Donations

Key takeaways

  1. Donations are a great way for companies to positively contribute to societal and environmental problems. However, we must be critical and assess the scale and scope to gauge the effect of the donation.

  2. Donations should be a secondary point to the company’s main impact to support it.

What is the issue?

Most companies make donations for social and environmental causes.

Writing an analysis simply on the yearly donations of a company is not sufficient to assess its impact.


How to use them?

What you have to do is put into context the amount of donation. You have to relate the donation amount to the company's annual net income (what percentage do these donations/programs represent the company's yearly profits?).

You can also compare the company’s donation to the overall donations for the specific cause. This will show how much the monetary contribution has helped. This can help readers better understand the scope of these initiatives (i.e. is it marginal or quite large).

Caution

One-offs donations should not make the subject of an analysis. They do not portray the real or current impact of the company.


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