vodafone Foundation
http://www.fundatia-vodafone.ro/http://www.facebook.com/FundatiaVodafonehttp://www.youtube.com/user/fundatiavodafonehttp://www.fundatiasensiblu.ro/http://www.facebook.com/Fundatia.Sensiblu.pagina.prieteni?fref=tshttps://twitter.com/FundatiaSSBhttp://www.fundatiasensiblu.ro/RO_Blog.htmlhttp://mcdonalds.ro/pages/lumea-mcdonalds/caritatehttp://mcdonalds.ro/pages/lumea-mcdonalds/caritatehttp://www.facebook.com/rmhcglobal?fref=tshttp://www.facebook.com/rmhcglobal?fref=tshttp://mcdonalds.ro/pages/lumea-mcdonalds/caritatehttp://mcdonalds.ro/pages/lumea-mcdonalds/caritatehttp://www.fundatiasensiblu.ro/RO_Blog.htmlhttps://twitter.com/FundatiaSSBhttp://www.facebook.com/Fundatia.Sensiblu.pagina.prieteni?fref=tshttp://www.fundatiasensiblu.ro/http://www.youtube.com/user/fundatiavodafonehttp://www.facebook.com/FundatiaVodafonehttp://www.fundatia-vodafone.ro/ -
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provides on the Facebook page applications for their main projects: Work as volunteer national program,
Mobile4Good, Build4Tomorrow, BigBuild.
Regarding activity reports, Ronald McDonald has the most recent activity report, but it is available only on their
communication agency page. Sensiblu Foundation has four activity reports (2005, 2006, 2007 and 2008) available on
their website. Vodafone Foundation provides activity reports for 2011, offering also exhaustive information about
their main activity areas on their web page.
In terms of projects implemented by each foundation, we have found references to roughly 28 projects and activities
implemented by Vodafone Foundation, 22 implemented by Sensiblu Foundation and 9 implemented by RMCC.
Quality remarks
We have compared the strategic objectives of the company Vodafone and Vodafone Foundation, and a content
analysis of the objectives of both organizations indicates an overlap between one objective of the company, i.e. to
offer community support and all objectives assumed by the Foundation, namely to offer support against school
dropout, for sporting competitions, and for the social integration of people with special needs and elderly. In the case
of Sensiblu Foundation the content analysis reveals an overlap between the first and second objective of the
Foundation: contribute to the diminishing domestic violence effects and domestic violence prevention and support
domestic violencesvictims through social, psychological, legal counselling, meals, shelter, clothing, medicine, help
in finding a workplace with the third and fourth objective of the founder company A&D Pharma: preventing domestic
violence and promoting human rights and Health care and education. In the case of RMCC and the company
McDonalds there are overlaps between all the foundations objective and at least one company objective, namely: give
back to community.
An analysis of the projects / activities implemented by each foundation and presented online is displayed below:
Table 2. Vodafone Foundation
Criteria/Scale of fulfilling the criteria The activity /project is in linewith businesssobjectives.
Project is funded tofind alternatives topotential harmfulbusinesss products /services.
The results and/orimpact of the projectaffect the companysdirect stakeholders.
2010
Building social homes for disadvantaged
people and victims of the natural disasterspartnership with Habitat for Romania(partnership started in 2008)
4 1 2
Building a social home for young people 3 1 2
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with disabilities partnership with Habitatfor Romania and Motivation Foundation
Special Olympics Regional Games partnership with Special Olympic Romania
and For you Foundation
3 5 5
Work as volunteeremployeesnationalprogrampartnership with national NGOs
5 5 5
2011
Work as volunteer - employees nationalprogram- partnership with national NGOs
5 5 5
Chance For Life scholarship - partnership
with Chance for Life Foundationstationaryfor 2 children with low income parents
3 1 1
The Sulina Vodafone Scholarship partnership with Chance for Life Foundationstationary for 2 children with low incomeparents
3 1 1
Money donation for two day centres (elderlypeople) partnership with EdelweissFoundation
3 1 3
SOS the Toy Car (employees donate toys) partnership with SOS Children Villages
5 1 3
Getting ready to grow up(a project toaimed at stopping school dropout) partnership with Saint Dimitrie Foundation
3 1 2
Family abandon prevention programs
partnership with Bethany Foundation, SOSChildren Villages, Saint Stelian Association,Touched Association
4 1 2
Programs for children with special needs partnership with Chance for Life, theMotivation Foundation, We VanquishAutism Association
3 1 2
Sport programs for people with disabilities partnership with Special Olympics Romania
3 5 5
Dont ignore me- fundraising for buildingthe first excellence centre in curingchildrens cancer in Romania partnership
with Save Lives Association
5 5 5
Swimming annual competition partnershipwith Motivation Foundation
1 5 3
Donation (600 000 ) for building the FirstPalliative centre with clinical andeducational profile, Bucharest partnershipwith Hospice Hope House ( the partnershipstarted in 2006 )
5 5 5
Launching the Treatment and Assistance
Centre partnership with MuscularDystrophy Association ( 34 000 donationand 100 Vodafone volunteers involved)
5 5 5
Santa Claus is you internal volunteering 5 3 3
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program
2012
Mobile for Good launch national programusing mobile communication and apps forsorting our social issues
5 5 5
Work as Volunteer employees national
programpartnership with national NGOs
5 5 5
Build4Tomorrowpartnership with CharityWorks Association and DiaconiaInternational Aid Association
4 1 2
Big Build partnership with Habitat forHumanity Romania
4 1 2
Office supplies donation for Saint DimitrieFoundation, Saint Stelian Association and
Mias Children
1 1 2
SMS fundraising campaign to build a newflank for the Intensive Therapy Departmentfor new-born children (Marie Curie Hospital,Bucharest) partnership with ChildrensHeart Association
5 5 5
Swimming annual competition partnershipwith Motivation Foundation
1 5 3
Charitable Christmas show partnershipwith Radio Romania Foundation
1 1 1
2013
Work as Volunteer employees nationalprogrampartnership with national NGOs
5 5 5
20 000 donation for Real MadridFoundation opening a football school inBucharest (prevention of school dropout)
3 4 2
Average scores 3,64 3,03 3,25
We have ranked the middle section as 5 for all the health projects, considering that there already exists a series of
respectable institutions which are linking mobile phone usage with some forms of cancer (National Cancer Institute,
2012; Cancer Research UK, 2013). At the same time, we have considered sport competitions as a pro-active means of
staying healthy, thus ranking with 5 all such events / projects. As regards the impact, we have considered very little
impact for those activities or projects where demonstrably the number of people who benefited the results of the
project was under 5.
Table 3. Sensiblu Foundation
Criteria/Scale of fulfilling the criteria The activity /project is in linewith businesssobjectives.
Project is funded tofind alternatives topotential harmfulbusinesss products /services.
The results and/orimpact of the projectaffect the companysdirect stakeholders.
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2010
V-Days 16 days of activism against domesticviolence ( 7
th edition)
5 1 4
NGOs trainings (communication and fundraising) 5 1 2
Social campaign against women violence andlaunch ofwww.nuepoveste.ro
5 1 4
Parenting workshops partnership with TeaHouse and Laura Ivan, psychologist
5 1 2
Workshop The trauma effects upon humanmind: theory in practice with the support of HisExcellency Mark Gitenstein, US Ambassador in
Romania, and his wife, Libby Gitenstein and inpartnership with Inocenti Foundation
5 1 2
Be Santa Claus- partnership with "Luminita"
Center and Future for Romanian ChildrenFoundation
5 1 3
Blu Home- hosting and counselling program forwomen and children victims of domestic violence( program started in 2002)
5 1 4
2011
V-Days Campaign ( with a special focus onyoung people -8
thedition)
5 1 4
Social campaign against women violence -partnership with Avon Romania
5 1 4
2 % fundraising campaign 1 1 1Blu Home- hosting and counselling program forwomen and children victims of domestic violence( program started in 2002)
5 1 4
2012
V-Days Campaign partnership with PeaceCorps Romania and IREXFoundation/Biblionet ( 9
thedition)
5 1 4
Home peace, world peace campaign partnership with Gender Equality and
Development Peace Corp Committee Romaniaand IREX Foundation/ Biblionet
4 1 5
Say NO to domestic violence campaign 5 1 4
Series of workshops Teenagers emotionalabuse in family partnership with AvonFoundation
5 1 2
2 % fundraising campaign 1 1 1
Human Rightsinternship program- partnershipwith Filia Centre and Euro-regional Centre for
Public Initiatives
5 1 1
Blu Home- hosting and counselling program forwomen and children victims of domestic violence
5 1 4
http://www.nuepoveste.ro/http://www.nuepoveste.ro/http://www.nuepoveste.ro/ -
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( program started in 2002)
2013
V-Day campaign results ( essay contest for youngpeople)
5 1 4
A present for 8 March- No slap campaignagainst women violence
5 1 4
2 % fundraising campaign 1 1 1
Blu Home- hosting and counseling program forwomen and children victims of domestic violence( program started in 2002)
5 1 4
Average scores 4,4 1 3,09
The ranks received by the Sensiblu Foundation in column 2 have to do with the fact that the foundations projects are
not contributing to alleviating the core effects of the A&D Pharmasbusinessdistribution of medicines. In our view
there are plenty options one could take into account in order to answer better to the societys needs, considering for
example that 60% of parents administer medicines to their children without having the doctors recommendation
(ARPIM, 2012). As regards the impact, we have considered very little impact for those activities / projects where
demonstrably the number of people who benefited the results of the project was under 5.
Table 4. Ronald McDonald Childrens Charities of Romania
Criteria/Scale of fulfilling the
criteria
The activity /project is in line
with businesssobjectives.
Project is funded to findalternatives to potential
harmful businesssproducts/ services.
The results and/or impactof the project affect the
companys directstakeholders.
2010
15 years in Romania informationcampaign
1 1 1
Happy McDayI want to do good annual fundraising campaign(donating a percentage towards otherprograms)
5 1 3
Ronald McDonald houses, Timisoara(founded in 2008) and Bucharest(founded in 2003)- on-goingprogram
5 1 4
2011
Money donation for building anoncology-homology section forchildren at County Hospital, TarguMures
5 5 5
McHappy Day- I want to do goodannual fundraising campaign
5 1 3
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Ronald McDonald houses,
Timisoara (founded in 2008) andBucharest (founded in 2003)- on-going program
5 1 4
2012
I want to do well! - fundraisingcampaign to help improve hospital
conditions from GrigoreAlexandrescu Hospital, Bucharest
5 5 5
Building an elevator for childrenhaematology section, Louis TurcanuHospital, Timisoara
5 4 5
Ronald McDonald houses, Timisoara(started in 2008) and Bucharest(started in 2003)- on-going program
5 1 4
Average scores 4,5 2,2 3,7
We have ranked all health related initiatives of this organization with 5, considering existing research
which puts a direct link between fast food consumption and the risk of obesity in children (Bowman et
al., 2003) or research that states that McDonalds food has more calories compared with other fast food
chains, thus being less healthy (Chandon and Wansink, 2007). As before, we have considered very little
impact for those activities / projects where demonstrably the number of people who benefited the results of the
project was under 5.
Conclusions and discussions
The analysed corporations are presenting most of their projects online. Some projects are better described than
others, with details related to objectives and costs, while others are mentioned only briefly. In most cases the actual
results and impact data are missing. The number of fans on social media is low compared with other NGOs, which
have no corporate arms to rely on for getting funds.
We see a mixed picture when we analyse how strategic or how close to a faade are the actions of corporate
foundations. The closest to a faade are those activities reported by the organizations which are related to
information campaigns about their own activities and charitable concerts. We have also considered faade-like
approaches those small interventions affecting 2 or 3 individuals.
We notice a strong to very strong relationships between business objectives and objectives set out by corporate
foundations in the case of Sensiblu and RMCC, while Vodafone Foundation shows a moderate compliance between
-
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the business and foundations objective. We believe that such situation could change i f Vodafone Foundation
would focus more on bridging the community support it offers with technology solutions in an innovative way.
In the case of Vodafone Foundation, there is satisfactory leverage offered by the foundations activities for the
potential damaging activities of the mother corporation. We cannot state the same in the case of Sensiblu
Foundation. Although it is affecting, especially through the information campaigns, a large number of potential
victims of domestic violence, we fail to see a connection to the core business of A&D Pharma and its effect on the
society. We believe that issues like self-medication, selling antibiotics over the counter without a prescription,
offering medicines to children by irresponsible parents are issues that could concern in a more legitimate way the
Foundations activity. The same principle could be applied to RMCC, where we see investments in community
housing and health projects, however; the health projects are not directly linked with the most pressing issue related
to the mother companythe effect fast food has on obesity.
As a result, we may conclude that with a few exceptions, by analysing the online portfolio of projects / activities of
our research subjects, they are far from being facades for the good intentions stated by their mother corporations.
Limitations of the research
We believe that our analysis would have been more compelling if more information would have been
made available online by our research subjects in domains such as: annual turnover, value of each project,
clearly measured impact data. At the same time, it would have been useful to put into connection the
annual turnover of the corporate arms of the foundations with their operating budgets. It would have
helped us understand if companies appreciate the impact their philanthropic activities are making on
society, and if they are modifying their donation strategies accordingly. Under these circumstances, we
could be in a better position to re-affirm that if the philanthropy and business objectives are relying on
each others results, we are building a better and more affluent society.
Key words: Corporate social responsibility, strategic philanthropy, corporate foundations, online communication.
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