Spring 2016

The changing face of corporate giving - our new report on giving by the FTSE 100

Our recently published second report on levels of giving by the FTSE 100 provided a revealing insight into Britain’s biggest companies and how they deploy their corporate philanthropy within and across different industry sectors.

The report shows that FTSE 100 companies donated an average of 1.9% of pre-tax profits in 2014. It means that giving as a percentage of pre-tax profits among companies on the exchange is at its highest level since 2009 which reflects the genuine commitment we see from business to embed and grow corporate responsibility.

However, varied market conditions have meant that we have seen patterns altered despite the overriding commitment remaining firmly in place.  In cash terms, the total amount donated by FTSE 100 firms in 2014 fell 17% to £2.1 billion. This was £420 million less than in 2013.

Most of that decrease is down to a significant reduction in giving by just six firms, the majority of whom saw revenue adversely affected by tough trading conditions. Interestingly three-quarters of total donations originated from 10 of the most generous companies within the FTSE.

Alongside this, we have growing concerns that an increasing number of firms are becoming less transparent about their corporate giving. In the past two years, thirteen of the FTSE 100 have stopped reporting this information in their annual reports in a way that makes the data accessible.

If we are to improve levels of corporate giving across the business world then clear and consistent reporting is paramount as it provides an ongoing benchmark and standard for others to follow.

CAF’s report, Corporate Giving by the FTSE 100, analysed the annual and corporate responsibility reports from 2009 to 2014 of every company on the index, analysing donations of money, time, management services and in-kind donations.

Download the Corporate FTSE100 report

 

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