The Prague Post Online: Opinion: Low-key giving

July 7th, 2008

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Low-key giving

Corporations take social responsibilities seriously
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March 26th, 2008 issue

By Peter Formanek

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A little more than a year ago, Hospodářské noviny criticized international corporations for using their charitable deeds as advertising for their products.

But regardless of criticism from media outlets, most corporations these days know that to be good members of the community, they must get involved, help out and give something back.

We certainly seem to be seeing more social problems. In some areas of our community, people seem practically unable to cope with the pressures of the post-modern world.

These issues aren’t unique to the Czech Republic. Every day, we see people who need help in every large city of the world. These are people without homes, drug addicts and serious alcoholics, young and old.

This situation is not going away, and, in fact, it seems to be on the rise. It doesn’t matter how we perceive those people who seem unable to be involved as productive workers, the fact remains that as a society we have to accept certain responsibilities for them.

During the time of the Austro-Hungarian Empire and the prewar Czechoslovak Republic, various charity groups, social foundations and churches took on the responsibilities of helping needy people.

These groups raised money for charitable projects and had reserves of volunteers recruited from the then-large pool of housewives, the clergy and other socially responsible people.

During communist rule in the Czech Republic, social problems officially didn’t exist. Instead, the government’s solution for undesirable elements of society was to move people into psychiatric institutions or prisons.

In the Czech Republic these days, most churches no longer have extensive financial resources or armies of volunteers. After all, they suffer from a shortage of priests and ministers and face other problems.

For one thing, the majority of women who use to be housewives are now employed. And it also seems like volunteer work with the poor, the dirty and the helpless is not chic.

Government help is very marginal. Government officials realize there is a growing problem that they should deal with. But it seems like community-based volunteering is practically impossible.

But national and international corporations are stepping up to the plate to deal with social problems in the Czech Republic. It may be a relatively new phenomenon, but it’s growing rapidly.

Regardless of the criticism these corporations may receive from some media outlets, many are pressing forward with very good charity programs. They have strict accounting rules and oversight to make sure the money goes where it is supposed to.

I hear critics accusing corporations of using their charitable deeds as a form of advertisement for their products. It might look as if that is the intention. But is it really true that a big company would spend money without any altruistic motives just as a marketing tool?

Let me tell you my firsthand experience.

I was the founding member and the chairman of the board of a foundation of one of the largest communication companies operating in the Czech Republic. Because of previous public criticism, the company has made strict rules that it must keep a low profile about how much it has to give and to which groups it gives money.

I know that other large charitable sponsors have similar policies.

This is frustrating sometimes, because most people don’t understand that such groups are closely audited and have committees to evaluate every request.

Some of the corporations operating here give their employees paid time off so they can volunteer for charitable works.

Many corporate funds are directed to helping young people — mainly where positive prevention is necessary. Many corporations support youth clubs to create a positive environment for young people who otherwise would hang around malls. Many also have programs to help young people who have no financial resources.

Let me give you some examples.

Jan Mühlfeit, the chairman of Microsoft Corp. in Europe, and his boss Bill Gates in the United States support several charities, including “PCs Against Barriers.”

Mühlfeit is also involved with the Junior Achievement Young Enterprise Europe group founded by Tomas and Sonia Bata of the Czech corporation Bata Shoes. Its aim is to help young people learn about the business and develop young entrepreneurs.

The Vodafone Czech Republic Foundation also looks for programs that support the abilities, skills and initiatives of children. Its goal is also to improve the quality of life of underprivileged groups by “leveraging the benefits of communication technologies,” according to the company’s 2006 annual report.

At the same time, the foundation supports several innovative solutions that incorporate communication technologies to help visually, aurally, and physically impaired people.

The total amount given to those projects by Vodafone in 2006 was 14 million Kč ($855,266).

On the other hand, Nadace Česká spořitelna has a more diversified mission. The foundation of the Czech bank has 500 million Kč to spend. Its activities include helping seniors, education, protecting the environment, cultural events and sports activities.

There are other corporations that are involved in other commendable activities but are even quieter about it. International Power Corp. (based in London, but with large holdings in the Czech Republic and elsewhere) has cleaned up environmental waste in Pardubice and built a park, for example.

I name only a few examples of corporations that have taken on social responsibility issues here. There are many more, including Telefónica and Komerční banka. No doubt other corporations working in the Czech Republic will soon follow suit.

In the future, I hope all corporations can openly announce their good works and the amounts of money they spend without their good intentions being misrepresented by some media groups as selfish promotions.

In fact, even if such charitable contributions are considered part of a corporation’s overall communication strategy, isn’t it better to give money to the community than to pay for billboards on the streets?

I also hope that more elderly people and poor people will be remembered when such funds are distributed. Financing cultural events is very noble and commendable but it’s also great to give funds to less glorious places. Anybody who visits old-age homes in the Czech Republic will agree.

I would also like to see more support for hospices, as is done in the United States and Canada.

Everyone needs to be aware of the importance of these efforts. These national and international companies are not only returning part of their profits to society but they are the forerunners of the growing social consciousness that it’s important “to share with your fellow man.”

I remember a time 15 years ago when charities in this country were forgotten. But now the Czechs do good deeds as well as any other nation.

— The author is president and chief executive officer of the Canadian Chamber of Commerce in the Czech Republic.

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