14 August 2014
The UK’s biggest companies have almost doubled their donations
to charities over the last five years, but most people are unaware
of their work in this area, according to new research released
today.
The FTSE 100 gave £2.5bn to good causes in 2012, a £1.2bn rise
since 2007 – despite the economic downturn.
However, consumers are largely unaware of this commitment,
people thinking that just over a third (36%) of the FTSE 100 make
donations to charity every year when in reality nearly all of them
(98%) do.
The report also shows that younger people are a lot pickier when
it comes to the companies they choose to do business with.
Nearly two-thirds (65%) of 18 – 24 year olds are more likely to
buy a product or service from a company that makes donations to
charity. This is compared to 51% of the general public.
The report, 'Corporate Giving by the FTSE 100', calls for a more
consistent way for companies to report and measure their giving so
they can be clearer and more vocal about their work with
charities.
It also asks them to integrate a clear social purpose into the
core of their business and increase their participation in employee
giving schemes.
The research commissioned by the Charities Aid Foundation (CAF),
which helps people and businesses support the causes they care
about, and provides financial services designed for the charitable
sector, also shows that 45% of people would be more inclined to
work for a company that donates to charity, or 61% among 18 – 24
year-olds.
The report also found that the public are misinformed about
which businesses do the most for charity.
When people were asked to choose the top three most generous
sectors, Consumer Services and Consumer Goods were by far the most
popular. But when ranked in terms of total donations, these
industries were 5th and 6th on the list after Healthcare, Basic
Materials, Financials and Telecommunications.
It also showed:
- The average donation by the FTSE 100 has trebled since 2007
from £1m to £3m
- Donations to charity by the FTSE 100 are increasing at a faster
pace than their pre-tax profits
- 73% of people think companies should be more open and
transparent about their corporate responsibility
- 61% say corporate responsibility is just a PR exercise
- 69% think that businesses have an obligation to support the
local community in which they operate
- 44% think that businesses have an obligation to donate to
charitable causes.
John Low, Chief Executive of the Charities Aid Foundation, said:
“The way businesses work with charities and their local communities
is becoming increasingly important, especially as younger
generations are influenced more and more by the way in which they
operate.
“I often hear stories that hopeful graduates look into the
charitable work of a company directly after browsing the jobs pages
– this is becoming an increasingly important factor when it comes
to career choices.
“We’ve seen a growing number of brands putting their ethical
aims and values at the heart of their businesses, and many have
been hugely successful, particularly among a younger age group.
“We now need all companies to be more transparent and vocal
about the great work they’re already doing for charities across the
country. Why not shout louder about the remarkable growth in
corporate charitable giving in spite of difficult economic
conditions.
“This will begin to restore public trust in businesses after so
many setbacks.”
Download Corporate Giving by the FTSE 100 2014
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