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These days, with so much restructuring it is difficult for many companies
to promise job security to their employees, so the environment surrounding
companies' philanthropy is quite difficult. In such a severe environment,
to promote their social action programs they have to use "managerial
sense". This is especially true with large corporations whose only
goal is profit. Therefore even if a social action program is socially valuable,
it is difficult to start the program that may be a burden to the management
and reduce the dividend.
It becomes stronger to regard the "managerial sense" as important
because of change of management system. Autocratic management is not uncommon
in the case of founders or sole proprietors. On the other hand, the CEO
of a large corporation must create a consensus and keep profit in mind
to start philanthropy programs, whereas a sole proprietor may do so out
of the kindness of his/her heart.
Those in charge of philanthropy in a large corporation always begin with
a comprehensive explanation of the benefits of the program for the company.
For example; a philanthropy program for the consumers, who are responsible
to social contribution such as green consumers, becomes a lever to gain
consumers' support. Socially aware employees do not cause scandals, and
so on. Stating the benefits the argument is strengthened that the philanthropy
program brings positive effects for the investors
According to the survey by Japan Federation of Economic Organizations in
2001, the total expenditure for philanthropy programs per company in fiscal
year 2000 is 416 million yen( average expenditure for 323 companies that
answered). This survey reported that the total expenditure increased for
two consecutive years from 1999. This proves that philanthropy programs
provide positive effects for management and for the company.
On the other hands, while such programs with operation efficiency are increasing,
philanthropy by small companies tend to be referred as the "president
pastime".
It is not rare to have cases where socially ambitious presidents of small
companies make special earnest efforts to employ physically challenged
people or to provide supports for local festivals or children's associations.
Further, as shown by the fact that the employment rate of those challenged
people in small companies is higher than that of large companies, the ratio
is higher for small companies even if the absolute size is small.
Many of small companies have relatively few restrictions on the manager
like large companies do. Therefore, philanthropy programs can easily be
started by the president without bureaucratic red tape. But it is difficult
for small companies to justify the time and expense of the philanthropy
program. They rarely have contact with consumers directly, so it is difficult
to build theories such as gaining the support by conscious consumers. The
benefits to the company are not always obvious.
However, if the president is replaced, it is often the case that all the
activities are stopped at once because activities are enforced by the president's
personal idea. The expression "president's pastime" includes
a cynical connotation of unstability. Companies have to pursue profit,
but they don't want to only engage in "making money". This is
the president's dilemma: he must keep the company's success in mind, while
also making the social contribution that is expected of him/her. The solution
to this dilemma is to make social contributions the president's pastime.
Recently it is often pointed out that there is merely a relative difference
between the company that is close to the red by sticking to the program
and the Non-Profit Organization (NPO) that aggressively conducts profit-earning
business. We can say there is not much difference between such a company
and such a NPO. That is idea of the president's pastime surpasses the idea
that "My company is a profit-making corporation". The president
pastime may create the possibility of change for future management or new
working style.
In addition, to consider it as pastime will release the president's inner
conflict. Presidents of small companies, please try "president's pastime"
and help to make the world a better place!
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