Corporate Generosity
A common question is whether companies or corporations should make donations to charity. Do companies have a responsibility to the poor. We should remember that the mangers and directors of a company are watching over capital/assets that have been entrusted to them by their shareholders. They are stewards acting on behalf of their owners. They can only take actions for which they have been given approval by the shareholders. The articles of the company put boundaries on the range of actions that can be taken by managers and directors.
Managers cannot take the assets of the company for themselves, as that would be stealing. In the same way, unless the articles of the company provide for donations to charity, managers would be stealing if they gave the property of the company away to the poor.
Most Christians will generally do their own giving. Then they can pray and give as God leads. This will generally be more effective than trusting a company to give money away on their behalf. On the other hand, there may be some large projects that can only be funded by a large company. However this should only be done if it is provided for by the company’s articles of incorporation.
1 comment:
Ron, you are so right on with this one. I have always been irritated with big shot corporate types getting accolades for giving MY MONEY away to a cause or a charity I may not agree with.
I don't get invited to the hoity toity parties they do. I don't get my picture in the paper. They do.
What irritates me most about this is it's OTHER PEOPLE'S MONEY.
Give it in dividends or capitalization to improve the stock value and let ME figure out where I want to put the money.
In fact, I use corporate "Generosity" as an anti-investment motivator. If a corporation is so large that it feels it must be a player in the philanthopy arena, they don't want my money, I don't want to be part of theirs.
All I can say is, BINGO. You nailed it.
It's MY MONEY, I'll make the decision to whom I'll give it, not YOU MR/MS Corporate Leader.
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