Compassionate Capitalism

About the Author

Marc Benioff is the CEO and chairman of Salesforce.com, a leading provider of online CRM applications. With a deep passion for philanthropy, he founded the Salesforce.com Foundation, which integrates philanthropy into Salesforce's core business strategy. His vision and leadership have inspired many corporations to adopt a more socially responsible approach.

Karen Southwick is a veteran journalist who has covered Silicon Valley for more than a decade. She has authored several books, including "High Noon: The Inside Story of Scott McNealy and the Rise of Sun Microsystems." Her extensive experience in business journalism brings a well-rounded perspective to the concept of compassionate capitalism.

Main Idea

"Compassionate Capitalism: How Corporations Can Make Doing Good an Integral Part of Doing Well" by Marc Benioff and Karen Southwick explores the concept of integrating philanthropy into the very fabric of a company's existence. The authors argue that companies that embed service as a core value not only contribute positively to society but also reap significant intrinsic and external benefits. By leveraging their resources, expertise, and the enthusiasm of their employees, corporations can create a culture of giving that enhances their business operations and strengthens community ties.

Table of Contents

• 1. Establish a Culture of Philanthropy
• 2. Define a Mission
• 3. Involve Employees
• 4. Start Small
• 5. Maintain Philanthropy Through Tough Times
• 6. The 1-Percent Solution
• 7. Innovative Models
• 8. Go Global
• 9. Strategic Philanthropy (or Not)
• 10. Tackle the Big Project
• 11. Good Partners Make Good Philanthropy
• 12. Call to Alms

1. Establish a Culture of Philanthropy

The foundation of compassionate capitalism is the establishment of a culture that prioritizes philanthropy. Leadership from the top is crucial in this endeavor. For instance, Hasbro, known for its famous toys and games, allows employees four hours a month of paid time off for community service. Alan Hassenfeld, the chairman of Hasbro, emphasizes the importance of caring beyond profits. He states:

"Has their own concern been only for profits, or has there been a sense of caring?" - Alan Hassenfeld

Hasbro’s primary philanthropic mission is to make the world a better place for children, aligning their success with giving back to the community. This approach not only fosters a sense of purpose among employees but also aligns the company's ethical values with business goals, enhancing overall productivity and loyalty.

Creating a culture of philanthropy requires commitment from all levels of the organization. Leaders must model philanthropic behavior, setting policies that encourage community service and recognizing employees who participate. This dedication fosters a sense of community and belonging among employees, which can translate into increased loyalty and productivity.

2. Define a Mission

Having a clear and defined mission for philanthropy ensures that the company's efforts are focused and impactful. LensCrafters, for example, stumbled upon its mission of giving the gift of sight by providing free optical services and recycling used glasses. Over time, this mission expanded into a comprehensive program that includes delivering new glasses to disadvantaged individuals and performing eye exams. Susan Knobler, vice president of the LensCrafters Foundation, recalls:

"I was trying to get ink... but we found a cause that resonated deeply and grew into something much bigger." - Susan Knobler

Defining a mission helps corporations streamline their giving efforts, ensuring they are proactive and consistent, even during challenging times. By focusing on a specific cause, companies can allocate their resources more effectively and make a more significant impact. A well-defined mission also helps in communicating the company's philanthropic goals to employees, customers, and the broader community.

For example, LensCrafters' Gift of Sight program has grown to include various initiatives, such as Vision Vans that deliver optical services to children and adults in underserved communities. The program's success demonstrates the power of a focused mission in driving impactful philanthropy.

3. Involve Employees

Engaging employees in philanthropic activities yields numerous benefits, including leadership development, improved morale, and better team dynamics. Bob Goodwin, executive director of the Points of Light Foundation, notes: