Doing Well by Doing Good
Alex Biel
In the last decade, corporate philanthropy has been on the upswing in America. Examples abound: Cisco Systems, the networking firm, teamed up with the United Nations to create NetAid, a web-based initiative to reduce severe poverty around the world. Darden Restaurants, parent of Red Lobster dinner houses, funds the Darden Environmental Trust.
While it is tempting to conclude that this corporate giving is driven by altruism, it would not be completely accurate. One reason for this beneficence is that US tax rules specifically encourage generosity. However, business giving is not limited to pecuniary...