Giving Thoughts

CECP releases Giving Around the Globe

By Carmen Perez, Manager, Measurements and Standards, CECP

Have you ever needed to know detailed information about corporate investments in communities around the globe, such as how much corporate giving went to the West African nation of Mali last year? With the release of Giving Around the Globe, we now know, for the first time, which countries receive attention through international corporate giving.

CECP was thrilled to release this new research in November 2013, reflecting the programs of 60 leading companies whose revenues total USD 1.99 trillion, roughly equivalent to the gross domestic product of India or Italy.

Expanding geographic portfolios reflect business strategies
Giving Around the Globe reported that companies gave to a median of 25 countries in 2012.

This is not necessarily a large number of countries, particularly when you consider that 30 percent of companies have more than 40 countries in their international giving portfolio.

We have found in our conversations with corporate giving officers that many companies’ geographic expansion strategies sometimes focus on growing within a market, not necessarily across several markets. Our findings suggest that higher international giving follows this trend, prioritizing certain locations over others and not simply giving in more places.

In another reflection of business strategy, Giving Around the Globe found that companies give primarily to neighbors (of the corporate headquarter country) and emerging markets. India topped the list of recipient countries. Seventy percent of companies made donations there in 2012 (Indian end-recipients received 2.4 percent of aggregate international giving). Canada, China, Mexico and the United Kingdom rounded off the top five.

Deciding how much to give
The scale of companies’ giving per country can differ significantly, revealing a pattern of uneven distribution. Expressing this in numbers, for the vast majority of companies (70 percent), at least half of the countries in their geographic portfolio received 2 percent or less (and often much less) each of total international giving.

Our discussions suggest that the amount given is determined by the value of the local operations to the company. In addition, we understand that companies often test new markets with their giving as they learn about the local philanthropic culture and begin to build expertise in the domestic civil sector. Finally, we know that what a dollar (won, yen, rupee, or euro) can buy varies based on where one is (i.e., purchasing power parity). A company may be able to accomplish similar results in multiple countries, yet invest different amounts in each.

Getting involved
Do you know how your company’s global giving stacks up? Make measurement a priority today. There is no cost to participate in CECP’s research, including the report Giving in Numbers, published in association with The Conference Board. Strengthen your ability to use these results as benchmarking tools by ensuring your company is represented in the research. Email [email protected] to find out more.

And, in case you were wondering, Mali received contributions from 12 percent of companies and 0.12 percent of aggregate international giving.

Do you want a hard copy of Giving Around the Globe? Just send this tweet: Send me a copy of #GATG2013 @CECPTweets! Read the latest in global #CSR #philanthropy at cecp.co/global

About the author:

As part of CECP’s measurement team, Carmen leads the organization’s global research, including implementing the Global Guide reporting standard and authoring the publication Giving Around the Globe. Carmen was instrumental in the creation of the new standard published in the Global Guide to What Counts, released in June 2011. She also manages CECP’s engagement with international stakeholders and leads CECP’s customized benchmarking services, an exclusive benefit to CECP companies.

Carmen joined CECP from the community economic development sector. Most recently, she was the Organizer and then CEO of a newly opened federal credit union (FCU) in Long Island City, Queens. Her background includes work in the microfinance and small business development fields, as well as experience in data analysis and project management for the City of New York. Carmen holds a Masters in Public Administration, Financial Management Specialization, from the NYU Wagner School of Public Service and a bachelor’s degree from University of Wisconsin-Oshkosh with a triple major in International Studies, Political Science, and French. Carmen speaks French and conversational Spanish. Carmen serves on the Supervisory Committee of Internet Archive FCU.