Corporate philanthropy can be an effective tool for companies that are trying to meet consumers’ rising expectations of the role businesses should play in society, say respondents to a McKinsey global survey.1 The survey also suggests, however, that companies aren’t using that tool as well as they could. Executives doubt that their philanthropy programs fully meet their social goals or stakeholders’ expectations for them.
About a fifth of the respondents say their corporate philanthropy programs are very or extremely effective at meeting social goals and stakeholder expectations. Their companies take a somewhat different approach than others do: their programs are more likely to address social and political trends relevant to the business and to be influenced by community and business needs. Executives at these companies expect their programs to become more global and say that efforts are already more likely to involve collaboration with other companies. Finally, these companies are much likelier than others to say they are achieving any business goals they have set for their philanthropy programs in addition to social goals.
A small group of respondents say their companies are reaching beyond traditional corporate goals for philanthropy programs—such as enhancing the company’s reputation or brand—to pursue...